Not to long ago AT&T was trending on Twitter due to people complaining about the upgrade prices for the iPhone 3G S. I didn’t think it was so terrible. You knowingly went into a contract with AT&T when you got your other phone so this is no surprise. The low prices for the iPhone can only be achieved by AT&T subsidizing the costs and recouping it in the contract. So as far as I could tell, all is fair.