By Dawn Kawamoto, CNET

AT&T announced pricing for the iPhone 3G on Tuesday, noting the popular smart phones will range from $199 for 8GB to $299 for 16GB to eligible customers.

AT&T will begin offering the iPhone 3G phones at its retail stores beginning July 11 at 8 a.m. local time. AT&T is the exclusive iPhone carrier in the United States.

Under its offering, the lower price will be available to only customers who purchased an iPhone before July 11, or are activating a new customer line with AT&T, or are eligible for an upgrade at the time of purchase. Customers also are required to sign a two-year contract.

AT&T customers who are not eligible for an upgrade discount can buy the iPhone 3G for $399 for 8GB model, or $499 for a 16GB version, under a two-year contract. Customers who purchase the phone without a contract would pay $599 for 8GB or $699 for a 16GB.

The phones will come with the iPhone 2.0 software preloaded on the devices, which includes such enhancements as business-class e-mail through Microsoft Exchange ActiveSync and the iPhone Software Development Kit for creating customized applications. AT&T will also offer its Yellowpages.com Mobile for iPhone on the devices.

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