When the Apple iPhone was first introduced, a lot of people complained about AT&T's decision not to subsidize the costs of the unit. However, word on the street is that the next iPhone will be subsidized by AT&T.

According to the Fortune Techland Blog's unnamed sources, the company plans on subsidizing as much as US$ 200 of the expected US$ 399 (8 GB version) and US$ 499 (16 GB) version of the iPhone for those who sign a two year contract.

The US$ 200 subsidy is expected to be limited to AT&T customers only and will not be offered through Apple stores. In addition, iPhones will be locked to AT&T's service, preventing users from using the phone on another network.

So far Apple and AT&T have declined to comment on this move. However, it might be good to note that this move by AT&T seems like a prudent and plausible move considering the amount of success the first model of the iPhone has gotten.