Apple’s exclusive iPhone carrier in the US, AT&T has remained silent on reports that it will be selling the 3G iPhone for $199 as long as the subscriber signs up for a specific plan.

iPhone-Codes.com reported about it earlier (read here) quoting industry insiders but as of this time, AT&T has not issued any statement regarding the much-publicized $199 3G iPhone.

Sources said AT&T is preparing to subsidize $200 of the cost of the new iPhone but there’s a catch.         

Customers who want the $199 3G iPhone will have to compusorily sign up for a two year contract with AT&T. You will have to pay the $399 unit price for 8GB and $499 for 16GB if you want your network under Verizon Wireless, T-Mobile, or Sprint.

The markdown price is a strategy by AT&T to drive customers away from its competitors. But for sure, the other network providers will also be implementing marketing strategies that will challenge AT&T.     

While AT&T is silent yet on the issue, the strategy is seen to benefit the mobile carrier and will surely attract more subscribers.