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AT&T Cuts IPhone 3GS Price, Making Way for New Phones

AT&T Inc., the second-largest U.S. mobile-phone carrier, is cutting by half the price of the Apple Inc. iPhone 3GS, making way for a lineup of handsets designed for its faster network due later this year.

The reduction in price, to $49 from $99 for users on contracts, takes effect tomorrow, Mark Siegel, a spokesman for Dallas-based AT&T, said in an e-mailed statement.