This deal has ended.
When you sign a 2 year contract and voice and data plan, AT&T drops the price of the iPhone 3GS 8GB to $49 shipped. This is the best price we could find by $240. This popular phone isn't the newest model, this is still an amazing price. There are three individual rate plans ($39.99 for 450 minutes / 5000 night & weekend, $59.99 for 900 minutes / unlimited night & weekend, and $69.99 for unlimited, plus $15 for 200MB data plan, $25 for 2GB, and $45 for the top data plan. Of note you can get a refurbished model for $0.99!