Many of the millions of iPhone 2G users are looking forward to buying the iPhone 3G on July 11 and have been thinking about what to do with their old iPhone. AT&T has provided some answers.

AT&T has announced that when the new iPhone 3G ships on July 11, current iPhone customers will be able to buy a new iPhone 3G for US$199 (8 GB) and start a new two year contract. However, some users may already be thinking about what can be done with that old iPhone 2G. iPO spoke with Mark Siegel, AT&Tis; spokesperson about that.

Option #1. Keep the old iPhone 2G as a video player/iPod, Wi-Fi enabled device but without the ability to make EDGE voice calls.

Option #2. Sell the old iPhone after the new one has been activated. However, one should be aware that itis very hard to erase personal information from the NAND Flash memory in an iPhone, so selling it to a stranger could pose privacy problems.

Option #3. Take the old iPhone in and have both phones rolled into a Family Plan. Mr. Siegel suggested that the best way to approach that is to visit an Apple or AT&T store for details on or after July 11th. AT&Tis; Family Plans vary by region and the number of minutes, and may be specific to the iPhone family of phones. AT&T typically charges US$9.99 for an additional phone in the family plan, and in addition to the $20/month for an unlimited data plan for the old iPhone 2G you keep, youill also pay $30/month for the new iPhone 3G. All thatis in addition to the Family Plan rate for two iPhones.

Mr. Siegel also commented on the reports that some AT&T 3G smartphones are claiming 3.6 Mbps downloads on the 3G network, but thatis an absolute theoretical maximum for now. Apple and AT&T have chosen to advertise an average value of 1.4 Mbps as a more representative number. At some point in the future, Mr. Siegel said, AT&T could raise the maximum download speed of their 3G network, in some places, to 7.2 or even 14.4 Mbps.

Finally, note that 3G coverage may be different than EDGE coverage for a given region. A coverage map is available at AT&Tis; iPhone site. iPO notes that insuring customers understand that could be one reason why in-store activation will be required in most cases.