Below are a few quotes from the Third-Quarter Results. You can view the full report HERE.

“4.3 million postpaid 3G integrated wireless devices added to AT&T’s network, the largest quarterly increase in the company’s history; integrated device growth included 3.2 million iPhone activations, also the company’s largest quarterly total to date”

“Retail postpaid net adds totaled 1.4 million — the second highest third-quarter total in the company’s history, behind only the third quarter of 2008, which included a strong iPhone 3G launch — and were up 20.1 percent versus results in the second quarter of this year.”

“Record iPhone Activations. AT&T’s third-quarter integrated device growth included 3.2 million iPhone activations, also the company’s largest quarterly total to date, with nearly 40 percent of the activations for customers who were new to AT&T.”

“While we haven’t spoken to any of our ninjas to confirm this yet, we did speak to three customer service reps as well as someone in the office of the President – each confirming that at-home activation is a go.”

I have updated the information for this article (see Update section), it seems that it is definitely an iTunes activation process….please read below.

When I took a look at AT&T’s website, it seemed that you were only able to order an iPhone 3G online if you were a new customer, starting a new line of service. If you are adding an iPhone to your current plan or upgrading to an iPhone it says to you will need to go into an AT&T store to purchase the iPhone. I did call AT&T and the rep that I talked to said that once I received my iPhone in the mail (free next day shipping!!) I would have to call in to AT&T to activate my iPhone. I’m not sure if they would then walk you through the iTunes process or if they have a new process. It did require that I sign up for a 2-year agreement and when I went back in to check something else, if would not let me “purchase” another iPhone. It said, “We’re sorry, but you can only purchase one iPhone online per household.”

I’m not so sure this is an open door for those hackers who want to get their hands on an iPhone 3G without AT&T but, it could definitely be more convenient for those of you who would like to skip going into an AT&T store this time of the year!

Update: Well, I just talked to another AT&T rep…this is what I got:

Kevin: Welcome to AT&T online Sales support. How may I assist you with placing your order today?

Brooke: I have a quick question…which I’m sure you have been getting a ton of questions about.

Brooke: If I purchase an iPhone 3G off the website, how do I activate it?

Brooke: Also, am I able to purchase it as a gift and then let some else activate it later?

Kevin: I’m am reading your question now.

Brooke: Ok…thanks

Kevin: I’d be glad to answer your question! Here’s how you activate the iPhone: You activate the iPhone in a whole new way—using iTunes right on your computer. All you need is a PC or Mac with iTunes installed, access to the Internet and an email address. Connect the iPhone to your computer using the supplied USB cable and follow the on screen instructions to complete the activation process. Should you encounter any difficulty, please visit an AT&T retail store to complete the activation of your iPhone. The credit approval for your AT&T service also happens on your computer. It’s part of activating through iTunes, but if you’d rather have your credit pre-approved before you leave the store, an AT&T store representative can help you with that. You will also select an available plan during activation.

Brooke: So, I could purchase one and then give it as a gift and that person could activate it themselves? It requires that I fill out monthly plan info…could they change that later?

Kevin: Just a moment let me check with my supervisor to make sure.

Brooke: thanks

Kevin: Yes they could!

Brooke: Great! That is really all I needed to know!

Brooke: Thanks!

Brooke: Wait…one more question!

Brooke: What if I buy it and they don’t activate it right away…will it charge my credit card?

Kevin: The phone must be activated within 30 days. Your only charged for what you use.

Brooke: So, if I don’t give it to them until Christmas and they don’t activate it right away then does it just become unuable?

Brooke: unusable

Kevin: Correct.

Brooke: oops sorry…ok, so as long as they activate it in 30 days it is ok.

Kevin: Correct, you are again.

Brooke: Haha…ok, thanks!

Brooke: I think that is all I needed.

Brooke: Bye

Kevin: Have I answered all of your questions? Will you be adding your lines today? If so, I can send you the page link now.

Brooke: I actually already have the page link…thanks

Kevin: Great! Have I answered all of your questions today?

Brooke: Yep…I think so!

Kevin: Thank you for choosing AT&T. Have a great day. Happy Holidays!!

Brooke: Thanks you too…Merry Christmas!

Kevin: Merry Christmas Brooke!!

Brooke:

I’m not exactly sure how an iPhone would become unusable after 30 days but, there you go!

UPDATE: We also received the following information and links from AT&T for purchase of iPhones online:

Please note the following customer requirements:

* 2 Year contract
* $39.99 rate plan or above
* $30 Data plan for iPhone is required for the life of your iPhone service and cannot be removed in the future.
* Limit one device per household
* No cash back reward may be provided in connection with the iPhone.

AT&T iPhone 3G – 8 GB
AT&T iPhone 3G – 16 GB

I stopped by the AT&T store and they were having the same problems. They went to just selling iPhones without activating them and just making sure people were signing up for service. We stopped at a local coffee house/restaurant, Panara Bread, and activated Brooke’s iPhone after about 3 attempts. My iPhone was another story! At the time of writing this article, I was still getting the following error every time I connected my iPhone via USB to our laptop and iTunes:

The problem then is what if you install an app from Installer.app and it crashes your iPhone? Restoring wouldn’t be as easy because to activate you would have to go back to the store. This all seems like a good way to slows the jailbreaking down. If you have to go to the store to activate you may not jailbreak or even buy an iPhone 3G. I know that if I have to go to the store to activate I will be there about once a month due to all the testing I do, especially when testing jailbreak methods. Can you imagine? If I think back, there are times I restored more than 5 times in one day testing things. I know this is out of the norm but most non-jailbroke iPhones won’t need to restore much if ever.

I know a lot of you are already asking these types of questions and I’m not sure there is an answer yet. We will keep you informed on the latest info regarding jailbreaking, unlocking, activation, service plans, etc. Let us know your perspective in the comments.

AT&T and Apple today announced that the iPhone 3G will be available in the U.S on July 11. iPhone 3G combines three products into one small, lightweight device: a revolutionary mobile phone, a widescreen iPod, and it puts the Internet in your pocket with the best e-mail, web browsing, search and maps applications ever on a mobile phone.

The new version of the iPhone harnesses the power of AT&T’s broad and powerful 3G mobile broadband network, which offers 3G mobile phones download speeds of up to 1.4 Mbps.

Key Device Features:

Operates on Wi-Fi, EDGE, and 3G networks
New enterprise e-mail capability with support for Microsoft Exchange ActiveSync
New iPhone software development kit (SDK) to support new innovative applications
Note: 2G iPhone customers will be able to download the iPhone 2.0 software from iTunes which enables new features such as access to corporate e-mail via Microsoft ActiveSync.

New Activation Process and BRE:
The iPhone 3G will be activated at point of sale when the device is purchased, in store. The BRE period will change from 14 days to 30 days and will require the device to be returned to place of purchase before service is cancelled.

Pricing and Plans
Device Pricing:
$199 8GB and $299 16GB for new activations and qualified upgrades with 2-year agreement.

Data Plans and Pricing:
The iPhone 3G will be activated on existing AT&T voice rate plans, but new data plans have been created for the 3G device.

All iPhone 3G customers are required to have one of the new data plans and qualifying voice plan.
Customers intending to use the iPhone 3G for access to corporate e-mail, business applications, or access to corporate intranet are required to activate with Enterprise Data Plan for iPhone.
The 2G data rate plans will remain available for 2G devices until further notice.
IRU service discounts for both voice and data pans will apply to iPhone 3G, but not 2G iPhone.
CRU service discounts for voice and data will apply to both 2G and 3G, when on a qualifying data plan.
IRUs will not get a discount on device purchase for 2G or iPhone 3Gs.
Data Pricing will be as follows:
Consumer Data Plan (must be added to qualified voice plan):
$30 – Unlimited Data (E-mail/Web), includes Visual Voicemail

Enterprise Data Plan (must be added to qualified voice plan):
$45 – Unlimited Data with personal and corporate e-mail, web, includes Visual Voicemail

Upgrade Eligibility and Qualified Upgrade Pricing
Upgrade eligibility will be determined based on standard upgrade eligibility rules. Customers must be upgrade eligible to receive the qualified upgrade pricing. However, not all customers will be qualified upgrades. AT&T has not determined the price of the 3G device for non-qualified upgrades.

All customers will be required to sign a 2-year agreement. There will not be a “no commitment” price for the iPhone 3G.

Note: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure. (Customers that would not otherwise be eligible due to tenure will be made eligible at launch).

Activation Process
The new 3G device will be activated in store in both AT&T and Apple stores. Customers must accept AT&T and Apple Ts & Cs, sign a 2-year agreement, and select the data plan for the iPhone 3G before leaving the store. The current iTunes activation process will no longer be required for iPhone 3Gs, however a short tether process to unbrick the 3G device will be performed in all AT&T stores (tether cords will be provided). Apple stores will also perform this tether process, however in the event that a customer’s device is not tethered in the Apple store, their device will be inoperable until they get home and tether through iTunes. Prepaid and Pick Your Plan will not be allowed on the 3G device.

The SSK has been modified to allow customers interested in the iPhone 3G to enter their information, select rate plans and data plans, and print a document that will allow COR reps to quickly access the customer’s information in OPUS and save time for data entry in the activation process.

Note: In the interim, 2G iPhones will continue to be activated via iTunes – BAU. This is also true for existing AT&T customers who receive a 2G device as a gift, hand-me-down, etc. and wish to activate the device. Existing AT&T customers who switch to the 2G iPhone must tether through the iTunes process to begin using the device.

Compensation
Because the 3G device will be activated in store, compensation for the 3G device will be BAU. COR reps will receive compensation for upgrades and new activations with a 2-year agreement.

Purchase Limit
The device purchase limit will remain three (3) per customer for iPhone 3G in AT&T stores.

Allocations
If allocations are required at launch, supply chain will allocate based on January-April sales rates applied on a store-by-store basis.

Direct Fulfillment
The DF tool will be available at launch in COR for iPhone 3Gs. Customers will be required to pay for the device when the order is placed and the phone will be shipped to the store in the customer’s name.

Existing Stock of 2G Devices
We will continue to sell 2G devices until stock is depleted.

Return Policy
2G Devices
Customers who recently purchased a 2G iPhone may want to return their device once they hear about the 3G model and price point, but the new device will not be available immediately. Since the announcement and launch will be about 30 days apart, we could lose some customers who are within their BRE period and want to return their device before their 14 days expires and wait for the new 3G device. We must acknowledge and address their desire to get the best device for them.

Here’s how AT&T will handle 2G iPhone returns:

If a customer purchased before 5/27, we will follow BAU processes – no device returns. However, all postpaid 2G iPhone customers in good standing are upgrade eligible, so these customers will qualify to upgrade to a 3G iPhone when it is available.
If a customer purchased on or after 5/27 (within the 14-day BRE period before the product announcement on 6/9), we will let them exchange their 2G iPhone for an iPhone 3G before August 1. This means that after we launch the 3G model they can return their 2G iPhone, pay the 10% restocking fee, and purchase a new iPhone 3G before August 1.
Note: This modified return policy applies only to customers who purchase from AT&T stores.

3G Devices
The return policy for 3G is changing from 14 days to 30 days for both Apple and AT&T stores.

To cancel service within the first 30 days, the customer must return their equipment to the place of purchase (no exceptions).
If the customer cancels service after 30 days, they will be charged the ETF. The customer is not required to return the device to cancel after 30 days.
Special Notes Regarding 2G Devices

After the iPhone 3G launches, activations of 2G iPhones for new AT&T customers can be performed in COR stores or in the existing iTunes tether process. COR reps will receive compensation for activations of new AT&T customers done in store.
2G upgrades will continue to be activated via the existing iTunes tether process.
Existing 2G data plans will remain available for 2G devices until further notice.
Note: 2G iPhones are out of stock in the DCs, and the Direct Fulfillment tool for 2G is turned off. 2G iPhones have been removed from the “myRewards” incentive catalog.

Merchandising/Marketing

Current 2G iPhones should remain on device fixtures in store. Do not remove 2G demo devices until further notice.
3G demos will be pulled from stock when they arrive following BAU process for display devices.
Video loop content will be pushed to stores when it is available.
New docks and retrofit kits will be provided for existing iPhone fixtures.
The following merchandising elements will be in stores for launch:

Rate brochure and display rate card
22 x 28 poster
Window banner
Duratrans – will be available for markets to order
Coming Soon: Posters and banners are TBD
Training

Device training, including features and functionality, will be available via My CSP by 6/13.
OPUS training will begin no later than 6/20 and will be delivered via the Learning Edge.
Launch preparedness training, including last minute details, will be conducted the week of launch (if needed) via RSM or Centra sessions.
Communications/My CSP
All iPhone-related communications, inclusive of training announcements, will be posted to My CSP. Login and access are via the “Everything iPhone 3G” ad space. Or search on either keyword “iZone” or keyword “iPhone 3G” to locate.

Launch Plans
Support logistics for launch day will mirror last year’s iPhone launch:

Letters will be sent to all landlords under VP/GM signature for advance notice of store hours, crowds expected, possible parking issues, etc.
Security will be provided for locations requesting armed police or unarmed, uniformed guards.
Manager checklists will be provided to support RSMs to set expectations and help them be prepared to complete all required actions.
Documents will be posted on iZone to let RSMs know when to expect delivery of launch support materials.
Job descriptions for key launch day functions will be provided for: Back Office Manager/Inventory Runner, Crowd Manager, Greeter, Product Demonstrator, and Security Support.