AT&T is encouraging its customers to upgrade to the faster 3G network—by downgrading their older EDGE service.
Although the change will improve 3G speeds, customers with EDGE phones, including the original iPhone, will experience decreased quality indoors and in rural areas. We're all for improving your networks and staying modern, but we think EDGE is still widely used to the point that AT&T is going to be hurting a lot of their customers.
First ... AT&T would have to eliminate a BAND of service for this to happen. It would invalidate nearly 20% of their coverage in the USA.
Second ... Many of the phones currently for sale at AT&T have EDGE and NOT 3G ... this would cause a HUGE problem where people said such a downgrade would invalidate their contract.
Third ... this would infuriate so many recent purchasers of smartphones that it would most likely cause a a large reduction in customer satisfaction and possibly a defection to Verizon or T-Mobile.
[UPDATE] Apparently this story was yanked because it was inaccurate - like most Gizmodo stories. Just check out their horrible picture; advertising MacWorld coverage. The guys that run Gizmodo are complete jerks!