United States cellular telephone company AT&T has finally confirmed to the Associated Press that it will start selling the popular iPhone without a contract next Thursday.

The catch?

The new phones will still be “locked” to AT&T and won’t work with any other cellular carrier unless they’re modified. AT&T will only activate them on the regular iPhone plans, which include a $30 monthly charge for data access.

Surely this exclusive agreement to only sell iPhones locked to the AT&T network must be hurting Apple in some respect? What about the punters who like the iPhone, but don’t need or want the data plans? What about the punters who simply don’t have coverage in their area?

I can personally see the benefits of using an all in one device like the iPhone, but not if it means paying $30 per month more than I am already just because of the model of phone I have.

I believe Apple would sell a lot more units if there was the option of a completely unlocked version that could be used on any cellular network. Mind you, that option may be available sooner rather than later.

If the combination of very firm rumors and Apple’s usual product cycle are to be believed, a new version of the phone is due this summer. Add to that the belief that AT&T’s comfortable and exclusive arrangement may be due to end in June, and the cynic in me says AT&T is rushing to offload existing stock before it becomes obsolete.

We’ll see.