After some initial rumors that the iPhone will come with a great deal: 1.5 years of free service, it seems that the news was infirmed by AT&T officials. That did sounded too good to be true. If you got the cheapest plan from Cingular at the least it would be $40 a month. Take that times 18 months that would be $720. So you would get your iPhone for free. 

So how much would an iPhone worth without the network subscrition? I bet a lot, and this might be the premier reason Apple does not sale the iPhone unlocked.

The network will be crucial in providing subsidised handsets through their subscription service. Without the networks, you don’t put high-value handsets out for anything like an affordable price, because they’re simply too expensive. Apple product may break with this to a really small extent because Apple charge premium prices. When you make a deal like this, the network provider is the enabler of the technology, at a fair risk to themselves as well as you, and hopefully a benefit to everyone.