Apple introduced the first iPhone two years ago on January 9, 2009. Currently, there are 4 generations of the Smartphone. While the operating system iOS has changed, several features including the liquid crystal display with scratch-resistant glass and the button placement have remained the same. The 3G network capabilities and A-GPS were added to the 3G model, the 3GS iPhone featured a faster processor, a high resolution camera with video capabilities, and a compass. The latest iPhone 4, released on June 24, 2010, offers an upgraded screen and two cameras. The original iPhone with 8GB of memory sold for $599 at the time of its release.

The 3GS misses out on some refinements offered only by the iPhone 4, but it runs Apple’s iOS 4.2.1 and comes with a black or white back plate. AT&T is the second-largest U.S. mobile-phone carrier and requires a two-year contract to take advantage of the new $49 price.

"Verizon Wireless issues credits to customers from time to time based on regular review and monitoring," the company said in a statement. "When we identify errors, we remedy them as quickly as possible. Our goal is to maintain our customers' trust and ensure they receive the best experience possible."

Verizon customers will see typical credits between $2 and $6 on their upcoming bills. The cellco partnership said that it will also attempt to mail checks to former customers. To identify the accounts it overcharged, Verizon said that it is combing its records.

The Federal Communications Commission (FCC) did start an investigation earlier in the year after a whistleblower said that about 87 million customers where charged over $300 million per month after accidentally pressing the up-key on their phone. A recent survey by the FCC found that about 30 million cell phone users did find unexpected extra charges on their monthly bill covering data transmissions and other services.

To protect wireless customers, the FCC proposed to update the truth-in-billing rules that require carriers to disclose their billing practices in clear language for each line-item charge. Analysts also expect that Verizon Wireless is likely face a fine imposed by the FCC for not notifying customers that incurred the accidental charges.

Wal-Mart is currently topping the offer for the Palm Pixi Plus with a price of $0 (as in free), plus a $50 mail-in rebate online. The Palm Pre Plus smartphone is simply free. Both offers require a 2-year contract with the carrier.

Verizon Wireless is also offering a free Mobile Hotspot application that previously sold for $40 for the two phones. The application will convert the Palm devices into Wi-Fi hotspots, allowing up to five other devices including laptops to connect. Users can now download up to 5 gigabytes of data per billing cycle without additional charge.

Touch screens and QWERTY keyboards are standard on Pre Plus and Pixi Plus devices. The smartphones run on Palm’s new WebOS.

With approximately 91 million U.S. subscribers, Verizon Wireless owns and operates the largest mobile telecommunications network in the United States.

The Skype mobile application will allow Verizon data package subscribers to make phone calls to other Skype members at no extra cost. Users can also exchange unlimited instant messages with other Skype users and manage their Skype contact list directly from the mobile application. Calls to international numbers can be made utilizing Skype’s competitive rates instead of Verizon Wireless contract rates.

While Verizon expect to lose some revenue from long distance calls, it expects that its data service will gain extra momentum. "We believe it will be sizable," said Jennifer Byrne, Verizon Wireless' director of new business development.

Verizon Wireless will connect Skype-to-Skype phone calls using its voice network instead of the Internet. "We purposely made the decision to route it over traditional circuit switched because that's what the network was designed for - it was designed for voice," said Skype Mobile's general manager Russ Shaw. Calls made using Skype will not be charged against a users monthly minute allowance.

While some phones will be updated automatically starting March 25, other customers will have to download and install the application to use the new service.

"Nexus One is a powerful device that belongs on a powerful network. This is another step in our continued partnership of innovation with Google," said Fared Adib, Sprint vice president of product development. "While a pricing plan has not yet been determined for Nexus One, we are confident that it will be consistent with Sprint's commitment to deliver more value than our competitors and keep pricing simple."

Sprint will be the third US carrier offering the Android based phone, following T-Mobile and Verizon.  Google began selling the Google Android-based Nexus One from its web store in January without a service plan for $529 and with a two-year contract from T-Mobile for $179. Verizon Wireless will start to offer the Nexus One phone in spring, and Vodafone will offer the device in Europe, starting in April or May.

The Nexus One will complement the Samsung Moment and HTC Hero in Sprint's lineup of Android devices. However, customers looking for the new phone in Sprint stores will be disappointed. The company confirmed that the phone will only be available through the Google web store. A release date has not been set.