In a move which is slightly confusing, U.S network AT&T just raised the price of its subsidized iPhone 3GS (8GB) up to $0.99, (from its previous price point: FREE), despite Apple’s official press release back in October suggesting the device would be available to customers of the network for FREE, as long as a new two-year AT&T Wireless contract was taken out at the time of purchase.

In fact, AT&T itself suggested the device would be “free” in its own Q3, 2011 earnings call, which took place on October 20:

Our lower price plan continues to be a good entry point for many subscribers and now that we offer a free iPhone with a 2-year contract for the first time ever, the iPhone 3GS, we expect to broaden the smartphone base even more.

So, what’s going on? – Well, nobody is sure really. The most interesting part to all of this is that by AT&T raising the price of the handset to $0.99, Apple now undercuts the network, with the Cupertino company still offering the iPhone 3GS, (again subsidized with a two-year AT&T Wireless contract), for FREE.

AT&T reportedly responded, noting:

iPhone 3GS is still available at an incredibly low price and we’re confident consumers will agree that this remains one of the best deals for a leading smartphone.

[via MacRumors]