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To the chagrin of many iPhone users, the first edition of Apple's smartphone eschews speedy 3G cellular-wireless data technology for the slower 2.5G EDGE standard for e-mail and Web access and downloads.

It's only a matter of time before a version of the iPhone with 3G is released, however. And that time, it appears, will arrive some time in 2008, according to Randall Stephenson, CEO of the only carrier to offer the iPhone in the U.S., AT&T. He said as much during a dinner at the Churchill Club in Santa Clara, Calif. last night.

When questioned about a 3G iPhone, Stephenson said, ``you’ll have it next year.'' He wouldn't say exactly when we'll see one though or how much it'll go for. In regard to how much an iPhone with 3G will cost consumers, however, he asserted Apple CEO Steve Jobs would "dictate what the price of the phone is.''

Apple CEO Steve Jobs said the iPhone's lack of 3G, available in many other smartphones, is due to the technology's potential drain on battery life, calling 3G chip sets "real power hogs" during the U.K. iPhone launch event a couple of months ago.

In addition, Apple has cited how AT&T's EDGE network is considerably more widespread than its UMTS/HSPDA 3G network. (Not a problem in Europe, where Apple and its carrier partners released the EDGE iPhone anyway.)

Then again, isn’t it true when 3G isn’t available, phones that support the faster standard drop down to EDGE for data access? So why not include both?

Perhaps Apple has found a way to integrate a more powerful battery into the iPhone, making a 3G model doable in its (that is Steve Jobs’) eyes. Or maybe they've found people would be willing to put up with shorter times between charges for a much faster Internet experience - at least when a Wi-Fi connection isn't available.

The current 8GB iPhone model sells for $399, a price many folks would be happy to pay for a 3G version with, one would hope, more memory as well. Apple controversially dropped the price of today’s iPhone to $399 from $599 only a couple of months after first shipping it in June, when it also discontinued the far less popular 4GB model.

This left many early adopters feeling ripped off. It is unlikely any of them would take a chance on paying $599 for an iPhone again, even a 3G model.

After all, there's a stark difference between the performance of EDGE and UMTS/HSDPA. EDGE gets you 70Kbit to 135Kbit per second downloads on average, while UMTS/HSDPA achieves downloads in the considerably faster 600Kbit to 1.4Mbit per second range.

We do know that AT&T is constantly expanding the footprint of its 3G network, making it available to more subscribers all the time. So the idea that the technology is not available to enough people should have become less relevant with Apple’s future 3G iPhone plans.

You've got to wonder if Apple was happy hearing the AT&T CEO committing to a 3G iPhone next year. After all, this could have the potential to limit sales of the current model. Those on the edge of buying an iPhone may decide to wait now instead of taking the plunge.