Apple's new iPhone 3G has arrived. It doesn't look that different from the original iPhone (unless you get the more expensive 16GB version in white), but it feels a lot better--especially when you're browsing the Web via cellular data networks.

Before we get to the 3G network support, let's take a look at what else is new on the iPhone 3G. The front of this cell phone looks and feels just like the first iPhone: you maneuver via touchscreen and type via virtual keyboard. The back of the device is now curved, and plastic instead of metal. It still feels sturdy and is actually more comfortable to hold, especially when held up to your ear for talking. The headphone jack is no longer recessed, so you don't need an additional adapter to plug in your ear buds.

There are two iterations of the iPhone again, mainly distinguished by storage. The 8GB version retails for $199 and is only available in black, while the 16GB version is $100 more and is also available in Apple white, which actually looks a lot sharper than the black. Much has been made about the low sticker price of this iPhone and the extra costs you'll pay for the 3G data plan. AT&T has bumped the monthly charge for unlimited data usage from $20 to $30 a month, so over the course of the two-year contract (required to get the $199 price), you'll end up paying an additional $240. In addition, there's no texting included in the plan--200 messages a month will add another $5 to the plan price.

But that extra cost for the data network includes the faster 3G access, which lets you download files and load web pages two to three times faster than the previous EDGE network speeds of the original iPhone. We appreciated how quickly Web pages popped up via 3G compared to EDGE. That alone makes the additional cost worth it for many users. The iPhone 3G still offers wi-fi connectivity as well, and this is faster than both 3G and EDGE, so you'll want to use wireless for Web browsing if available.

The other big internal change to the iPhone 3G is its GPS capabilities. The new iPhone uses what's called assisted-GPS, combining a GPS receiver with triangulation of signals from wi-fi and cellular towers. We were impressed with how quickly the iPhone could find a lock on our position (especially outdoors) and had fun using the satellite image to show our location in real time.

The speaker is much improved, delivering respectable sound when playing music or utilizing speakerphone. Battery life is about the same as the original iPhone, with up to five hours of talk time and about the same amount of Web browsing time via 3G.

The new 2.0 software offers myriad design changes. These include switching languages on the fly (the virtual keyboard will automatically swap keys to the international language if needed), PowerPoint support, parental controls, and the ability to convert the calculator to scientific mode by rotating the iPhone.

This new software also supports Microsoft Exchange ActiveSync, which lets the iPhone receive pushed e-mail, contacts, and calendar from the office. Pairing that with the new 3G support, Apple has really geared the iPhone 3G towards business users, although mainstream consumers who can afford the monthly service fee are also still a big target.

On the same day the iPhone 3G came out, Apple unveiled more than 550 applications in their new App Store, with some of these available for free. And the free apps include some of the best, like Remote, which lets you control your iTunes library from your iPhone. Of course, just like the new 2.0 software that comes with the 3G, you don't need the latest iPhone to take advantage of the App Store's apps.

The iPhone 3G has the same two-megapixel camera as the old iPhone. There's still no support for video capture or a built-in flash, and despite online rumors, still no removable battery. But the Apple iPhone 3G improves in the areas that the first iPhone was lacking severely--data networks and true GPS--and sells for a great starting price.

Pro: Fast data speeds, great starting price
Con: Increased monthly costs, no MMS

Warranty
1 year, limited