We've heard the reports that Canada's Rogers was going to introduce an 8GB iPhone 3GS a few months ago, but now BGR is hearing that AT&T has similar plans to replace the low end $99 iPhone 3G with a faster iPhone 3GS. Faster processor, more RAM faster network speeds at same price just in time for Christmas shoppers according to their source. They also added:
One source said this was AT&T’s way of combating the DROID madness
We'll see soon if that's the case.