MojoKid writes "An inside source over at HotHardware reports that AT&T will lose their iPhone exclusivity on 1/27, coincident with Apple's upcoming press event next week, though it's not yet clear what other carriers will be stepping in to pick up the iPhone. For anyone who has followed the saga, you may notice that you haven't seen AT&T fighting to extend their original exclusive agreement as of late. In fact, they have spent most of their time fighting Verizon's negative ad campaigns. This may not be all that surprising. Inside of AT&T, word is that the iPhone is causing more trouble than ever before. On some level, having the iPhone is hurting AT&T's image. Do you remember hearing about AT&T's 'horrible network' before the iPhone? The iPhone itself doesn't really handle the switch from 3G to EDGE very gracefully, so calls that are in-progress tend to fail whenever 3G connections aren't optimal and the phone attempts to step down to EDGE. It seems that AT&T may finally be tired of taking the heat."