There have been many reports that iPhone owners who had chosen to upgrade to 16GB iPhone announced this week have been forced to sign a two-year extension to their current AT&T contract.

That might have been somewhat true due to incorrect information being provided by some AT&T reps. However, iLounge who had contacted AT&T for a clarification on the issue have got a response from Mark Siegel, Executive Director of Media and Analyst Relations with AT&T via email to clarify that “If you upgrade from an 8 to a 16 GB iPhone, you sign a new contract. However, we automatically backdate it to the starting point of your contract on the 8 GB phone.”

He has also clarified that iPhone owners should activate the SIM card that comes with the new model. Mark Siegel has also mentioned that the company “will make every effort to ensure that our reps provide customers with the correct information".

Hope this helps those who upgraded to the 16GB iPhone and thought you had got a raw deal due to the contract extension (though I would suggest it would be a good idea to call AT&T and get the same clarified for your account to be doubly sure).

[via iLounge]