I think we all knew this was coming sooner or later.

Apple Inc. will introduce a version of the iPhone next year that can download from the Internet at a faster rate, AT&T Inc. Chief Executive Officer Randall Stephenson said.

The device will operate on third-generation wireless networks, Stephenson said today at a meeting of the Churchill Club in Santa Clara, California. San Antonio-based AT&T is the exclusive carrier for the iPhone in the U.S.

“You’ll have it next year,” Stephenson said in response to a question about when the 3G iPhone would debut. He said he didn’t know how much more the new version will cost than the existing model, which sells for $399. Apple Chief Executive Officer Steve Jobs “will dictate what the price of the phone is,” he said.

(via CNET/Bloomberg)