AT&T CEO Randall Stephenson -- whose company is the exclusive provider of the iPhone in the U.S. -- did not give any details on on when the new version will be released, though doubtless many are expecting an announcement at the MacWorld tradeshow in January. Apple announced the original at this same venue this year.
Apple's Steve Jobs has said that 3G was left out of the current model because it would put such a drain on the battery that the time between recharges would be unacceptably short. It's not clear if the next version will have a higher capacity battery, if Apple engineers have found ways to make the device more power efficient, or if the company is simply giving in to customer pressure and will release a model with a shorter battery life than the current one.
As for the price of the 3G iPhone, Stephenson said that would be determined by Steve Jobs.