According to FORTUNE, the upcoming 3G iPhone will be discounted by AT&T to bring the price of the device down to $200.

Citing a "person familiar with the strategy," AT&T is preparing to subsidize $200 of the cost of a new iPhone for customers who sign two-year contracts.

Additionally, they say the new iPhone will be 2.5mm thinner than the original and will have a built-in GPS chip for navigation and other location-based services.

The New York Times' Bits Blog sees several holes in this rumor, especially the claim that the subsidized iPhone would be offered in AT&T stores exclusively, and not Apple stores. Still, it's an inevitable part of Apple's strategy to drastically lower the iPhone's price to bring sales closer to critical mass, with or without any fabled "person" to provide the info.

[FORTUNE via Engadget Mobile]

ICO Global Communications has entered into a partnership with Delphi to develop DVB-SH devices for its "ICO mim" service.

Under the agreement, ICO gets exclusive rights to all DVB-SH devices developed by Delphi for use in the mobile satellite services (MSS) spectrum band in North America over the next 3-years.

Delphi will design ICO's first aftermarket devices and units in are expected in December 2008. The alpha trials for the ICO mim service will start later this year in Raleigh-Durham, NC and Las Vegas, NV. 

The partnership with Delphi will also serve as a shoe-in for OEMs as the company will co-market ICO's interactive mobile video, navigation and emergency communications services to automakers.

"ICO is poised to deliver a unique interactive suite of mobile services for American consumers, and Delphi's extensive experience in mobile electronics makes them an ideal partner as we implement ICO's go-to-market strategy," said Craig Jorgens, president of ICO.

(Pictured is an alpha device used to demo ICO mim at CES 2008, it is not a Delphi device.)

ICO Global Communications will be launching its G1 satellite from Cape Canaveral today.

It's not only the largest satellite ever launched by an Atlas rocket, but the ICO G1 is one of the largest commercial satellites ever built and is specifically designed to deliver signals to mobile and portable devices.

If the launch is successful, ICO will be the first mobile satellite services provider to become operational, and the first to deploy DVB-SH (digital video broadcast - satellite-to-handheld) technology in the United States.

There will be a live webcast of the launch starting at 3:40pm ET - the launch window is from 4:12pm - 5:12pm EST - so check it out. If the launch slips, they'll start it up again tomorrow at around the same time.

XM is working with QuickPlay to expand its XM Radio Mobile service, making it now universally available on many BlackBerry smartphones.

What does this mean? BlackBerry users can now get XM Radio Mobile across a variety of major wireless carriers. Channels like XM's 60s, 70s, 80s and 90s decade channels, Top 20on20, Ethel, The City, XMU, Watercolors and Highway 16.

Also, for the first time, you'll be able to hear comedy content in addition to music, with channels like The Virus and XM Comedy now available to BlackBerry users.

Subscribers can opt to have their purchase of $7.99/month charged to their credit card or where available billed directly to their service provider.

BlackBerry smartphones supported by the XM Mobile Radio service require BlackBerry Device Software 4.2 or higher and include the BlackBerry 8800 Series, BlackBerry 8700 Series, BlackBerry Pearl Series and BlackBerry Curve Series smartphones (pictured) with a BlackBerry data plan on major U.S. mobile carrier networks.

The service, and a free 24-hour trial, is available via a downloadable application that can be accessed at xmradio.com/bb from the BlackBerry smartphone's browser, or by texting "XM" to 47201 and clicking on the download link provided.

UPDATE: XM also has a page dedicated to the BlackBerry announcement here.

Photo of the BlackBerry Pearl with XM Radio Mobile available after the jump...