Apple and AT&T last night confirmed service plan prices for the iPhone, the partners also confirmed that iTunes will be used to activate and sync the new product.

The iPhone will be made available under any one of three service plans, costing from $59.99 per month. All three plans include unlimited data, Visual Voicemail, 200 SMS text messages, 'Rollover' minutes and unlimited mobile-to-mobile calls.

All iPhone monthly service plans are available for individuals and families and are based on a two-year service agreement with AT&T. Individual plans are priced at $59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes. A one-time activation fee of $36 is also applied.

The $79.99 and $99.99 price plans also feature unlimited night and weekend calls, while the $59.99 plan offers 5,000 night and weekend minutes.

“We want to make choosing a service plan simple and easy, so every plan includes unlimited data with direct internet access, along with Visual Voicemail and a host of other goodies,” said Steve Jobs, Apple’s CEO. “We think these three plans give customers the flexibility to experience all of iPhone’s revolutionary features at affordable and competitive prices.”

The two companies also confirmed that iPhone users would be able to activate their devices using iTunes in their own home or office, without having to wait in a store while their phone is activated. Activating the iPhone takes only minutes as iTunes guides the user through simple steps to choose their service plan, authorize their credit and activate their iPhone. Once your iPhone is activated, users can then easily sync all of their phone numbers and other data.

"Users will be able to activate their new iPhone in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated,” said Steve Jobs, Apple’s CEO. “There are tens of millions of people in the US who already know how to sync their iPods with iTunes, and syncing their new iPhone with iTunes works the same way."

"iPhone's user-driven activation is another example of how AT&T and Apple have partnered to bring innovative new features to our customers," said AT&T chairman and CEO Randall Stephenson.

"iPhone’s innovative activation and sync is just one example of how this is going to be a real industry game-changer," he added.

The iPhone goes on sale in the US at 6pm (local time) on Friday 29 June and will be sold in the US through Apple's retail and online stores and AT&T retail stores. Apple's US retail outlets will close at 2pm (local time) that day in preparation for the launch.