AT&T announced the launch of its first smartphone for prepaid customers, the LG Thrive, which will be available to customers next week. The device is powered by Android 2.2, has a 3.2-inch colour screen, 3.2 megapixel camera, and integrated Wi-Fi support. The smartphone costs US$179.99, and the company is offering a number of data bundles for users, including US$25 for 500MB, US$15 for 100MB, and entry-level US$5 for 10MB options. Thrive will also be available in a contract version, called Phoenix, which also includes mobile hotspot and tethering support.

AT&T has done a sound job of converting its contract customer base to smartphone devices, stating that at the end of 2010, 61 percent of its 68 million postpaid subscribers had “integrated devices” – defined by the operator as “handsets with QWERTY or virtual keyboards in addition to voice functionality.” It said that the average ARPU for integrated devices is 1.7 times that of its non-integrated devices base.