Apple will be releasing an iPhone that will work with all cell phone networks in the third quarter of 2010 according to an industry insider. This means that instead of making a CDMA and GSM version, they will make one UMTS/CDMA hybrid phone, and it also means Verizon will be the likely beneficiary in the US.AppleInsider is also reporting the new iPhone will have a 2.8 inch screen instead of the current 3.2 inch model. The site has a rough picture of the new screen. It appears this iPhone will also lack a physical keyboard, leaving you to type on a smaller virtual keyboard.

Assuming this comes to pass, it will be interesting to see how many AT&T iPhone customers stick with the carrier. AT&T has taken a number of lumps over its network stability and 3G coverage. Verizon keeps pounding the point home with their new "There is a map for that" ad series.

The technological aspects of the radio are interesting as well. This phone may be the first mass market device that is the beginning of the end of the ridiculous CDMA vs GSM problem we have in the US. It will also make traveling abroad much easier as users of CDMA networks in the US wouldn't have to get a different phone to travel to many countries. You should read the full blog post for all of the details on how the UMTS/CDMA hybrid chip by Qualcomm works.

AT&T, the exclusivity clock is running out. You have one year to repair your tarnished image. The problem is, after the last year or so, many of your users may have made up their minds to bolt as soon as they get the chance.