While there have been rumors that an 8GB iPhone 3GS could be headed to Canada's Rogers network, as reported by BGR, there are now rumors that AT&T is planning to replace the $99 8GB iPhone 3G with the faster iPhone 3GS. 

According to BGR's sources, AT&T customers will be able to purchase an iPhone with a faster processor, more RAM, and a better camera for the same price just in time for the holidays. This would unarguably be a great sales boost for Apple.

Also, the source claims that this could also be AT&T's way of combating the Droid madness from Verizon.

We'll see soon if this is the real deal.