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Omnipresent blogroller Alex King is reporting that his iPhone continues to function as an iPod and wireless device despite having cancelled his AT&T phone plan. This is good news for people who can’t or don’t want to use AT&T as their cell phone carrier. You may want to wait a day or two before rushing out to the store, however. With AT&T’s recent (current?) backlog in their processing department, it may be that they just haven’t gotten around to disabling his phone yet.

If you cancel your AT&T phone service within 30 days, you don’t have to pay the early termination fee. Cancel within 3 days, and they’ll even refund your $36 activation fee.

For me, AT&T service has been much better than my previous provider, Sprint…. especially at home. But if it wasn’t, I’d do what Alex did. I’d be perfectly happy with the a phoneless iPhone.