AT&T won't subsidize it, but Google and HTC have built a Nexus One that will be able to pick up 3G signals on AT&T's 3G network (something the iPhone can't always do -- har!).
Google has updated the Google Store with a 850/1900/2100 MHz 3G/UMTS band version of the device. This Nexus One will now also be able to pick up 3G signals internationally as well (Rogers in Canada and soon-to-be-Nexus-One-partner Vodafone in the UK).
Google also announced that they'd be shipping Nexus One devices directly to Canada as well.
The Tmobile version of the Nexus One did work on AT&T's network but only as an EDGE device.
It isn't clear if Apple's terms with AT&T prohibit it from subsidizing the Nexus One device. Apple is currently suing HTC, the device's maker, for patent infringement. AT&T has already "blessed" the Android-powered Motorola Backflip.
Rogers may be in the same boat.
The lack of a subsidy may also be driven by Google's insistence on selling the Nexus One completely through their online store rather than through AT&T. That being said, Apple does take a lot of the iPhone purchasing experience away from AT&T as well.
Numbers came out today suggesting that the Nexus One wasn't doing nearly as well as the Droid in its first 2+ months of operation. Verizon will also be getitng the Nexus One in the coming months so a better direct comparison will be able to be made with the Droid at that point.
It still baffles me that the mobile carriers won't offer a cheaper, non-subsidized data plan even though they don't have to pay for the phone itself.
If you have an iPhone and $530 to blow and want to give the Nexus One a shot with your current AT&T SIM card, Google awaits your click.