It's no secret, bad networks ruin even a great phone. It seems as though Apple is finally realizing this, and is preparing to do something about it.

Based on a report from research firm OTR Global "citing sources in the Taiwan handset supply chain," Apple plans to unveil a new iPhone, a hybrid of sorts, that utilizes a new chip from Qualcomm allowing it to function on both GSM and CDMA networks. The hybrid iPhone will be made available sometime during the third quarter of 2010, which makes sense, seeing as how AT&T’s exclusivity agreement terminates in 2010.

Furthermore, research notes indicate the new iPhone design will only feature a 2.8" screen. When compared to the current 3.5" screens of the current iPhone models, it seems like Apple is downsizing. Last year's rumor of a smaller iPhone turned out to be false, though the idea could very well have just been ahead of its time. However, there is another possiblity besides a smaller iPhone, that being a "smaller" iPhone. At this point in time, what seems more likely is the development of an iPhone nano. Looking back at the iPod's history, one can only assume it's the latter.

Whether a major redesign of the existing model, or an entirely new iPhone, the big news here is there's a good chance we'll be seeing an iPhone with better 3G coverage in the coming year.