The heat is stepping up for AT&T with word of negotiations to bring an Apple budget phone and a media tablet to Verizon: The first is simply characterized as an "iPhone lite" and would be a physically smaller, thinner and feature-reduced version of Apple's distinctive handset. It would achieve the effect by using a system-on-a-chip -- a processor that combines its necessary graphics core, controllers and other components on a single chip package. The second device is potentially more revolutionary and appears to be the tablet-like device first leaked by AppleInsider a year and a half ago. It's envisioned as a "media pad" with HD video, music and photos, but it would also allow calls over Wi-Fi, reports AppleInsider.