I think they will integrate in the next generation of iPhone, 3.9G(LTE or Long term evolution) and 4G (LTE Advanced).
And they'll boost the phone by using the A5 chip already present in the second generation of iPad.
Physically, they made a new sleek charming design refering to this photo I found
, it looks like a real iPhone and this photo was captured in China by someone who said that he bought the phone from some counterfeiters that's why we hear that the iPhone 5 was released in China, thought.
And I read somewhere that it's cost is ranging between 1500 and 1700 $.
I'm always glad to share some info here...