AT&T Wants More iPhone Action Until 2011
AT&T Inc. (NYSE:T) wants to remain the exclusive seller of the Apple iPhone. AT&T wants to extend the deal with Apple until 2011. Their contract expires in 2010 and AT&T hit a goldmine with the Apple partnership. A source with the WSJ stated that AT&T CEO Randall Stephenson is in discussions with Apple to extend the deal.
Even if Apple does not renew their contract, Stephenson stated that AT&T will invest in wireless technology. Two thirds of their capital will be spent on wireless network investments and acquisitions over the next five years.
So far AT&T spent $18.8 billion on radio spectrums and cellphone companies. For iPhone discounts, AT&T spent $1.3 billion. Even last year, AT&T considered making an offer for Reliance Communications in India, but the company was asking for $30 billion.
“This business cycle is going to cycle,” stated Mr. Stephenson. “You got to make sure that you’re positioned when it cycles back out to be the leader in the industry, and to do that you have to be the leader in mobility, first and foremost.”
[via WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry