• April 16, 2009

AT&T is in talks with Apple to extend its exclusive deal to sell the iPhone through 2011, according a Wall Street Journal report Wednesday. The agreement is due to expire next year. AT&T CEO Randall Stephenson would not discuss the terms of AT&T's current contract with Apple, confirming only that it's a multi-year partnership.

The iPhone has been a boon for the carrier. Of the 4.3 million iPhone customers added in the second half of last year, 40% were new to AT&T. Stephenson also told the Journal that with the iPhone or not, AT&T will invest heavily to "future-proof" its business, earmarking two-thirds of capital expenditures over the next five years to mobile network investments and acquisitions.

Apple declined to comment on the negotiations, saying only that it has "a great relationship" with AT&T.--Mark Walsh