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AT&T Seeks Extension of iPhone Deal: Report

AT&T's exclusive deal to carry the iPhone in the U.S. expires next year and the telecom company is in talks with Apple to get an extension until 2011, a report says.

AT&T's

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exclusive deal to carry

Apple's

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iPhone in the U.S. expires next year, the

Wall Street Journal

reports, and AT&T is in talks to get an extension until 2011.

An Apple spokeswoman declined to comment for the

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Journal

, saying only, "We have a great relationship with AT&T."

Seeking an extension for the iPhone is part of CEO Randall Stephenson's plan to shift the telecommunications company into the wireless market and away from the landline phone business, according to the newspaper.

Stephenson declined to discuss the terms of AT&T's agreement with Apple, saying only it is a multi-year deal. The company has said it added 4.3 million iPhone subscribers in the second half of 2008 -- about 40% of whom were new to AT&T, the

Journal

reports.

With or without the iPhone, Stephenson said AT&T plans to invest heavily in wireless, telling the

Journal

that two-thirds of the company's capital outlays in the next five years will go to wireless-network investments and acquisitions.