In a rare interview, AT&T CEO Randall Stephenson told USA Today about the company's decision to subsidize the iPhone 3G and how the carrier is handling the fallout from investors who didn't like the move because it means that AT&T is paying Apple about $300 per device to keep the retail cost at $199. The article also says that Apple has extended AT&T's exclusive deal on the iPhone until 2010. Article [1]
Links:
[1] http://www.usatoday.com/money/industries/telecom/2008-07-31-att-iphone-stephenson-apple_N.htm