de la Vega is all in with his iPhone bet

If there were any doubts AT&T was bidding its landline business adieu and embracing wireless as its savior, the announcement this week that it would subsidize Apple’s new iPhone, dropping the price tag to $199, should help even the slowest learners figure out the telco’s long-term strategy.

Ralph de la Vega, CEO of AT&T's wireless unit, is anteing up a huge wager that the little blockbuster—which already has grabbed 20 percent of the market in its first year—will do even better with it’s cut-rate price, GPS and faster web access.

It’ll have to with Verizon and its newest cub, Alltel closing the gap.

For more:
- See the Wall Street Journal story

Related articles:
AT&T rides wireless to 22% Q1 bump AT&T earnings article
Is AT&T bitter about the C block? AT&T auction report