US telco bets the farm on the iPhone

On the eve of Apple's big iPhone announcement, a US telco has put its money on the device proving a success, committing nearly US$20 billion to purchase 30.5 million units over the next four years.

The company, Sprint, is banking on the iPhone to pull itself alongside larger competitors AT&T and Verizon.

According to a Wall Street Journal report, Sprint will subsidise the cost of the phones by around US$500 per unit, hoping to recoup this investment in data costs. A source has called the purchase a 'bet-the-company' gamble.