This is part of their press release The company anticipates potential dilution to earnings per share (EPS) from this initiative in the $0.10 to $0.12 range this year and next, with a 2008 adjusted consolidated operating income margin of approximately 24 percent and a full-year 2008 wireless OIBDA margin in the 39-40 percent range. As recurring revenue streams build without any further revenue sharing required, AT&T expects the initiative to turn accretive in 2010. So, this means that after all this hoopla, AT&T will not begin to realize any actual profits from the iPhone subscribers until 2010. Of course, by 2010, all the people who have iPhones now will want to buy the latest model and AT&T will again have to subsidize them, so I'm not sure where they are getting their assumptions, but I find it crazy that the deal is completely WIN for Apple, and loose for AT&T. Now wonder why Verizon told Apple to F* Off! Of course, Verizon was foolish for doing so, since they will be loosing a lot of subscribers on July 11, including me, someone who has paid them $130 a month for the past 23 months. Yes, what a great coincidence, my 2 year contract is up on the same month the new iPhone comes out! YAY!