The executive also has decided to make wireless the priority for AT&T as the current economic conditions have hit the landline business hard. 12,000 jobs will be slashed this year and the company has cut capital spending by 15%. In the meantime, $18.8 billion dollars has been spent on purchasing radio spectrum and smaller cellphone companies. Subsidizing the price of the iPhone has cost the firm more than $1.3 billion dollars. Still, money has to be spent on beefing up wireless capacity as the CEO expects newer smartphone models to swamp current networks with their ever increasing abilities to request data and multimedia. As a result, two-thirds of the carrier's capital spending over the next five years will go to wireless network investments and acquisitions.