iPhone 4 screen cracked dealer recuses to gibe warranty OR PAID REPAIR

Hi all,
Mi less-than-a-month-old iPhone 4 (bought from a mobile company in Colombia) was dropped accidentally and apparently landed on a corner, and even with a protective ruber case, it ended with almost half screen shattered.
Personally I think this should be covered by warranty because the fall wasnt strong to produce this kind of damage. Anyway, I went to Comcel and after they checked the device, they told me that the damage wasnt covered by warranty, and just to avoid a discussion with a clueless sales rep, I asked how much it will cost to repair, and I was given this response: Apple wont do repairs that are outside warranty, so you must buy a new phone!.
WHAT?!, so, even when I am willing to ignore the fragility of the iPhone screen and want to pay for a repair without avoid my warranty, I cant?
We dont have here any Apple shops here to tale the phone to, so any advice or directions will be very appreciated!
Thanks!
iPhone 4 iOS 4 iPhone 4 iOS 4.0.2