Audio Video News

AT&T is considering a cutback in its rollout of next-generation U-Verse TV, internet, and phone service to homes in its service area. The Wall Street Journal reports that AT&T is blaming the specter of increased regulation from the Federal Communications Commission, which recently voted 3-2 to pursue net neutrality rules.

The U-Verse service currently reaches 2.3 million subscribers, up from just 231,000 a year ago. It is available to 24 million homes, with a target of 30 million by the end of 2011. AT&T has no plans to reduce spending on its iPhone-challenged wireless network.

In threatening to hold its breath until it turns as blue as its logo, AT&T may be making a strategic move related more to the state of the economy than to any real prospective harm from regulation. AT&T may be using the FCC as an excuse to cover its pullback from next-gen hybrid fiber service which requires a large up-front investment.

The news comes as Verizon is slowing the rollout of its FiOS fiber optic video, internet, and phone service, cutting back on plans to seek new franchises. The WSJ also reports that Verizon is having trouble with its FiOS expansion in Manhattan, the nation's media capital, with fewer than five percent of households subscribing and 17 percent able to get the service.

For more information on U-Verse, see the official site.