AT&T is appealing the recent decision by a Connecticut regulator refusing to grant the telco a video license in that state. Instead, the regulator said AT&T needed to apply for a traditional cable franchise license. AT&T has refused to be put in the same boat with cable TV operators, and it appears that if its appeal of the decision fails, the company may cut off U-verse service to 7000 existing customers in the state. A story in Telephony also quotes an AT&T official saying the issue has put "service to 7000 customers at risk, and 1300 jobs at risk."
AT&T is probably concerned that accepting a cable franchise will establish a regulatory precedent it doesn't want to encourage, but using its customers and employees as bargaining chips is just stone-cold.
- Here's the story in Telephony