The biggest fear among executives at the nations incumbent providers is being just dumb-pipe providers, who only provide bandwidth and lose out on the billions to be made from on-line and event advertising. While AT&T has partnered with Yahoo to provide some content, they today launched a new and improved AT&T Blue Room, which offers users access to music and gaming content, as well as links to older SBC-era properties like Project DU, an AT&T approved blog network with syndication client.

"As we've executed and expanded this strategy, we've been able to turn an interesting and innovative concept into an online phenomena, attracting enthusiasts of all stripes who are now regularly visiting these AT&T sites looking for content they can't get elsewhere," says Mikal Harn, vice president, AT&T Consumer, in a prepared statement.