If you recall, AT&T recently took heavy criticism for changing their wireless TOS to prohibit video streaming, then telling us those changes were a mistake before reverting to an older TOS that also banned streaming. The carrier also crippled the iPhone Slingbox application, telling the press the application "could create congestion and potentially prevent other customers from using the network." So a number people are now wondering why AT&T has no problem with Major League Baseball streaming games via AT&T's 3G network. Consumer Group Free Press quickly jumped into the fray, alleging that AT&T was violating network neutrality:AT&T responded by first denying they're crippling any apps (which they are) and insisting it was an issue of fairness:AT&T doesn't even bother to answer the question, nor do they explain what goes into deciding which wireless applications get official approval. While AT&T's decision is certainly somewhat based upon bandwidth constraints, capacity is sometimes falsely used to defend anti-competitive tactics on the content front (metered billing used to protect TV revenues comes to mind). One possibility is AT&T may not appreciate Slingbox functionality competing with future U-Verse DVR to iPhone ambitions. Another is Sling didn't pay enough to be treated "fairly."

AT&T's admission of a strained wireless network amused Insight Communications CEO Michael Willner, who blogged that he thought AT&T was engaged in a double standard. AT&T plans to spend billions in 2009 on capacity upgrades, after which they'll have less of an excuse for being arbitrarily selective about which streaming video applications are acceptable -- and which ones usher forth wireless network armageddon.