If there is anyone rejoicing about the new IPTV services rolling out around the U.S., it must be the attorneys. In yet another lawsuit, AT&T is being pre-emptively sued by the city of Milwaukee for not obtaining a cable franchise agreement for its U-Verse TV service.

The irony is that AT&T has not even begun offering the service yet. Yet, the city wants to stop AT&T from laying anymore fiber until they have signed a cable franchise agreement.

AT&T did agree to pay the city 5 percent of its revenue from the U-Verse TV service but AT&T spokesman Jeff Bentoff said AT&T will not obtain a cable franchise from the city because its service isn't cable operated.

"We're not a cable operator and this is not a cable service. Under the law, we're not subject to those requirements," Bentoff said.

AT&T is not the only one who feels this way: see Richmond Sues Cavalier Telephone over IPTV Service.

Read more on this story in Milwaukee Business Journal, City sues AT&T over U-Verse Service