The Bells need IPTV. They are losing subscribers to cable. It's extremely important for them to trump the offerings of the cable guys and the only way to do that is through video.
Incrementally, the Bells may never get the return on invested capital. It's expensive. But it's also preventing customer loss. They have to do it to stay competitive or they'll shrivel down.
The Baby Bells are a better investment than the long-distance companies. I wouldn't be putting new money into AT&T.