It's not far from happening. The buzz is that AT&T is working in close collaboration with Apple to install IPTV capabilities for the Apple TV.

If this pushes through, then we just might find Apple TV fully supporting IPTV come 2008. There are still no details on this (and in fact there is no confirmation yet from the involved parties), but speculations are running that it just might be something like AT&T's U-verse TV service.

But if ever that does happen, it's interesting to see just how much breadth Apple TV will soon have over your home entertainment. Will it be strong enough to replace your cable/satellite service. Hmmm... Apple TV just might be the next step in the ever evolving home entertainment, then. We shall all soon see.

Keep it posted here for more updates.