ATT is now rolling out U-Verse in San Francisco:
http://www.noevalleyvoice.com/2013/May/Att.htm
The challenge to ATT's plans was manifold:
1) ATT refused to put their equipment underground. SF's sidewalks don't need more cabinets.
2) U-Verse is DSL service. Sonic.net already offers 40mbps DSL service in SF, so U-Verse is not that much faster. Why does SF need more cabinets to get pretty much the same data service from the incumbent telco?
3) ATT is putting cabinets on the sidewalks, and running fiber to those cabinets to serve ~45mbps connections to folks ~800 feet away. If ATT had planned to run fiber from those new cabinets into residences ~800 feet away and provide 100mbps or 1gbps service, folks would have welcomed their project.
4) Monkeybrains [0] and Sonic.net [1][2] have had (for several years) workable plans to eventually deliver 1gbps service to the whole city with (they say) far fewer aboveground boxes that ATT "requires" for U-Verse, and don't even need to dig up the street to lay the fiber. I'm not sure why they've been ignored by the Mayor's Office and the DPW.
[0] https://www.monkeybrains.net/DPW-MonkeyBrains-March-2011.pdf
[1] http://corp.sonic.net/ceo/2010/07/14/micro-trenching-at-soni...
[2] http://corp.sonic.net/ceo/2011/12/15/sonic-net-plans-gigabit...