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Further, to those saying it's only a breach of contract and not illegal, a contract is private law and breaches are thus anything that is a breach of contract is illegal. It's just a question of whether courts will enforce the contract.
No, that's not the question at all. There is nothing to suggest that the contracts between AT&T and its customers are unenforceable, and courts are wont to uphold the enforceability of a contract unless there are pressing reasons otherwise. The correct question or issue is whether AT&T chooses to enforce the contract - it is costly to do so through litigation, much more so than the damages they would recover through the litigation.