A delay in the approval of SlingPlayer’s release on the App store, followed by rumors that AT&T isn’t too thrilled about the idea of the streaming device making its way to the iPhone, has led to speculation that the wireless carrier is seeking to have the software rejected from coming to the iPhone.

Officially announced at January’s Macworld Expo, the SlingPlayer Mobile application was expected to be released in March and promised to allow iPhone users the ability to stream live television over WiFi or 3G by tapping into home TV setups equipped with the Slingbox player. The App would also include remote control function to allow for channel surfing and DVR setup.

Sling Media had announced that it was highly anticipating its application to the App Store for Apple’s approval. The app has yet to gain consent. Sling Media has said that it has yet to receive official word from Apple on the status of the submission.

An unconfirmed report is fueling speculation that something may have gone wrong during the application process. Boy Genius Report is also citing an unverified source that claims Apple plans to deny the application because AT&T has expressed concerns about the App’s potential to saturate its 3G network.

Rumors abound also suggest that the reason for Sling Media’s delayed application may be because the wireless carrier is working on a similar service that syncs with AT&T’s U-verse.