Sling Media’s SlingPlayer iPhone application was released yesterday, allowing users to watch video streamed from their home televisions over WiFi networks. The service does not, as anticipated, allow users to stream video over the 3G wireless network.

Sling Media had plans for the application to operate over-the-air on AT&T’s 3G network and with the iPhone’s WiFi chipset. Facing contention from users, AT&T issued an official statement addressing the limitations.

“Slingbox, which would use large amounts of wireless network capacity, could create congestion and potentially prevent other customers from using the network,” AT&T said in the statement.

In the demo, the client streamed live, high-quality video of stations like MTV and TBS on both Wi-Fi and the iPhone’s 3G network. Swiping the screen horizontally advances you through favorite stations, and flicking up and down rotates through all your home channels.

It also said that applications that redirect a TV signal to a personal computer are specifically prohibited under its terms of service. Sling Media SlingPlayer is available for $30 in Apple’s App Store.

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