Operators from Telefonica to Telstra have outlined grand plans to expand into digital services, but have found the challenge of playing the over-the-top suppliers at their own game is far harder than anticipated. The latest operator which seems to have bitten off more than it could chew is AT&T, which Reuters reports is looking to sell its Digital Life business. This was set up to serve the consumer IoT market with smart and automated home offerings. These could be bundled with AT&T devices and connectivity, and it was even speculated they could be offered over-the-top. But companies with a stronger brand relationship with consumers, such as Google and Amazon, are also highly active in the home market. According to the…