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Verizon Communications May Launch Internet Video Service

Janney Montgomery Scott LLC recently confirmed that Verizon Communications may increase competition between pay-television providers with the introduction of a new Internet video service. At present, Verizon is the second largest telephone company in the US.

The New York based company may set a milestone with the new services as it will be the first time when a cable or other pay TV provider has decided to sell their content "outside their regional footprint," according to Tony Wible an Analyst at Janney Montgomery.

Wible also added that this new development may prompt the other cable operators to make a similar move.

In his research note, Wible, stated that the move by Verizon may be seen "as a catalyst for other companies."

The telephone company is all set to provide online video service by using IP based technology. With this, they will compete with Netflix along with other cable-TV companies.

As of September, Verizon had 3.98 million subscribers for their FiOS TV service, as reported by Bloomberg.

The company has not made any official announcement, however. Reuters commented that the company will soon launch a service to give stiff competition to Netflix.