Verizon has an amition IPTV plan that differs from AT&T's, laying the foundation of bringing fiber directly to the home for digital services. Last week, Verizon released subscriber counts for its FiOS TV and FiOS Internet products, saying that it expects 100,000 FiOS TV and 500,000 FiOS Internet subscribers by the end of the third quarter.

By 2010, their 28-state footprint would give them access to potentially 15 million households. Of that universe, they expect to get 4 million FiOS TV customers and 7 million FiOS Internet subscribers. If true, that is a penetration of 20%-25% of the pay TV market and would send shivers up the spine of Comcast, Time Warner, and Cablevision.

The company said it's been posting monthly churn rates of less than 1.5% for both products. That is fancy industry jargon that means they think the customers like the services.

Verizon expects that FiOS will generate positive operating income beginning in 2009.