Verizon officially launched its video service riding on top of its fiber-to-the-premises launch in Keller, Texas, the same market where it unveiled the FiOS project.

The telco’s initial rollout includes a full package of 330 digital channels (no analog), access to just under 600 video-on-demand titles and a set-top with integrated DVR. At the low end of the market, the basic package will include 15 to 35 local broadcast, weather and community channels, as well as video-on-demand, for $12.95 per month. Expanded Basic, which the company is marketing as its lead offer, packages more than 180 video and music channels for $39.95 a month. Additionally, the company is including high-definition channels on Expanded Basic.

Verizon also has created a special tier to target Spanish speaking users. La Conexion, which will cost $32.95 per month, includes approximately140 channels with English- and Spanish-language programming and access to nearly all the on-demand titles.

That the company launched its service in Texas is no accident. Aside from being home to the first live FiOS network, the state recently passed legislation that frees telcos offering video service from the requirement that they receive local franchises. In Keller, Verizon did get a cable franchise, but is indicating it won’t do the same in other locations.

At a press conference today, Steve Banta, group president for Verizon’s Northwest and Southwest Regions, said the law is significant, noting that the company has added 700 jobs to Texas largely because of the FiOS rollout.

“This new progressive legislation means Texans will soon have a choice for the in-home television needs,” he said.

Also at the announcement, Texas state representative Phil King, who sponsored the legislation, defended the bill saying its passage in a special session was not done with any subterfuge. The Texas Cable and Telecommunications Association has since filed suit, claiming that the law gives telcos an unfair advantage. It also has expressed concern that the bill was passed during a session earmarked for educational issues.

“It’s an extremely complex bill, so we worked through the regular session and we got very close to passing it,” King said, noting that Gov. Rick Perry has the right to call special legislative sessions for multiple purposes. “We passed a very good bill.”