Competitive local service provider Cavalier Telephone this week launched its video offering, delivering 150 channels of TV service to the 150,000 homes it passes in Richmond, Va., using ADSL 2+ and MPEG-4 compression.

The service includes an interactive program guide, on-screen caller ID, and digital set top boxes and will be bundled with existing telephone and broadband services, in a $95 a month bundle.

Cavalier intends to roll out video services to a total of two million homes in its other markets, which include Northern Virginia and Norfolk, Baltimore, Philadelphia and Delaware and Northern Virginia in the coming months.