Competition in video services is having an immediate impact on consumers, according to a survey conducted in three Texas communities where Verizon is offering its FiOS TV service.

The American Consumer Institute, an independent group addressing consumer issues such as health and safety, interviewed 883 residents in Keller, Plano and Lewisville, including telco, cable and satellite customers. Verizon started offering FiOS in the area within the last six months.

What the survey showed is that consumers are aware of competition and are benefiting from it, said Stephen Pociask, president of the American Consumer Institute.

“We wanted to look at a place where competition is just forming to see if consumers really know what is happening,” he said. “What we found is that they are aware of what is going on.”

The survey also shows that competition grew the overall wireline market, as 23% of those who bought FiOS TV said they didn't have cable TV previously. More important from a consumer perspective, those who didn't switch to FiOS got cheaper prices from their cable operator, he said.

Half of the consumers who switched service providers saved $22.60 per month on their service, while consumers who stayed with their existing provider saved $26.83 per month, according to the research.

“If these estimated consumer welfare benefits could be replicated across the U.S., this study finds that consumers would receive $23.0 billion in benefits per year, or approximately $19 per month per household,” the survey concluded.

Among consumers who looked at FiOS TV but stuck with cable service, the most common complaint was that FiOS requires a set-top box with each television. The major complaint against cable TV services was dissatisfaction with pricing.