In a major press event at the Consumer Electronics Show in Las Vegas and in a Webcast, Verizon today announced the first live TV broadcast service for mobile phones as well as the next generation of its FiOS TV service – promising to leave cable “in the dust” with its new video prowess.

At the same time, Denny Strigl, president and COO of Verizon, promised that “these two products are just the beginning,” touting Verizon’s dual broadband networks – FiOS fiber-to-the-premises and its broadband wireless network as the core of future offerings that will differentiate his company from cable and satellite competitors, as well as other wireless companies.

“We have a two-fold strategy – build great content delivery systems and offer great content,” he said. “Our parallel side by side broadband networks create an unparalleled delivery system for high bandwidth content of today and it will take us far into the future. The second piece of our strategy is content – services, applications and information and entertainment content, we will leverage our networks to create compelling content that consumers want. What is unique about Verizon is the combination of our delivery strength and our content execution. We will offer the best TV experience on the planet, whether to your handset or your 52-inch screen.”

Vcast Mobile TV, developed in partnership with Qualcomm and powered by its MediaFlow, will feature live TV programming from sources including CBS, NBC, Comedy Central, MTV, Nickelodeon and Fox News, to be delivered initially to specially-equipped handsets from Samsung and LG. Instead of the current Vcast Video, which displays 15 frames per second via Verizon’s 3G EV-DO network, the Vcast Mobile TV will have frame speed more similar to regular TV, Strigl said. Consumers can pick shows from an electronic programming grid, using key word searches. Parents can also set controls on what children can watch.

“Consumers will now be able to watch live TV, real TV, the first real mobile TV service in the U.S.,” said John Stratton, executive vice president and chief marketing officer of Verizon Communications. “They can get true broadcast quality, full motion and crystal clear, live content and programming 24-7.”

Verizon isn’t providing details about what the service will cost – other than to say it will be a discrete charge from regular wireless service and will be “affordable,” but promises more details closer to actual availability, which is later this quarter. Strigl and Stratton also sidestepped a question about whether it will include ads, other than saying Verizon is very sensitive to consumer feelings on that issue and will “go slow.”

The second generation of FiOS TV, being launched about a year after the first, will feature more interactive applications and the ability to view Web-generated content of all kinds on a TV set, said Bob Ingalls, executive vice president and chief marketing officer of Verizon Telecom. It includes a new digital media guide that lets customers navigate and customize digital media and includes a search function.

“We are deploying middleware on set-top box that will enable the FiOS digital media experience,” he said. “This will leave cable in the dust.”

Based on a simple software upgrade to existing set-top boxes that is not service-disruptive, Verizon's new search function that allows consumers to easily find content of all types, including Web-based content, he said. Verizon officials have discussed the capability over the last several months, seeing this use of IPTV as a clear advantage over what cable and satellite can offer. The new capabilities will be rolled out first in New Jersey but available in all Verizon's FiOS markets by mid-year, Ingalls said.

“The integrated search function – today it’s limited to channel surfing, but now customers will be able to scan through 100s of broadcast channels and 1000s of on demand titles,” he said. “They can cut through the clutter – and it gives our programming partners a more effective way to reach consumers.”

In addition, the new interactivity features will includes games which don’t have to be purchased separately, Ingalls said. He also promised closer ties between the wireless and wireline sides of the business, to initially include programming a Digital Video Recorder from a cellphone.

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