Verizon Communications, the second largest US telecommunications group, launched its fibre-optic based FiOS video service on Monday in New York City, setting the stage for a fierce battle with the incumbent cable network operators, Time Warner Cable and Cablevision.

Verizon, which also announced solid second quarter earnings buoyed by the continued strong performance of its Verizon Wireless joint venture with Britain’s Vodafone group, will initially offer FiOS in 108 New York neighbourhoods with ‘triple play’ voice, video and data packages starting at $95.