AT&T's New Cell Phone Video service to Compete with Verizon

The service which will cost $15 per month for 10 channels, is very similar to Verizon Wireless' V Cast Mobile TV, and will be operated by Qualcomm Inc., which also operate Verizon's TV service.

AT&T currently has a mobile video service, "CV", which is based on a different kind of technology and works like Internet video, providing short clips on demand.

Qualcomm's MediaFLO service works in the same way like TV broadcasts, with constant streaming of shows on airwaves that run alongside regular cell-phone spectrum.

AT&T said that the service will be available in 58 markets including Atlanta, Chicago, Los Angeles and New York.

AT&T handsets that will initially use the service will include LG Vu, a touch screen phone costing $299.99 and the Samsung Access phone costing $199.99.

The firm said that other TV capable phones will be available on the market later.

There also speculations that TV stations are planning to introduce their own broadcasts for mobile phones and other gadgets at the beginning of next year and will not require subscription.