Verizon's FiOS isn't really VOD (though it has that feature just like cable), it's essentially cable television through your phone line. It's IP-based though, so it will be more 'Internet-enabled.'
Cable companies have started providing phone lines for a 'triple-play' (TV, internet, and voice service) and this is the phone industry's response to that threat. They're now beginning to offer TV service. (You piss in my yard, I'll piss in yours....)
I'm sure no one here is suprised at this Verizon deal. It's been an open secret for a year. Verizon is desperate to sign every channel they can, because (1) they need to compete with cable, and (2) it is IP-based; there are no channel limitations. So Verizon (and other IP-based TV services) will offer any channel they can get their hands on.
But FiOS is still in beta mode and hasn't been rolled out yet for the mass market. There are no technical limitations to the technology, but the question is: will Verizon have enough capital to roll it out nationally (it takes $ billions in new fiber and gear) and is it economically viable? Cable has a massive headstart and a technical advantage in having a bigger pipe into the home. (For now.)
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