Yankee Group's analyst Adi Kishore said phone companies are pushing for this because their traditional services like phone and Internet are now open to competition.
"They realize they are taking a beating on the broadband side and they need to make investment in video, because there are no other substantial growth opportunities," he said.
Kishore said the new technology may not mean growth in television but simply more competition between the cable and telecom firms.
"SBC is saying this is a different service, that it is not like cable," he said. "They have a rich, full-featured offering, but it is also more risky."
The telecom firms, however, face considerable regulatory hurdles, including the daunting task of getting approval in thousands of municipalities. But they are pressing for measures to get statewide or nationwide approval to deliver the service.
"We're optimistic policymakers recognize that competition leads to benefits and more investment," said SBC's Dave Pacholczyk.
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