This week, Verizon and New York City officials are having secret discussions about a new 15-year video franchise deal that would allow Verizon’s FiOS TV service to compete with the likes of Time Warner Cable and Cablevision, the Daily News reported.

Talks between the two camps, which have gone on for months, were supposed to be wrapped up before Christmas, but they apparently stalled.

Not only is the Verizon deal worth billions of dollars, it will set the pattern for the city's renewal of the existing TWC and Cablevision franchises that expire later this year, according to the Daily News.

The big stumbling block between Verizon and the city, cable industry sources say, is the phone giant's desire to offer its service in the city's wealthiest neighborhoods first.

Just before Christmas, Verizon inked video franchise agreements with 15 villages on Long Island's North Shore.

More recently, Verizon won the right to offer its FiOS TV service in Dover, marking the 13th Delaware community to approve a video franchise for the telco. Verizon’s service is now offered to about 105,000 households in Delaware.

And Verizon has introduced FiOS TV’s interactive media guide to its TV customers in Delaware, New Jersey and southern Pennsylvania.

The free guide allows users to navigate through TV listings, VOD catalogues and DVR libraries, as well as personal music and photos. Future versions of the guide will add Internet radio, videos, podcasts and games to the FiOS TV multimedia platform.

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