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There is more discussion of this at: Broadband Reports. It should be noted that cable companies have often attempted this ploy when negotiating local franchises.

from: Telephony Online

Verizon planning local content unit
By Carol Wilson

Sep 22, 2006 10:14 AM

Verizon is beginning to assemble an editorial staff for a new FiOS TV channel that will feature highly local content.

Although the effort is still in the planning stages, and hasn’t yet been given a formal name or timeline, the new local channel will enable community-based content to be added to the FiOS lineup, said Joe Ambeault, a director within Verizon’s FiOS TV product development marketing team.

“We now have editorial staff in place, people who will understand how to put together local content,” he said, in a recent interview. “It’s a nice near-term approach, using community stringers, with the community contributing content.”

The idea, Ambeault said, is to add another layer of differentiation onto Verizon’s product by giving its subscribers an outlet for expression.

“If you want to report on a zoning change that makes you unhappy, or a theater group that is doing well, we could provide that outlet,” he said.

There would be rules of engagement for participants that would be presented up front, but the FiOS TV local channel could provide for some consumers what the Internet is providing to the tech-savvy today in terms of video blogging and other similar content.