• by Gavin O'Malley , Staff Writer @mp_gavin, December 7, 2011

How ‘bout them telcos! Catching Netflix and other streaming services off guard, Verizon is reportedly readying its own online video offering.   

“The phone company is talking with prospective programming partners about the service, which would be introduced outside of markets where it currently offers its broadband and TV package, known as FiOS,” Reuters reports, citing sources.

As CNet reports, Verizon CEO Lowell McAdam said he considered buying Hulu when it was on the market, and continues to “look at alternatives" in the streaming space.

Either way, “given the company's limited work with video streaming, a decision to create a full-fledged online video service makes a lot of sense,” suggests PCWorld. “Not only does it expand Verizon's ability to reach new customers, but it also gives Verizon a better foothold in a growing market of services that threaten to disrupt the traditional cable business.”

Yet, “despite its reported willingness to try a new online venture, Verizon is also expected to limit availability of its new online video offering,” PCWorld adds.

According to Reuters, Verizon’s streaming service will be available to some 85 million U.S. households, and will likely debut sometime in 2012.

Citing its own sources, AllThingsD writes: “There don’t appear to be any signed deals, and there may not be anything formal on the table yet, so don’t expect to see anything until next spring at the earliest.”

Welcoming the news, The Consumerist writes: “Ideally, more competition will resort in better prices and fewer instances of companies suffering crazy identity crises, trusting that their customers will stick with them no matter what.”