For the first time, Verizon Communications is challenging AT&T directly for residential phone, television, and Internet services.

Verizon will expand its fiber-optic network into AT&T's territory in the Dallas-Fort Worth area of Texas, the company said Monday. This will allow Verizon to offer its FiOS triple-play services to these neighborhoods, putting it in direct competition with AT&T's U-verse.

The newly contested area will include about 60,000 homes in the Dallas suburbs of Allen and Frisco, and Verizon said it may expand its fiber-optic lines in other U.S. territories.

"This is a logical thing for us," a Verizon spokesman told Bloomberg News. "I wouldn't call this a major attack on AT&T or anything like that. This is just taking advantage of an opportunity to sell to the rest of the town."

Verizon also said 40% of customers in Texas eligible for FiOS services have signed up. These subscribers could have been attracted to the 50-Mbps top downlink speed FiOS offers, which is five times faster than AT&T's top U-verse downlink speed.

AT&T and Verizon have long been battling for business customers and wireless customers, but until now the companies have resisted competing for residential services. Both companies also compete with cable companies, who also provide packages of television, Internet, and digital phone services.

AT&T rollout of its U-verse service was initially slowed by software problems and battery issues. But the company said it expects to have 1 million subscribers by the end of 2008.

Verizon said its FiOS services have 1.2 million customers, and it may soon enter the New York City market to compete with cable providers there.