Verizon Communications Inc. (NYSE: VZ) today reported better-than-expected second quarter results, fueled by growth in its wireless and FioS TV and Internet customers.

Net income rose 12% to $1.88 billion, or 66 cents a share, from $1.68 billion, or 58 cents, a year earlier, according to the New York-based company. Sales rose 3.7% to $24.1 billion. Excluding one-time costs, profit was 67 cents, two cents ahead of the 65-cents expected by analysts surveyed by Bloomberg News. Sales were slightly below the $24.2 billion Bloomberg estimate.

"Our second quarter results were on track with our business plan, and top- and bottom-line growth remained solid," said Chief Executive Officer Ivan Seidenberg in the earnings press release. "We remain focused on steady improvements in revenue growth and productivity that will increase profitability and cash flows and create future opportunities to enhance shareholder returns."

Among the highlights:

• 1.5 million net customer additions for the wireless business;
• Wireless churn of 1.12%, 0.83% retail post-paid churn;
• 11.8 percent increase in total revenues; data revenues up 45.3%
• 176,000 net new FiOS TV customers and 187,000 net new FiOS Internet customers

Going forward, it will be interesting to see if consumers, who are already stretched thin, begin holding off on ordering FiOS even if the service is superior to cable. Also, will stressed consumers quit the service because they are worried about more pressing needs like their mortgage?

Verizon (NYSE:VZ) says that Time Warner Cable (NYSE:TWC) is lying in its advertising. According to The Wall Street Journal, "Verizon says that Time Warner Cable's ad implies FiOS requires a satellite dish for TV service and that it isn't able to bundle together high-speed Internet, video and phone calls."

The problem, of course, is much deeper than one ad. Verizon has spent $23 billion to put fiber in front of its 18 million customer homes. In the process it hopes it can take TV and high-speed Internet customers away from cable companies and satellite TV firms. If the product does not do well, there will be hell to pay in the Verizon executive suite.

Cable company stocks have fallen over the last three quarters, to a large extent due to the fear that they now have real competition for packages for voice, TV, and broadband, known fondly as the "triple play". Verizon does not have to get a huge number of cable customers to switch to do some real P&L damage. Early indications are that consumers like the fiber service. Because it can deliver more bandwidth it can offer larger numbers of HD channels.

The court fight over the ad makes for nice newspaper copy, but the real fight ends up being one for shareholder value. Time Warner Cable's stock is down 30% in the last year.

Douglas A. McIntyre is an editor at 247wallst.com.