Verizon Communications Inc. (VZ) has signed a deal with Walt Disney Co. (DIS) to carry ABC, Disney and ESPN TV (search) channels on its new television system, the companies said Wednesday.

Financial terms weren't disclosed.

Verizon is set to being TV transmissions this week on an optical-fiber network, initially in Texas, to compete with cable companies.

The companies also said they plan to work together to address Internet piracy. Verizon will forward notices to subscribers allegedly pirating Disney's works.

Verizon will cancel Internet service for subscribers who have infringed Disney copyrights and received multiple notices, or identify them in response to subpoenas.