Citing Verizon as his company's principal -- if not only -- real competition going forward, a senior Comcast executive told an investors' conference this morning it's responding to FiOS with a huge investment in higher-definition services.

NEW YORK CITY (BetaNews) - "You don't love issuing press releases like the one we did last night," admitted Comcast co-CFO Michael Angelakis at a UBS financial analysts' conference early this morning. Angelakis was referring to a less-than-pretty picture of Comcast's subscriber growth, which it had to admit was lower than previous estimates.

A high-definition package will address customers which Angelakis described as having the newest and best video equipment available, and though he didn't say it explicitly, he likely meant 1080p HD displays. Most high-def cable services now broadcast in 720p.

But a second tier of "triple play" service will be rolled out as well, for what he described as more cost-conscious customers.

Both services will be competing head-to-head with what Angelakis singled out as his biggest competition: Verizon, whose FiOS fiberoptic triple and quadruple play services (adding Verizon Wireless) have apparently made significant inroads in metropolitan markets, and may be blamed for Comcast's lower-than-anticipated subscriber growth. This morning, New Yorkers awoke to messages blanketing all media, promoting a big Verizon giveaway: a free 19" HDTV for new FiOS subscribers.

Angelakis seemed a little taken aback when an analyst confronted him with news of the Verizon promotion. "The competition has increased," he said, "and we've got to respond." Then invoking Winston Churchill, he went on, "We will fight in the streets..."

But where Comcast apparently won't fight is in the quadruple-play arena, where Verizon may have an edge. He repeated the company's statement from Monday that it will not be participating in the FCC's upcoming 700 MHz auction, whose major bidders will likely include Verizon Wireless, AT&T, and Google. Yesterday, satellite service provider EchoStar reportedly indicated it will participate in the auction as well.

The co-CFO did not add further details on available service plans or any possible rollout itinerary, and Comcast has yet to issue a formal statement on these new services.

Comcast had expected to gain 6.5 million new subscribers nationwide for 2007, but yesterday had to concede the final tally will be closer to 6 million. Revenue growth forecasts for the year were also sheared, down to 11% from a previous forecast of 12%.