Under the deal, Verizon's customers signed up to its V-cast package can access a limited selection of YouTube's popular videos on their mobile phones.

YouTube, which was bought by Google this month, meanwhile, said it hopes to expand beyond computers to phones. It did not reveal the financial terms of the deal.

Under the YouTube agreement, consumers who pay a $15 monthly fee for V-cast will be able to use their cell phones to view consumer-generated content posted on YouTube's website. The agreement is exclusive to Verizon customers for a limited time.

Verizon said about 20 million of its customers have phones that could support V-cast. But only about 10 per cent of these phone users have subscribed to V-cast.

Verizon Wireless, a joint venture between Verizon Communications and Vodafone Group plc, has been betting increasingly on text messaging and advanced services like music and video for growth as phone call prices keep falling.