This Sunday, AT&T will launch a new video service that will allow select handsets carry 10 television channels for a fee of $15 a month. The service, called AT&T Mobile TV, is an attempt by the company to compete with Verizon Wireless’ V Cast Mobile TV.

AT&T has a mobile video service, CV, which works on a different principle than AT&T Mobile TV. Mobile TV, which uses Qualcomm’s MediaFLO technology, constantly streams shows so that they are more like regular broadcasts. The service will start in 58 markets including Atlanta, Chicago, Los Angeles and New York.

At the start of the launch, only two handsets will be Mobile TV capable. The LG Vu, which sells for $299.99, and the Samsung Access, which sells for $199.99, are the first units that can run the application. A two year contract with a $100 mail-in rebate will get you one of these phones. In the future, other phones will be able to carry the new service.

AT&T Mobile TV will allow users to view CBS Mobile, Comedy Central, ESPN Mobile TV, Fox Mobile, MTV, NBC 2Go, NBC News 2Go, Nickelodeon, Sony Pictures and CNN Mobile Live.

Verizon isn’t telling how many people subscribe to its V Cast Mobile TV service. AT&T priced its TV service the same as Verizon’s but some are skeptical about the practicality of such an application. The consuming public may not be willing to pay $15 a month to watch television on the small screen.