Intel Corp., the world's largest maker of chips, is reportedly working on an Internet TV service. Not a lot of details about the service are available now, but since Intel owns loads of telecommunication technologies as well as some codecs and software, the chip giant has technological abilities to launch its own Internet TV service, a move that has potential to forever change the company.

Recently Intel withdrew from Google TV initiative and acquired media codecs from Real Networks, which points to the fact that the company is working on something related to media. According to the Wall Street Journal, Intel has for several months been pitching media companies on a plan to create a "virtual cable operator" that would offer U.S. TV channels nationwide over the Internet in a bundle similar to those that are sold by actual network operators.

Intel reportedly planned its own set-top-box that it would offer to end-users, who would obtain Internet subscription simultaneously. Some media companies were asked for prices of particular channels or programs, but nothing has been signed yet. One of Intel's ideas is to sell relatively small bundles of channels rather than large bundles already sold by operators.

What is unclear is how Intel plans to make its "virtual operator" more competitive than actual operators among end-users. Moreover, it is unclear what advantages will Intel's operator bring to content owners: there are tens of services that sell on-demand video and lack live shows and the chipmaker is unlikely to offer just a little better pricing.

Intel did not comment on the news-story, but a number of its recent activities prove that the company is working on something to ensure higher amount of its chips are installed in living rooms worldwide.

Tags: Intel, Google TV, HDTV