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Intel plans its own IPTV service by end of 2012

According to a news report, the chip maker wants to expand its presence by entering through the front in the multimedia business. Intel is currently making its own set-top box and envisions itself as a "virtual cable operator" providing Internet Protocol TV (IPTV) in a bundle similar to cable TV, reports business newspaper, Wall Street Journal. It has already developed a user interface for users to browse programs and is pitching media operators that it seeks to gain a platform to launch its Internet based Pay TV service, which it hopes to do later this 2012.

The web ready Intel box would be capable of streaming and providing on-demand content. However, the service is said to be limited to the US.

The company, whose processor chips are known in the world, wants to get a more direct to consumers through a web TV service - which they are planning to launch under its own brand in late 2012, and that would be compatible with future set-top box self-made based on its Atom processors for embedded systems.

Intel would thus become a direct competitor to companies like Hulu or Netflix, offering conventional subscription television programming, such as those provided by cable companies and satellite TV providers, albeit through the internet, and adding features "to the letter "to complete the offer, which would be one of the largest in the industry.

Although the manufacturer would aim to launch its "IPTV on demand" by the end of this year, they have not yet signed any agreement with major American networks - television and production, so for now there is no assurance that they will achieve their target.

Aside from the TV business, Intel is also looking to join the mobile revolution and recently announced Motorola, Lenovo and ZTE would use its Atom Z2460 (known as ‘Medfield' chip) in its smartphones at the recent World Mobile Congress in Barcelona, as it plays catch up with rival ARM.

This comes as both Google and Apple are said to be making a dash towards consumer living rooms, and although Apple failed to deliver the holy grail IPTV device everyone was hoping for last week, is said to have more to come up its sleeve.

Google TV is not said to launch in Australia this year although this may change.

Intel already supply chips for set-top boxes sold by US firm Comcast, which sells Internet, TV and phone services.