Intel is working on putting together an over the Internet television service that would be an alternative to existing cable company and satellite provided TV services.

The Wall Street Journal (WSJ) reported today that (unnamed) sources inside the industry said Intel was promoting the idea with major broadcasting network companies and requesting rate cards detailing the costs of adding certain channels and on-demand programming to their service.

A web-based service with current, live, major network content (were talking ABC, CBS, NBC, Fox, etc), would shake the foundation of the current TV content delivery industry.

According to the WSJ’s sources, Intel has created the device, a set-top box, which would work as a ‘virtual cable operator’ and deliver shows over the Internet. They said Intel is attempting to bring it to market by the end of this year. However, the WSJ observed that big hurdles lie ahead, such as ‘scarce bandwidth’ in the ‘high price of programming’ and would have to be dealt with to get a service such as this rolling.

Can you imagine a service like this getting off the ground? Leave your comments below.