Nokia has signed up Intel to supply semiconductors for what the company describes as a different class of consumer devices integrating the Internet and Digital TV.
The two companies signed a deal on 12 October to develop the set top boxes, which they say will allow broadcasters to provide consumers with access to new, Internet enhanced television services, as well as to a range of services already available on the Net.
The first product will be based on Nokia and Intel technology and on open standards and specifications including DVB, Internet protocols, ATVEF, and on open source including Linux and the Mozilla browser.
ATVEF is a baseline specification that allows content developers to write content once to run on multiple platforms via any transport. The specification uses Internet protocols so that broadcasters can add data to a video stream.
The companies said product development is underway and the first products are expected to be launched in the second half of next year.
Claude Leglise, vice president and general manager of Intel's home products group, commented: "The Internet will change the nature of television and we are excited to be working with Nokia to make this vision a reality," he said.
"With Nokia's extensive experience in digital broadcasting and IP technologies and Intel's technology leadership in personal computing and Internet communications, we will be able to provide the television industry with the platform to deliver to their consumers new forms of Internet enhanced programming."
The deal is Intel's fourth in the digital set top box arena and forms part of the chip giant's strategy to move away from its image as a supplier to the PC industry to what it describes as a "building block supplier to the networking industry."
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