Intel is reportedly set to unveil a set-top box as well as a cloud-based television service at the Consumer Electronics Show later this month in Las Vegas. The initial plan is to roll the service out on a city by city basis which will give the chip maker enough time to work out various licensing issues that are sure to spring up.

Sources say that Intel gained interest in the set-top box market when they paired with Google to work on Google TV. As you know, that’s one of the few projects from the search giant that never really took off but Intel seems to think that perhaps Google didn’t go about it the right way. In fact, the source told the publication that Google made a “half-assed” attempt and Intel plans to “do it right.”

The box and subscription-based service is said to appeal to those that want streaming television service but aren’t yet ready to fully cut the cable cord, so to speak. Doing so typically means losing access to things like sporting events and other live broadcasts. Intel’s service would mix streaming content like Netflix with traditional broadcast channels.

Rumors surfaced in March 2012 that Intel was interested in an Internet-based TV service. The Wall Street Journal said at the time that the chip maker had been pitching the idea to media companies for several months.

We’ll know for sure in just a few days as Intel’s CES press conference kicks off at 1pm on January 7.