Verizon is hard at work on a new set-top box based on technology it acquired from Intel. The service could go live in at least one of Verizon's Fios markets by the end of the year according to multiple sources familiar with the matter as reported by Variety.

The publication highlights the fact that Verizon filed documents with the FCC this past week to gain approval for a "video set-top box." Said documents made mention of OnCue, the same name Intel used for its former TV service.

Intel sold its Internet television project to Verizon a couple of years ago in a deal rumored to be worth as much as $500 million. Since that time, industry analysts have patiently waited to see how the telecom would put the acquired technology to use.

Verizon launched a free mobile video service called Go90 last fall that is said to have utilized some of Intel's tech. It debuted with a library of roughly 8,000 TV shows with more than 35 exclusives although most suspected Verizon had bigger ambitions.

The new set-top box, codenamed Mallard, is deemed the centerpiece of Verizon's upcoming service. It will reportedly offer a new interface that won't resemble Verizon's existing Fios TV service (that's not a bad thing considering most pay-TV provider platforms have terrible user interfaces). Verizon began work on the project even before it acquired Intel's technology, sources claim.

In addition to delivering traditional cable, the service will also tie in with online video services. None were explicitly named although Netflix seems like the obvious place to start.