AT&T, Verizon, and Time Warner will trial on-demand video game streaming services later this year, according to "people with knowledge of the matter".
Bloomberg's sources claim the companies are aiming to fully deploy services next year and deliver blockbuster quality games directly to customers through their TVs.
The technology powering the services is reportedly supplied by startups such as Playcast Media Systems, CiiNOW Inc. and Agawi Inc., all which specialise in cloud gaming.
Although Time Warner Cable and Comcast have declined to comment on the rumours, Jan Rasmussen, a spokeswoman for AT&T, has said the company is "exploring unique ways to offer cloud gaming services to our TV and broadband customers."
Sony and Microsoft have both expressed an interest in cloud gaming. While the PlayStation manufacturer made obvious headway in the field by acquiring Gaikai, Microsoft has simply said cloud gaming is a 'key strategy' for Xbox.
Square Enix recently announced CoreOnline, a new cloud gaming service enabling players to play console quality games straight from the web.
Meanwhile, Valve has said that while Cloud gaming services such as OnLive and Gaikai present "interesting" possibilities, it has no 'short-term plans' to integrate the technology into Steam.