Skype in TV sets

The service, which includes free video calls between Skype members, will compete with consumer video conference services being developed by bigger companies such as networking giant Cisco Systems Inc and Polycom Inc.

Skype, a former eBay unit, said both LG and Panasonic will have high-definition TVs supporting its service around mid-year.

Both television makers will embed the Skype technology in television models with internet connections and will sell separate web cameras that have built in microphones for television viewers who want to use Skype.