I think it was mentioned a couple of months ago, and then there was absolutely nothing more about it until now. That's why it's come as a bit of a surprise.
Ridiculous idea - what we need are fewer internationals. This venture will at least make the internationals more competitive, but because they'll be classed officially as 'competitive' rather than friendlies (which will also mean that any dual nationality players will be confirmed for that country if picked), the countries will presumably move to play more friendlies or 'B' games in addition to these in order to try out new players etc. Maybe I've got that wrong but I certainly doubt it will reduce the number of games, which is how it was initially sold.