Mobile plans to disrupt TV with their own service

Mobile plans to disrupt TV with their own service

Mobile plans to disrupt TV with their own service

T-Mobile US CEO John Legere said the operator plans to introduce a disruptive new TV service next year with cable startup Layer3, which it has agreed to acquire. T-Mobile is known for largely getting rid of two-year phone contracts and helping bring back unlimited-data plans in wireless. T-Mobile describes its upcoming service as "somewhere in between a traditional cable service" and the a la carte TV services.

Layer3 TV's broadband-delivered subscription TV service is available online and on mobile devices in Denver, Chicago, Los Angeles, Washington D.C., and Dallas/Ft. ("Layer3 TV") and will work with Layer3 TV's technology and talent to create T-Mobile's new TV service.

It seems like everyone's trying to get into streaming TV these days, and now T-Mobile has tossed its ambitions on the pile following its acquisition of Layer3 TV.

Mobile plans to disrupt TV with their own service
Mobile plans to disrupt TV with their own service

T-Mobile says it will launch its own TV service in 2018, expanding its competitive focus beyond the USA wireless giants to target major cable and satellite providers with its latest "Uncarrier" initiative.

Not that buying Layer3 TV is a dumb way to do it.

As now in play in Denver (where T-Mobile is based), LA, Chicago, Washington, DC. and Dallas/Ft Worth, Layer3TV is "not a skinny bundle by any stretch", assessed Variety's media tracker Todd Spangler. Though 5G will accelerate this convergence, T-Mobile said it expects the new TV service will go nationwide ahead of the company's 5G rollouts.

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On a conference call with analysts, T-Mobile execs said it has a competitive advantage in marketing Layer3 because the carrier has 71 million customers and 16,000 retail stores to reach customers.

"People want their TV - they just don't want it from Big Cable", he added.

It's unclear at this time what T-Mobile's over-the-top TV service will look like, and whether, like the bundling schemes that the company is criticizing, it will be offered at a discount with wireless service.

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T-Mobile did not reveal the transaction value, but said the deal does not change its previously disclosed financial guidance.

"T-Mobile has always been a leader in mobile video - first, giving customers the freedom to stream as much as they want with Binge On and T-Mobile ONE, and then giving T-Mobile ONE families a free Netflix subscription included at no extra charge", a release from the company reads.

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