Published: Thu, December 14, 2017
Markets | By Terence Owen

Mobile Leveraging Layer3 TV Tech To Launch Pay TV Service In 2018

Mobile Leveraging Layer3 TV Tech To Launch Pay TV Service In 2018

While Layer3 TV is only available in five US cities right now, T-Mobile promises to rapidly expand that presence post-acquisition. "Why did T-Mobile decide they needed their own service?" said Craig Moffett, an industry analyst at MoffettNathanson, in a research note Wednesday.

"That's where we come in", added the CEO.

So T-Mobile, like it said during its early Uncarrier push to change the wireless industry, is talking big about TV and what they can do to change things up. "Personally, I can't wait to start fighting for consumers here!" T-Mobile sees it as a means to making a disruptive mobile video play next year.

T-Mobile hasn't laid out specifics for the offering but called out other TV providers, specifically AT&T, for locking customers into long-term contracts and undesirable bundles.

Layer3 TV was founded in 2013 with the goal of being a better cable TV provider.

The terms of the deal between T-Mobile and Layer3 TV were not disclosed nor was the expected content lineup for the mobile carrier's new service.

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T-Mobile Us Inc (NASDAQ:TMUS) is planning to launch a pay TV service in 2018.

Shares in T-Mobile rose 1.2% to 64.27 on the stock market today. The company plans to build an integrated IP-based home and mobile TV service that "disrupts" the legacy TV model and alleviates pain points associated with traditional cable and satellite television.

All of Layer3 TV's employees will join T-Mobile as part of the sale, and will remain based in Denver.

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. The new service will take advantage of T-Mobile's nationwide retail presence and LTE network.

"You either overpay for traditional TV and all the bullshit that comes bundled with it, or you spend weeks MacGyvering content from different sources", T-Mobile US Chief Executive John Legere said in a video announcing the deal.

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