Mobile Shakes up TV Industry with Layer3 Purchase

T-Mobile Is Going to Un-carrier Your TV | T-Mobile Newsroom

T-Mobile didn't disclose how much it paid for Layer3, which is available in five US cities.

Cable and satellite service providers are the most reviled companies in America, Legere said, locking customers into long-term contracts for bloated bundles of channels they don't need, constraining them from the viewing devices they want to use, and overall, delivering them crappy, over-priced service.

"That's where we come in", added the CEO. "All of these Un-carrier moves sent shockwaves through the wireless industry, prompting competitors to continue to follow T-Mobile's lead. Personally, I can't wait to start fighting for consumers here!" For instance, many T-Mobile wireless customers are getting Netflix for free.

As for the legacy Layer3 TV service, which has a been deployed into five markets so far, Legere said the platform will be kept intact for now, its Denver-based staff remaining where they are.

T-Mobile's effort is a clear shot against AT&T, which offers its DirecTV Now streaming option.

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Layer3 always billed itself as the next generation of cable.

T-Mobile also claims that the time is right for the Layer3 acquisition because of its capable 4G LTE network and all of the work it is doing to prepare for 5G. 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.

Earlier today T-Mobile CEO John Legere teased he had some big news to reveal and now the cat is out of the bag.

The question is whether T-Mobile's bet on a troubled TV business model can pay off. Layer3's chief executive, Jeff Binder, has said that his company will overcome the challenges facing the rest of the cable industry by essentially ignoring cord-cutters and marketing to the remaining cable diehards, who tend to live in wealthier households. Given that, unlike AT&T, Verizon, Dish, Comcast and others, T-Mobile doesn't offer home internet, whatever TV service T-Mobile offers will likely be heavily optimized for its T-Mobile ONE plan, which means plenty of downsampling to 480p over LTE connections.

Now T-Mobile is literally becoming a cable company.

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