Mobile looks to join pay-TV market by buying cord-cutting service Layer3

by Ben Pena December 14, 2017, 3:00
Mobile looks to join pay-TV market by buying cord-cutting service Layer3

As for Layer3 TV, the company operates in five USA cities by integrating television, streaming online content and social media, according to T-Mobile. ("Layer3 TV") and will work with Layer3 TV's technology and talent to create T-Mobile's new TV service. "All of these Un-carrier moves sent shockwaves through the wireless industry, prompting competitors to continue to follow T-Mobile's lead".

"That's where we come in", added the CEO. "We're gonna fix the pain points and bring real choice to consumers across the country", said John Legere, president and CEO of T-Mobile in a press release.

Customers across all wireless carriers already have access to streaming solutions ranging from Hulu Live TV to YouTube TV, Sling and Sony's PS Vue. "[We want] to take the fight to big cable and satellite TV on behalf of consumers everywhere".

What Layer3 does seems very different from the kind of mobile video entertainment synergy T-Mobile wants to provide.

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

Layer3 TV operates in many, but not all, USA cable markets, selling HD cable service and internet access, either a la carte or bundled. The deal is expected to close in the coming weeks, and T-Mo says that it aims to launch its new pay TV service in 2018. "That's because the world is changing - with mobile video, streaming services, cord cutting, original content and more - and yet, the old guard simply can't - or won't - evolve". For instance, many T-Mobile wireless customers are getting Netflix for free.

Leading up to throwing its hat into the "virtual pay TV" ring, T-Mobile has made several moves in mobile video, looking to lure subscribers as growth tapers off in the competitive wireless sector.

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. 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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