Mobile to launch new television service in 2018, acquire Layer3 TV


The nation's No. 3 wireless carrier said Wednesday that it bought cable-TV startup Layer3 TV to help it roll out the service. "And worse, they have no real choice but to simply take it - the crappy customer service, clunky technology and outrageous bills loaded with fees!"

But T-Mobile's confident it'll be able to persuade the estimated 1.6 million subscribers who left traditional cable companies in the first half of 2017.

Not only does that philosophy diverge from T-Mobile's roots as a budget-minded alternative to AT&T and Verizon, but it also raises questions about whether Layer3 has a compelling offer - and whether enough consumers are willing to pay top-dollar for it. For instance, many T-Mobile wireless customers are getting Netflix for free. Mainly, the company's announcement focused on trash-talking incumbent "Big Cable and Satellite TV" and asserting that the market is ripe for disruption.

It's no surprise to see T-Mobile bet more heavily on video. The service will launch next year, according to T-Mobile CEO John Legere.

"People love their TV, but they hate their TV providers", Mr. Legere said in a statement, CNBC reported. Layer3's TV packages now start at $75 per month.

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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.

Financial terms were not disclosed. "It's time for a disruptor to shake things up and give people real choice like only the Un-carrier can".

More than anything, execs mounted an argument during a conference call media that the service would directly address friction and shortcomings in the current TV ecosystem. More likely, the service will be offered separately in various tiers depending on how many channels, with the data usage zero-rated for T-Mobile's own wireless customers.

T-Mobile didn't hint at the forthcoming service's subscription tiers, features, or availability, and was equally mum on whether its debut would affect any of the carrier's existing promotions.