Mobile Acquires Layer3 TV, Will Launch Its Own TV Service in 2018

Marcus Newton
December 14, 2017

T-Mobile says that its desire with launching this new pay TV service is to disrupt the current market. "And worse, they have no real choice but to simply take it - the crappy customer service, clunky technology and outrageous bills loaded with fees!" T-Mobile appears to be going more with the AT&T/DirecTV Now approach, although we don't know how much of the Layer3 TV experience will remain after it is rebranded as a T-Mobile offering in 2018. T-Mobile has since moved to offer only unlimited-usage plans to new customers. The company plans to build on this service for its own service. It'll be interesting to see if T-Mobile can replicate that success in the TV business. Similar to services like YouTube TV and PlayStation Vue, Layer 3 carries the signals of most US cable networks and pay channels like HBO, Showtime, and ESPN, but bundles them with a straightforward HD decoder and PVR set-top box that connects to a television in your living room. One of the earliest OTT TV services was DISH's Sling TV, which launched in 2015 and has slowly gained popularity among cord-cutters and cord-nevers.

T-Mobile announced Wednesday, Dec. 13 that it had acquired Layer3 TV, and was planning to step into the television service market.

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

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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. As recent wireless price wars have squeezed the margins on voice and data service, the new frontier is offering access to exclusive video content that can lure customers and serve as a platform for advertising.

T-Mobile didn't disclose terms of its purchase of Layer3, which will keep its base 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.

Other reports by MaliBehiribAe

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