Published: Thu, December 14, 2017
Finance | By Kristine Clayton

Mobile To Enter Streaming Video Arena After Buying Layer3 TV

Mobile To Enter Streaming Video Arena After Buying Layer3 TV

"And worse, they have no real choice but to simply take it - the crappy customer service, clunky technology and outrageous bills loaded with fees!" That's a hell of a task, but yeah, T-Mobile did it with wireless for a while and might be able to help in cable. While it's not clear how the new service stands out, it's possible T-Mobile will offer free access to certain customers on higher-paid tier plans.

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.

In a blog post released this morning, the company announced that its new service is geared "for people who love TV but are exhausted of the multi-year service contracts, confusing sky-high bills, exploding bundles, and clunky technologies".

With its Layer3 purchase, T-Mobile joins its larger peers AT&T and Verizon Communications in a strategic shift to media and video ventures as the wireless industry struggles to find new growth.

"People love their TV, but they hate their TV providers", said Legere.

T-Mobile has announced that it's acquiring Layer3 TV as part of an effort to distrupt the cable and satellite TV industry.

The third-place US wireless carrier is making this move thanks to its acquisition of Layer3 TV, which launched in 2013 as an internet-based TV platform.

Layer3 is still a pretty small company - only operational in a few cities around the USA at the moment - so we'll likely see T-Mobile look to expand its presence across the country as well.

It's unclear at this time what T-Mobile's over-the-top TV service will look like, and whether, like the bundling schemes that the company is criticizing, it will be offered at a discount with wireless service.

So, seeing an opportunity to make a name for itself by shaking things up a bit, T-Mobile is going to enter the TV business.

While financial details pertaining to the deal weren't disclosed, Variety magazine reported that 4-year-old Layer3 TV "had raised $72 million in funding to date".

T-Mobile points out that they have been a leader in mobile video options for their customers starting with the Binge On service that gave consumers the ability to stream as much video content as they wanted.

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