What is Layer3 TV and why is T-Mobile buying it?

14 December, 2017, 02:58 | Author: Elaine Woods
  • YouTube  T-Mobile

If it felt a little like 2014 during T-Mobile's press conference this morning announcing its purchase of pay TV service Layer3 TV, that's probably because T-Mobile CEO John Legere was, admittedly, citing statistics from that year.

In a blog post and companion video, T-Mobile said that it "the Un-carrier will build TV for people who love TV but are exhausted of the multi-year service contracts, confusing sky-high bills, exploding bundles, clunky technologies, outdated UIs, closed systems and lousy customer service of today's traditional TV providers".

T-Mobile will offer a paid service starting next year.

Layer3 TV isn't the most well-known cable company. T-Mobile isn't wrong in pointing all of that out, as the TV industry is indeed the worst. So what makes Layer3 so important that T-Mobile wants it to be the backbone of this upcoming TV service? The move will help T-Mobile compete with rival AT&T, which owns DirecTV and markets the satellite-based pay TV service to its customers in bundles for lower cellphone rates.

In addition to the IPTV technology, Layer3 has also taken a modern approach to putting together a TV service in this day and age of Netflix, YouTube, Hulu, and Amazon Prime Video.

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The announcement that T-Mobile teased yesterday has now been made, and it's a big one.

T-Mobile's Binge On service already offers unlimited streaming to select video services.

Layer3 offers cable TV, premium channels, streaming online video and other offerings in Los Angeles, Chicago, Dallas/Fort Worth, Washington, D.C., and Denver, where the company is headquartered. 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. On Wednesday, it said that it's buying Layer3, a TV provider that styles itself in the same, scrappy mold as the nation's third-largest wireless carrier.

T-Mobile did not reveal the transaction value, but said the deal does not change its previously disclosed financial guidance.

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