14 December, 2017
"You either overpay for traditional TV and all the bullshit that comes bundled with it, or you spend weeks MacGyvering content from different sources", T-Mobile US Chief Executive John Legere said in a video announcing the deal.
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 Layer3 box integrates content from those services alongside DVR recordings and Layer3's own on-demand content, and it learns what you watch over time to offer better curated suggestions.
T-Mobile cites the University of Michigan's latest American Consumer Satisfaction Index, which reveals that of the 10 biggest American companies who received the lowest customer satisfaction score in 2017, eight are cable and TV providers. It'll be interesting to see if T-Mobile can replicate that success in the TV business. "The Un-carrier's new TV service will take full advantage of T-Mobile's nationwide retail presence, top-rated brand and award-winning sales and customer care organizations".
"People love their TV, but they hate their TV providers".
T-Mobile says they intend to use the Layer3 acquisition to launch a disruptive TV service in 2018.
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However, Layer3 TV's service does require broadband connections to homes.
Financial terms were not disclosed. Jeff Binder, CEO of Layer3 TV, said in the release.
What Layer3 does seems very different from the kind of mobile video entertainment synergy T-Mobile wants to provide.
"T-Mobile has always been a leader in mobile video - first, giving customers the freedom to stream as much as they want with Binge On and T-Mobile ONE, and then giving T-Mobile ONE families a free Netflix subscription included at no extra charge", a release from the company reads.