T-Mobile (TMUS +1.1%) says it's acquiring Layer3 TV, planning a "disruptive" entry into the pay TV market in 2018. Its "concierge cable" service is now available in Los Angeles, Chicago, Washington D.C. and other markets.
"People love their TV, but they hate their TV providers".
Legere says that Layer3 will become the foundation of T-Mobile's planned television service, which will take advantage of T-Mobile's nationwide retail presence. "Layer3 TV has a great solution today, but we plan to introduce something new, leveraging the awesome talent and tech at Layer3 TV", a rep for the carrier said. It offers customers technology such as set-top boxes that not only have standard cable TV features like DVR, but also direct access to streaming video services like YouTube, along with support for using voice commands, via Amazon's Alexa digital assistant.
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T-Mobile will offer a paid service starting next year.
In a video announcing the news, T-Mobile CEO John Legere described the decision as a logical next step for T-Mobile, given the general dissatisfaction of customers with traditional cable TV offerings.
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The purchase pushes T-Mobile into cable and satellite TV services while hastening the TV industry into the "mobile age and 5G era".
However, Layer3 TV's service does require broadband connections to homes.
Layer3 has raised more than $80 million from such investors as Evolution Media Partners and North Bridge Venture Partners.
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