Want a revolution? T-Mobile and Layer3 launch a disruptive new TV service in 2018

Tommy MilesDec 15, 2017News23612

T-Mobile in December 13, 2017 announced that it will launch its own over-the-top TV service in 2018, which will be fueled in part through the acquisition of Layer3 TV. Details about the service are scarce, but T-Mobile CEO John Legere said that it will continue the company’s theme of being a “disruptive” solution to its rivals, this time in both the internet TV and paid cable markets.

T-Mobile and Layer3 TVLayer3 TV will help T-Mobile build the service, which is said to provide solutions to lengthy contracts, increasing monthly bill costs, confusing bundles, outdated user interfaces, and more. T-Mobile will fold in Layer3 TV’s current services and expand it to a wider audience. Right now this includes select TV channels, streaming online video content, and social media, but is only available in five U.S. cities.

John Legere, president and CEO of T-Mobile, said:

People love their TV, but they hate their TV providers. 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 where we come in. We’re gonna fix the pain points and bring real choice to consumers across the country. It only makes sense for the Un-carrier to do to TV what we’re doing to wireless: change it for good! Personally, I can’t wait to start fighting for consumers here!

T-Mobile’s service will enter a busy streaming TV market, which currently includes DirecTV Now, Hulu with Live TV, PlayStation Vue, Sling TV, YouTube TV, and many more. Companies are even beginning to offer internet streaming bundles that focus on catering to specific audiences, like Philo, which is aimed at viewers not interested in sports channels and offers much cheaper monthly costs.

User’s comment on a popular website:

I like T-Mobile because they broke the phone subsidy model for all the wireless carriers. However, they have been slowly creeping up their price over the year by adding small gimmicks to their service and bundling it in. On average it really is not much cheaper on average because they shifted costs around. For example, after the T-Mobile Un-Carrier started, everyone got rid of their unlimited plans. Now unlimited plans are back. Everything is full circle. I imagine T-Mobile will bundle it like AT&T bundles Direct TV Now. If it is $70 for one line, it will be $100 with that line and TV. Also, there is nothing stopping the internet provider from charging you up the Wazoo for only getting internet and not bundling it. Although I am glad T-Mobile is entering this space, it really is nothing game changing at this point.

T-Mobile and Sprint almost merged recently, but the companies called off the merger in November because they were unable to find “mutually agreeable terms.” At the time, T-Mobile CEO John Legere said that while a deal with Sprint was a “compelling” idea, it would have needed to offer “significant benefits” for both consumers and shareholders.

User’s opinion on popular website:

John Legere actually cares and listens to his customers. T-Mobile has tried to have content like MLB and so forth. It is not easy negotiating with these people. John does not have the best technical background. John looked like a creepy robot when he came to T-Mobile and then went all kinds of nuts. In any case my bills was $200 for 6 lines on T-Mobile One with Promo plus +Netflix. I contacted John and asked my account be reviewed. I look on the account last month and it had dropped from $200 to $43. Then this month it finally stabilized because they took $100 off the bill to make sure while they fixed it the bill never went over the price I would expect. It is 153 dollars. John gave me his personal 20% hookup code.

Welcome to USA Best Unlimited Network! T-Mobile’s network now ranks #1 in 4G LTE speed and 4G LTE availability by OpenSignal. Plus, our 4G LTE coverage has doubled since 2015.

About T-Mobile US, Inc. As America’s Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. Their advanced nationwide 4G LTE network delivers outstanding wireless experiences to 70.7 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, please visit.

About Layer 3 TV. Layer3 TV, Inc. is The New Cable®. Layer3 TV offers customers a revolutionary, intuitive interface that seamlessly integrates the best of cable TV, premium channels, streaming online video content, social media, and smart home devices. Founded in 2013, the company is backed by highly respected players in entertainment and private equity including Evolution Media (whose shareholders include TPG Growth, Creative Artists Agency, and Jeff Skoll/Participant Media), Paulson and Company, Inc., Altice, and North Bridge Venture Partners. The company is represented by Goldman Sachs & Co. LLC and LionTree Advisors. To learn more follow Layer3 TV on Twitter and Facebook @Layer3TV or visit.

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Total: 6 comments
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  1. Jayce Wagner
    2
    6
    2017-12-16, 11:58AM
    More stuff T-Mobile customers will think they're getting for free without realizing there is no such thing as "free" and everything offered is added in to the cost of their service.
    +9
    1. Dave Smartier
      6
      10
      Dave SmartierJournalist
      2017-12-16, 1:08PM
      Of course it's not going to be "free". I do end up with quite a bit of "free" stuff from T-Mobile though. I pay $41 per month for 2 lines (unlimited talk, text, and 4 GB LTE) after taxes and fees (this is a family plan so there are other lines but each line ends up about $20/month). That's not free but it's a better price than I've found elsewhere. Then there are T-Mobile Tuesdays promos (about $40 of Dunkin' Donuts gift cards over the past year or so, $0.25 off per gallon of gas, which has saved me about $60 so far, etc.).

      So yes, nothing is free but I've looked at other providers and no one can provide the same benefit/cost ratio as T-Mobile (this includes MVNOs - Red Pocket comes close in value but not quite in benefits). The T-Mobile promos are perks on top of the already great value. I'm really not a T-Mobile shill (I'm in higher education and research) but I give credit where it is due.
      +3
    2. Alan Greener
      5
      2017-12-16, 4:25PM
      Right now I'm paying T-Mobile exactly $70.00 per month for unlimited service, including mobile hotspot, inclusive of all taxes and fees. Previously, I wan paying AT&T upwards of $100 per month, in addition to a slurry of hidden and variable taxes and fees, and mobile hotspot wasn't allowed. "Free" might be a BS marketing term, but the fact remains that T-Mobile is offering better service, at dramatically lower costs than their competitors.
      +5
    3. Andrew Hard
      2
      4
      2017-12-17, 9:06AM
      Why do people think they know better than everyone else? Nobody thinks its free. But there are good deals and there are bad deals. It remains to be seen what deal they offer. Its up to the individual to decide if they like the deal or not. People are not as stupid as you think they are, nor are you as smarter than everyone else as you think you are.
      -4
    4. Kevin Parrish
      1
      4
      2017-12-17, 9:10AM
      Honestly, I would not be surprised if they offer two types of service: one over your broadband or another through T-Mobile's cell network connected to some sort of set top box. That has been my dream for a while and it would be pretty cool to have a set top box with it's own internet connection.
      +3
  2. Tommy Miles
    2
    5
    Author: Tommy MilesJournalist
    2017-12-15, 11:15AM
    This sounds similar to what Apple has been trying to do for years, but hasn't yet been able to put all the pieces in place. I'll hold judgement until there are more details but so far T-Mobile's solution seems to be similar to what's already available piecemeal from various apps. The difference is that it sounds like T-Mobile will make some sort of one-stop shop interface, much like Apple's original plan. But I would assume that once bundled with your mobile device bill, the charges won't be much different from what you would pay for cable services anyway.
    +10
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