Mobile will launch a TV service next year

Andrew Cummings
December 13, 2017

T-Mobile says it will also be acquiring high-end streaming TV service provider Layer3 TV, which will help the company build its new TV offering in the new year.

T-Mobile already offers preferential streaming for select video services using its "Binge On" unlimited streaming program - it'll be interesting to see how entering the streaming over-the-top TV business will affect those relationships with other competing services.

At time of publication, T-Mobile shares were trading up 1.2 percent at $64.26.

T-Mobile president and chief executive John Legere said the service would be modeled on the telecom group's "Un-carrier model", a term that suggests it will be different from the incumbents. Barring a major fourth-quarter comeback, 2017 is on course to be the worst year for conventional pay-TV subscriber losses in history, surpassing last year's 1.7 million, according to Bloomberg Intelligence.

The wireless carrier showed off a video clip showcasing a mockup of its TV service's user interface, which is (unsurprisingly) extremely pink. Layer3 TV already provides cable television access to five United States cities.

"It's going to make things interesting", said Roger Entner, an analyst with Recon Analytics. ("Layer3 TV") and will work with Layer3 TV's technology and talent to create T-Mobile's new TV service. The Layer3 acquisition is expected to close in a few weeks, at which point T-Mobile will actually start working on incorporating its technology in a new package. Layer3 is betting there's a market for consumers who are willing to pay a premium for TV that is delivered in high definition and is easier to navigate.

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