Trashing Comcast, T-Mobile's John Legere announces TV alternative

T-Mobile Internet TV

"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. The new service will combine streaming TV and online video at a lower cost and doesn't restrict customers to lengthy contracts or bundles that include channels or content they don't want to watch.

All of Layer3 TV's employees will join T-Mobile as part of the sale, and will remain based in Denver.

Layer3, which moved its headquarters from Boston to Denver in 2014, began offering TV service in Chicago a year ago, and has since expanded to areas including Washington D.C., Los Angeles and Longmont. T-Mobile has since moved to offer only unlimited-usage plans to new customers. Verizon also plans to start its own online TV service sometime next year, after several delays. The acquisition catapults T-Mobile into the rapidly evolving video business. "We're in the midst of the Golden Age of TV, and yet people have never been more frustrated by the status quo created by Big Cable and Satellite TV", Mike Sievert, COO of T-Mobile, said in a statement. To make this possible, the carrier has announced that it is acquiring Layer3 TV, which refers to itself as a "next generation cable company".

The two services are similar, though Layer3 offers more 4K streaming options.

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

Layer3 offers a full featured pay-TV service, including 4K video, but leases capacity from existing broadband providers to deliver the IPTV service.

It's time for the self-proclaimed "Un-carrier", Legere said, to do what it has already done to the second most reviled industry, wireless.

Layer3 is still a pretty small company - only operational in a few cities around the U.S. at the moment - so we'll likely see T-Mobile look to expand its presence across the country as well.

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