Disruption is what T-Mobile is all about, and the company has finally decided which industry will be shaken up next. T-Mobile will acquire Layer3 TV in order to "launch a disruptive TV service" next year.
The surprise announcement was made by CEO John Legere in a pre-recorded video. He, of course, hurls insults at the entire industry while calling out some of the biggest cable and satellite providers. Like the wireless industry, T-Mobile believes the top brands have been ripping off consumers and forcing them to pay for things they don't need. T-Mobile's solution should "fix the pain points and bring real choice" nationwide.
Here's Legere hyping up T-Mobile's upcoming service:
What exactly the service will be like remains unknown, but Layer3 TV's current offering is unlike most alternatives available today. Layer3 TV merges live TV streaming and on-demand streaming from various partners, a design allowing viewers to have all of their favorite content in a single package. The reveal video posted by T-Mobile also makes it seem this is the route to be taken.
T-Mobile could have an all-in-one subscription where customers get live channels as well as access to services like Netflix, Hulu, and HBO Now.
The decision to enter a crowded industry with dominant players is risky, but T-Mobile's been needing something to diversify itself. Its negotiations to merge with Sprint fell apart; therefore, the company is on its own for the foreseeable future. There can't be too much growth left in the wireless industry, so offering a service that could be bundled or sold separately is wise. It's just worrisome as building upon Layer3 TV's technology to make the service a viable option will be very expensive.
Although full details and a specific release date haven't been shared, T-Mobile should close on its acquisition in the coming weeks. Then development on the service's structure will begin. All we know for now is that the magenta-loving company intends to offer it in 2018.
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