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Mobile snaps up Denver's Layer3 TV

Mobile snaps up Denver's Layer3 TV

It looks as though the like of DirecTV Now, Hulu TV, YouTube TV and SlingTV will have some new competition in the new year. "Well, I'm here to announce today that we are putting an end to that". Its CEO Jeff Binder claims that the company can send HD video at a bandwidth of less than 4 megabits per second.

While Layer3 TV is only available in five USA cities right now, T-Mobile promises to rapidly expand that presence post-acquisition. Current Layer 3 markets include Los Angeles; Chicago; Washington D.C.; Dallas/Ft. "Companies like AT&T and T-Mobile have the ability to cross-sell TV to their customers".

The Denver-based startup, founded in 2013, offers more than 275 high-definition channels and 25,000 on-demand titles starting at $75 a month. Similar to services like YouTube TV and PlayStation Vue, Layer 3 carries the signals of most USA cable networks and pay channels like HBO, Showtime, and ESPN, but bundles them with a straightforward HD decoder and PVR set-top box that connects to a television in your living room. Between service contracts, no real competition in many places around the USA, and poor customer service, this notion that everyone hates big cable shouldn't really come as much of a surprise. "We're gonna fix the pain points and bring real choice to consumers across the country", said Legere, T-Mobile USA's President and CEO. "It only makes sense for the un-carrier to do to TV what we're doing to wireless: change it for good".

T-Mobile is launching a TV service next year, becoming the latest company to marry wireless and video. Likewise, Verizon has its Go90 video streaming service, which is aimed at millennials.

Not only does that philosophy diverge from T-Mobile's roots as a budget-minded alternative to AT&T and Verizon, but it also raises questions about whether Layer3 has a compelling offer - and whether enough consumers are willing to pay top-dollar for it.

"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", said Mike Sievert, Chief Operating Officer of T-Mobile in the press release.

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