T-Mobile, the nation’s No. 3 wireless carrier, plans to launch a TV service next year, announcing today that it acquired cable television startup Layer3 to help with the rollout, the AP reports.
“The service will target people who aren’t interested in traditional cable and satellite TV packages,” the story reports. “T-Mobile promises to address consumer complaints such as ‘sky-high bills’ and ‘exploding bundles.’ The company wouldn’t provide details on its upcoming offering, including how it would differ from existing online TV alternatives from Hulu, YouTube, Sony, AT&T and Dish.”
T-Mobile did not disclose how much it paid for Layer3, a service that is available in five U.S. cities.
“T-Mobile’s reputation for shaking up the wireless industry could give it leverage with consumers in an already crowded online-TV market,” the AP notes. “T-Mobile is known for largely getting rid of two-year phone contracts and helping bring back unlimited-data plans in wireless. The strategy has helped T-Mobile gain customers for years, even as growth in the industry has slowed overall because most Americans already have cellphones.”