The service will target people who aren't interested in traditional cable and satellite TV packages. T-Mobile promises to address consumer complaints such as “sky-high bills” and “exploding bundles.” The company did not provide details on its upcoming offering, such as how it would differ from existing online TV alternatives from
The nation's No. 3 wireless carrier said Wednesday that it bought cable-TV start-up Layer3 TV Inc. to help it roll out its upcoming service.
T-Mobile didn't disclose how much it paid for Denver-based Layer3, which is available in five U.S. cities, including Los Angeles.
T-Mobile's reputation for shaking up the wireless industry could give it leverage with consumers in an already crowded online-TV market. 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 it gain customers for years, even as growth in the industry has slowed overall because most Americans already have cellphones.
T-Mobile has already taken steps to connect its wireless business to video as the telecom, tech and media industries grow closer together. For instance, many T-Mobile wireless customers receive access to Netflix at no additional charge.
AT&T's streaming service is called DirecTV Now, which AT&T discounts in bundles with wireless plans. It also throws in HBO for cellphone customers with unlimited plans. Cable company
Noon: This article was updated throughout with additional details and background information.