Cellphone company T-Mobile to launch TV service next year

Layer3 TV, which is now available in five cities across the country, integrates television, OTT services like Xumo, and services like Facebook, Pandora, and YouTube into its set-top boxes.

In his announcement Legere says the TV industry, specifically cable and satellite providers, is America's #1 most hated industry with 8 out of the 10 lowest rated brands in customer satisfaction scores coming from that industry.

"That's where we come in", added the CEO. "It only makes sense for the Un-carrier to do to TV what we're doing to wireless: change it for good!"

With its Layer3 purchase, T-Mobile joins its larger peers AT&T and Verizon Communications in a strategic shift to media and video ventures as the wireless industry struggles to find new growth. For instance, many T-Mobile wireless customers are getting Netflix for free. Layer3's TV packages now start at $75 per month. T-Mobile does say that its TV offering will utilize its nationwide retail stores as well as its sales and customer care organizations. "Together with T-Mobile, we're going to ditch everything you hate about cable and make everything you love about TV better".

T-Mobile will continue to support Layer3 TV's current model in the cities where it's now available and plans to grow its reach across the country, executives said.

T-Mobile prides itself on be the "un-carrier", so we can't wait to see how the company plans to navigate the market with its TV offering.

Acquiring Layer3 will give T-Mobile immediate access to relationships with programmers.

As you can imagine, today's announcement was filled with talk of the TV industry being frightful and how traditional cable companies are bad to their customers.

The wireless carrier showed off a video clip showcasing a mockup of its TV service's user interface, which is (unsurprisingly) extremely pink. About 94 percent of USA housholds pay for some form of TV, up from 89 percent last year, according to T-Mobile, and over the past seven years, the average cable bill has risen 48 percent.

  • Anthony Vega