Recently T-Mobile US acquired cable firm Layer3 TV with a view to launching online video streaming services this year. Following the acquisition over 200 employees of Layer3 TV as well as its executives will be absorbed by T-Mobile and will be led the chief executive officer of the cable firm, Jeff Binder, who has joined the No. 3 wireless carrier in the United States as an EVP.
“People are ready for choice and change. I can’t wait to take the fight to Big Cable and Satellite TV on behalf of consumers everywhere!” said the president and chief executive officer of T-Mobile US, John Legere, in a statement.
High definition videos
The cable firm is based in Denver, Colorado and operates in markets such as Los Angeles, Washington, D.C. and Chicago. Layer3 TV combines social media content, online video content and television under one platform. The cable firm also has its own internet protocol network which allows it to serve as well as manage its content directly without running the risk of bandwidth throttling. The cable firm is also capable of transmitting high definition video at speeds of 4Mbps.
The wireless carrier will leverage its Long Term Evolution network speeds as well as the technology of Layer3 TV to unveil the streaming service which will be coming at a time when such services are becoming popular in the U.S. due to their affordability and convenience streaming services are proving to be a major threat to the legacy pay television sector.
T-Mobile does not however expect the acquisition to impacts its guidance for the 2017 financial year. At the beginning of the year the wireless carrier reported that it had added 5.7 customers last year and this included 3.6 million postpaid customers. T-Mobile’s total subscriber base in the United States stood at 72.6 million.
T-Mobile’s acquisition of Layer3 TV is coincides with the wireless carrier emerging as the fastest network per tests conducted by OpenSignal. On T-Mobile the average download spread across the United States was 19.4 Mbps on 4G. The second-fastest network was Verizon which had a download speed of 17.8 Mbps while AT&T came in third position with a download speed of 13.3 Mbps. The fourth-fastest network was Sprint with a speed of 12 Mbps for downloads. OpenSignal’s report also indicated that T-Mobile was the most available network with regards to 4G with its customers getting a 4G connection about 93.1 percent of the time.