T-Cell completes Layer3 acquisition, on monitor to launch new TV service this yr
With this acquisition, first introduced in December, T-Cell is positioning itself to tackle cable suppliers like Comcast in the identical means it has battled cellular rivals AT&T and Verizon. T-Cell declined to launch monetary phrases of the deal or give extra element on when the service will launch.
“Individuals are prepared for alternative and alter! Properly, excellent news ‘trigger that’s precisely what we’re gonna convey!” mentioned John Legere, president and CEO of T-Cell mentioned in a press release. “I can’t wait to take the combat to Huge Cable and Satellite tv for pc TV on behalf of customers in every single place!”
The brand new TV initiative might be led by Jeff Binder, CEO of Layer3 and now an government vp at T-Cell. He might be joined by near 200 others from Layer3, together with former executives from AT&T, Fox, Comcast, Time Warner and extra.
T-Cell TV will work over an everyday dwelling cable, DSL connection, or some other kind of web connection. T-Cell is seeking to leverage its personal wi-fi community for the service, a key potential benefit vs. different “excessive” IP-based TV choices.
T-Cell is betting large on next-generation 5G wi-fi to make wi-fi connections simply as quick as dwelling web. T-Cell is concentrating on 2020 for a nationwide rollout of its 5G community, partially by leveraging spectrum it received in this yr’s FCC public sale.
Whereas T-Cell looks like an underdog going up in opposition to cable giants like Comcast and Constitution, it has constructed an enormous retail and buyer base lately. T-Cell US has 16,000 retail shops and 71 million prospects, and it ships 40 million smartphones a yr — present relationships that T-Cell can leverage to get folks to attempt its new TV service on quite a lot of gadgets, together with smartphones and set-top bins.
By comparability, Comcast had 21.5 million residential prospects as of the tip of the third quarter, so in some methods T-Cell is working from a shocking place of energy.
Layer3 has developed an IP-based TV service, together with a set-top field, and the corporate touts its relationships with content material suppliers as one in every of its key benefits. As T-Cell builds out its new TV service, Layer3 merchandise might be out there in some T-Cell shops in Denver, Los Angeles, Washington D.C., Dallas and Chicago.