Mobile acquires Denver's Layer3 TV, aims to disrupt industry


T-Mobile announced Wednesday it would launch a new TV service as part of its deal to acquire Layer3 TV, a Denver startup that offers high-definition TV services online.

T-Mobile says it will launch its own TV service in 2018, expanding its competitive focus beyond the US wireless giants to target major cable and satellite providers with its latest "Uncarrier" initiative. The company will create a "variety of offers", some low cost, its executives said on a conference call with reporters.

Speaking in terms of Layer3 TV, the service was built around delivering TV channels by encoding them with IP and broadcasting everything over fiber optic cable to Layer3 subscribers.

While T-Mobile will not rule out original content, it will not be a focus to start, Chief Operating Officer Mike Sievert said.

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Layer3 is a cable company that sought to bring together traditional television channels with streaming video services in a single user interface.

Competitors sold off on the news, with AT&T Inc.

T-Mobile has provided us with some mock up screens as to what the service may look like when integrating Live TV and other services like Netflix and Hulu. T-Mobile CEO John Legere said in a series of tweets. This service is a hybrid between traditional cable service and over-the-top services like Sling TV.

At time of publication, T-Mobile shares were trading up 1.2 percent at $64.26.