BELLEVUE, Wash. & DENVER--(BUSINESS WIRE)--You say you want a revolution? Today, T-Mobile US, Inc. (NASDAQ: TMUS, “T-Mobile”) president and CEO John Legere unveiled the next phase in the Un-carrier’s mobile video strategy, announcing plans to launch a disruptive new TV service in 2018. To fuel that, Legere also announced the Un-carrier has signed a definitive agreement to acquire TV technology innovator Layer3 TV, Inc. (“Layer3 TV”) and will work with Layer3 TV’s leading technology and talent to create T-Mobile’s new TV service.
“People love their TV, but they hate their TV providers. And worse, they have no real choice but to simply take it – the crappy customer service, clunky technology and outrageous bills loaded with fees! That’s where we come in. We’re gonna fix the pain points and bring real choice to consumers across the country,” said John Legere, president and CEO of T-Mobile. “It only makes sense for the Un-carrier to do to TV what we’re doing to wireless: change it for good! Personally, I can’t wait to start fighting for consumers here!”
Bringing Real Choice to TV
The Un-carrier will build TV for
people who love TV but are tired of the multi-year service contracts,
confusing sky-high bills, exploding bundles, clunky technologies,
outdated UIs, closed systems and lousy customer service of today’s
traditional TV providers. And people are
tired of all the bull that comes bundled with Big Cable and Satellite TV
– America’s #1 most-hated industry. In fact, 8 of the 10 brands with the
lowest customer satisfaction scores in America are cable and TV providers1.
“We’re in the midst of the Golden Age of TV, and yet people have never been more frustrated by the status quo created by Big Cable and Satellite TV,” said Mike Sievert, Chief Operating Officer of T-Mobile. “That’s because the world is changing – with mobile video, streaming services, cord cutting, original content and more -- and yet, the old guard simply can’t – or won’t – evolve. It’s time for a disruptor to shake things up and give people real choice like only the Un-carrier can.”
Shifting the Un-carrier’s Mobile Video Strategy into Overdrive
T-Mobile
has long been a leader in mobile video – first, giving customers the
freedom to stream as much as they want with Binge On and T-Mobile ONE,
and then giving T-Mobile ONE families a free Netflix subscription
included at no extra charge. All of these Un-carrier moves sent
shockwaves through the wireless industry, prompting competitors to
continue to follow T-Mobile’s lead.
Today, the Un-carrier is shifting its strategy into overdrive by acquiring fellow disruptor Layer3 TV. Currently, Layer3 TV delivers a product that seamlessly integrates the best of television, streaming online video content and social media and is available in five cities across the US. With Layer3 TV’s leading technology and talented team, T-Mobile plans to launch its own disruptive new TV service next year, tapping into the amazing content available from creators today to disrupt legacy cable and satellite TV’s distribution model. The Un-carrier’s new TV service will take full advantage of T-Mobile’s nationwide retail presence, top-rated brand and award-winning sales and customer care organizations.
“No market needs Un-carrier-ing more than pay TV, so we’re completely stoked to join T-Mobile in disrupting the status quo!” said Jeff Binder, CEO of Layer3 TV, Inc. “Together with T-Mobile, we’re going to ditch everything you hate about cable and make everything you love about TV better.”
A Network Built for Video
At the heart of T-Mobile’s mobile
video strategy is the nation’s fastest LTE network – a network built to
handle customers’ growing appetite for mobile video. Since last year,
wireless customers are using 37.5% more data on average, and T-Mobile’s
network has only gotten faster – with download speeds increasing 28% in
the last year. And, T-Mobile’s network just continues to expand and
improve with new nationwide low-band spectrum and more advanced
technologies deployed than any other wireless company. Plus, T-Mobile is
out in front again on 5G. The Un-carrier was first to commit to build a
nationwide 5G network and has already begun working on that by deploying
5G-ready equipment.
Please join John Legere, Mike Sievert, Jeff Binder and other T-Mobile
executives for a conference call today, December 13, at 8 AM pacific /
11 AM eastern.
US/Canada: 800-432-9830
International:
719-234-7318
Participant Passcode: 5735302
The call will be available live and on demand shortly after the call concludes on T-Mobile’s press room at https://newsroom.t-mobile.com.
You can submit questions on the call or by tweeting @JohnLegere with #Uncable. Please plan on accessing the conference call ten minutes prior to the scheduled start time. The call will be approximately 30 minutes including a business update and Q&A.
Other Information
The acquisition is subject to customary closing
conditions including regulatory approval and is expected to close in the
coming weeks. The acquisition is not expected to impact previously
announced company guidance or expectations.
Video typically streams at 480p. During congestion users >50 GB/mo. may notice reduced speeds. Netflix: Receive Netflix Standard 2-screen (up to $10.99/mo. value) while you maintain 2+ qual’g T-Mobile ONE lines. Netflix Terms of Use apply. Speed claims based on T-Mobile’s analysis of Speedtest results provided by Ookla. Q3 2016-Q3 2017.
1 University of Michigan’s American Customer Satisfaction Index, 2017
About T-Mobile US, Inc.
As America's Un-carrier, T-Mobile US, Inc.
(NASDAQ: TMUS) is redefining the way consumers and businesses buy
wireless services through leading product and service innovation. Our
advanced nationwide 4G LTE network delivers outstanding wireless
experiences to 70.7 million customers who are unwilling to compromise on
quality and value. Based in Bellevue, Washington, T-Mobile US provides
services through its subsidiaries and operates its flagship brands,
T-Mobile and MetroPCS. For more information, please visit http://www.t-mobile.com.
About Layer 3 TV
Layer3 TV, Inc. is The New Cable®. Layer3 TV
offers customers a revolutionary, intuitive interface that seamlessly
integrates the best of cable TV, premium channels, streaming online
video content, social media, and smart home devices. Founded in 2013,
the company is backed by highly respected players in entertainment and
private equity including Evolution Media (whose shareholders include TPG
Growth, Creative Artists Agency, and Jeff Skoll/Participant Media),
Paulson and Company, Inc., Altice, and North Bridge Venture Partners.
The company is represented by Goldman Sachs & Co. LLC and LionTree
Advisors. To learn more follow Layer3 TV on Twitter and Facebook
@Layer3TV or visit layer3tv.com.
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