According to a University of MI report quoted by T-Mobile, "8 of the 10 brands with the lowest customer satisfaction scores in America are cable and TV providers".
John Legere, T-Mobile's CEO, said in a news release and video that this step is the next logical one for the company. "All of these Un-carrier moves sent shockwaves through the wireless industry, prompting competitors to continue to follow T-Mobile's lead".
"People love their TV, but they hate their TV providers", said Legere. He also said the new service, a combination of streaming TV and online video, will fix "pain points" such as multiyear contracts, high bills, bad customer service or slow technology and bring "real choice" to customers. Between service contracts, no real competition in many places around the United States, and poor customer service, this notion that everyone hates big cable shouldn't really come as much of a surprise. "Personally, I can't wait to start fighting for consumers here!"
The planned T-Mobile wireless TV service will join a host of other "virtual" internet TV services. Layer3's TV packages now start at $75 per month.
The move gives T-Mobile a video strategy that can match larger rivals, including Verizon and AT&T, who have extensive pay-TV holdings, which they are increasingly integrating into their wireless offers.
The so-called "concierge" cable service was founded by former cable executive Binder in 2013 and has been slowly rolling out a very traditional-looking pay TV service that emphasizes premium technology and customer service. Layer3 resembles a regular cable company in a lot of ways: you get a fiber optic cable hookup for your house, which you wire up to your cable box. "Together with T-Mobile, we're going to ditch everything you hate about cable and make everything you love about TV better".