Wednesday, December 13, 2017

What is Layer3 TV and why is T-Mobile buying it?

T-Mobile announced it’s planning to launch its own streaming TV service next year, but it’s not going about the task alone. The company is acquiring Layer3 TV to help build the service, catapulting the relatively small cable company into the national spotlight.

Layer3 TV isn’t the most well-known cable company. It’s only available in a few cities, including Chicago, Washington DC, and LA, and it lacks the kind of brand recognition of major players like Comcast or Verizon, or even more local brands like Optimum, RCN, or Spectrum. So what makes Layer3 so important that T-Mobile wants it to be the backbone of this upcoming TV service?

In a word: bandwidth. Layer3 resembles a regular cable company in a lot of ways: you get a...

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