Service that will launch later this year could remake the cable industry
About four months after T-Mobile acquired Layer3 TV, the Denver TV service has fully integrated into its new owner, said co-founder Jeff Binder, who spoke Tuesday at a TV industry event in the Denver Tech Center.
The cellular service provider plans to launch T-Mobile TV this year, and Binder offered some hints of what’s to come. With T-Mobile’s pending merger with Sprint, Binder said that his team will have access to much more than originally thought possible.
“Obviously, 5G is key,” said Binder, now T-Mobile’s executive vice president of home and entertainment. “… There is tons of opportunity in terms of build out. We’ve talked about spending $40 billion in the first three years of the merger. It really allows the country to lead in 5G and lead wireless. That means things like broadband and video will become more available to consumers.”
Binder said that by building out a next generation wireless technology of 5G, TMobile will be able to get video to the home at speeds that are “hundreds and hundreds of megabits per second” and help consumers make better use of their big screen at home. Customer service is also important. “I won’t hold you hostage during a care call for 45 minutes,” he said.
But more importantly, he said, T-Mobile
wants to remake the cable TV industry much like it did mobile service.
The company upended the mobile industry, getting rid of two-year contracts and offering unlimited data plans when few others would.
In the TV world, however, the company faces fierce competition, as evidenced during sessions of The Pay TV Show, which attracted panelists from Sling TV, Amazon, Hulu and others. According to market researcher Parks Associates, there are 214 internet-based TV services just in the U.S.
Binder didn’t seem too concerned.
“A whole host of things have changed in the wireless industry and there is an opportunity to bring the same change to cable. It’s ripe for disruption,” Binder said. “… Disruptive means listening to customers and doing what they want. It doesn’t mean blowing things up. Look, customers are leaving pay TV. … That means it needs to be disrupted. We think we can bring new customers to the fold.”
Binder entertained the crowd with insider humor.
“First of all, we’ve got to get rid of the AT&T/DirecTV blue (lights) up there and get some magenta going,” he said early in the presentation. “I don’t know who’s in charge of the lights but they didn’t get the memo because otherwise people are going to be overcharged, with long contracts and exploding bundles.”