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T-Mobile Headed Into The Digital Live TV Space

In the media space, if you can’t beat them, join them -- or just video them. But the better strategy? Make it even easier for consumers to buy you -- and even easier to drop you.

T-Mobile, the third-largest wireless provider, will launch a seemingly modestly price service of live, linear TV networks.

T-Mobile didn’t offer many details, only that it would be different from traditional and new pay TV providers. The later includes Sling TV, AT&T’s DirectTV Now, YouTube TV and Hulu with live TV. Helping to do this, T-Mobile just bought smaller cable TV operator Layer3 TV, which is currently available in five U.S. cities, including Los Angeles.

It did not disclose financial terms.

The company has been dipping its toe in the video waters. Recently, T-Mobile announced that its wireless customers would receive access to Netflix at no additional charge.

T-Mobile didn’t release what pricing points it is considering for its TV service. But looking back at T-Mobile efforts in the wireless business, one of its groundbreaking moves came by getting rid of two-year phone contracts -- an industry retail staple -- and boosting unlimited-data plans for consumers. The strategy helped T-Mobile gain customers as the industry was slowing overall.

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Will T-Mobile look to take the same approach with a new digital pay TV service? It’s going to be tough. For example, no new pay TV services bind their consumers to long-term contracts.

There is real growth for wireless companies with video. Verizon just made a big $2.5 billion deal with the NFL for airing games on mobile devices. AT&T, which bought DirecTV years ago to accompany its FiOS service, continues to push DirecTV Now, which is just over a year old.

Want some clues about where T-Mobile is going?

A T-Mobile press release says it 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TV but are tired of the multi-year service contracts, confusing sky-high bills, exploding bundles, clunky technologies, outdated UIs, closed systems and lousy customer service of today’s traditional TV providers.”

That's a big promise. And maybe more will come. Hey, Sprint. Are you ready to make the next move?

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