Back in 2015, we said T-Mobile was basically becoming a cable company as it sought to turn its wireless data customers into bigger consumers of mobile video, exempting preselected services such as Spotify and Netflix from user data caps.
Terms of the agreement were not immediately disclosed, though Layer3 had raised more than $100 million from investors.
As for Layer3 TV, the company operates in five US cities by integrating television, streaming online content and social media, according to T-Mobile.
"People love their TV, but they hate their TV providers", Mr. Legere said in a statement, CNBC reported.
It's no surprise to see T-Mobile bet more heavily on video.
Mobile wants to 'Un-carrier' your TV with its own service
T-Mobile isn't offering up a whole lot of details surrounding its TV offering other than the fact it'll compete with other cord-cutting services on the market. The company plans to build on this service for its own service.
T-Mobile is planning to expand its wireless momentum into providing TV service, bolstered by an acquisition of television startup Layer3 TV.
T-Mobile announced the Layer3 service will continue its current service for the foreseeable future. If the price is right, especially when combined with cell service, T-Mobile could have a hit on its hands.
With its Layer3 purchase, T-Mobile joins its larger peers AT&T and Verizon Communications in a strategic shift to media and video ventures as the wireless industry struggles to find new growth.
T-Mobile is the third largest USA communication companies, but its growth is hindered by its competitors as they have already shifted into other aspects of the industry as well as offering cheaper and larger data plans. Verizon's service is said to be delayed until Spring 2018, and AT&T's service is currently available as DirecTV Now. It's in the process of acquiring Time Warner, which would give it control of a variety of high-end TV options, including TNT and HBO. While most of the industry is trying to lure cost-conscious consumers by offering cheaper packages with fewer channels, Denver-based Layer3 has gone in the opposite direction. Binder earlier started Broadbus Technologies, a video-on-demand company.