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Why T-Mobile Plans to Launch a Video Streaming Service

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T-Mobile’s Un-Carrier initiatives

T-Mobile’s (TMUS) current marketing drive is known as its “Un-Carrier” initiatives, which are driving subscriber additions for the company as well as helping to strengthen and re-build subscriber trust. The company’s next focus is to enter the video distribution business. It acquired Layer3 TV for $325 million in January towards this end.

T-Mobile is planning to launch its streaming TV service later in 2018 to make space in the trending over-the-top (or OTT) video streaming market. The company is expected to use Layer3’s platform and relationships with content providers to build its television service.

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Positive impact of Un-Carrier initiatives

T-Mobile’s postpaid subscriber growth has significantly outpaced that of competitors in the saturated US wireless space. T-Mobile’s postpaid customers rose by a solid ~10.5% year-over-year (or YoY) to reach ~39.1 million at the end of Q1 2018.

Meanwhile, Sprint’s (S) postpaid customers rose ~1.7% YoY to reach ~32.1 million during the same period. Verizon’s (VZ) postpaid customers rose ~2.4% YoY to reach ~111.1 million at the end of Q1 2018. Furthermore, AT&T’s (T) postpaid customers in its combined domestic wireless operations grew by ~0.6% YoY to reach ~77.4 million at the end of Q1 2018.

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