T-Mobile delays video service launch to 2019

Bloomberg

T-Mobile US Inc is delaying the debut of its much-anticipated video service after the project proved more complex than expected, according to people familiar with the situation.
The move would push back the rollout until 2019, though plans could still change, according to the people, who asked not to be identified because the situation is private. Chief Executive Officer John Legere had promised to deliver a “disruptive TV service” — something that would upend the television industry — and that high bar has made it harder to get the project done on time.
T-Mobile executives faced the difficult choice of either offering a garden-variety streaming platform — a service that lets customers watch cable channels and other content online — or waiting until next year to deliver a more groundbreaking product, the people said.
The holdup comes at an awkward time for T-Mobile, which is seeking regulatory clearance for its $26.5 billion acquisition of Sprint Corp. That deal would combine the No. 3 and No. 4 wireless carriers in the US, raising concerns that it will hurt competition. A whiz-bang video service was part of its plan to show that bigger scale could help it bring better products to consumers.
There is plenty of room to improve on the current state of pay TV, said Walt Piecyk, an analyst at BTIG LLC. So-called skinny bundles — less expensive TV packages delivered online — have helped shake up the industry, but customer dissatisfaction is widespread.
“The cable industry is plagued by poor customer service and excessive fees,” he said. “It’s ripe for a challenge.” To gain a foothold in the streaming-video business, T-Mobile acquired Denver-based Layer3 TV Inc. in January for $325 million.