T-Mobile Video Service Faces Virtual MVPD Challenges, nScreenMedia Says

T-Mobile promised to disrupt the pay-TV industry, but "there simply isn't any room for disruption left" for the wireless company under programming license constraints it will face, nScreenMedia analyst Colin Dixon blogged Wednesday. Dixon said the video service the carrier plans to launch later this year based on Layer3 TV will put it in direct competition with other virtual MVPDs, and that competition will be a constraint. He said Layer3 TV in Los Angeles starts at $75 a month, far more expensive than other virtuals, and its 275-channel bundle likely means restrictions on how Layer3 can put together its programming bundles. Dixon said other virtual MVPDs are likely losing money on every subscription, so T-Mobile is facing even bigger losses. He said that makes it likely the company will follow AT&T's virtual MVPD lead with a service omitting sports and major broadcast channels. T-Mobile didn't comment Thursday. It announced plans to buy Sprint (see 1804300055).