Startup pay-TV operator Layer3 TV has announced a wholesale agreement to package Verizon’s broadband service with video in the Washington, D.C. area.
Starting last week, Denver-based Layer3 TV began offering D.C.-area customers symmetrical 100 Mbps “pureFiber”-branded service for $50 a month when they bundle it with a $75-a-month “allHD TV” video offering.
Layer3 is offering unbundled broadband for $69 a month. The allHD video package, which includes more than 260 channels, starts out at $85 a month unbundled.
“Layer3 TV places consumers first by delivering the products, content, and technology requested of cable and satellite providers for years,” said Layer3 TV CEO Jeff Binder, in a statement.
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“Consumers have suffered too long with sub-par video quality, legacy interfaces, and a lack of integration with modern applications and devices—we are changing that with best-in-class video quality, the most advanced hardware and integration of all the best social, OTT and digital platforms,” Binder added.
Layer3 TV has raised $72 million through two rounds of funding, with Altice NV among the backers.
The company has so far deployed video services—which are delivered via IP over managed network—in Denver, Chicago, Washington, D.C., and Los Angeles.
Layer3 has yet to disclose subscriber figures.
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For Verizon, the deal with Layer3 offers the company an enticement to grow FiOS high-speed internet as its own pay-TV product is losing momentum. FiOS lost 13,000 video customers in the first quarter.
Separately, in its Denver-area home base, Layer3 announced last month a marketing deal with Colorado utility Longmont Power & Communications to bundle its TV product with the utility operator’s NextLight fiber-based broadband and phone service.