Layer3 launches in Dallas; coming to NYC, sources say

Capping an active early week of announcements, startup pay-TV operator Layer3 TV said it has launched in Dallas.

Word of expansion into Texas comes as just after the Denver-based company said it has signed a wholesale deal with Verizon to package fiber broadband along with its video services in the Washington, D.C., area. 

Further, according to a source familiar with the company's plans, Layer3 plans to expand into the New York City/Long Island market.

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Speaking to FierceCable Monday, Layer3 CEO Jeff Binder wouldn’t comment on speculation that the company would sign a similar deal in Verizon to expand into the New York City/Long Island market. Bundled internet and TV in that market are controlled largely by Altice USA and Charter Communications. Verizon, which controls only between 20-25% of the market, is purportedly looking for mechanisms like Layer3 to expand its marketshare in the Big Apple. 

“It is fair to speculate that you’ll be seeing more broadband being bundled with Layer3 TV over time,” Binder said. “That’s not specific to one provider. That’s just in general. This isn’t a one-off from a strategy perspective.”

Related: Layer3 carves deal with Verizon to sell broadband in Washington, D.C., area

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. Sources said the strong early customer sign-up metrics associated with that deal have inspired Layer3 to look for more broadband-bundling opportunities. 

“It’s too early to talk about metrics,” Binder added. “But it’s not a secret that bundles sell through better than non-bundled services.”

As for Dallas, Layer3 has begun marketing its IP-over-managed-network-based allHD pay-TV product as a stand-alone service in the area. The expansion follows launches in Denver, Chicago, Washington and Los Angeles. 

Earlier in its gestation, Layer3 conducted trial runs in areas surrounding Houston, some of which involved a partnership with Altice’s Suddenlink Communications. None of the testing was in the Dallas market, Binder said, “but we feel like we know that market.

“We feel really good about Dallas,” he added. “It’s a terrific sports market. We have tons of HD, and we’ve got the [regional sports networks] like the Pac-12 Network, and we’ve got all the ESPNs in HD.”

Importantly, Binder noted: Layer3 also carries the Longhorn Network in Dallas. 

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