T-Mobile is targeting budget-conscious customers with its new "simple starter" plan for $40, which includes 500 MB capped data with no data overage charges.
T-Mobile, the fourth largest wireless carrier in the U.S., is targeting budget-conscious customers with a new "simple starter" plan. The plan offers an affordable solution to those who use little or no data on their phones. The Simple Starter plan announced Wednesday, offers unlimited talk and text with 500MB capped data and avoids data overage charges, which is a pressing concern for many consumers.
T-Mobile's flamboyant CEO John Legere took to his company's blog Wednesday, announcing the new budget plan as a part of the Un-carrier initiative. "We start today with an all-new Simple Starter plan, a $40 monthly price plan specifically designed to deliver a predictable, affordable solution to millions of value-conscious Americans - and to provide a desperately needed alternative to the high-risk, overage-intensive plans that the biggest carriers target directly at Americans looking for entry-level wireless service," Legere's post reads.
The introduction of Simple Starter plan brings T-Mobile at par with its rivals' latest offering of budget plans. Verizon recently launched "More Everything" plan starting $45 per month, while AT&T also revamped its family plans to offer more saving under its Mobile Share program. U.S. Cellular, the unusual participant in the price-war between the U.S. carriers, also followed suit with its new no-contract plans starting $40 for unlimited everything.
Legere argues that the overage charges are more transparent with T-Mobile than any other carrier. Taking AT&T's low end plans into comparison, Legere said the costs jump by $20 when the maximum threshold is jumped, which can be a shocking addition to the monthly bill. The Simple Starter plan, on the other hand, guarantees zero overage charges along with no-contract benefits. But the new plan does not include unlimited international data and texts, which are a part of Simple Choice plans offered by the carrier starting $50 a month.
T-Mobile will also alert customers if they get near the 500MB limit with the $40 plan and offer additional data for extra fees. For an additional $5, customers can add another 500MB data for the day or $10 for 1GB to be used over the next week.
The Simple Starter plan enjoys other benefits such as zero upfront device financing and T-Mo's Jump upgrade program. For those who are willing to switch carriers, T-Mobile will also cover termination fee and offer credit for trading in their existing phones, which can total up to $650.