T-Mobile is about to kick off three days of announcements for new initiatives starting with a new $40 Simple Starter plan that it says is a first for a U.S. carrier. Starting on April 12, T-Mobile claims the new $40 plan will make it the first to offer “unlimited talk and text, and up to 500MB of 4G LTE data and tethering with no data overages” at that price point. In this case, since the LTE data isn’t unlimited, no overages isn’t entirely accurate. It really means you’ll have to purchase additional data once you hit that 500MB cap for the month. In its press release, T-Mobile compared the new plan to AT&T’s entry-level plan:
T-Mobile contrasted its new flat-rate value plan against AT&T’s entry-level plan, whose costs immediately jump by $20 increments – in what amounts to a massive 44% price hike on those customers least able to absorb overages and bill shock. With Simple Starter, you’ll get a ton more data compared to AT&T’s 300MB, and you’ll never pay data overages again – ever. And with data capped at 500MB, you’ll never pay more until you choose to pay more – by purchasing additional data sessions whenever you like.
T-Mobile’s argument is that its method of charging for more data is more transparent than the other guys, but at the end of the day an overage is an overage and paying for more data will cost you $5/day or $10/week for T-Mobile’s “additional data sessions.” In reality, AT&T’s $45 300MB plan is comparable considering it only charges users $5 more for the next tier up, $50 for 1GB a month.
The new Simple Starter plan won’t, however, have access to the unlimited international data and texting perks that come with T-Mobile’s Simple Choice plans. They start at $50, $10 more than the new Simple Starter plan. There’s more about today’s announcement on T-Mobile CEO John Legere’s blog and the full press release below.
Day 1 of 3: T-Mobile On a Roll Again with Multiple Initiatives … First with the Launch of its All-New “Simple Starter Plan”
Un-carrier introduces zero-risk, no annual contract plan for value-conscious Americans –
and much-needed relief from other carriers’ high-risk entry-level contracts
BELLEVUE, Wash. – April 9, 2014 –T-Mobile US, Inc. (NYSE: TMUS) has announced the first in what it promises will be the rapid-fire roll-out of multiple initiatives to extend its Un-carrier consumer revolution to several new fronts. First, the company today introduced its all-new Simple Starter value plan, designed to offer a desperately needed alternative to the data overage-intensive entry-level plans the largest U.S. carriers target at Americans. This new plan makes T-Mobile the only major U.S. carrier to offer a single line of 4G LTE data at just $40 a month.
Launching April 12th, the Simple Starter plan – at only $40 a month for unlimited talk and text and up to 500MB 4G LTE data and tethering – is purpose-built for value-conscious wireless customers and small businesses that want predictability and affordability, and promises absolutely no data overages. All on America’s fastest nationwide 4G LTE network.
“Un-carrier is a movement, not a marketing strategy. We are freeing consumers from the predatory practices of traditional US wireless companies and that includes these plans that start with a low price and a low data limit, but then hit you with insane fees if you send one too many emails,” said John Legere, president and CEO of T-Mobile. “It’s wrong! And I personally want to drive those ridiculous schemes out of this industry. We will continue to be relentless and bring this forced march of change to the market every day so consumers can be creative with and enjoy the true benefits of wireless. I know we have it right and when we all are done reporting results from the first quarter – I think you’ll share my conviction.”
T-Mobile contrasted its new flat-rate value plan against AT&T’s entry-level plan, whose costs immediately jump by $20 increments — in what amounts to a massive 44 percent price hike on those customers least able to absorb overages and bill shock. With Simple Starter, you’ll get a ton more data compared to AT&T’s 300MB, and you’llnever pay data overages again – ever. And with data capped at 500MB, you’ll never pay more until you choose to pay more – by purchasing additional data sessions whenever you like.
“Today, we are introducing a zero-risk value plan that will give consumers everywhere a predictable and affordable solution,” said Mike Sievert, Chief Marketing Officer for T-Mobile. “Even more important, we are the only major U.S. carrier to offer a single line of 4G LTE data at just $40 per month. It is a fantastic deal!”
And, just as with all Un-carrier customers, those on the Simple Starter plan can enjoy many of the same benefits of being with T-Mobile, including America’s fastest nationwide 4G LTE network, and paying little or nothing down for your new device on T-Mobile’s equipment installment plan (EIP).
Simple Starter customers also qualify for T-Mobile’s break-through “Contract Freedom” offer which pays the entire contract Early Termination Fees of customers who switch to T-Mobile and trade-in their phones. The plan also qualifies for the company’s revolutionary JUMP!™ upgrade program, so customers can choose to get handset protection and they can upgrade when they want. Plus, as always with T-Mobile, there is the freedom of no annual service contract.
The company added that Simple Starter is designed as a domestic plan for people that don’t have a need for international texting and roaming. However, for customers that do want additional international benefits, the company’s flagship Simple Choice plan includes unlimited international data and texting from 120+ countries and destinations, plus unlimited international texting from the U.S. to virtually anywhere all at no extra charge.
For more information on what to expect from the Un-carrier in the next three days, check out President and CEO of T-Mobile, John Legere’s blog about the upcoming initiatives being rolled out. And for further information, visit theT-Mobile Newsroom.
+Taxes and fees. Limited time offer; subject to change. Fastest LTE network based on download speeds. Qualifying service & device purchase with port-in required for ETF payment. . See T-Mobile.com for specific offer and service details.
About T-Mobile US, Inc.
As America’s Un-carrier, T-Mobile US, Inc. (NYSE: “TMUS”) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The company’s advanced nationwide 4G and 4G LTE network delivers outstanding wireless experiences for customers who are unwilling to compromise on quality and value. Based in Bellevue, Wash., T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. It currently serves approximately 46.7 million wireless subscribers and provides products and services through approximately 70,000 points of distribution, including approximately 8,000 T-Mobile and MetroPCS branded locations and 62,000 third-party locations, as well as distribution through our websites. For more information, please visit http://www.t-mobile.com.