T-Mobile’s new $40 plan gets you unlimited talk, text & 500MB of LTE data, no international perks

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.