The Uncarrier is striking again with a new bottom-tier plan: T-Mobile's new Simple Starter plan starts at just $40 a month. For that rate, customers will get unlimited talk and text, plus 500MB of LTE data. The plans are set to be available starting on April 12, and customers will be able to take advantage of T-Mobile's pay-your-old-carrier's ETF deal, purchase phones on installment plans, and enroll T-Mobile's Jump! upgrade plan.

For comparison, the lowest-price plan from AT&T comes in at 300MB and would still cost $45 a month, while Verizon clocks in at $60 and Sprint at $55 (though Sprint and Verizon include device subsidies in their plans). Of course, you'll want to make sure that T-Mobile has service in your area.

Press release:

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 US 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 @ 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% 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.

"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 $40.00 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!(TM) 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 the T-Mobile Newsroom.


Reader comments

T-Mobile gets aggressive on low pricing with new Simple Starter Plan


For someone like me that has faster wifi at home and work, that is plenty. I was paying for 2.5gb of data and just went to a cheaper plan of 500mb data when I realized I was only using about 150mb a month when not on wifi.

Bottom-tier plan for a bottom-tier carrier. Amirite?

Posted from my newly Kit Katted Droid Ultra

Don't think so. I had ATT and I could not even send a text message without it failing. I paid more for ATT and got less, and switched to T-mobile got more data to augment my Wifi and unlimited everything else for less money. Oh, and did I say, I never had a text message fail? So I respectfully have to disagree with with your comment.

His point is that 500mb is more than 250mb therefore the comparison between Verizon and T-Mobile is crazy.........except if we're talking coverage. :-)
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if i wanted an economy plan i'd rather go with Straight Talk AT&T 4G LTE over this.

i still prefer AT&T GoPhone - not the cheapest - but the best value IMO.

Unlimited talk and text for att is $45 a month plus installments just like tmobile...misleading article they gave u two year pricing for att and Verizon it only has 300 mb of dats. Most people who choose this plan won't get it for data use but to just have a smartphone for the cheap, so they will chose a more advance and reliable network over tmobiles garbage. This post should be fixed to b more accurate ASAP. horrible and bias reporting!!

You are incorrect the AT&T plan that is $45 a month is with a subsidy and a contact. You are misleading.

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If 3g is unlimited, hspa/hspa+ with roaming, I could cut my bill in half switching from sprint and have better speeds on hspa than sprints LTE where I live. When I tried TMO prepaid 2 years ago hspa was getting me 8+ gb download speeds. I get 3-4 tops on Sprint LTE right now.

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Unfortunately, it drops down to 2g edge when i hit the cap. Could have changed that recently though, my speeds havent dropped.

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Overage costs are ridiculously high, so I'd rather get dropped to a painfully slow speed as opposed to my wallet getting emptied.

So you are telling me you would rather pay overage charges (which are insanely overpriced) then get slowed down?

Unusable for video streaming, but web browsing, and Google Maps still works on edge.

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The best keeps on getting better, thanks D.O.J. and the F.C.C. for shutting down the at&t TMOBILE merger attempt.

I might switch out from my $30/5GB plan for this. I don't use that much data since I have WiFi and more talk time could be useful.

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Use voip and save the $10/mo. It may not be practical when calling a friend, etc, but if you're just calling customer service or something it's a greal minute-saving option. Also, it looks like this is a post-paid offer since it includes jump, etc. The plan you have now is prepaid.

Sprints $55 plan (the Family Plan) does not include device subsidies. The cheapest sprint plan that includes subsidies is the unlimited my way ($50 for basic phones and no data and $70 for smart phones with 1gb data minimum.)

I'd be afraid I would accidentally download a ROM at some point and ruin my data for the month. According to another site they don't simply drop your speed on this plan. You have to pay for additional data. I don't think you get to skate by on Edge speed with this new simple starter plan if you hit 500mb. Technically no overages since you have to actively seek out paying for more data. They are taking the in app purchase route for data, lol. A paywall if you will...

With my employer discount on Sprint if you take away taxes my wife and I are each paying $60 a month for unlimited everything... T-mobile doesn't like those discounts anymore though. With LTE now I am happy to stick with Sprint.

Sprint doesn't really like them either. The discounts seem to be less and less with every new plan (Same percent but different actual $ taken off due to it only coming off of data.)

I've used this same plan on a prepaid plan for $30/month. How is this new?

**Was it over when the Germans bombed Pearl Harbor? Hell no!**

Last year when I switched to tmobile, I had the option to choose between the 100 min, unlimited text and 5 gigs for $30 or this one for $30. Why would I lie??

**Was it over when the Germans bombed Pearl Harbor? Hell no!**

Yeah this plan is the same as the prepaid option but not not many people have T-Mobile Prepaid and its prepaid plans rarely get talked about.

I guess this plan is okay for a single line user who uses little data but it's not that good for anyone else. With our family plan we are each paying the same amount for so much more and no hard cap.

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Anyone that uses this site regularly should already know that this plan is for the millions of un-tech-savvy customers that want to be like the smart-people they are around but don't understand.

Let features of this plan, ($40, jump program, unlimited calls texts and data*)

Un-tech-savvy people say, "I can upgrade every 6 months just like you, even though I don't use my phone a lot".

If you don't use your phone, why do you need to have the-latest-and-greatest?

Posted via my SPARK enabled Sprint LG G2, K00949438Yd FRAMILY!

Gotta love these price wars. This is exactly how things should be. Instead of forcing people to buy way too little (250mb) or way too much (I remember a time when you could only buy 250mb or 5gb of data from many carriers) offer pricing tiers that help rather than hurt your consumers. What an amazing concept!

500mb of data used to be enough for me but alas no longer...

If your cell service is absolute crap, you'd do whatever it takes from a price point initiative too

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I prefer T-Mobile's $30, 100 minute, unlimited text, 5gb data plan. Which is LTE in my area on my nexus 5. When you go over 100 minutes they just start charging your balance $.10 a minute. So $15 more dollars would get me 150 more minutes. Thing is I've only gone over 100 minutes in a month once in the past year. My data this month is at 4.1 gb and that's typical. Tomorrow is the start of my next cycle.

Is it the plan for everyone? Hell no. Is it ideal for my use case? Yes. I would die with only 250mb

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The $30 plan is normally only good for single people, not families; especially if you have family members that use well over 1000 minutes per month. I'll check out this $40 plan since it would be better than my $50 plan and always on WiFi. Although my company WiFi pales in comparison to my LTE service. It works well enough for audio streaming though.

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