T-Mobile US rolls out new Simply Prepaid plans starting at $40 per month

T-Mobile CEO John Legere
T-Mobile CEO John Legere (Image credit: T-Mobile)

Update: Clarified the post to indicate that speeds are throttled back to 128kbps (about 2G speeds) when you hit your data allotment, not 3G. Also added additional information on plan restrictions.

Original story: T-Mobile today announced a new wave of prepaid plans under the Simple Choice branding. Unlimited data, calls, SMS and limited 4G LTE will be offered on T-Mobile's network from $40 a month. Opting for higher LTE allowances will increase the price depending on how much data you believe you'll chew through.

The company is marketing the new plans as a cheaper alternative to its Simple Choice solutions, while still offering enough to get customers through each month. The value of the new plans is being cut back with the pricing as well, though, as data speeds are now capped at 8mbps and further features like tethering and Music Freedom are nowhere to be seen. Here's how the pricing stacks up with LTE allowances:

  • $40 - Unlimited data, minutes, SMS, and up to 1GB of 4G LTE (throttled to 128kbps thereafter)
  • $50 - Unlimited data, minutes, SMS, and up to 3GB of 4G LTE (throttled to 128kbps thereafter)
  • $60 - Unlimited data, minutes, SMS, and up to 5GB of 4G LTE (throttled to 128kbps thereafter)

It isn't clear right now which of its current plans will be going away to make room for the Simply Prepaid set. The new plans will be available both online and at T-Mobile stores from January 25th.

T-Mobile Introduces Simply Prepaid, Expands Choices for Prepaid Customers

Bellevue, Washington — January 15, 2015 — T-Mobile [NYSE: TMUS] today took a bold step to bolster its No.1 position in prepaid wireless introducing Simply Prepaid™. The Un-carrier's™ new monthly prepaid plan delivers unlimited data, talk and text with 4G LTE data buckets starting as low as $40 a month − all on T-Mobile's Data Strong™ nationwide 4G LTE network.

Simply Prepaid is the perfect complement to T-Mobile's wildly popular Simple Choice plan – and is designed with the same focus on simplicity, fairness and value. While Simply Prepaid has fewer bells and whistles, it comes with lower prices and everything else prepaid customers want, including the nationwide 4G LTE network designed Data Strong.

"There's a reason the Un-carrier continues to be #1 in prepaid, and it starts with our willingness to break the rules and give customers better choices," said John Legere, president and CEO for T-Mobile. "We will never stop eliminating customer pain points. The 1.2 million net new prepaid customers who joined T-Mobile last year already see that value, and we have no plans to stop there."

In 2014 alone, T-Mobile won more than 1.2 million net customers to its prepaid business widening its lead in the category over the other major national providers, who continued to ignore and lose prepaid customers right and left.

Simply Prepaid is as straightforward as it is affordable:

  • $40 / month for unlimited data, talk and text + up to 1GB of 4G LTE
  • $50 / month for unlimited data, talk and text + up to 3GB of 4G LTE
  • $60 / month for unlimited data, talk and text + up to 5GB of 4G LTE

Simply Prepaid customers will also enjoy unique benefits of being a T-Mobile customer like Wi-Fi calling at no extra charge, and with 8 Mbps speeds, they can download a song in under 10 seconds or a 30 min HD TV show in just eight minutes.

The new plan will be available online at t-mobile.com and in T-Mobile retail stores, Simply Prepaid dealer locations and all other authorized retailers starting January 25th.

Rich Edmonds