T-Mobile gets aggressive on low pricing with new Simple Starter Plan
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.
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.
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Derek Kessler is Special Projects Manager for Mobile Nations. He's been writing about tech since 2009, has far more phones than is considered humane, still carries a torch for Palm, and got a Tesla because it was the biggest gadget he could find. You can follow him on Twitter at @derekakessler.