T-Mobile Offering "Simple Starter" Plan for $40/Month, Calls Competitor's Plans Bait-and-Switch
April 9, 2014 12:56 PM
The plan will be made available in stores this Saturday
T-Mobile has been at its UnCarrier strategy for a year now and there's no signs of stopping as the wireless carrier unveils a new budget-friendly plan.
T-Mobile has announced its
"Simple Starter" plan
, which is only $40 per month and includes unlimited talk and text and 500MB of capped data.
The new plan is aimed at customers that use little or no data on their phones. T-Mobile says its low-end plan differs from others at Verizon and AT&T because it doesn't hit users with massive overage charges when customers go over the threshold. T-Mobile's plan is meant to be "predictable," and with Simple Starter, the company promises customers will never pay data overages again.
In other words, goodbye bill shock.
"With AT&T’s entry-level plans, for example, your costs immediately jump by increments of $20 when you slip over the threshold into massive overages — in what amounts to an obscene 44% price hike on those customers least able to absorb overages and bill shock," said T-Mobile CEO John Legere.
T-Mobile CEO John Legere [SOURCE: NYT]
"It’s wrong. And I personally want to drive those predatory bait-and-switch schemes out of this industry."
The plan will be made available in stores this Saturday, and a prepaid version is due to be released on May 17.
T-Mobile has offered other UnCarrier moves in the past, such as such as
paying up to $350
in early termination fees (ETFs) and offering
for unlimited international text and data. It looks like there's more on the way in the coming days, as well.
"Our new Simple Starter plan represents our commitment to advocate for consumers and to change this industry," said Legere. "With Simple Starter, you’ll never pay data overages again – ever. Come to T-Mobile and experience complete freedom from the fear of bill shock. This Un-carrier approach to value plans – and the announcements to come this week – are purpose-built to accelerate this momentum, continue disrupting and innovating this industry, and deliver even more amazing value and freedom to our customers."
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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