T-Mobile drops the price of its entry-level plan, selling 500 MB for $40


As T-Mobile(s tmus) continues to chip away at its larger rivals’ business, it’s starting to scale down to mobile data plan prices to attract more budget-minded smartphone users. On Saturday, it will introduce a new entry-level plan priced at $40 a month that offers 500 MBs of data as well unlimited voice and SMS.

This plan, called Simple Starter, is a bit different from its regular Simple Choice plans, which start at $50 a month. Instead of throttling data speeds back after customers hit their monthly data caps, T-Mobile is suspending data service after customers hit 500 MB in a billing cycle, restoring data access when a new billing cycle comes into effect.

T-Mobile simply starter rate plan

T-Mobile is positioning the plan as a way for cost-conscious consumers to avoid overage charges. Though T-Mobile technically doesn’t charge overages on any of its plans, Verizon(s vz) and AT&T(s t) will automatically tack another data bucket onto your bill once you hit your cap. That said, T-Mobile is also providing an option for customers to buy data a la carte if they’re stranded mid-billing cycle without a data connection: a one-day 500-MB plan costs $5 and a seven-day 1-GB plan costs $10.

Essentially if you’re a light data user, this plan make a lot of sense. You get full access to its LTE network and never worry about having your data speeds throttled. But if you’re creeping over 500 MB more than a couple of months of year, then it’s probably not worth your while. The cost of buying passes to maintain your service will obviate any cost savings over T-Mobile’s Simple Choice plans, unless you’re willing to restrict your mobile internet usage to Wi-Fi.

Simple Starter also doesn’t give customers access to T-Mobile’s new free international data roaming and texting benefits, substantial perks for anyone who travels overseas. It’s designed as a domestic only plan.

Still, it’s very interesting to see T-Mobile scale prices down — creating cheaper options for consumers — rather than just pile more data onto its existing plans, though its obviously restricting some features. We’re going to see more emerge from T-Mobile in the next few days as it tweaks its Un-carrier strategy. In a T-Mobile blog post, CEO John Legere said T-Mobile would be making a new announcement each day until Friday, so stay tuned.


Luke H

It is interesting because you can get unlimited data (along with the voice and SMS) using the same network with MetroPCS for $40. But with MetroPCS that is a flat $40 including any taxes or fees. The only reason I’m guessing to go through Tmobile is if you need to finance your phone or out of ignorance?


Erm, you might want to double check that headline! 500 gigabytes for $40 does a little too good to be true.

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