T-Mobile introduces new entry-level $40 plan; more news coming during the next three days

T-Mobile introduces new entry-level $40 plan; more news coming during the next three days
The nation's most innovative mobile carrier is shaking things up again. On Wednesday, T-Mobile announced a new $40 "Simple Starter" plan which includes unlimited talk, text and 500MB of 4G LTE data. Those going over the data cap will find their data speed reduced to 2G speeds. Any equipment installment plan balance will be added to the price.

T-Mobile CMO Mike Sievert says that while Verizon and AT&T have similar plans, their data caps are so low that customers face large overage amount on their bill. "It’s a bait and switch. Typical customers will easily pay double that. People need to call them out for this," said the T-Mobile executive. The carrier's CEO, John Legere, went after his favorite target. He noted that AT&T's low-end plan can end up costing 44% more than advertised because of overage fees, which he says hurts those people who can afford it the least. The new T-Mobile plan throttles data speed instead of charging for overages.

More industry shattering news is expected to be announced soon by T-Mobile. Legere said in a company blog post that T-Mobile has just started shaking up wireless.  Marketing chief Sievert said that over the next three days, the company will announce big news affecting three separate segments of the industry. "Our work of transforming wireless on behalf of American consumers is far from done," said CEO Legere. "Stay tuned in the days ahead."


source: T-Mobile

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48 Comments

1. MrOCD unregistered

So basically the old $50 plan, except now it's $40? Nice.

5. 1ceTr0n

Posts: 549; Member since: May 20, 2012

No, try again. Its 500 megs and then its capped after.

9. MrOCD unregistered

Exactly. That's the old $50 plan from before they made it 1GB

21. Augustine

Posts: 1043; Member since: Sep 28, 2013

It's not. In the old $50 plan data would be throttled over 500MB, now it's suspended. All the other T-mobile plans state that "then slowed to up to 2G speeds for rest of billing cycle."

23. networkdood

Posts: 6330; Member since: Mar 31, 2010

On the plans prior to the last change, t no would just throttle you to 2G....

24. MrOCD unregistered

"Those going over the data cap will find their data speed reduced to 2G speeds." "The new T-Mobile plan throttles data speed instead of charging for overages." C'mon now, did you even read the article?

26. Augustine

Posts: 1043; Member since: Sep 28, 2013

I did read the article as well as T-mobile FAQ for this plan (v.http://t-mo.co/1qjbkmY ), which states: "The Simple Starter plan is an unlimited talk and unlimited text with up to 500MB of high-speed 4G LTE data. Once a user reaches the 500MB of high-speed data, the service is suspended, with the peace of mind that no overage fees will apply." Ergo, the article is incorrect.

30. MrOCD unregistered

I see. You are correct. It's my fault for not going to the T-Mobile site as well. Please fix the article PA.

27. jroc74

Posts: 6023; Member since: Dec 30, 2010

I suggest some go here: (see post #26 for the link) Thanks...lol. ..and click on View 7 More Questions at the bottom: "If I go over the data limit, will I get charged overage fees? The Simple Starter plan is an unlimited talk and unlimited text with up to 500MB of high-speed 4G LTE data. Once a user reaches the 500MB of high-speed data, the service is suspended, with the peace of mind that no overage fees will apply. For additional data, on-demand data passes are available via My.T-Mobile.com, visiting a TMO store or calling Care." Wow...I hope whoever gets this plan are aware of that lil bit of info.

35. bestmvno

Posts: 251; Member since: Mar 07, 2014

Yes, but you have to remember, T-mobile is in the process of converting it's entire edge network over to LTE, so it doesn't really make much sense to offer new plans with data throttling to 2g. I know some of their higher plans may still have throttling, and the plan I have does too, but it won't be there for long. I suppose they can throttle to HSPA+, and I wonder what their intentions will be with that network. Perhaps offer HSPA+ to MVNO's only, like Verizon currently only offers 3g?

37. RORYREVOLUTION

Posts: 3131; Member since: Jan 12, 2010

They can still throtle you down to 2G speeds even if your signal icon shows LTE or 4G.

38. bestmvno

Posts: 251; Member since: Mar 07, 2014

Yes, but if they take down their 2g network do they still have the capability to slow you to 2g speeds? If so, I'd like to know how this is technologically possible. They can literally slow an individual's lte down without affecting anyone else and without having to shift them to another network?

40. Augustine

Posts: 1043; Member since: Sep 28, 2013

Yes, that's basic management of quality of service in the network.

6. Salazzi

Posts: 537; Member since: Feb 17, 2014

It would be friggin awesome if the pricing structure would now be $40, 20, 5 for lines 1,2,3-10

29. torr310

Posts: 1628; Member since: Oct 27, 2011

I wish they can offer plans like 300 mins talk time, 100 msg, and 5GB data for $40. So users use phones on data more than talking/texting can get benefit from it.

44. Salazzi

Posts: 537; Member since: Feb 17, 2014

They offer a plan for 100 minutes, unlimited texts and 5GB data for $30. Cheaper than what you want with more textings, just less minutes.

2. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Is that 40 dollars per month? That's freaking expensive...

3. av911

Posts: 206; Member since: Nov 19, 2012

You expect it to be $40 for 2 life time?

8. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Waaaait. I just realized that that's not that entry level. 500 megabyte internet and unlimited text and calls lol. How can that be entry level? What is high end then? 50 gigabyte internet and unlimited video calls to Mars?

13. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Actually, $80 for fully unlimited everything. Still on the grandfathered $70 FU everything plan. :)

15. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

lol. I think maximum LTE speed in Finland is just 150 megabytes.

18. PressStart

Posts: 119; Member since: Apr 08, 2014

...calls to Mars.

4. Augustine

Posts: 1043; Member since: Sep 28, 2013

The pricing structure doesn't quite make much sense to me. This $40 plan is basically the $35 plan with 500MB, nice. The $30 with 5GB comes with measly 100min. I'd think that the challeneg to the network is the data part, not the voice part. This seems to be reflected in its Simple Choice plans, all with unlimited voice and increasingly higher prices for more data allowances. It seems to me that the $30 plan is the real find in this plan structure. Though 100min are too few, one can always make free calls to phone numbers over data using a variety of apps. Yet, I wish that instead of 100, 1000min would be offered. Call me cheap.

7. 1ceTr0n

Posts: 549; Member since: May 20, 2012

Perhaps you should move to prepaid plans cheap man?

19. Augustine

Posts: 1043; Member since: Sep 28, 2013

As a cheap man, I've had the $30 prepaid plan for years. :-)

42. Kaiser2007

Posts: 173; Member since: Nov 16, 2013

I using that $30 plan. I forgot when I started, may be long time ago. I have 2 GV#: one for home phone and another for cell phone. So, I don't need a lot of mins on my cell.

10. npaladin2000

Posts: 165; Member since: Nov 06, 2011

Nice, glad to see them trying to drive the industry. Too bad they've got no signal anywhere near me. Besides I'm using Net10 for $45 a month and getting lots more data. :)

11. rdaex

Posts: 152; Member since: Oct 24, 2012

Here shortly though, those data apps wont work with Google Voice, and everyone doing what youre talking about will have to figure something else out.

12. Slammer

Posts: 1515; Member since: Jun 03, 2010

I still can't get a handle on this carrier. John Legere is an energetic ball of enthusiasm that talks big, yet, the figures never seem to add up in helping the consumer in the long run. He now touts this 40 dollar plan with fiestive lights and ballons to trash AT&T and VZW. I like the spunk but in the end, the consumer gets derailed by having their data completely cut off if gone over. I understand the logic and agree that overages account for big money. However, any company could've done what tmobile is doing. The difference is that the other companies know it wouldn't sit well with its customers after so many times of being cut off. So now the customer would have to upgrade to the next feasible level which costs more. All tmobile has done recently, is skew the number game. 40 is lower than 50. Consumers fall for the same bait and switch that tmobile claims they're against. Beware of wolves in lambs clothing. John B.

14. Salazzi

Posts: 537; Member since: Feb 17, 2014

What are you talking about? There is no "cutting off" in T-Mobile. It gets throttled when you reach over your allotted high speed data, which mind you, the 2G is still enough for tweeting and very basic and non-intensive web activities. This is keeping it simple and transparent for the consumer.

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