T-Mobile took on its biggest rivals today, both verbally and in the marketplace, as it rolled out what it dubs the Simple Starter plan.
For $40 per month a customer receives free talk and text and a 500MB capped data plan. Those interested can grab a plan starting this Saturday with a pre-paid version coming on May 7. T-Mobile's price offensive is in direct response to more affordable plans recently offered by Verizon and AT&T, which T-Mobile executives are panning as predatory.
"We are freeing consumers from the predatory practices of traditional U.S. 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 CEO John Legere . "It's wrong. And I personally want to drive those ridiculous schemes out of this industry."
Legere was not the only T-Mobile executive to take competitors to the verbal woodshed.
"I don't think it's overstating it to call them a bait and switch," said T-Mobile Chief Marketing Officer Mike Sievert.
Seivert was alluding to the fact that his company's plan will not charge users who go ove the allotted amount of data, unlike what happens to Verizon and AT&T customers.
Instead of letting the data usage meter roll passed the limit, T-Mobile sends out a message when use is closing in on 500MB. At that point the customer can do nothing and have the data shut off when the limit is reached or pay extra for more data. The cost is $5 for 500MB more for that day or $10 for an additional 1GB that can be used in the next seven days.
The Simple Starter plan is a stand-alone offering in that cannot be bundled with the company's family plan and there is no international texting or global roaming ability.
For those interested in unlimited data the company has plans starting at $50.
"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! 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 said in a statement.
