Will T-Mobile’s New Low-Cost Plan Win More Subscribers?

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Source: Thinkstock

Source: Thinkstock

T-Mobile (NYSE:TMUS) is at it again with its “Uncarrier” approach to the mobile market, this time targeting the lighter phone users with budget on the mind. A new plan offering keeps things simple for customers while ensuring they don’t get charged for going over their data allowance.

When T-Mobile switched from being a two-year contract carrier to offering monthly plans and selling phones with monthly installment payments, it separated itself from the status quo of major carriers. T-Mobile was stuck toward the back of the pack, and the move shook up the system. Now other major carriers are offering similar non-contract plans to compete.

The latest plan from T-Mobile weighs in at just $40 per month and is called the “Simple Starter” plan. The plan includes unlimited text and and talk, so there’s nothing to worry about with the essential phone functions, plus 500GB of data on 4G LTE. When the data cap is reached, users are prompted to pay $5 or $10 for extra data for a day or week. HNGN reports that the plan doesn’t include the international data or texts that are included in the $50-and-up Simple Choice plan. However, the new plan does seem like it could have appeal for basic mobile users not worried about international services or lots of data on mobile networks.

With the added opportunity to have T-Mobile pay up to $650 to help customers with cancellation fees when switching from a traditional contract carrier, the move to break up the lead of the top carriers is clear. However, T-Mobile might have fallen into competition with some smaller carriers by delving into the pre-paid market.

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