Last Updated on November 8, 2015 by Mathew Diekhake

T-Mobile has shaken up the US phone carrier market today by announcing a cheap new “Simple Start Plan’ that is the first in America to offer 4G LTE for just $40 a month. To sweeten the pot even more T-mobile have said it will be capped and customers will not be charged excess fees for going over. The new package offers greater security to people who are extremely cognizant of where their capital is going — something that those looking to invest in as little as possible with a plan will be looking at doing.

The new deal will launch on the 12th of April and will offer customers unlimited talk and text for 500 MB 4G LTE data and tethering.

John Legere, president and CEO of T-Mobile has said that this deal is aimed at taking away the outrageous fees that WiFi companies have deployed over the years that hit customers with high fees after going slightly over the limit.

They have also made a mental note to beat out current competitors AT&T with what they are offering (300MB) if  a customer was to shop with them on a similar deal. AT&T would also still charge high priced overages if people went over the limit. Now that T-Mobile has offered this new deal up, they will have to go back to the drawing board and come up with something that is at least competitive to T-mobiles offering because they are now blowing them out of the water.

Instead of getting overage costs, the user will obtain a message letting them know that the have now used up all of the data allowance and it will be cut off. After the 30 day period has finished, it will reset and the data can be used again. To stop people from coming to an abrupt holt after the 500 MB, T-Mobile will send out a warning message at 450 MB to let users know there is only 50 Mb left. A spare 50 MB up the sleeve should see you out of trouble if you do some careful planning with or you choose to use the remainder until the next cycle starts.

We know that this deal is not for everyone and many people that have spare money prefer to have the freedom of continued use of data even with the high excess fees. However, because this is only a $40 plan, there is no doubt that this direct market is trying to money save and that should make it a winner.

Via: the T-mobile Newsroom