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T-Mobile's Simple Starter Plan Gives 0.5GB of 4G with No Overages

T-Mobile is at it again. The un-carrier today announced a new "Simple Starter" Plan that offers unlimited talk, text and 500MB of LTE data for just $40 a month. Starting Apr. 12th, T-Mobile's affordable line promises no overage fees, so you won't be blindsided by a larger-than-expected bill. 

T-Mobile will suspend your LTE service once you've hit your cap. Instead, you'll be transferred to 2G speeds for your data needs. If you need more 4G data, you can purchase on-demand passes. A one-day pass offers 500MB LTE data for $5, while $10 gets you 1GB on a 7-day pass. 

MORE: Verizon Wins NYC 4G Showdown, Sprint Dead Last

The Simple Starter plan gives you unlimited talk and text and 500MB of data. Tethering is supported so you can share your data allotment with other devices. Simple Starter customers are also eligible to get a handset on T-Mobile's early upgrade program Jump. 

This Starter package won't offer T-Mobile's international roaming plan called Simple Global. Starter is also available only for single line customers; for multi-line or family customers T-Mobile recommends its Simple Choice plan instead. 

T-Mobile chief executive John Legere called out rival AT&T in a blog post introducing the Simple Starter plan, saying the competing carrier's entry-level plans carry overage costs that amount to a 44 percent price hike overall. 

AT&T's Mobile Share plans start at $45 a month for unlimited talk and text with 300MB, and the fine print indicates that an additional 300MB, 500MB or 1GB is automatically provided as specified in your rate plan. According to Legere, these overages cost you $20 per incremental jump, which can drastically raise your monthly bill without your knowledge.