T-Mobile Launches New Rate Plan that Eliminates Contracts

T-Mobile, the company known for its “Un-carrier” attitude, today announced a series of moves to address consumer frustration with the unnecessary cost and complexity of wireless.

The moves include: radically simplifying its consumer rate plans to one incredibly affordable base plan with unlimited talk, text and Web; ensuring that customers never have to sign another annual service contract through T-Mobile retail outlets; and enabling customers to get the most popular smartphones whenever they want for the lowest up-front cost.  T-Mobile also debuted its blazing fast 4G LTE network service in seven major metropolitan areas.

Central to T-Mobile’s announcement is a radically simple approach to consumer rate plans — the Simple Choice Plan. A break from industry norms, the Simple Choice Plan eliminates restrictive annual contracts, taking pain and confusion out of the wireless experience.

The Simple Choice plan asks customers two basic questions: how many lines do you need, and how much high-speed data would you like? Customers start with one line and a base rate of $50 per month for unlimited talk, text and Web with 500MB of high-speed data. Customers can add a second phone line for $30 per month, and each additional line is just $10 per month. They can also add 2GB of high-speed data for $10 per month more per line. Unlimited 4G data is only $20 more per month per line.  Monthly statements are easy to understand since the price stays constant from month-to-month. No caps. No overages. Just simple value.

Also, because T-Mobile no longer requires annual contracts, customers have more flexibility. They can bring their own devices or purchase a device from T-Mobile and upgrade to the most popular smartphones when they want for the lowest up-front cost in the industry.

Highlights from the announcement:

  • The Un-carrier: The wireless industry has been locked into the same rules for far too long.  As America’s “Un-carrier,” T-Mobile is separating itself from the pack with bold moves to address consumer frustrations with the unnecessary cost and complexity of wireless.
    • One simplified and affordable base consumer  rate plan – Simple Choice – with unlimited talk, text and Web
    • Eliminating need for consumers to sign annual service contracts in T-Mobile retail outlets
    • Enabling consumers to get most popular smartphones whenever they want for the lowest up-front cost
  • Advances the Network: T-Mobile is advancing its network even more by lighting up its state-of-the-art 4G LTE network in seven metro areas, including: Houston, Kansas City, Las Vegas, Phoenix, San Jose, Baltimore and Washington, D.C.