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T-Mobile Ups The Ante In Price War

Bellevue, Wash. — T-Mobile fired the latest shot in the wireless price wars, launching a limited-time promotion that boosts the LTE data allotment in a Simple Starter plan to 2GB from 500MB for an additional $5/month.

The Simple Starter plan, launched in May, normally costs $40/month and includes unlimited talk and text as well as 500MB of LTE data.

After the 500MB or 2GB allotment is reach, speeds slow to 2G, but users don’t have to pay data-overage charges. “By comparison, other entry-level plans come with data overages that penalize customers for using more data,” the company said.

Prices exclude the cost of paying up front or in installments for an unsubsidized phone.

Last week, Sprint cut prices on its unlimited data, talk and text plan to $60/month from $80/month to undercut T-Mobile’s unlimited plan by $20. Sprint last week also announced a Sprint Family Share Pack plan promoted as offering double the high-speed data at the same or lower price than its three national rivals.

Also last week, an initiative announced by T-Mobile offers free unlimited LTE data for a year to T-Mobile Simple Choice subscribers who convince a Sprint, AT&T, or Verizon subscriber to switch. The person who switches also gets unlimited LTE data for a year.