T-Mobile stock was gaining 0.8% to $31.44.
The new $40 Simple Starter plan offers subscribers unlimited talk time and text messages with 500MB of LTE data. Once subscribers hits that 500MB limited T-Mobile will prompt them to buy a day pass for data, purchase more data for the month, or upgrade to a Simple Choice plan with a bigger data cap. T-Mobile Simple Choice plans also have data caps, but the carrier only slows down connection speed once subscribers hit those caps.
In a letter to consumers announcing the new plans CEO John Legere said "Our new Simple Starter plan represents our commitment to advocate for consumers and to change this industry. With Simple Starter, you'll never pay data overages again - ever." In the letter Legere noted that rival AT&T (T) adds data in increments of $20 when its subscribers exceed data caps "in what amounts to an obscene 44% price hike on those customers least able to absorb overages and bill shock."Legere added that T-Mobile will have "three days of Un-carrier announcements for consumers" this week, beginning with Wednesday's announcement. Must read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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