T-Mobile Introduces Mobile Plan With No Overage Fees

T-Mobile US introduced a mobile-phone plan that will prevent users from exceeding their data limits and incurring extra charges.

For $40 a month, a customer can get as much as 500 megabytes of fourth-generation LTE data service, along with unlimited talk and text messages, T-Mobile said on its website. The Simple Starter plan, which starts April 12 and doesn’t require an annual contract, won’t charge overage fees because customers won’t be able to use more than their data allotment. Instead, they will be prompted to pay more if they want additional access.

Chief Executive Officer John Legere said the plan is designed to be a “predictable, affordable solution” for new, price-sensitive customers. “People shopping at the $40 level want to pay that amount, not get surprised with overage charges,” said Mike Sievert, chief marketing officer of Bellevue, Washington-based T-Mobile. A customer who reaches the 500-megabyte limit and wants additional data allotments would pay $10 for an extra gigabyte, Sievert said.