T-Mobile introduced new prepaid plans on Thursday that start as low as $40 per month and provide “unlimited data,” though it’s not really as unlimited as T-Mobile might have you believe.

There are three new plans including a $40 option with unlimited talk and text in addition to “unlimited data” after you’ve consumed 1GB of 4G LTE data. A $50 plan bumps that available LTE data up to 3GB while a $60 plan provides 5GB of LTE data each month. There’s a bit of a catch with all of those “unlimited” data statements, however.

First, and here’s a big kicker: the 4G LTE data isn’t actually giving you access to T-Mobile’s fastest data speeds, and instead you’re capped at 8Mbps, which seems kind of ridiculous. Second, after you’ve consumed that data then, yes, you’ll technically get unlimited ability to browse the web, but at 128k speeds – which is barely usable.

We’re not quite sure we dig what T-Mobile is doing here, especially with its decision to limit 4G LTE bandwidth. Some other carriers might be more expensive, but at least you’re getting full access to the network.

Press Release:

T-Mobile Introduces Simply Prepaid,
Expands Choices for Prepaid Customers
Together with Simple Choice, the new Simply Prepaid plan rounds out the Un-carrier’s simple, straightforward plansBellevue, Washington — January 15, 2015 — T-Mobile [NYSE: TMUS] today took a bold step to bolster its No.1 position in prepaid wireless introducing Simply Prepaid™.  The Un-carrier’s™ new monthly prepaid plan delivers unlimited data, talk and text with 4G LTE data buckets starting as low as $40 a month − all on T-Mobile’s Data Strong™ nationwide 4G LTE network.Simply Prepaid is the perfect complement to T-Mobile’s wildly popular Simple Choice plan – and is designed with the same focus on simplicity, fairness and value. While Simply Prepaid has fewer bells and whistles, it comes with lower prices and everything else prepaid customers want, including the nationwide 4G LTE network designed Data Strong.

“There’s a reason the Un-carrier continues to be #1 in prepaid, and it starts with our willingness to break the rules and give customers better choices,” said John Legere, president and CEO for T-Mobile. “We will never stop eliminating customer pain points.  The 1.2 million net new prepaid customers who joined T-Mobile last year already see that value, and we have no plans to stop there.”

In 2014 alone, T-Mobile won more than 1.2 million net customers to its prepaid business widening its lead in the category over the other major national providers, who continued to ignore and lose prepaid customers right and left.

Simply Prepaid is as straightforward as it is affordable:

  • $40 / month for unlimited data, talk and text + up to 1GB of 4G LTE
  • $50 / month for unlimited data, talk and text + up to 3GB of 4G LTE
  • $60 / month for unlimited data, talk and text + up to 5GB of 4G LTE
Simply Prepaid customers will also enjoy unique benefits of being a T-Mobile customer like Wi-Fi calling at no extra charge, and with 8 Mbps speeds, they can download a song in under 10 seconds or a 30 min HD TV show in just eight minutes.The new plan will be available online at t-mobile.com and in T-Mobile retail stores, Simply Prepaid dealer locations and all other authorized retailers starting January 25th.Taxes & fees additional. Max speed of 8Mbps available to plan allotment; then slowed to up to 128K for rest of account cycle.  No tethering. Data Stash, Simple Global, Music Freedom & other Simple Choice features not included. See T-Mobile.com for offer details.

About T-Mobile US, Inc.
As America’s Un-carrier, T-Mobile US, Inc. (NYSE: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company’s advanced nationwide 4G LTE network delivers outstanding wireless experiences to approximately 55 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, please visit http://www.t-mobile.com.