T-Mobile will be the first major U.S. carrier to drop cell phone contracts, with "Un-carrier" pricing and data rates starting with a $50 per month plan, the U.S. cell phone network announced at a press conference today.
Rallying against cell phone contracts, overage fees, and penalties, T-Mobile CEO John Legere said it will be "$1,000 less on T-Mobile over two years" than other carriers, promising to "unleash the wireless industry."
T-Mobile's plan for Simple Choice includes unlimited talk and text, and Web with 500MB of high-speed data for $50 per month. A second phone line costs $30 per month, and each additional line just $10 per month.
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Additional data from T-Mobile costs $10 more per month for 2GB of high-speed data and $20 more per month for unlimited 4G data.
"No caps. No overages. Just simple value," said T-Mobile in its announcement.
T-Mobile plans vs AT&T, Verizon, and Sprint
As the fourth-place carrier, T-Mobile is attempting to reinvent itself to stay competitive with the four other major contract-based networks, AT&T, Verizon, and Sprint.
T-Mobile said that it is canceling its membership in the carrier club during its New York City press conference today.
At the same time that its taking on its four bigger rivals, T-Mobile is trying to stay ahead of smaller, pre-paid carriers that have dropped cell phone subsidies and pricey contracts altogether.
However, Legere stressed that T-Mobile is not going pre-paid. It's just dropping the contracts while rolling out "record pace" LTE in major markets.