New 'Simply Prepaid' Plans From T-Mobile Starts At $40 Per Month

T-Mobile, fourth-ranking US wireless carrier, announced new 'Simply Prepaid' plans, debuting January 25. Under the new plan, customers of T-Mobile will be offered unlimited data, talk and text.

The new 'Simply Prepaid' plans will have three new monthly data plans: For 1 GB monthly data at 4G LTE speed, the company will charge $40 per month, while for 3GB at the same speed will cost $50 per month. For opting option to use 5GB of monthly data at 4G LTE, customers will be charged $60 per month. Once the data cap is met, the speed will go down to 129Kbps or to 2G equivalent speed for the remaining month.

'Simply Prepaid' plans are being offered over and above the existing prepaid options currently available from T-Mobile. The carrier is already offering similar plans via its MetroPCS brand.

Rivals such as Sprint offers similar prepaid plans, but are little cheaper - $35 for 1GB of data, $45 for 3 GB of data and $55 for 6 GB of data. However, these plans by Sprint comes with some caveats such as video streaming on Sprint's prepaid is limited to carrier's slower 3G networks.

T-Mobile has added 8.3 million customers in 2014.

"My customers are cool and young. And they're coming, and we're taking over," T-Mobile chief executive John Legere said in a statement last month.