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tmobile SimpleStarter_LP

A year ago, T-Mobile undercut its wireless rivals by unveiling an entry-level plan that gave customers unlimited calls and texts for $40. The plan promised 500 MB with no overage fees and no annual contract.

T-Mobile just made that “Simple Starter” plan a little sweeter, by giving customers the option of paying $5 more for four times as much data, or 2GB. The offer begins on Sept. 3.

In the announcement, the Bellevue company’s outspoken CEO John Legere compares the offer to one by Verizon Wireless that charges you $50 for just 1GB of data, and then jumps to $65 if you want more.

“It’s crazy,” he said, in a statement. “At T-Mobile, we designed our network data-strong so our customers could use the hell out of it. And that’s just what they’re doing.”

But it’s not only Verizon Wireless that T-Mobile is competing with. Ever since merger talks with Sprint fell apart earlier this month, it’s having to move fast to stay competitive as carriers quickly drop prices to attract new customers. In particular, after Sprint replaced its CEO, it has wasted no time announcing new promotions to encourage this pricing war.

For instance, just three days ago, it introduced a $60 unlimited talk, text and data plan for individuals, which it says is $20 cheaper than T-Mobile’s unlimited plan. The offer stipulates that you must pay full retail for a phone, or additional charges may apply. Sprint also announced new family plans last week.

For customers, the decision won’t be easy. They will have to read the fine print on each new offer that is announced to determine what plan works best for them and which carrier offers the best service where they need it.

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