T-mobile has revealed their new budget plan for just $40 per month.

Due to be released on April 12, the Simple Starter Plan includes unlimited talk and text, and 500MB of data per month.

Once users reach their data limit their data use will be cut off completely unless they purchase a top up of 500MB of data to be used the same day for $5 or 1GB to be used within a week for $10.

A message will flash up advising users when they are getting close to their data limit.

This move by T-mobile is a response to the low budget plans offered by rivals AT&T and Verizon.

The Simple Starter plan qualifies for zero-down finance and T-mobile’s Jump Upgrade program.

T-mobile will also pay the termination fee for users who want to switch from another provider.

There are restrictions to the Simple Starter Plan. It can’t be bundled with a family plan and is intended for individuals only. It also doesn’t come with international texting or roaming.

A prepaid version of the Simple Starter Plan is due to come out on May 17.