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The plan includes 500 megabytes of capped data, and T-Mobile says it differs from the 'bait and switch' low-end plans offered by Verizon and AT&T.

CNET/James Martin

T-Mobile is at it again.

The upstart wireless carrier on Wednesday unveiled its latest shot at the broader industry, a $40 'Simple Starter' plan that includes 500 megabytes of capped data. The plan will be made available in stores on Saturday, with a pre-paid version coming on May 17.

The plan is a reaction to the budget-friendly affordable plans offered by AT&T and Verizon, underscoring the intensifying competition for the low end of the wireless service market. Over the last few months, all of the carriers have been offering more attractive plans to customers who use little to no data on their phones. T-Mobile is looking to defend its base.

'It's a strong statement not to f@#& around with our market,' T-Mobile CEO John Legere said in an interview with CNET.

T-Mobile believes its plans offer an advantage because there are no overage charges found at AT&T and Verizon. Chief Marketing Officer Mike Sievert called the plans offered by his two bigger rivals 'predatory.'

'I don't think it's overstating it to call them a bait and switch,' Sievert said in an interview.

Spokesmen for AT&T and Verizon Wireless weren't immediately available to address Sievert's charges.

The other carriers have been busy. Verizon has recently pushed its 'More Everything' campaign, which includes a lower end plan that costs $45 a month. AT&T also revamped its family plans to offer more savings under its Mobile Share program.

Once a customer gets near the 500 MB limit, a message pops up offering the ability to pay for additional data. A customer can pay $5 for an additional 500 MB for the day, or $10 for 1 GB to be used over the next week.

Simple Starter has its limitations. It can't be bundled with a family plan, and is meant for individuals. It also doesn't have extra features such as global roaming or international texting.

The plan does qualify for zero-down device financing and T-Mobile's Jump upgrade program. T-Mobile will also pay the early termination fee of a customer willing to switch.

'A tremendous amount of people are waiting to try T-Mobile,' Legere said. 'It's a way to try this out.'