U.S. carrier AT&T is reducing the price of its 2GB Mobile Share Value plan to thwart competition from rival T-Mobile.

On Saturday, March 8, AT&T revealed that from Sunday, March 9, customers who own one smartphone can sign-up for its 2GB Mobile Share Value plan for just $65 per month (the base price is now $40 instead of $55, add to that $25 for a device per month). Customers who own two smartphones can sign-up for $90 per month. The new price is a $15 drop from the previous Mobile Share Value plan charges.

AT&T's decision to slash the price for its 2GB Mobile Share Value plan seems to be prompted by T-Mobile's decision to treat its customers to a Simple Choice update, which basically doubled data and tethering.

T-Mobile announced the changes to its Simple Choice plans on Friday, March 7, which would also entitle customers to unlimited international texting free of charge. The changes will come into effect from March 23. The upgrade sees users get 1GB instead of 500MB of data for $50 per month.

The AT&T reduction in price is applicable for existing customers for all devices that are purchased under contract either via the carrier's Next installment plans or full price. New customers can benefit from the price reduction when the buy via AT&T Next, or bring their own device or purchase from at full retail price.

The AT&T plan offers users unlimited text and talk time, 50GB of cloud storage and unlimited international messaging, which could be taking a cue from T-Mobile's Simple Choice perhaps.

Moreover, both new and existing customers get a $100 bill credit for a new line that is added. However, this offer is only for a limited period.

To avail of the new pricing offer from AT&T and sign-up for the new plans, customers can deploy the myATT app, visit a brick-and-mortar AT&T store, call or check out the deal online.

Check out the details of the new AT&T plans here.