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Unlimited Data: What's the Deal?

Unlimited mobile data means no more worrying about overage fees, but is the charge worth more than just extra screen time?

CompareCellPlans Editorial Team

October 18, 2023

In a world where so many day-to-day activities are going digital–including telehealth, online education, QR code menus, and even Zoom happy hours–phone companies are seeing a rise in interest for larger mobile data plans.

Unlimited data plans are one of these increasingly popular options, offering total internet access with no set data limits. Sounds too good to be true?

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While unlimited data plans do ensure you never have to see unexpected data overage fees on your bill, carriers may reduce speeds when you surpass a set data threshold or deprioritize your network speeds during peak hours. Let’s break down the differences and determine which plan might be the best choice for you.

Mobile Data at a Glance

You can’t see it, but data charges may be the biggest way for you to save money on phone bill.

Cellular networks, typically 4G or 5G technologies, provide internet access, i.e. mobile data, when you're not connected to Wi-Fi. These networks carry data to and from your phone whenever you have coverage and determine the speed at which the data is carried, where higher network numbers are typically associated with faster speeds.

An easy way to check the strength of your coverage is to view the signal bars at the top right or left corner of your phone screen. The greater the number of bars, the faster your mobile data performance will be.

Coverage quality and speed matter because many on-the-go activities, such as traffic apps and work communications, require cellular data. If you’ve ever been stuck driving in circles because an app won’t load quick enough to pinpoint your location, you understand why it’s crucial your carrier delivers adequate coverage in the areas you live and work.

Coverage quality and speed matter because many on-the-go activities, such as traffic apps and work communications, require cellular data. If you’ve ever been stuck driving in circles because an app won’t load quick enough to pinpoint your location, you understand why it’s crucial your carrier delivers adequate coverage in the areas you live and work.

How Data Usage is Tracked

Cellular data is most frequently measured in megabytes (MB) and gigabytes (GB)s–GB are roughly 1000x larger than MB. The amount of data you need will depend on your usage habits and how often you browse without an internet connection. Activities that require data may include web browsing, social media, accessing certain apps, streaming, sending or receiving emails, and more.

Usage is typically calculated over a monthly billing cycle, with activities like social media sites measuring in at about 100 MB/hr and streaming at roughly 1-6 GB/hr. Light users who only text and make calls may need just a few gigabytes per month, whereas heavy users who stream content and frequently use social media might need a lot more.

If convenient, check in with your existing carrier to get an accurate idea of your mobile habits. The information may help you determine which plan type can help you save the most money.

Limited vs. Unlimited: Key Differences

Data limits can determine more than just the frequency of your offline mobile usage–plan types may also affect your monthly charges and internet speeds.

The main difference between these two types of plans is that with unlimited there’s no point at which your data usage is capped or turned off. You simply pay a one-time fee per billing cycle, without needing to worry about data caps or overage charges. When you exceed your data cap on a limited plan, you may be charged extra or experience speed throttling: a practice where carriers reduce your network speeds.

It's possible unlimited plan holders may also experience throttling, in addition to deprioritization practices. This means carriers could deprioritize, i.e. slow, the data speeds of unlimited plan holders when there is heavy network congestion or during peak times.

Which Is The Right Choice for You?

In addition to fluctuations in data speeds, there are a number of other factors to consider when choosing between limited and unlimited plans:

  • Postpaid and prepaid: A prepaid unlimited plan can be flexible and does not require a long-term commitment, but some restrictions may apply.
  • Eligibility: Before switching or enrolling, check with your carrier. New or existing customer status and particular demographics can affect eligibility.
  • Video streaming: Some unlimited plans offer high-definition video streaming, while others may limit streaming quality.
  • Hotspot usage: Plans may also allow you unlimited hotspot data, though there may be more usage and speed limitations.
  • International data: International data may be included at no additional cost, saving frequent travelers from hefty international roaming fees.

Take some time to browse our list of phone plans and explore how the features they offer may increase the value of your existing plan.

Don't be Limited by Your Data Plan

Just as data limits matter, so does the carrier's coverage quality and speed. Remember: stronger coverage equals better data speeds, and better data speeds equals faster offline mobile activity.

Prior to committing, always be sure to carefully compare competitors and see which features fit best with your needs. Don't let data caps or concern about overage fees limit your lifestyle. Whether you're a stay up-to-date on the latest celebrity post kind of person or simply prefer to check emails on your morning commute, there’s sure to be a plan out there suited for you.

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