What's the Deal with Unlimited Data?

In a world where so many day-to-day activities are going digital, (telehealth, online education, mobile tap-to-pay, etc.), phone companies are seeing a rise in interest for larger monthly data allowances. Unlimited data plans are becoming increasingly popular, offering total internet access with no set data limits.

Let’s break down what 'cellular data' is, the differences between unlimited vs. limited plans, and which plan might be the best fit for your needs.

Cellular Data at a Glance

What Is Cellular Data?

Cellular data is the ability to access the internet on your phone without needing Wi-Fi. Activities that may require cellular data include web browsing, social media, accessing certain apps, streaming, listening to music, sending or receiving emails, and making phone calls.

Phone Networks and Cellular Data

Phone networks carry cellular data to and from your device—they're how data is "delivered." Networks determine how well your device can access the internet when you're away from Wi-Fi, and the speed at which the data is carried. A higher network number (i.e. 4G vs. 5G) is typically associated with faster speeds and a stronger (more reliable) connection.

Reliable network connections matter. Many on-the-go activities, such as traffic apps and work communications, require cellular data. And, 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 to Check Your Network Coverage

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 that appear at any given time, the faster your cellular data performance (internet speeds) will be.

Data Usage

Data Usage Tracking

Cellular data usage is typically measured in megabytes (MB) and gigabytes (GB). It's 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 music or use social media might need a larger data allowance.

How to Measure Your Data Usage

Your usage habits and how often you browse without an internet connection will determine the amount of cellular data you need. Speak with your existing carrier to get an accurate idea of your mobile habits. This can help determine which plan type is right for you, and could potentially reduce your monthly phone bill.

🗭 Quick Insight: The average smartphone user in North America used roughly 17 GB of data per month in 2024.¹ This number continues to grow as people engage in data-heavy activities more frequently, like streaming videos and using social media apps.

Key Differences Between Limited vs. Unlimited Data Plans

Data limits determine more than just how much offline mobile usage you're allowed per month. They also affect your monthly fees and internet speeds.

Limited Data Plans

With a limited plan, your data usage is capped at a set amount each month. Once you reach that limit, you may face extra charges or have your data speeds significantly reduced until the next billing cycle. These plans are usually best suited for users with light data needs, such as checking emails or casual browsing.

Unlimited Data Plans

In contrast, unlimited data plans give you the freedom to use as much data as you want without worrying about hitting a cap and accuring extra fees.

It's possible unlimited plan holders may also experience reduced data speeds when there is unusually heavy network congestion or during peak times. These practices, known as throttling or deprioritization, are common with many carriers.

What's the Difference in Price?

The cost difference between limited and unlimited data plans depends largely on your usage habits. Limited data plans tend to be more affordable at first glance, but if you exceed your monthly allowance, the overage charges can quickly outweigh any initial savings. (For light users, though, these plans can offer substantial savings.)

Unlimited data plans generally come with a higher monthly rate, but you won’t have to worry about unexpected charges for exceeding your data cap. You pay one flat rate for the month, no matter how much data you use. This makes unlimited plans more suitable for those who heavily rely on mobile data for streaming, apps, or frequent travel.

Additional Phone Plan Features to Consider

In addition to data speeds and extra fees, there are a few additional factors you may want to consider when choosing a phone plan:

Postpaid and prepaid

• Prepaid plans offer flexibility with no long-term commitment, making them ideal for short-term or variable needs.
• Postpaid plans often come with added benefits but require a contract or ongoing billing commitment.

Video streaming

• Some unlimited plans include high-definition streaming as a standard feature.
• Other plans may limit streaming quality to conserve data usage or reduce network congestion.

Hotspot usage

• Unlimited plans may include unlimited hotspot usage, but speeds can be throttled after a certain amount of usage.
• Limited plans typically offer less hotspot data and may charge extra for exceeding the limit.

International data

• Some unlimited plans include international data at no extra cost, making them convenient for frequent travelers.
• Limited plans may require additional fees for international data or restrict usage entirely.

Which Plan Is Right for You?

Ultimately, choosing between a limited vs. unlimited data plan boils down to how much data you use each month. If you’re a light user, a limited plan can help you save. But if you frequently stream, use apps on the go, or travel often, an unlimited plan might provide the best value without the risk of overage fees.

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, take some time to browse one or more phone plans and explore how different features may increase the value of your existing plan. Always be sure to carefully compare competitors and see which features fit best with your needs.

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