Break Through the Hype of Unlimited Data Plans by Nerdwallet

On Billshark • Nov 11, 2016

Cell phone carriers are going all in on unlimited data.

Cell phone carriers market unlimited data plans as the ultimate solution for smartphone freedom. From T-Mobile and Sprint to prepaid providers like MetroPCS and Boost Mobile, everyone seems to promise endless streaming, browsing, and sharing. But here’s the truth: most consumers don’t actually need unlimited data—and many plans come with hidden restrictions.

Before you commit to paying extra each month, it’s important to understand what unlimited data really means, how much data people typically use, and whether the cost is worth it for your household.

What Does Unlimited Data Mean?

Despite the name, unlimited plans aren’t truly “unlimited.” Carriers often apply data throttling—slowing speeds after you exceed a certain threshold, typically 22GB to 28GB. Some also restrict features like mobile hotspot usage or reduce video quality to standard definition.

This means while you technically won’t run out of data, your experience may be far from seamless if you’re a heavy streamer or rely on tethering

Looking to cut down your wireless bill? Billshark can help you lower your AT&T plan, T-Mobile plan, or Sprint plan.

How Much Data Do People Really Use?

The reality: most smartphone owners use far less data than carriers suggest. According to Ericsson’s mobility report, the average cell phone data usage per month was around 3.7GB in 2015. While this number has grown over time with video streaming, it’s still well below the “unlimited” thresholds.

For example, a Tucson couple paid $200 per month for unlimited data only to realize they used just 10GB combined. By switching to a limited plan, they cut their bill in half—without sacrificing usage.

You can easily check your data habits in your carrier’s app or under “Settings” → “Data usage” on Android or “Cellular Data” on iPhone.

When Unlimited Data Makes Sense

Unlimited high-speed data plans may be worth it if:

An individual uses 6GB+ per month
A family of four uses 24GB+ collectively
You regularly stream video outside of Wi-Fi
You want the peace of mind of avoiding overage charges

Otherwise, you may be overpaying for a service you don’t fully use.

Example savings:

A couple using 5GB each could save $180 per year by choosing Sprint’s shared 6GB plan over its unlimited option.
A family of four using 18GB could save $360 annually by switching from T-Mobile unlimited to Virgin Mobile’s 18GB plan.

(Source: NerdWallet analysis)

Trade-Offs of Unlimited Data Plans

Before you sign up, consider the compromises:

Throttling: Speeds slow after 22GB–28GB of usage.
Video limits: Many carriers cap video at standard definition.
Hotspot restrictions: Tethering may be limited to 3G speeds.
Hidden costs: Taxes and fees can add up quickly.

While the peace of mind is appealing, paying for unlimited data often means paying for data you don’t use.

The Smarter Way to Save

Instead of automatically choosing unlimited, start by reviewing your actual monthly usage. Then, compare carriers and prepaid options to find the best plan for your habits. Tools like NerdWallet’s cell phone plan guide can help.

Better yet, let Billshark do the work for you. We negotiate directly with providers to lower your costs—whether you’re on wireless, cable, or internet.

FAQs:

Q1: What does unlimited data mean?

A: Unlimited data plans allow continuous usage, but carriers may slow speeds or restrict features once you exceed 22GB–28GB.

Q2: How much is unlimited data per month?

A: Prices vary, but major carriers typically charge $70–$90 for individual unlimited plans, and $150–$200 for family plans.

Q3: What is the average monthly cell phone data usage?

A: Most smartphone users average 3GB–6GB per month, making unlimited unnecessary for many households.

Q4: Which carrier offers the best unlimited data plan?

A: It depends on your location and needs. T-Mobile and AT&T offer competitive options, while prepaid carriers like Metro and Boost can be cheaper.

Q5: Is unlimited data worth it?

A: Yes, if you consistently exceed 6GB per person or stream heavily outside Wi-Fi. Otherwise, a limited plan may save you hundreds annually.

Article summary

Article: Break Through the Hype of Unlimited Data Plans by Nerdwallet.

Topic: Are unlimited data plans a scam?.

Published: Nov 11, 2016.

Section: Table of Contents.

Section: What Does Unlimited Data Mean?.

Section: How Much Data Do People Really Use?.

Section: When Unlimited Data Makes Sense.

Article details

Cell phone carriers are going all in on unlimited data.

Cell phone carriers market unlimited data plans as the ultimate solution for smartphone freedom. From T-Mobile and Sprint to prepaid providers like MetroPCS and Boost Mobile, everyone seems to promise endless streaming, browsing, and sharing. But here’s the truth: most consumers don’t actually need unlimited data—and many plans come with hidden restrictions.

Before you commit to paying extra each month, it’s important to understand what unlimited data really means, how much data people typically use, and whether the cost is worth it for your household.

Despite the name, unlimited plans aren’t truly “unlimited.” Carriers often apply data throttling —slowing speeds after you exceed a certain threshold, typically 22GB to 28GB. Some also restrict features like mobile hotspot usage or reduce video quality to standard definition.

This means while you technically won’t run out of data, your experience may be far from seamless if you’re a heavy streamer or rely on tethering

Looking to cut down your wireless bill? Billshark can help you lower your AT&T plan, T-Mobile plan, or Sprint plan.

The reality: most smartphone owners use far less data than carriers suggest. According to Ericsson’s mobility report, the average cell phone data usage per month was around 3.7GB in 2015. While this number has grown over time with video streaming, it’s still well below the “unlimited” thresholds.

You can easily check your data habits in your carrier’s app or under “Settings” → “Data usage” on Android or “Cellular Data” on iPhone.

Unlimited high-speed data plans may be worth it if:

Otherwise, you may be overpaying for a service you don’t fully use.

While the peace of mind is appealing, paying for unlimited data often means paying for data you don’t use.

Better yet, let Billshark do the work for you. We negotiate directly with providers to lower your costs—whether you’re on wireless, cable, or internet.

This Billshark blog page focuses on are unlimited data plans a scam? learn about hidden limits and get smart tips to pick the best plan for your needs and budget.

Billshark blog content covers recurring monthly bills, subscriptions, budgeting decisions, and provider-related savings opportunities for consumers.

Readers can use Billshark articles to compare service costs, understand billing trends, and discover practical ways to reduce ongoing monthly expenses.

Each blog page is part of Billshark's larger money-saving library, which includes provider comparisons, cancellation guides, budgeting advice, and featured consumer finance articles.

These articles are designed to help readers make better decisions about subscriptions, telecom services, recurring monthly charges, and practical ways to keep more money each month.

Quick takeaways

Section: Trade-Offs of Unlimited Data Plans.
Section: The Smarter Way to Save.
Section: FAQs.
Detail: Cell phone carriers are going all in on unlimited data.
Detail: Cell phone carriers market unlimited data plans as the ultimate solution for smartphone freedom.
Detail: Before you commit to paying extra each month.
Detail: Despite the name, unlimited plans aren’t truly “unlimited.”.
Detail: This means while you technically won’t run out of data, your experience may be far from seamless if you’re a heavy streamer or rely on tethering.
Detail: Looking to cut down your wireless bill?.
Detail: The reality: most smartphone owners use far less data than carriers suggest.
Detail: For example, a Tucson couple paid $200 per month for unlimited data only to realize they used just 10GB combined.
Detail: You can easily check your data habits in your carrier’s app or under “Settings” → “Data usage” on Android or “Cellular Data” on iPhone.
Detail: Unlimited high-speed data plans may be worth it if.
Detail: Otherwise, you may be overpaying for a service you don’t fully use.
Detail: While the peace of mind is appealing, paying for unlimited data often means paying for data you don’t use.
Detail: Instead of automatically choosing unlimited, start by reviewing your actual monthly usage.
Detail: Better yet, let Billshark do the work for you.
Key point: (()=>{function o(n){var o=document.body;o&&o.classList.add(n?"webp":"no-webp")}function n(){return window.Modernizr&&void 0!==Modernizr.webp?(o(!!Modernizr.webp),1):window.Modernizr&&"function"==typeof Modernizr.on&&(Modernizr.on("webp",function(n){o(!!n)}),1)}document.addEventListener("DOMContentLoaded",function(){n()||window.addEventListener("load",function(){n()})})})() ((e,t,a,g)=>{e[g]=e[g]||[],e[g].push({"gtm.start":(new Date).getTime(),event:"gtm.js"}),e=t.getElementsByTagName(a)[0],(g=t.createElement(a)).async=!0,g.src="https://www.googletagmanager.com/gtm.js?id=GTM-MWTTX4KP",e.parentNode.insertBefore(g,e)})(window,document,"script","dataLayer") ((e,o)=>{e.TiktokAnalyticsObject=o;var a=e[o]=e[o]||[];a.methods=["page","track","identify","instances","debug","on","off","once","ready","alias","group","enableCookie","disableCookie","holdConsent","revokeConsent","grantConsent"],a.setAndDefer=function(e,t){e[t]=function(){e.push([t].concat(Array.prototype.slice.call(arguments,0)))}};for(var t=0;t {"@context":"https://schema.org","@graph":[{"@type":"WebPage","@id":"https://www.billshark.com/blogs/break-through-the-hype-of-unlimited-data-plans#webpage","url":"https://www.billshark.com/blogs/break-through-the-hype-of-unlimited-data-plans","name":"Unlimited Data Plans?.
Key point: A family of four uses 24GB+ collectively.
Key point: You regularly stream video outside of Wi-Fi.
Key point: You want the peace of mind of avoiding overage charges.
Key point: A couple using 5GB each could save $180 per year by choosing Sprint’s shared 6GB plan.
Key point: A family of four using 18GB could save $360 annually by switching from T-Mobile unlimited.
Key point: Throttling: Speeds slow after 22GB–28GB of usage.
Key point: Video limits: Many carriers cap video at standard definition.
Key point: Hotspot restrictions: Tethering may be limited to 3G speeds.
Key point: Hidden costs: Taxes and fees can add up quickly.
Related: Mobile Carrier Reviews: Find the Best Coverage for.
Related: Customers Get What They Pay For With New AT&T Plans.
Related: Slow Data: How to Spot and Avoid Wireless Throttling.
Related: How Group Savings on Wireless Plans Change Your Budget.
Related: How a Microloan Can Help Your Small Business Grow Fast.
Related: 5 Money Habits Every Parent Should Teach Kids.
Related: Never Pay More: Your Guide to Smart Price Matching.
Related: Fix Money Mistakes: 3 Blunders and How to Recover.
Related: Save Money & Boost Productivity with These Apps.
Related: Mark Cuban Backed.
Context: This Billshark blog page focuses on are unlimited data plans a scam?.
Context: Billshark blog content covers recurring monthly bills, subscriptions, budgeting decisions, and provider-related savings opportunities for consumers.
Context: Readers can use Billshark articles to compare service costs, understand billing trends, and discover practical ways to reduce ongoing monthly expenses.
Context: Each blog page is part of Billshark's larger money-saving library, which includes provider comparisons, cancellation guides, budgeting advice, and featured consumer finance articles.
Context: These articles are designed to help readers make better decisions about subscriptions, telecom services, recurring monthly charges, and practical ways to keep more money each month.