Is Unlimited Data Really Unlimited?

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What Answers You’ll Get On This Page

• What Unlimited Data Really Means

• Whether Capped Data Is Enough

• How Your Usage Can Dictate Your Data Needs

• The Difference Between Prepaid and Postpaid

• Is Unlimited Data Actually Worth It?

Important Points

The term “unlimited data” has floated around for several years, but are you actually getting what the name suggests? The answer is both yes and no. On one hand, you won’t get hit with extra charges if you use a high amount of data; on the other hand, many “unlimited” mobile plans have limitations that can impact your experience (and wallet). Understanding the pros and cons can help you decide if an unlimited data plan is truly worth it or if a different option may better suit your needs.

• Unlimited plans often come with a high-speed data cap. Once you go over this cap, your speeds can slow down significantly.

• Not sure if you need unlimited data? Knowing your usage pattern can point you in the right direction.

• Understanding the difference between prepaid and postpaid plans can help you choose a plan tailored to your usage and budget.

• Bundling may help offset some of your costs through discounts and incentives.

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1

What Is an Unlimited Data Plan?

When you see an “unlimited data” mobile plan, it makes sense to think you have all the data in the world at your fingertips, but there are often conditions attached that blur the line between what’s being advertised and what you’re actually getting. In reality, these plans allow you to use as much data as you need each month without extra fees, but the speed typically drops after you hit a data cap. The capped speed is usually enough for casual web browsing or social

media but likely not for high-definition video streaming—especially during peak times, the bottlenecked speeds will feel slower than usual. For many, this speed drop can make a plan feel far from “unlimited” in practice.

Additionally, many providers have been avoiding the word “unlimited” in favour of other terms like “endless” regarding data inclusions on mobile plans. In the past, the ACCC cracked down on businesses misrepresenting their plans being advertised as unlimited to entice new customers when, in fact, the plans had a maximum data allowance.

Consumers can also reference The Fair Usage Policy (FUP), which is a set of guidelines or restrictions that telcos apply to prevent excessive, abusive, or disruptive data use on their networks. While an “unlimited” data plan may sound like there are no limits, there are actually several built-in conditions to prevent excessive data use that might slow down the network for others. These policies vary across providers but typically have some common elements.

Knowing what’s included in a provider’s Fair Usage Policy can help avoid disruptions to your service. Most providers outline their policy’s details in their Critical Information Summary (CIS), which provides transparency and helps you choose a plan that matches your typical usage without unexpected slowdowns. Checking these summaries can also help you understand your rights and responsibilities as a user, giving you a better sense of whether an unlimited plan genuinely meets your needs.

2

Capped Data: Is It Enough?

With mobile technology advancing every year, we’re using our smartphones, tablets, and other devices more than ever. According to the ACCC’s 2023 Internet Activity Report, data usage on mobile plans has increased by 4–15% across different types of mobile services, showing just how much Aussies now rely on mobile data for streaming, social media, and even remote work. Not to mention, the rollout of high-speed 5G speeds also enables us to do even more on our phones, making the argument for ‘unlimited versus capped data’ even more prevalent.

Many data-capped plans now come with features like “data banking” and “family data sharing.” Data banking allows you to roll over any unused data into the next billing cycle, letting you ‘store’ data for use later. Family data sharing, which is commonly offered by larger providers like Optus, Telstra, and Vodafone, lets families pool data across multiple lines under one account. For example, if one person in the family uses more data while another uses less, data sharing can help balance out your usage without exceeding your limits. This flexibility means that a data-capped plan can feel almost as flexible as unlimited data but without the added cost.

If you’re looking for additional cost savings, consider bundling your internet and mobile phone services. Some providers can offer discounts or offers when you combine both services into one package. This means you can have your home internet and mobile plan with the same provider.

Thinking about bundling your services? Check out our latest article on Internet Bundling to learn more. Or, give our internet experts a call at to find a bundled plan that’s right for you.

Ultimately, finding the right plan means understanding your data usage habits. Unlimited data may sound great, but if you think you aren’t getting the total value out of an unlimited data plan, capped plans with additional features could help you cut costs without sacrificing much in the process.

3

How Do You Use Your Mobile Data?

If you’re on the fence about whether unlimited data is the right choice for you, consider your usage profile—how you actually use your data day-to-day. For some people, unlimited data is a no-brainer, but for others, a mobile plan with a high data allowance might be more than enough.

Entertainment streaming platforms can quickly eat up data, especially if you watch in high-definition or 4K resolution. A few episodes here and there won’t break the bank on a capped data plan, but if you regularly binge-watch an entire series on your commute or stream sports live, you might want to consider unlimited data—unless you’re fine with downloading content over Wi-Fi and watching offline.

If most of your internet usage revolves around social media, messaging apps, and occasional streaming, a plan with data limits should be enough. Browsing and social media use less data than binge-watching an entire series from start to finish, so you might be able to save some money with a plan that limits data but has enough to cover these activities comfortably.

If you’re a student or remote worker and frequently rely on your mobile data for video conferencing, downloading files, or other work-based activities, you might want to consider unlimited data. High-speed public internet access isn’t available everywhere—not to mention the several internet security risks that are involved with connecting to a public network. Having unlimited data means you can work from almost anywhere—whether at a café, on public transport, or even while travelling—without worrying about running out of data. It also gives you the flexibility to stay connected on your laptop or tablet through a SIM-only plan when you’re away from home which is especially important for those who attend meetings and virtual calls on the go. The benefits of SIM-only plans go beyond just convenience. They can offer data-sharing capabilities for devices that need to be connected to a mobile network like 4G or 5G. Lastly, those with a busy schedule typically don’t have the time to continuously monitor their data usage. Signing up for a plan with unlimited data means you won’t have to worry about recharging your data or cutting back if you’re getting low.

4

Prepaid and Postpaid Mobile Plans

There are two main types of mobile plans: Prepaid and Postpaid. Each has its benefits depending on how you use your smartphone. Your choice really boils down to how much data you need, whether you prefer paying upfront or monthly, and whether you want the freedom to change plans or stick with one long-term. Let’s dive into each plan further so you can decide which one is more aligned with your needs.

Prepaid Plans

Prepaid plans offer the convenience of paying in advance for a set amount of data, calls, and texts. If you use it up, you have the option to ‘recharge’—once you run out, you simply buy more. Prepaid plans are generally popular with consumers who prefer total control over how much data they’re buying. You can also choose long-expiry prepaid plans that last 90, 180, or even 365 days—which is ideal if you don’t use your phone much and want to ‘set it and forget it’. Plus, they’re great if you want the freedom to switch plans or telcos without being tied to a contract.

However, most prepaid plans do not come with unlimited data and may not give you the same perks as postpaid. You’re more likely to find capped data options, so if you lean more on the heavier side of data usage, prepaid might require more monitoring to avoid spending more than you need.

Prepaid could be right for you if:

• You want control over spending and data use.

• You don’t want to commit to a contract.

• You don’t need a massive data cap.

Prepaid might not be right for you if:

• You want to pair your plan with a new phone.

• You want unlimited talk and text as standard.

• You want a set-and-forget option.

Postpaid Plans

Postpaid plans come with a contract, and inclusions like data, text, and calls are all agreed upon before signing. Postpaid plans will typically include unlimited data. Additionally, once you’ve hit your plan limits, your plan will continue to operate with no interruption to your service—although there may be additional fees depending on your contract. Postpaid plans can also be SIM-only, which means you only pay for the phone service, or they can include a mobile phone.

As mentioned above, just keep in mind that “unlimited” isn’t always truly unlimited; some plans will slow down your speed after a certain amount of data is used. Make sure you understand your contract to see what your high-speed data cap will be and what speeds you’ll be transferred to after. This can help prevent any surprises if you do go over the cap.

Postpaid could be right for you if:

• You need a large amount of data (or unlimited).

• You’re okay with a monthly bill and a contract.

• You want to take a hands-off approach without recharging.

Postpaid might not be right for you if:

• You don’t want to commit to a contract.

• You want more flexibility with your mobile plan.

• You want to switch providers easily.

5

The Bottom Line: Is Unlimited Data Really Worth It?

In the end, “unlimited” data is only as useful as the amount of data you actually need. If you’re the type of person who needs constant access to the internet without interruptions, an unlimited plan could be worth the cost. For those who use data more sparingly, capped plans with additional features like data banking or family sharing could be a more suitable option.

Author

Benjamin Tom

Benjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.

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