What “Unlimited” Means on Each Major Carrier: The Devil is in the Details

Few things are worse than trying to stream a video on your phone’s unlimited data plan and having a less-than-stellar experience. I get it. I have three impatient teenagers in my home, and they all complain when our data speed is too slow.

If you’re like me and skim (at best) the terms and conditions of your cell phone plan, you’re missing something important: You and your carrier have different ideas of what “unlimited” data really means.

Over 80% (83%) of Americans are on unlimited plans, per Reviews.org findings, but the three major carriers — Verizon, AT&T, and T-Mobile — all prioritize data differently. Here’s how each carrier handles data and whether you’re spending more for premium data you may not need.

Knowing where you stand in line is essential to understanding what happens when you use your phone. Having unlimited premium data doesn’t always mean your phone will move at 4G/5G speeds when connected to the internet. Understanding the difference between deprioritization and throttling is key.

Deprioritization is a temporary slowdown in your internet speed, which happens when your wireless network prioritizes another user over you. This is often based on tower traffic. For instance, my wife and I use Visible Wireless, which is on the Verizon network. My mother is a Verizon customer. The three of us can be in the same location, with my wife and I experiencing sluggish speeds and my mother having zero issues. Fortunately, speed returns once the congestion subsides and the carrier turns on the spigot.

Throttling is different. You typically know when it will happen and it’s not usually due to congestion. Let’s say you have an unlimited data plan with 15GB of high-speed or premium data plan. If you use 15GB of data before the end of the month, the carrier then significantly reduces your speed until the end of your billing cycle. Your internet won’t stop working, but accessing data will be inconvenient. Reviews.org data shows speeds will drop to at least 8Mbps, significantly slower than standard 4G speeds.

Read more: T-Mobile Cell Phone Plans Review

Verizon boasts top-notch coverage plans that fit various needs. Simplicity, the newest plan, includes:

• 5G Unlimited Ultra Wideband
• Unlimited talk, text and data
• International and Satellite texting
• 10 GB Mobile hotspot

The plan doesn’t deprioritize, but isn’t a good fit for large families. Verizon doesn’t offer multi-line discounts on Simplicity, so extra lines can quickly become cost prohibitive. The company lowers speeds on data to 4Mbps after surpassing 500GB of data and 1 Mbps upon exceeding your mobile allowance.

If you purchase one of the Unlimited plans, it’s important to know that not all include premium data. Unlimited Welcome plans don’t include high-speed data, and there’s no mobile hotspot allowance. Worse yet, Verizon reduces speeds during congestion.

For users who want to avoid deprioritization and need premium data, Unlimited Plus and Ultimate are better options, though more expensive. Plus includes 30GB of mobile hotspot data, with lower speeds if you hit that. Ultimate includes unlimited mobile hotspot data, with reduced speeds after you use 200GB of premium data in a month.

AT&T Wireless is known for its reliable coverage and pricey bills, but all plans include unlimited data. Nevertheless, it's wise to read the fine print because not all plans include unlimited high-speed data.

Value 2.0 and Extra 2.0 include unlimited data, but it’s not high-speed. You receive 5GB and 100GB, respectively, and you can experience deprioritization after that. The plans also include 3GB and 50GB of hotspot data, respectively.

Premium 2.0 and Elite 2.0 include unlimited high-speed, or premium, data, with 100GB and 250GB of hotspot data. Be aware that speeds can slow if you pass the hotspot limit.

Value 2.0 is enticing, but the 5GB of premium data is limiting. The average amount of data Americans use is 15GB per month, so many may find the Value 2.0 plan problematic. Opting for Premium 2.0 or Elite 2.0 may be worthwhile for people who want to avoid deprioritization.

T-Mobile is surprisingly generous with its data allowances. Its three plans: Essentials Saver 2.0, Experience More 2.0, and Experience Beyond 2.0, all include unlimited data. Importantly, the base plan gives users 50GB of premium data. T-Mobile will deprioritize Saver 2.0 users if they exceed that usage.

The other two plans include unlimited premium data with no deprioritization. Unfortunately, T-Mobile doesn’t offer mobile hotspot data in Saver 2.0. You must opt for More 2.0 or Beyond 2.0 to get that. Don’t fear, as customers receive 60GB and unlimited high-speed hotspot data in the plans. The company does say that speeds will slow after 250GB of premium data on your mobile hotspot.

For the average user who also needs some hotspot allowances, the higher-tier plan isn’t necessary. You also get the added benefit of avoiding sluggishness during periods of congestion. 

Before spending more to avoid deprioritization, it’s important to understand your habits and usage. In the cell phone usage stats, Reviews.org found that 27% of Americans use all of their premium data every month. If that’s not you, purchasing a higher-tier plan for more may not be worth it.

It’s relatively simple to learn how much cell phone data you need. Visiting the settings area of your phone can reveal what you use during the current period. Android and iPhone users have specific places to determine data usage, so review our guide to learn how to do it for your device. It’s best to review usage for several months before making a purchase decision.

Getting the most premium data may seem nice, but not if you’re an average user. Higher-level plans offer more perks, but if you don’t need them, you’re losing out on potential savings.

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