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Telcos have been seducing customers in Australia with the promise of ‘unlimited data plans’ since the mid-2000s.
For many of us who experienced anger issues or PTSD from those pesky ‘data cap reached’ notifications, their introduction has been nothing short of a godsend.
In a world where most of us want the freedom to work, video call our loved ones, watch Netflix or play games like Roblox, unlimited data plans let us do this for as long as we want, any time of the night and day.
But while these types of plans offer us constant connection, have you ever stopped to wonder if you are getting full value for money for the amount you pay for them?
You might just be better off on another phone plan, and in this post, we’ll examine some of the reasons why.
What is an Unlimited Data Plan?
As its name implies, unlimited data provides you with exactly that: a plan that offers no caps on the amount of data you can use during a specific period (usually monthly or yearly).
This type of plan gives you the peace of mind of knowing you won’t go over a set limit and, therefore, face the prospect of additional fees. It also enables you to access the internet 24/7 and use as much data as you like, which means you can continuously stream music or films on upwards of ten different devices or more at the same time if you so desire.
But while infinite internet access offers this ability as a massive pro, it does come with some downsides that people tend to ignore.
What are these downsides?
Have you ever noticed how much your internet tends to slow down towards the end of your billing cycle?
Well, that is because many Australian providers have what’s called a fair usage policy, which means they have certain cap thresholds that will slow down the speed of your internet if you exceed them.
Therefore, after you reach a particular data threshold (usually 100GB to 300GB), your internet speed will significantly slow down. Subsequently, instead of enjoying the fast 5G or 4G speeds you’re used to, you could experience much slower speeds, such as 1.5Mbps or less, for the remainder of your billing cycle.
When you try to access the internet at these slow speeds, it can substantially impact the performance of activities like streaming high-definition video or using data-heavy apps.
That said, if you don’t mind the slow speeds imposed after reaching a certain limit on a shaped plan, it might not be so much of an issue for you. But if you tend to get a little cranky if a website has not loaded after more than 3 seconds, you might want to look at what other alternatives are available to you.
How Much do Unlimited Plans Cost?
As a general rule, unlimited plans are usually more expensive than standard capped data plans in Australia. These types of plans typically start at around $50 to $70 per month, depending on the carrier and its specific features.
But before you sign up for one, you should ask yourself, do you really need unlimited data? You might find that the answer is no.
According to research by the ACCC, most Australian households use, on average, 283 GB of mobile data a month on home wireless broadband, 7.2 GB on Prepaid mobile, 14.5 GB on post-paid mobile and 11.5 GB on mobile broadband.
These amounts of data are actually covered by various telcos, including Vodafone phone plans.
So, it could be that unlimited plans may not offer you great value for money.
When Does an Unlimited Data Plan Make Sense
While unlimited data plans might not be necessary for everyone, there are certain situations where they do make sense.
One of the most obvious is if you are a heavy data user who regularly streams video in HD, plays online games, or works from your mobile device. In such circumstances, you might find that an unlimited plan could save you from the potential inconvenience of data caps.
Additionally, if you are a digital nomad or someone who travels frequently for work, you may find an unlimited plan useful. Not least because you will have constant access to data without having to worry about connecting to a possibly unsecured Wi-Fi network.
It might also be handy to have it if you live with a large family who all want to use the internet regularly as it could be more cost-effective than getting individual plans.
For those who reside in a regional or rural part of Australia and rely on mobile data for their internet access due to the lack of the NBN, an unlimited plan could make sense. Typically, it will provide you with a more reliable connection overall, even if it does have slower speeds once you have reached the cap.
When Does an Unlimited Data Plan Make Sense
While unlimited data plans might not be necessary for everyone, there are certain situations where they do make sense.
One of the most obvious is if you are a heavy data user who regularly streams video in HD, plays online games, or works from your mobile device. In such circumstances, you might find that an unlimited plan could save you from the potential inconvenience of data caps.
Additionally, if you are a digital nomad or someone who travels frequently for work, you may find an unlimited plan useful. Not least because you will have constant access to data without having to worry about connecting to a possibly unsecured Wi-Fi network.
It might also be handy to have it if you live with a large family who all want to use the internet regularly as it could be more cost-effective than getting individual plans.
For those who reside in a regional or rural part of Australia and rely on mobile data for their internet access due to the lack of the NBN, an unlimited plan could make sense. Typically, it will provide you with a more reliable connection overall, even if it does have slower speeds once you have reached the cap.
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