Is Unlimited Data Really Unlimited? The Truth Behind Unlimited Data Plans

Most “unlimited” data plans are not truly unlimited. While you can keep using data, many carriers or eSIM providers slow your speeds after you hit a fair usage threshold, often between 3 and 5GB per day. This process, called throttling, can make streaming, hotspotting, and navigation frustratingly slow.

At Sim Local, our unlimited eSIM plans include up to 10GB of full-speed data per day before any throttling. That is 7GB more than many competitors, and hotspot and tethering are included at no extra cost. Always check your plan’s Fair Usage Policy (FUP) for hidden data caps, throttling limits, and hotspot rules before buying.

Bottom line: “Unlimited” does not always mean unlimited, but with Sim Local, it comes a lot closer.

In today’s digital age, unlimited data plans can seem like a dream come true for high data users.

But are they as limitless as they sound?

Understanding what unlimited data really means, including fair usage policies, throttling and limitations on hotspotting and tethering, is crucial before making a decision. Let’s break down the concept of unlimited data, explain fair usage policies, and help you decide if an unlimited plan is right for you. 

With unlimited data plans, you can enjoy internet and all your favourite apps without worrying about data limits. You can stream, browse, and socialise to your heart's content, from YouTube and Netflix to Instagram and TikTok. 

But there’s more to the story. 

Most providers implement a fair usage policy that restricts high-speed data when a certain threshold is reached. It means your speeds might slow down during peak times to maintain network stability for everyone. So, while you can technically use unlimited data, the quality and speed can vary. Throttled speeds can significantly reduce streaming quality and make everyday tasks from web browsing to downloading files frustratingly slow. Knowing these details is key to deciding if an unlimited data plan suits your needs.

Throttling is when your mobile network provider deliberately slows down your internet speed after you use a certain amount of high-speed data, even if your plan is advertised as unlimited. Once you reach this limit, your connection may still work but at a much lower speed, making it harder to stream, download, or browse smoothly. This is often done to manage network congestion and is usually explained in the provider’s fair usage policy (FUP).

A fair usage policy (FUP) is designed to ensure fair sharing of network resources among users. Even with unlimited plans, there’s often a cap on high-speed data. Once you exceed this limit, your speeds may be reduced to avoid network congestion. Reading the fine print of your plan is essential to understand these limits and avoid unexpected slowdowns, ensuring you get the best service from your unlimited plan.

Finding the actual fair usage policy limits within an unlimited data plan can be tricky, as transparency varies among providers. Not all providers clearly communicate their fair usage policies and data limits. Some hide critical information in the fine print or use vague language. Some unlimited eSIM providers were recently forced to revise their 'unlimited' data claims to 'extensive' data. Many users notice slow speeds early on in their trip, even some after just a one gigabyte of daily use.

Some eSIM providers who offer unlimited data eSIMs can sometimes be transparent about their fair usage policies. Many are known to have a 3 GB daily cap before slowing down to 1 MBPS which still feels far from “unlimited” for most travellers. Over 10 days, this is essentially similar to having a 30GB plan.

Here at Sim Local, we are super transparent about our fair usage policies and include all daily cap information on our plan details. We aim to offer more data at maximum speeds in comparison to our competitors. Many of our unlimited plans include a fair usage policy which is 10GB daily use before any throttling happens. This is 7GB more data daily at higher speeds in comparison to our competitors meaning more data, higher speeds and better value when you choose Sim Local.

Always check the terms and conditions of your plan. Look for mentions of data caps, throttling, or fair usage. Check your provider’s website or customer portal for detailed usage reports and alerts when you approach your high-speed data limit.

Look for providers that clearly outline their policies and data thresholds. Check online reviews and forums (like Reddit) to learn from other users’ experiences. If you’re unclear, contact customer support for clarification.

Having an unlimited data plan for hotspot and tethering is important for many users who want to share with friends and other devices. Hotspotting is essential for students, business travellers, parents and digital nomads.

However, not all unlimited plans from eSIM providers include unlimited hotspot usage. It can vary widely by country and carrier. Some providers will limit hotspot use to preserve network integrity. Once this limit is reached, speeds might be throttled, affecting your ability to share your connection. We aim to consistently offer hotspotting with our eSIM plans.

Always review your plan details and your plan's fair usage policy and contact your provider to clarify hotspot availability.

Let’s be real - true unlimited data, whether bill pay or prepay is rare. Most providers (yes, even the big names) hide behind vague fair usage policies or throttle your speed after just a few gigs.

At Sim Local, we do things differently.

We offer unlimited data eSIM plans in popular destinations like Japan, Australia, France, the UK, Ireland, India, and more. You’ll get up to 10GB of high-speed data per day - between 7-9GB more daily than other providers!

Hotspot and tethering are included in your daily allowance with an eSIM plan from Sim Local. No special restrictions. And that’s standard across all Sim Local plans.

Questions? Our friendly support team is just a message away on WhatsApp.

‘Unlimited’ sounds simple, but in most cases it isn’t,” says Laura Bullock, Head of Commercial at Sim Local. “Many eSIM providers start throttling data speeds after around 3GB of daily use, even on plans advertised as unlimited. At Sim Local, our unlimited plans won't throttle speeds until after 10GB usage per day, giving travellers far more high-speed usage and consistent performance throughout their trip. Hidden restrictions such as Fair Usage Policies can really catch travellers off guard, especially when they rely on connectivity for navigation, streaming, or work while abroad.”

Unlimited data can be great but always check the fine print. Most “unlimited” plans come with a fair usage allowance, which is your real data cap over a set number of days. Once you hit that limit, speeds often drop dramatically.

In some cases, you're better off with a high-data plan that’s more transparent about what you’re getting rather than an unlimited plan. For example, compare this France 300 GB plan with a generic competitor's unlimited plan that may have a 3GB daily usage threshold over 10 days.

300 GB eSIM

France

+Roaming

Lycamobile FR

Duration

15 Days

Plan

Data/​Calls/​SMS

Speed

4G / 5G

Price

US$29.25

More Info

Buy Now

16 Million Global Customers

That's 300 GB versus 30 GB. The high data 'limited data' plan actually offers 10 times more data!

When comparing unlimited data eSIM plans, it’s important to look beyond the headline promise of “unlimited”. Many providers include conditions that affect how much high-speed data you can actually use, especially when travelling abroad. Here are the key things to check before you buy:

1. Fair Usage Policy
Most unlimited plans include a Fair Usage Policy (FUP) that limits how much high-speed data you can use each day or month before your speeds are reduced. Make sure you understand what those limits are — and how quickly you might reach them based on your typical data habits.

2. Throttling Thresholds
Even with unlimited data, your connection may be throttled after a certain amount of usage. Check the provider’s details to see at what point this happens and how much speeds are reduced. Slower connections can make streaming, video calls or navigation difficult when you need them most.

3. Hotspot and Tethering Limits
Some plans restrict hotspot usage, meaning you may not be able to share your connection with other devices such as laptops or tablets. If you rely on tethering while travelling, confirm that your plan allows it without extra charges or limits.

4. Roaming and Coverage
Unlimited data at home doesn’t always mean unlimited abroad. Check whether your data speeds or allowances change when roaming, and make sure your provider offers strong network coverage in your destination country.

5. Value for Your Usage
If you rarely stream video or use large amounts of data, you might not need a fully unlimited plan. In many cases, a high-data bundle offers better value and the same level of performance.

Q. What does “unlimited data” really mean?
A. Unlimited data plans often include hidden limits such as a daily high-speed cap or a fair usage policy. This means that while you can keep using data, your speeds may slow down after a certain amount of use.

Q. What is throttling?
A. Throttling is when your mobile provider deliberately slows your internet speed once you reach a set data limit. You can still use data, but activities like streaming or video calls may become much slower.

Q. What is a Fair Usage Policy?
A. Fair Usage Policies set out how much high-speed data you can use before your speeds are reduced or other restrictions apply. It is designed to manage network traffic and ensure fair access for all users.

Q. Does “unlimited” always include hotspot use and roaming?
A. Not always. Some unlimited plans restrict hotspot or tethering use, and others may have different data limits when you are roaming abroad. It is important to check what is actually included before you buy.

Q. How do I decide if I really need an unlimited plan?
A. If you mainly use your phone for social media, messages and navigation, a large data plan might be enough. But if you stream, work remotely or travel frequently, an unlimited plan with clear speed limits may offer better value.

Q. What should I check before buying an unlimited eSIM data plan?
A. Read the fair usage policy, find out when throttling begins, and check hotspot and roaming allowances. Also compare plans to see if a high-data bundle offers the same performance for a lower cost.