‘Unlimited’ mobile data plans

“If I sign a phone contract with ‘unlimited’ mobile data, is there really no limit to how much I can use?”

This is the question on many mobile users’ minds - and, with half of the country now owning a smartphone and connected 24-7, an answer is needed.

Web-enabled handsets, like Apple’s iPhone 4S or the Samsung Galaxy S II, mean we can surf the net, check our emails and download apps whenever and wherever we want. But convenience comes at a cost and the “currency” we use is data, which in turn costs real money.

So before you sign on the dotted line, it pays to know what you’re getting - to avoid expensive bills or cut down on costs by only paying for the data you actually need.

What is mobile data?

In the same way that networks charge you to make calls - or restrict the number of free minutes on a pay monthly contract - there are costs involved with connecting to the internet on your phone. Whenever we send emails, check Facebook or download the latest app, our device is transferring data, which puts a certain amount of strain on the network.

To help keep traffic flowing, 3G network providers - Vodafone, T-Mobile, O2, Orange and Three - pass the cost of running mobile internet to their customers. Instead of paying by the minute, users are billed according to how much data they use. This makes it important to compare mobile phone deals and choose the package with a data plan that best suits your needs.

How much data do I need?

Most networks include a set amount of data - usually between 500MB and 2GB - in their pay monthly deals. For an additional charge, extra data can often be provided as an add-on product for both pay monthly and pay-as-you-go customers.

How much data you need entirely depends on what you use your mobile internet for, and how much time you spend using it. The examples below should give you a rough idea of how different amounts suit different types of user:

500MB a month - This is now the standard pay monthly offering of most 3G network providers. It should be sufficient for everyday use of emails, Facebook and Twitter, as well as streaming music reasonably often.

2GB a month - Regularly streaming YouTube videos, movies or TV shows, your data consumption will quickly rocket. You may also want to consider bigger data packages if you download lots of games, media or email attachments.

If you find you need more data, it is usually possible to stay with the same network and upgrade your allowance. Alternatively, you could compare mobile phone contracts from other providers.

Galaxy S3(white) £0.00

500 min 5000 texts

£24.00

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The truth about “unlimited” data plans

As smartphones become increasingly important in our day-to-day lives, lots of us now opt for unlimited 3G data plans on our pay monthly phone contract. But confusingly, some “unlimited” deals is actually subject to a fair usage policy, which can end up imposing limits which prove costly when exceeded.

It’s a hot topic at the moment, as telecoms watchdog Ombudsman Service: Communications has flagged up data download “bill shock” as a growing problem in the UK. It affects people who think an unlimited plan means free internet without limits.

In reality, these people could unwittingly rack up enormous monthly bills - resulting in a nasty shock - because they exceed the network’s fair usage policy. Before signing a pay monthly contract, you should always check the terms and conditions to avoid any hidden costs.

What is a fair usage policy?

While mobile data plans are often labelled “unlimited” by 3G network providers, usage is normally capped in line with a fair usage policy. This is basically a set of guidelines laid out in the contract’s terms and conditions.

Breach the fair usage policy and your phone bill could increase significantly, as additional charges may apply for the extra data you’ve used. The Advertising Standards Authority (ASA) has looked at the 3G networks’ use of the term “unlimited” and given the green light for them to keep using it, so being aware of any limits is crucially important.

To stay out of the danger zone, make sure you understand your provider’s fair usage policy. If you think you’d easily exceed it, consider ways of cutting down on your data consumption or look into switching provider - but remember to compare mobile phone deals and shop around.

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What the mobile networks say

Each of the main 3G networks - Three, T-Mobile, Vodafone, Orange and O2 - has its own approach to limiting mobile data usage. Some contracts clearly state a set download allowance, while others described as “unlimited” may still carry a fair usage policy.

When choosing a mobile provider, it’s a good idea to look carefully at the terms and conditions, as some deals will suit your needs better than others.

A summary of each 3G network’s policy on mobile data usage:

Three

As a 3G-only network, Three (www.three.co.uk) prides itself on offering a truly unlimited mobile internet service. It provides “genuinely unlimited” internet use and no danger of bill shock as with more restricted data plans.

Three says: “Smartphone users typically...use increasing amounts of data as they learn just what their smartphone can do, making limited bundles an issue for many. Consumers want to make the most out of their smartphones but many struggle to track their data use, our genuine all-you-can-eat plans take that problem away.”

All You Can Eat data plans from Three start at £18 a month on contract and £15 a month for pay-as-you-go customers.

T-Mobile

Contract customers can browse the web and access email as much as they like - even after their data allowance is exceeded - with no additional charges. There is a 500MB limit for streaming videos and uploading/downloading files.

T-Mobile (www.t-mobile.co.uk) says: “If you hit this limit during the month, you won't be able to do this stuff again until the next month. T-Mobile is the only UK operator to not charge customers run-on rates for data use across all plans. That way they will always know how much they are paying and will never get an unexpected bill.”

Data usage for T-Mobile pay-as-you-go customers is capped at a maximum of £1 a day, though more frequent web users can opt for a “booster” package priced at £2.50 for five days, £5 for 30 days or £20 for six months.

Vodafone

Where mobile internet is included in a Vodafone (www.vodafone.co.uk) price plan, a set allowance - usually between 250MB and 1GB - will be stated in the contract. Customers can check their usage via the MyAccount page on Vodafone’s website.

Vodafone says: "We clearly publish the amount of data that's included with each price plan that we offer. If customers are getting near to the top of their allowance, we’ll text them to let them know.”

Data Test Drive is available to new and upgrading pay monthly customers. It allows people to use as much data as they like - with no restrictions - for the first three months of their Vodafone contract. At the end of the “test drive” the customer can choose a data bundle that suits their actual usage.

Orange

To help prevent download data bill shock, all of the latest Orange (www.orange.co.uk) price plans feature a daily cap of £1 on mobile internet usage.

Orange says: “We offer great value data bundles for customers wanting to closely manage their expenditure. We feel these measures, along with the information provided to customers at point of purchase, go a long way to helping our customers avoid unexpectedly high bills.”

For pay-as-you-go customers, Orange mobile data bundles start from £5 a month for 250MB capped browsing. Any usage beyond the limit will be charged at the rate outlined in the terms and conditions of the offer.

O2

The UK’s second-largest mobile operator, after the T-Mobile and Orange joint venture Everything Everywhere, O2 (www.o2.co.uk) caps all of its customers’ data usage, to help them avoid unexpectedly high bills. It also texts web users when they’ve used 80% of their allowance - even when using their phone abroad.

O2 Says: “We tackled [bill shock] over a year ago by introducing data bundles, so customers never spend more than they agree to. We also text our customers to tell them how much data they’ve got left each month, and give them the option to buy more if they need - so they are always in control.”

None of O2’s monthly price plans include a data allowance. Instead, customers purchase an add-on priced between £3 a month for 100MB and £10 for 1GB. Pay & Go customers can get 500MB of data and unlimited Wi-Fi by topping up £10 a month.

Z10(black) £0.00

300 min Unlimited texts

£22.00

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How to avoid expensive phone bills

To avoid paying too much for mobile data, it’s a good idea to keep track of how much you’re using and find out about charges that may apply if you go over. The following tips could help you stay on top and prevent bill shock at the end of the month:

Know your limit - Before signing up, it’s important to read the terms and conditions of any offer or contract. Exceeding the data allowance is likely to result in extra charges, so being aware of the limit and sticking to it should help prevent additional costs.

Monitor usage - Most 3G networks provide a simple way for you to track how much data you’re using. This is usually done through their website or a free downloadable app. Again, make sure you know your limit.

Wi-Fi - If you have wireless internet at home, connect to it with your 3G mobile to save your data allowance for when you’re out and about. You may also be able to do the same with free Wi-Fi hotspots in cafes, bars and restaurants.

Data roaming - When travelling overseas with your phone, turn off the “data roaming” options and refrain from any web-based activity - unless you’re using local Wi-Fi - or you could rack up all kinds of additional charges. Contact your network provider to see how you can use your mobile aboard - and how much it will cost.

Choose well - The most important thing when choosing a mobile tariff is to ensure it provides everything you need at a price you can afford. It’s a good idea to compare mobile deals online, paying particular attention usage limits and charges that could be incurred.

Only pay for what you need

As well expensive bills for exceeding their data allowance, mobile customers are also at risk of paying too much for a price plan which offers more than they actually need. If it’s time for a new contract or pay-as-you-go deal, it is always advisable to shop around and compare mobile phone networks. There is no point paying for 1GB of data if all you use the internet for is checking your emails and occasionally reading the news.

If you already subscribe to a data plan, keep an eye on how much you’re using - then when the time comes to switch, you may be able to opt for a cheaper service with a smaller allowance. First timers could compare with Mobilechoices.co.uk to find the perfect price plan, as well as asking friends for any recommendations.

One(black) £0.00	600 min Unlimited texts	£29.00
iPhone 4 (8GB)(black) £0.00	600 min Unlimited texts	£21.00
iPhone 5 (16GB)(white) £0.00	600 min Unlimited texts	£33.00

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