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What Does Unlimited Data Really Mean?
June 20, 2025 | 5 minute read
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Hansel Arief
What does unlimited data mean?

What Does Unlimited Data Mean?

When mobile carriers advertise “unlimited data,” it sounds like you’ll never have to worry about data limits again. But unlimited doesn’t always mean full-speed, all-you-can-use internet. In most cases, data is still controlled by what's called a Fair Usage Policy (FUP), a clause to ensure fairness to both operators and consumers.

Let’s break down what unlimited really means today, why it still makes sense for many users, and how Eskimo’s unlimited data eSIM stacks up.

What Is Fair Usage Policy (FUP)?

A Fair Usage Policy exists to prevent heavy users from slowing down the network for everyone else. Even if your plan is “unlimited,” the provider might reduce your speed or deprioritize your traffic once you use a certain amount of high-speed data.

FUP usually shows up in the fine print as:

  • A daily or monthly high-speed limit
  • A speed cap after that (often 128–512kbps)
  • Restrictions on tethering or streaming quality

These policies are common across the board, including our own Eskimo Unlimited Plan, which gives you 1GB of daily high-speed data, followed by 512kbps speeds for the rest of the day. It’s a balance between affordability, usability, and fair network access for all.

Why People Still Choose Unlimited Data Plans

Even with these caveats, unlimited plans remain popular for good reason:

1. Peace of Mind

No one wants to run out of data mid-trip or get hit with overage fees. Unlimited plans eliminate the stress of counting every megabyte.

2. Consistency

You always stay connected, even if it’s at a lower speed after FUP kicks in. For tasks like messaging, maps, or browsing, 512kbps can still be functional.

3. Better for Streaming and Social Apps

Unlimited high-speed data (even limited to 1GB/day) is enough for:

4. Ideal for Travel

When you're abroad, tracking data usage on unfamiliar networks is stressful. An unlimited plan means you won't get cut off or unexpectedly charged.

Types of Unlimited Data Plans

Unlimited plans vary a lot between providers. Here are the most common setups:

1. Truly Unlimited (Rare)

These plans promise no caps, no throttling, and no restrictions, but they’re nearly extinct. Most “truly unlimited” plans today are either extremely expensive or only apply to very specific use cases, like home internet or corporate contracts.

2. Unlimited with Daily High-Speed Cap

This model, used by Eskimo and many travel-focused providers, gives you a fixed amount of high-speed data daily (like 1GB), then slows you to FUP speeds after that (e.g. 512kbps). Speeds reset the next day.

It’s a flexible, budget-friendly option that still works well for travel, remote work, and messaging apps.

3. Unlimited with Monthly Priority Cap

Many traditional mobile carriers like AT&T, Verizon, and T-Mobile let you use high-speed data up to 50–100GB per month, then deprioritize your traffic. You’ll still get LTE or 5G, but with reduced speeds during congestion.

4. Unlimited with Hard Throttling

Some “unlimited” plans switch to very slow speeds (like 128kbps) after just 20–30GB/month. That’s barely usable for anything except basic messaging.

What Happens After You Hit Your Limit?

Even with unlimited data, here’s what typically happens after you use your full-speed allowance:

  • Speed drops from 4G/5G to FUP limits like 512kbps
  • Streaming is downgraded where HD lags and runs better on SD or lower
  • Hotspot/tethering may be cut off or slowed
  • Downloads and large file transfers slow down

That’s why it’s important to understand not just how much data you get, but at what speed.

How FUP Works on Eskimo’s Unlimited Plan

We designed our plan to be transparent and fair. Here’s what you get with Eskimo Unlimited:

  • 1GB of high-speed data daily (resets every 24 hours)
  • After that, data continues at 512kbps
  • Unlimited speeds return the next day
  • Full support for mobile hotspot and personal tethering (not all carriers offer this)

At 512kbps, you can still:

Usage Habits That Trigger FUP Faster

To preserve your high-speed daily cap, avoid:

Instead, connect to Wi-Fi when available, and check app settings to reduce background usage.

How to Tell If You're Being Throttled

If you notice slowdowns, here’s how to confirm if FUP is active:

  • Run a speed test (e.g. via Fast.com or Speedtest)
  • Compare video quality between morning and evening use
  • Check your Eskimo dashboard for usage stats and resets

Why Eskimo Unlimited Is Worth Considering

Unlike traditional roaming plans that hide behind vague “unlimited” claims, Eskimo’s plan is crystal clear:

  • Daily 1GB high-speed + FUP at 512kbps
  • No SIM-swaps, just install once and use all of our data plans seamlessly
  • Works as a personal hotspot with no extra setup
  • Starts only when you connect, not when you buy
  • Affordable and borderless

And the best part? New users can try our eSIM for free with 500MB of global data.

FAQs

What does Fair Usage Policy mean in an unlimited plan?

It’s a rule that limits your high-speed access after a certain point, usually to maintain network performance for all users.

How much can I do with 512kbps after the cap?

You can still browse, chat, use maps, stream music, and load basic sites, just not high-bandwidth content like HD videos.

Is 1GB/day enough for travelers?

Yes, especially if you use low data mode, avoid background downloads, and stream in SD. It's more than enough for maps, WhatsApp, email, and even short videos.

Do I need to reinstall eSIM to top up?

No. Eskimo eSIMs never need to be reinstalled. Just buy more data, and your plan will stack or auto-activate after the current one ends.

Author Image
Hansel Arief
I've been the Digital Lead for Eskimo eSIM since 2021. My favorite thing to do while travelling is to find lessser-known hidden gems and try authentic, local cuisines.
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