The ‘Unlimited Data’ Lie Your Telecom Company Sells

You’ve seen the ads.
“Unlimited Data. Stream. Scroll. Download. Non-stop.”

Sounds like freedom, right? Except it isn’t.
Because after you hit 40GB, your “unlimited” plan suddenly turns into a digital bicycle on a highway.
Your video buffers, your Instagram refuses to load, and your “4G” feels like 2009.

Welcome to the marketing illusion your telecom company sells every month the Unlimited Data lie.

When Unlimited Isn’t Unlimited

Let’s start with the fine print your telecom ad hides behind all that bass music.

The ad screams “Unlimited 5G Data!”
But in the fine print below?

“Post 40GB, speeds reduced to 64 Kbps.”

64 Kbps. That’s not even 3G — it’s what 2G used to feel like in 2010.
You can’t stream, you can’t scroll, you can barely send a meme.

And yet, the word Unlimited makes you believe you’re getting infinite internet for your money.

The Real Game: FUP (Fair Usage Policy)

Telecom companies know exactly what they’re doing.
They don’t lie outright — they just bend perception.

Every “unlimited” data plan has a hidden FUP limit  Fair Usage Policy.
It defines how much data you can use at full speed before the throttle kicks in.

Here’s how it typically looks (as of 2025):

Operator	Claimed Data	Actual High-Speed Limit	Post Limit Speed
Jio	Unlimited	40GB–50GB	64 Kbps
Airtel	Unlimited	35GB–45GB	128 Kbps
Vi	Unlimited	30GB–40GB	64 Kbps
BSNL	Unlimited	20GB–30GB	80 Kbps

So yes, it’s technically unlimited, but the speed is throttled so heavily it becomes unusable.

Why They Still Call It Unlimited

Because it sounds good, and it works.

Telecoms know most users don’t read terms and conditions.
They also know that 90 % of customers never cross 30GB a month.

Here’s the kicker the average Indian user consumes around 26.2GB/month as of mid-2025 (TRAI data).
So for the majority, the slowdown never happens.
And that’s exactly why the business model thrives.

Metric	2022	2023	2025 (est.)
Average monthly data per user	19.5GB	23.7GB	26.2GB
Users exceeding 40GB	~7 %	~8.5 %	~10 %

In other words, only 1 in 10 users ever feel the pain.
For the rest, “unlimited” feels real, so no one complains.

How Telecoms Profit from the Illusion

Unlimited data isn’t a loss-maker; it’s a gold mine.

1. Psychology of Overestimation
   People overvalue unlimited access they’ll pay ₹200–₹400 more just to feel “free.”
2. Inertia
   Once you’re subscribed, you rarely check your usage or downgrade.
3. FUP Exploitation
   Heavy users who cross the threshold get throttled meaning their consumption costs the company less bandwidth.
4. Cross-sells
   When you complain about slow speed, they sell you an “add-on booster pack” — ₹100 for 10GB more.

That ₹100 top-up costs the telecom roughly ₹8 in data cost.
You’re paying a 1,150% markup for bandwidth you already thought was “unlimited.”

The Global Comparison

India’s telecom market is among the cheapest in the world but also one of the most misleading when it comes to “unlimited.”

Country	Average 5G Plan (Monthly)	Actual Data Cap	True Unlimited?
India	₹299–₹699	30–50GB (FUP)	No
USA	₹5,800	100GB (Soft Cap)	Partial
UK	₹4,200	No limit	Yes (network-managed)
Japan	₹5,000	80GB	No
Germany	₹4,600	60GB	No

Even in richer economies, most “unlimited” plans have hidden bandwidth throttles.
But Indian telecoms push the term far harder — because competition here is brutal, and perception sells faster than transparency.

How We Got Here

To understand this, rewind to 2016, when Jio entered the market with free data.
India’s average data cost crashed from ₹250/GB in 2016 to ₹8/GB in 2025 — a 97% fall.

But when data became cheap, companies had to find new ways to make profit:

• Cut per-user cost
• Sell “premium” speed packs
• Throttle heavy users

That’s when unlimited became the new marketing weapon.
Instead of charging per GB, they charged per feeling of abundance.

The Science Behind Throttling

Once you hit the FUP limit, the system doesn’t stop your internet it just chokes it.

Your connection speed drops to 64–128 Kbps.
For context:

• WhatsApp text messages = okay
• Instagram feed = takes 20–30 seconds
• YouTube = forget it

Telecoms defend it as “network management” prioritising fair usage for all users.
But in practice, it’s a way to reduce your consumption while keeping you subscribed.

 The 5G Illusion

In 2023, when 5G rolled out, users expected lightning speed and true unlimited data.
But the story repeated.

Jio and Airtel offered “unlimited 5G data”  but only if you were on a ₹239+ plan and within 5G coverage.
Even then, throttling kicked in after 50–60GB.

Network	5G Unlimited Offer	Real Limit	Post Limit Speed
Jio True 5G	Free Unlimited (Trial)	50–60GB	64 Kbps
Airtel 5G Plus	Unlimited	40–50GB	128 Kbps
Vi	Not available	–	–

As of early 2025, over 92% of Indian 5G users are still on plans with hidden limits.

Why You Still Stick Around

Because switching costs more than suffering.

• All carriers do it, so there’s no better option.
• The throttled connection is slow but functional enough for messaging.
• We assume the fault is temporary, not deliberate.

Telecom companies quietly rely on your tolerance.
They don’t need to be transparent; they just need to be familiar.

 The Legal Grey Area

Technically, they aren’t breaking any law.
The Telecom Regulatory Authority of India (TRAI) only mandates “clear disclosure”  not a ban on using the word unlimited.

As long as the FUP condition is mentioned (even in microscopic print), they’re safe.
That’s why you’ll find the line:

“Speeds reduced to 64 Kbps post FUP”
in font size 6, at the bottom of a 20-second YouTube ad.

It’s legal deception at its most elegant.

 The Consumer Side of the Story

To be fair, not everyone loses.
If you’re an average user browsing, chatting, streaming in moderation you probably never hit the cap.

You get predictable bills and steady service.
The system punishes only the top 10 % who push bandwidth gamers, streamers, content creators, remote workers.

Ironically, the people who use the internet most productively get throttled the hardest.

What Can You Actually Do

1. Read the FUP clause before choosing a plan. It’s usually in the terms or footnotes.
2. Track your data — both iOS and Android have built-in monitors.
3. Avoid booster packs unless necessary; they’re high-margin traps.
4. Complain to TRAI if speed drops before stated limits.
5. Switch providers periodically  new users often get softer throttles.

You can’t beat the system, but you can stop feeding it blindly.

The Hidden Upside

Ironically, the Unlimited illusion also accelerated India’s digital revolution.
People felt empowered to stream, learn, and connect without counting megabytes.
Even if the claim was half-true, it helped democratize data access.

In 2016, India had around 300 million internet users.
In 2025, that number is 1.2 billion.
So, while you may curse your telecom for throttling your Netflix, that same marketing trick brought millions online.

The Bottom Line

When your telecom says Unlimited, remember:
It’s not a promise it’s a performance.

You get unlimited access, not unlimited speed.
And that difference is worth billions every year.

So the next time your internet slows to a crawl and your plan says “Unlimited”?
Know this: it’s not a glitch.
It’s the business model.

Quick Data Recap (2025)

Metric	Value	Source
Avg data per user/month	26.2GB	TRAI (2025)
Users exceeding 40GB	10 %	TRAI
Avg speed post FUP	64–128 Kbps	ISP disclosures
Avg 5G plan cost	₹299–₹699	Market survey
Avg data cost in 2016	₹250/GB	TRAI
Avg data cost in 2025	₹8/GB	TRAI