What Is a Data Cap?

Mobile carriers and some internet providers use data caps to manage network congestion. But what are data caps, and why are they used? Read on to understand the different types of data caps currently in use and how they impact customers.

What are data caps?

A data cap is a set amount of data a single internet connection can use in one billing cycle. Mobile carriers and internet providers use data caps to reduce network congestion.

On a more technical level, residential cable and fiber internet each use shared networks, meaning the wired connections from homes converge at some point in any given area.

For example, in the case of cable internet, one main “trunk” coaxial line serves an entire area, but the nodes and amplifiers distributing internet connections to homes have a limited amount of bandwidth. If they’re overwhelmed, congestion occurs, and speeds drop.

Meanwhile, cellular devices upload and download data from local towers. Similar to how congestion can bottleneck wired internet, towers can get overwhelmed by the number of simultaneous connections, causing reduced speeds and disconnects.

A way to minimize congestion is to enforce data caps. These caps discourage users from consuming large amounts of data, which can cause network congestion and slow the speeds of every connection in the area.

There are two types of data caps mobile carriers and internet providers use to manage their networks: soft data caps and hard data caps. Read on for more information about each.

Soft caps vs. hard caps: What’s the difference?

Mobile carriers and some internet providers enforce a soft data cap under the guise of “unlimited” data. When a mobile customer or home goes over the monthly data allowance, the provider manually throttles their speed or deprioritizes their traffic (which causes slower speeds) for the remainder of the month. The provider does not charge an overage fee.

Other internet providers enforce a hard data cap of up to 1.2TB (or 1,200GB) per month. When a home goes over its monthly data allowance, the provider charges an extra overage fee for each block of data the home uses, like $15 per 50GB of data. The provider does not throttle the home’s internet speed or deprioritize its traffic.

What is deprioritization?

Every customer accessing a wired or cellular network has a set priority level to keep the bandwidth use fair across the board. When a customer goes over their monthly data allowance, the cellular or internet provider reduces the user’s priority level, meaning the traffic of all other customers comes first. The end result is a reduction of speed until the billing cycle ends.

What internet types use soft and hard data caps?

Typically, cable internet is the only type that uses both soft and hard data caps—but the type of cap depends on the internet provider. Take a look:

Should you avoid internet and mobile plans with data caps?

You do not need to avoid internet and mobile services with data caps. However, do not select a plan with a low data cap if your data usage is high enough to warrant an unlimited plan. Be sure to choose a plan with a data cap high enough for your internet usage, so you can avoid having to pay a higher premium for unlimited data.

FAQ about data caps