The term refers to a service plan offering access to a theoretically limitless amount of data for a fixed price. In practice, this means users can consume significant amounts of data without incurring additional charges beyond their monthly fee. For example, a mobile subscriber with this type of plan could stream high-definition video, download large files, and browse the internet extensively without reaching a predefined data cap that would trigger overage fees or throttled speeds.
The availability of data without explicit caps holds significant importance for consumers and businesses alike. It allows for uninterrupted connectivity, facilitating tasks such as remote work, online learning, and media consumption. Historically, data plans were severely limited, often leading to unexpected charges for exceeding allotted amounts. The advent of plans offering significantly larger allowances, eventually marketed as unlimited, provided users with more freedom and predictability regarding their internet expenses. This shift has fueled the growth of data-intensive applications and services.