Why your “unlimited” plans are a lie—and customers know it

In the telecom world, “unlimited” is one of the most enticing words you can slap onto a marketing campaign. Promises of unlimited data, talk, and text have lured millions of customers, reshaping the way carriers compete. But there’s a catch: Customers have grown wise to the fine print.

From data throttling to hidden restrictions, so-called unlimited plans often fail to live up to their name. And in an era of heightened consumer scrutiny, these discrepancies don’t just irritate customers—they also erode trust in your brand. Let’s explore why the “unlimited” promise falls short and how telecom companies can rethink their approach.

The reality behind “unlimited”

“Unlimited” rarely means unlimited. Although the term suggests boundless access, most plans come with caveats that limit usage after a certain threshold.

Throttling and deprioritization

The most common culprit is data throttling—slowing a user’s internet speed after they exceed a predefined data cap.

• Throttling explained: Telecoms use data throttling to limit their network usage. Consumers can access a set amount of data each month, but data speed is reduced when that limit is met to help avoid abuse. Customers who pay extra for unlimited plans are often frustrated when they discover the fine print of their contract doesn’t exempt them from throttling
• Deprioritization explained: Carriers often deprioritize high-data users during peak traffic, reducing their speeds in favor of lower-usage customers.

Hidden restrictions

Beyond throttling, many plans impose limits that contradict the “unlimited” promise.

• Hotspot limitations: Some plans restrict the amount of data that can be used as a mobile hotspot, even within the same “unlimited” data pool.
• Streaming caps: Certain plans throttle streaming quality, limiting video resolution to 480p or 720p, far below the capabilities of modern devices.

Customers know the game

Consumers are no longer passive recipients of marketing. They’re informed, vocal, and unafraid to call out deceptive practices.

Transparency matters more than ever

In the age of online reviews and social media, customers don’t hesitate to voice their frustrations.

• Example: T-Mobile faced backlash in 2019 when customers complained about the carrier throttling video streaming to lower resolutions for service plans that should have been exempted from the practice. The issue trended on social media, leading to a PR headache.
• Why it matters: A 2023 Edelman Trust Barometer study found that 71% of consumers believe it’s important to trust the brands they use.
• Seventy-one percent of people say that it is more important to trust the brands they buy/use prioritize transparency when choosing brands (Edelman, 2023).

The rise of regulatory scrutiny

Telecom companies are under increasing pressure from regulators to ensure their marketing claims match reality.

• Case study: In 2019, AT&T paid $60 million to settle an FTC lawsuit alleging it misled customers about its unlimited data plans.

The long-term costs of mistrust

When customers feel misled, the impact goes beyond churn—it affects brand loyalty, reputation, and revenue.

Churn rates and competition

High churn rates are a persistent issue in the telecom industry, and misleading claims exacerbate the problem.

• Insight: According to an Infobip report, only 45% of customers have been with their telecom provider for more than 5 years.

Negative word of mouth

Unhappy customers are vocal customers. Misleading practices lead to negative reviews, which can deter potential subscribers.

Rethinking the “unlimited” promise

To rebuild trust, telecom companies need to prioritize transparency, fairness, and value in their unlimited plans.

Be clear about limitations

Customers don’t expect perfection—they expect honesty.

• Actionable step: Clearly outline throttling thresholds, streaming restrictions, and other limitations in marketing materials and terms of service.
• Example of success: Verizon’s recent marketing campaigns explicitly state speed caps after data thresholds, earning praise for transparency.

Focus on customer value

Instead of focusing on vague claims, emphasize tangible benefits that resonate with users.

• Example: Highlight such features as international roaming, device upgrades, or family plan discounts to differentiate your offerings.

Embrace flexibility

Unlimited plans don’t have to be one-size-fits-all. Offering tiered options based on usage patterns can meet diverse customer needs.

Moving forward

“Unlimited” has been a cornerstone of telecom marketing, but it’s time to evolve. By addressing customer frustrations and embracing transparency, telecom companies can turn a potential liability into a competitive advantage.

In an industry built on connections, trust is the most important one to maintain.