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Why do cell phones have a data limit but home internet doesn't?

Why do cell phones have a data limit but home internet doesn't? I understand bandwidth limits, but how can home internet get away with giving users all the data they can use, but cell phone providers can't?

109 comments
  • In theory at least it’s because you pay for a specific bandwidth for home internet (the size of the pipe) but a specific amount of data for cellular (how much stuff you can get through a fixed sized pipe).

    Home internet is a little unique in that way, almost all other utilities are consumption based with no real tiers in terms of how it’s delivered (you pay for the volume of water or gas you use, electricity is the same, just different units).

    Networking equipment gets more expensive based on the bandwidth it supports, but it doesn’t much care how many bits you push through it. So ISPs charge based on their capacity to deliver those bits, and provide tiers at different price points. Cellular though is much more bandwidth constrained due to the technologies (and it used to be much more so before LTE and 5G), so it didn’t makes sense to charge you for slow or slower tiers. Instead the limiting factor is the capacity of a tower so by limiting data to small amounts it naturally discourages use. That model carried forward even now that the technologies support broadband speeds in some cases. As such and ISP could provide the biggest pipe (highest speed) to all homes and just charge based on consumption (they used to in the days of dial up, and satellite before starlink always has). Many ISPs instead are now double dipping though and charging for both.

  • I went over my home data cap a couple times. The ISP rep was not amused when I called to have them bump my speed down to the lowest tier and add unlimited data. I pay less now and the speed difference is not noticeable for me with daily usage. I told them I was going to download random crap all day, delete, and redownload out of spite lol.

  • Caps are fake there's no need for them besides to build golden marble pillars outside CEOs mega mansions.

  • Playing devil's advocate here. A possibly legitimate reason ISPs put in data caps is wireless spectrum congestion.

    • It's going to be precisely the reason. If you have a dedicated wire, fibre or copper then the entire available bandwidth is available per connection (one caveat with copper is crosstalk but it is minimal and can be mitigated). With fibre the available bandwidth per strand is huge.

      It's so fast that even where there's contention, it is rarely a problem that everyone sharing a part of the connection is downloading or uploading at once. So pretty much most of the times you test, you get the full speed.

      With mobile data, the entire cell is sharing a small amount (in comparison) of spectrum. Unlike a wire, the entire spectrum cannot be used by a single tower, a pretty small number of channels are carved out for them. Also because the signals are travelling through the air, there is more of a problem of signal loss and interference to contend with, so the channels very rarely reach the maximum possible speed (forward error correction and reducing bits per symbol to reach a suitable signal to noise ratio both will reduce speed for example.

      For upload (which isn't usually much of an issue) there's another problem of guard time between timeslots. When downloading, the cell transmitter transmits the whole time and shared the channel between all users (another thing that can slow things down) so there's no problem of needing a guard time. But when it's separate transmitters (phones) sending there's going to be a guard time between different handsets timeslot and the more active transmit stations there are (phones) the more these guard times add up to wasted bandwidth. Luckily most people are downloading far more than uploading, so it's less of an issue.

      I think for these reasons caps are used to limit people from ALWAYS consuming data on the cell/mobile networks and instead using wifi wherever they can in order to keep it fast for those that do/need to.

    • Playing devil’s accountant here. A possibly legitimate reason ISPs put in data caps are shareholder dividends and capital appreciation.

      1. Charge more
      2. Provide inferior service
      3. Profit
    • It's a self managed QOS. If the customer knows they can only use X data they're going to be a bit more cautious about using it. Vs if they have unlimited data then they'll just download that 50 gig file on their phone because "fuck it why not". The less data each individual customer uses the less infrastructure they have to build, and the faster/more consistent their existing stuff will be.

      Cell tower time is a LOT more expensive than time on a fiber optic cable. Your ISP installs a few boxes to serve your neighborhood, a cell carriers tower might go 20 miles.

  • They convinced the FCC, cellular networks are different than wired, and should have different rules.

  • Limits on home service used to be more common, but some plans still have caps. My home internet has a cap, it is just really, really high and they charge you more for exceeding it instead of cutting off access.

    My phone also has a cap, but the cap means the connection is throttled instead of charging more.

    I have had a home plan in the past woth no limit, but they didn't offer service to my new house when I moved.

  • They do have unlimited data plans here and it's at same price as your average wifi plan.

  • I pay an extra $30/mo on top of the $100/mo for comcast to not charge me extra when we shatter 1TB usage every single month (average 3.5-4TB usage in this home). They absolutely do have caps on home internet, always have, at least in my state. During the pandemic they relaxed the fees so going over didn’t cost but as soon as they could, they went right back to charging $10 per 50gb over 1TB usage with a max fee of $100. It’s bullshit but we don’t have a choice here, can’t even get satellite internet as an option because the complex doesn’t allow dish installation on the building.

    1. Some home internet providers have data caps.
    2. Some wireless providers do not have data caps.

    What you're up against:

    Home internet providers have high-speed lines that run through population centers and into every neighborhood. The backbones are fiber, so adding more capacity isn't all that expensive. If they run a 2.5-gigabit line to your neighborhood and it gets stressed, they can upgrade the local aggregate. Wired internet has enough bandwidth to service an incredible number of people.

    Wireless internet needs towers and faces challenges like exposure, interference, and balancing power so everyone doesn’t try to reach the wrong tower. Each tower has to have it's own network backhaul to service everyone in that area. Each tower has limited bandwidth and time to slice up the connections. It's hard and expensive to expand cellular tech.

    Data caps let IPS's handle capacity planning. Charging more for overages makes money and dissuades users from making them upgrade prematurely.

  • It depends where you live, Here pay $45usd for unlimited 1Gb/500Mbps Fibre and it is truly unlimited (usually 15-20Tb a month) and  $35usd for unlimited 5G tho it's throttled abit after 60Gb.

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