May 21, 2025

What is a data plan?

Written by Kathy

When shopping for a phone plan, the issue of data use comes up quickly. If you’re new to choosing a phone plan — maybe you’re getting off your parents’ plan — or it’s just been a while since you’ve shopped, here’s a guide to what you need a data plan for and how to manage data use.  

What is data used for on a cell phone? 

When you think about your phone usage, you realize how little of it involves making phone calls. It’s likely that most of what you do involves using apps, browsing websites, streaming entertainment, scrolling social media, or sending messages with images or video. All of those require an internet connection, either on Wi-Fi or through your carrier’s cellular network. 

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What is data on a cell phone plan?  

The data portion of a phone plan shows how much access you get to the internet via your carrier’s cellular network. This cellular data is also called mobile data, because it allows you to be exactly that: mobile, connecting to the internet anywhere, versus tied down to a physical location with a Wi-Fi network.  

Phone plans measure data allowances in gigabytes (GB) or sometimes megabytes (MB), and plans can be limited or unlimited.  

  • With a limited data plan, you’re paying for a set amount of mobile data per billing cycle. If you run out, you have to buy more or wait for the next billing cycle to begin. 

  • With unlimited data plans, there’s no set cap on usage. However, carriers may slow or “throttle” your data speeds after a certain level of use. You can still use data — it just won’t be as fast until the next billing cycle begins. Look for details about speeds and throttling policies under the broadband fact sheets on a carrier’s website. 

Before shopping, estimate how much data you need for your typical activities so you know which plans to consider. It also pays to know about the different types of networks (5G, 4LTE and 3G). The type of network you’re on affects how fast your mobile data performs, and it depends on your phone’s capabilities as well as your carrier and the plans it offers. 

What is shared data on a cell phone plan?  

Shared data can come into play if you’re part of a family phone plan. Those plans can either grant each line its own data amount (most common) or can give an overall data amount pooled between all lines on the plan.  

Pros of shared data
Cons of shared data
  • Can be less expensive.
  • More flexible at covering varied needs for data among users on the plan.
  • Once the data is used, everyone may be affected by slower speeds for the rest of the billing period.
  • Could lead to conflict about data usage.

Can I have a phone without a data plan?  

You can find some no-data plans, also called talk & text only plans, which don’t give any mobile internet access. Those tend to be cheaper, but they tie you down to Wi-Fi for things like using apps, accessing email, streaming and so on. When you’re away from Wi-Fi, you’ll only be able to make calls and send messages through your default messaging app.  

What uses cell phone data? 

Once you’ve picked out a data plan, you’ll want to keep an eye on your mobile data use to make sure you’re not paying for more than you need or getting charged for using too much. 

Anything that relies on an internet connection will use your mobile data if you’re not on Wi-Fi: browsing the internet, streaming media, scrolling social media, playing games, using maps, checking and sending email, making video calls.  

Activity
Data usage
Loading a page on a mobile browser  ~1-5MB (depends on the ads, images, or videos on that page) 
Having a text thread on a messaging app (100 messages)  0.5MB 
Sending an email (no attachments)  0.03MB  
Streaming one 3-min song (standard quality)  3.6MB 
Video call (FaceTime, Zoom, etc.) for one hour 480MB
Streaming YouTube or TikTok for one hour (standard quality)  500MB
Browsing Instagram Feed (with Reels)  500MB - 1.2GB
Streaming HD video for one hour 1GB
Watching a live stream on social media for one hour 1GB-2GB

Frequently asked questions about data plans