Fair usage policy. Is unlimited really unlimited or limited?

The Truth about Unlimited Usage Contracts

The word “unlimited” can be a very attractive word when purchasing a mobile phone contract, but does the word “Unlimited” really mean what it suggests?? A recent episode of BBCs Watchdog highlighted the issue that mobile phone companies are using the term, “fair usage policy” to limit their “Unlimited” contracts on calls, texts and internet usage. So is this Legal?? Well in fact it is. Phone companies are allowed to include the fair usage policies to protect their consumers form over use and fraudulent activities. However, surely if you say something is unlimited, it should be......... unlimited!!

Vodafone have announced that they no longer offer unlimited usage on their calls or internet tariffs, but when they say unlimited texts it means exactly that, as long as it´s not being used for unlawful practice.

Mobile phone company Three, say they believe that the use of the word “Unlimited” is misleading to customers and consumers, but they still keep using the word in their contracts! However, they have said they are making a clear explanation of their Fair Usage Policy on their website and fairly due warn people before they sign up to a contract.

O2 Fair Usage Policy

O2 say that their “Unlimited” usage tariffs are subject to a Fair Usage Policy, which says that as long as customers are using the phone for personal use and not fraudulent activity, they are free to talk for as long as they like.

Orange Fair Usage Policy

Orange say that they have now removed the use of the term “Unlimited” from their mobile data plans and that their texts now have a fair usage policy of 3000. But, they do say that they will not charge a customer unless they were acting fraudulently or, “abusing the network”.

T-mobile Fair Usage Policy

T-mobile stated that their text messages are “unlimited”, but they will monitor users that over exceed a number that may suggest they are spamming or using the offer for illegal reasons. They also say that they understand customers use their mobile internet for all types of media, but a customer should not exceed the 1GB or 3GB fair use limit (depending on tariff!).

Virgin Media Fair Usage Policy

Virgin Media say that their “Unlimited” offer comes with provisions to ensure the safety of their users and network from over abuse. They also state that their policy is subject to and adhering industry standards on the issue.

Tesco Mobile Fair Usage Policy

Tesco Mobile have been offering “unlimited” plans and have been charging people if they cross a threshold. Therefore, they´re not unlimited they are limited. But, they have issued this statement:

"Tesco Mobile offers great value and excellent service to all our customers, but to do this we have to discourage unusually demanding usage that could harm the network and the experience of all Tesco Mobile customers. Our fair usage policy means that almost all our customers on unlimited tariffs will have more than ample cover for their needs.” (Lance Batchelor, Chief Executive Officer of Tesco Telecoms and Tesco Mobile)

To conclude, the word “Unlimited” should be taken lightly when buying a mobile phone contract and you should read the fair usage policy attached to the contract. All mobile phone companies are offering different limits and boundaries on their “Unlimited” plans, so it is very important you understand it fully or other charges could be applied leaving you with a hefty lump on top of your bill!

Below is a table of the Fair Usage Policy boundaries for different phone providers. Some information we have found difficult to find, but we will try and fill it in ASAP. This information is also not set in stone and can be changed by the mobile phone provider so it is still important that you read the fair usage policy when purchasing any mobile phone.