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Mobile data expert reveals the hidden cost of oversized data plans: Here’s why underusing your data allowance is often ‘psychological’ and how to save money on your plan

Ivan Mehta by Ivan Mehta
June 16, 2026
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Mobile data expert reveals the hidden cost of oversized data plans: Here’s why underusing your data allowance is often ‘psychological’ and how to save money on your plan

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The mobile service interface in iOS 26
Tracking your data usage is trickier on iOS than Android, but there’s a workaround (Image credit: Future)

You probably know how much mobile data you pay for each month, but do you know how much you actually use? I guess in this day and age it’s akin to asking if you know how many liters of water you drink each month (“No, but I know it’s a lot”).

Mobile data usage has exploded in recent years due to a variety of factors (including the advent of autoplay features in social media apps such as TikTok). Ericsson’s analysis suggests that the amount of data transferred over cellular data networks has increased sevenfold since 2020, with the monthly average now standing at 25GB per device in the US and Western Europe.

But while it’s true that most of us are using more mobile data than ever, these numbers don’t give the full picture of the problem: they encourage mobile operators to sell oversized data packages and, in all likelihood, you’re paying for more data than you actually need.

That 25GB figure is skewed by smartphone users who rarely, if ever, touch Wi-Fi. We all stream HD video over 5G and occasionally set up mobile hotspots for our laptops, but some people do these things almost constantly (yes, really), using more than 100GB per month and disproportionately affecting the monthly average.

A smartphone with the YouTube logo and a blurry YouTube interface in the background

An hour of 1080p video streaming on YouTube consumes around 3 GB of data (Image credit: Shutterstock / Juan Alejandro Bernal)

In contrast, Ofcom’s Communications Market 2025 report suggests that the average person in the UK uses 10.6GB of data per month, while Statista estimates the equivalent figure in the US at between 5 and 15GB, which is consistent with Ofcom’s findings. All three figures are significantly lower than the 25GB figure cited by Ericsson, suggesting that they represent these disproportionately high use cases (there are, of course, disproportionately low use cases to consider as well).

Unlimited mobile data plans are a popular choice among users who don’t want to be charged per gigabyte or exceed a monthly limit, but as above, these plans are rarely better options – financially speaking – than the cheaper fixed capacity data plans they come in above.

« Mobile operators and MVNOs [Mobile Virtual Network Operators] “However, many customers only use a fraction of their monthly data, meaning they may be paying more than they actually need.”

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“The main reason customers use less data than their allowance is psychological, because they want to avoid running out of data, so they often choose plans with more data than they need,” Banhans continues. “Providers also face fixed costs for each plan, in addition to the costs of (often unlimited) minutes and SMS. In our experience, the difference in underlying costs is relatively small compared to the price difference between plans.”

“Larger plans often have a lower cost per gigabyte, making them better value even when a lot of data goes unused. This is where the gap between what customers pay and what they use tends to be greatest.”

How to check your data usage

The mobile service interface in iOS 26

The Mobile Service Settings page in iOS 26 (Image credit: Future)

Banhans notes that there are several ways consumers can avoid paying for more data than they need. “The first is to sync your phone’s internal data meter with the billing cycle and track how much data you need per month, or download a standalone app to do this.”

To check your data usage on your iPhone, go to Settings, Cellular (Or Mobile service), then scroll to Mobile data menu. The current period shown here reflects your data usage since the last time your mobile data usage statistics were reset, which was probably some time ago. To align this figure with your specific monthly billing cycle, you will need to scroll to the bottom of the page and tap Reset statistics the same day each month that your billing cycle resets. You can set a recurring reminder to help you remember.

A simpler solution, however, is to track your data usage through your network provider’s official app – which will already be aligned with your monthly billing cycle – or use a third-party data tracking app like My Data Manager and Data Remaining.

On Samsung phones, the process is simpler. If you go to Settings, RelationshipsSO Use of datayour data consumption will be displayed in monthly format by default. To manually align dates with your monthly billing cycle, tap Billing cycle and data warning, SO Start the billing cycle on.

To view your monthly data usage on Pixel phones, go to Settings, Network & internetSO SIM cards. You can choose the date you want your data usage statistics to be reset under Application data usage cycle. The process is similar for most other Android phones.

How to choose the right data plan

Verizon

Even big carriers like Verizon continue to offer cheaper, fixed-rate mobile plans – their unlimited options are just more prominently advertised. (Image credit: Verizon)

If, using the methods above, you find that you are paying for more data than you are actually using, you will want to choose a data plan that better suits your needs.

I suggest choosing a data allowance that’s a gigabyte or two higher than your monthly average, unless the provider in question makes it easy (and affordable) to add additional data to the plan when needed. “It’s also important to consider occasional months of high usage, as well as factors like Wi-Fi access and travel habits, when choosing the right allocation,” adds Banhans.

Some network providers allow you to “roll over” unused data so that it can be used in another month, but this should not be considered a reason to choose a data allowance that far exceeds your actual monthly average: “While rollover data is often touted as a solution to unused data allowances, extra data often remains unused and eventually expires unless a customer’s usage varies significantly from month to month.

In some cases, unused rollover data can be converted into money on new device plans or contracts, but these savings are often ridiculously small compared to the money you’ll have overspent to accumulate that rollover data in the first place.

So, in summary, while unlimited and high-capacity data plans are attractive options for many people, network providers rely on consumer ignorance to sell these often excessive plans. If you put in the little work required to determine your actual monthly data usage, using the methods described in this article, you could save hundreds over the course of a year.


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Follow TechRadar on Google News And add us as your favorite source to get our news, reviews and expert opinions in your feeds. Make sure to click the Follow button!

And of course you can too follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp Also.


Axel is TechRadar’s phones editor, reporting on everything from the latest Apple developments to the latest advances in AI as part of the site’s mobile computing vertical. Having previously written for publications such as Esquire and FourFourTwo, Axel is well-versed in the applications of technology beyond the office, and his coverage ranges from general reporting and analysis to in-depth interviews and opinion pieces.

Axel studied English Literature at the University of Warwick before joining TechRadar in 2020, where he gained an NCTJ qualification as part of the company’s first digital training programme.

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