Definition: carrier data plans

All phones are cellular devices, but tablets and laptops may also have cellular capability. Cellular carriers generally charge differently for data than they due for phone calls and texting (SMS).

A data plan is based on the number of gigabytes of data transferred per month over cellular towers for websites, email and the myriad apps that access the Internet. If a device is in a free Wi-Fi hotspot, there is no data charge. See gigabyte.

From Yearly to Monthly
In the past, most cellular plans were two years, which enabled customers to amortize new phone payments over that period. Although they still exist, today, many plans are annual or month-to-month. However, if a new phone is purchased with a generous old-phone trade-in allowance, the plan may require paying it off over two years. It provides a lower monthly payment for customers but keeps them in the service for a guaranteed length of time.

Video Can Exhaust the Data Limit
The meter is running when cellular data is used, and videos consume a lot of data. Phones default to available local Wi-Fi hotspots as long as Wi-Fi is turned on in the device.

In 2015, T-Mobile introduced Binge On, which offered subscribers unlimited streaming of standard-resolution video (480p) from selected content providers, including Netflix, Hulu, ESPN, HBO and Showtime. See cellular generations, Wi-Fi and Wi-Fi hotspot.

A Data Transfer Warning

This app for Samsung's security camera cautions the user that continuous monitoring via cellular will use a lot of data.