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FAQ Item: Truth behind unlimited bandwidth
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The Truth About Unlimited Bandwidth

Let's face it: nobody is going to allow you to monopolize a data line that costs thousands of dollars a month while receiving only $20. It just doesn't make economic sense. But some of our competitors try to fool you into thinking you'll get something for almost nothing, while leaving themselves a way out if you really take them up on the offer.

For example, one of our competitors advertises their "unlimited transfer allowance" on their site, yet buried in their agreement is

[We] do not set pre-defined limits on our customers bandwidth. We expect some accounts to use more resources than others, and are prepared to offer more resources for those who need them. We expect that all customers will use [our] resources in good faith. If your site is very popular, please contact [us] for a Special Arrangement.

Translation: "We offered you unlimited bandwidth, but if, in our opinion, you're using too much, we'll charge you extra for our Special Arrangement."

Web Hosting is a commodity. The main elements of any web hosting plan are disk space and bandwidth. Disk space is the space you have allotted on the web server to store your website. Bandwidth is an amount you have available to transfer web pages from the web server to the browsers of visitors to your site. Web pages and graphics consume bandwidth or capacity on the web. Bandwidth and disk space cost money.

The network lines that carry data around the web (optic fiber, cable, copper wire etc) have a finite capacity. There is a limit to the amount of data that can be transferred at any point in time. Likewise, the hard drive of a web server has a limited amount of space determined by the physical size of the hard drive.

Many hosting companies claim to offer "unlimited" plans (both disk space and bandwidth), but be aware that there are physical limitations to both disk space and bandwidth. Before you buy an "unlimited" plan, know what you're getting into.

The Attraction to Unlimited
When consumers decide they want to place a website on the internet, they are often unaware of the fact that there are limitations. Unlimited is attractive because it requires no further thought. If it's unlimited then I never need to worry about running out right? Although this is understandable, there are risks with purchasing unlimited plans.

The Unlimited Myth
Many web hosting companies offer "unlimited" as a plan feature. It is impossible for any provider to actually provide an unlimited amount of bandwidth or disk space. It's just not possible.

So Why Do Unlimited Plans Exist?
Most websites only consume a very small amount of bandwidth and disk space. Web hosting companies that provide unlimited anything as a plan feature are banking on the fact that you won't use very much. Unlimited is a marketing trick to get your business. The web hosting market is very competitive. Although selling plans that pretend to be unlimited can seem dishonest, it does not mean that the hosting company will not provide good service. Check in the hosting company's Terms of Service: there will probably be a note about what "unlimited" really means.

Further Reference UNLIMBAND