Sprint and T-Mobile lure users with unlimited data plans, but there is a catch

In today's age when one needs internet at every step of the way, getting data at low cost can be extremely alluring. Having said that, Sprint and T-Mobile are rolling their unlimited data plans for their customers who are happy to trade video quality for low cost wireless data. These new plans are a lot cheaper than $95 per month but the catch doesn't end here.

Since wireless broadband is much scarce than wired connection, giving a reliable wireless service to everyone at the same time is a tall claim. This is why the unlimited data plans offered by Sprint and T-Mobile come with "conditions apply."

If you are on T-Mobile network, unlimited tethering is possible only via 2G connection that offers limited 236kbps speed only. If you need a faster LTE connection, it will cost additional $15 with a 5GB data cap. Additionally, you will also have to give up HD video viewing if you opt for a new unlimited plan. But if you want to regain HD streaming privileges on your network, you must shell out $25 extra every month.

Meanwhile, Sprint's new $60 per month unlimited Freedom Plan is far less restrictive than its competitor's. Unlike T-Mobile, Sprint will give its users full-speed tethering and a reasonable 5GB data allocation, up from previous 3GB cap on old unlimited plan. Sprint also notes that video experience will be optimized for standard definition and that the users will not notice the difference in video quality. However, users on Sprint unlimited plan will have to limit their audio streaming due to 500 kbps cap and 2mbps cap on gaming, as reported by Yahoo Finance.

Regardless of what network you are on, the users will have to compromise on the video quality as the service only allows standard definition rather than high definition, former consuming at least five times less network bandwidth.

As far as the prices are concerned, both companies offer their unlimited data plans at almost identical costs, says USA Today.