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Does hotspot cost money? All you need to know

The hotspot hot take: learn the true costs of WiFi on the go with Oliver Keel: writer, traveler, and keen researcher helping travelers like you to keep internet costs low on the go.

Updated: September 30, 2024

With the rise of mobile connectivity, many phones now come equipped with personal hotspots.

But the real question is, does it cost money to use a hotspot? What about when you’re using your hotspot abroad? We answer all of these questions so you can continue to use your hotspot wisely. Let’s dive in.

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What is a Hotspot?

No WiFi, use hotspot.
Use your hotspot in places where theres no WiFi. Source: Unsplash

Think of your phone as a tiny, portable WiFi router. That’s a personal hotspot! It shares your phone’s internet connection with other devices like laptops, tablets, or even other phones.

This neat little feature is available on most modern smartphones, allowing you to stay connected on the go. Need help turning it on? Learn how to turn your hotspot on with our step-by-step guide.

Does a hotspot cost money?

No, hotpots don’t usually cost extra if they’re included in your data plan. However, you’ll want to check to make 100% sure (more on this in the next section). 

You could be charged for every additional minute or gigabyte you use — which quickly adds up, especially if there’s no spend cap on your mobile contract.

Is a hotspot free if you have unlimited data?

If you have an unlimited data plan, you might assume that your hotspot usage is also limitless. However, that’s not always the case.

Some companies do limit hotspot usage — always check with your carrier to avoid unexpected charges.

Some carriers may still impose restrictions or charge additional fees for hotspot usage, even with unlimited data plans. In some cases, there’s a fair use policy, where — once you reach a certain internet consumption — the data speed is reduced until your next billing cycle.

What can drive up your hotspot costs?

There are four ways your hotspot costs can go up, these are:

  1. Your data plan: the type of mobile phone plan you have, whether it includes hotspot data or charges extra for the mobile hotspot feature.
  2. How much data you use: the amount of internet data you use is the biggest factor determining costs. Streaming videos, online gaming, and large downloads can quickly eat into your data allowance.
  3. Over-the-limit fees: if you exceed your data limit, you might incur additional charges.

Roaming charges: using a hotspot while traveling abroad can be super expensive.

How does using a hotspot affect your data limit?

Using a hotspot usually counts toward your overall data plan, so keep tabs on your usage, especially when streaming videos or downloading large files.

If you connect multiple devices or perform data-heavy activities, your data usage will be higher. 

Some plans offer dedicated hotspot data, while others might have speed restrictions after a certain limit. It all depends on which data plan you have. 

Will I get charged for using my hotspot with my local operator?

Whether you’ll be charged for using your hotspot depends on your mobile plan. If hotspot usage is included (lucky you!), you won’t pay extra, but if it’s not, you’ll probably be charged for the extra data used.

Let’s break down the hotspot costs for some major players.

AT&T

For AT&T’s unlimited plan, there’s a 50 GB hotspot included, but keep in mind that texting and talk time are not included with the tethering. 

AT&T’s online storefront for hotspot plans.
AT&T’s online storefront for hotspot plans. Source: AT&T

When it comes to AT&T’s users, your hotspot might come with additional charges, especially if you exceed your data limit.

Be cautious, as these charges can add up. Always keep an eye on your usage to avoid unwelcome surprises.

Verizon

Verizon’s unlimited postpaid plans include 30 and 60 GB of premium hotspot data. This means that you’ll be able to enjoy 5G speeds until you reach the limit. 

Verizon’s online store for hotspot plans.
Verizon’s online store for hotspot plans. Source: Verizon

Mobile hotspot data limits can vary. Most plans offer a specific amount of high-speed data, usually between 3 GB and 50 GB, after which speeds are significantly reduced to 3G.

T-Mobile

Just like the previous providers, T-Mobile’s users fall in the same category. Their unlimited plans include 30 and 50 GB of hotspot data.

T-Mobile’s online store for hotspot plans.
T-Mobile’s online store for hotspot plans. Source: T-Mobile

How much data do hotspots consume?

To help you gauge your usage, here’s a handy table outlining common data consumption scenarios when using a mobile hotspot:

ActivityData Usage per Hour
Sending Emails< 1MB
Browsing Websites60 MB
Streaming Music0.15 GB
Video Calls0.9 GB
Streaming HD Video2 GB

Data usage can vary wildly. Things like video quality and website design play a huge role. Less flashy websites mean less data.

Streaming videos or letting friends use your data can burn a serious hole in your wallet. Think twice before turning your phone into a public Wi-Fi hotspot while roaming.

How can I manage my hotspot better?

You can check and monitor your data consumption on your phone settings, including your hotspot. For most phones, follow these instructions:

Easy steps to configure your hotspot in Android devices
Easy steps to configure your hotspot in Android devices
  • Open your phone settings
  • Search for the Network or Cellular option
  • Then select “Tethering” or “Hotspot”
  • Toggle the on/off option to share your data
  • Create a hotspot name and hotspot password
  • Log into the hotspot with another device

Does hotspot work while I travel?

Whether you can use your hotspot abroad depends on your carrier’s plan. Most likely, you’ll be roaming, which means hefty charges for data, texts, and calls. It’s almost like stepping into a pricing trap.

Roaming charges and fees differ depending on the provider, but overall, rates cost an average of $5 (USD) to $10 per MB of data.

Your hotspot cost will depend on how much data you use and your carrier’s plan. Do your research before turning on that hotspot, as there might be cheaper alternatives like eSIM cards and only using your phone when connected to WiFi spots.

Use Holafly to stay connected abroad instead of hot-spotting

Using a hotspot can often be a great option for staying connected when traveling, but you must ensure your data plan allows for it.

Otherwise, you risk racking up a bill as long as your packing list — which definitely puts a damper on your travels.

Source: Holafly eSIM affiliate Arruma Essa Mala
Source: Holafly eSIM affiliate Arruma Essa Mala

Don’t fret, there are other options out there that won’t break the bank, nor have you holding up your phone to the cafe Wifi router like Simba from Lion King.

Holafly has convenient eSIMs with hotspot capabilities. 

Here are a few perks: 

  • User-friendly app
  • No roaming charges
  • 24/7 customer service
  • Connect as soon as you land
Holafly eSIM for international travel

So there you have it! Mobile hotspots can be a lifesaver when you need internet access on the go, but it’s important to know the costs involved with high-speed hotspot data to avoid any surprises. 

By knowing your plan, using data wisely and considering alternatives like eSIMs, you can enjoy your trip without worrying about breaking the bank.  Your trips abroad just got a whole lot easier!

Olly is a writer based in Manchester who grew up on the islands of the Bahamas on the smallest Island, Bimini. He discovered a great passion for writing while running an e-commerce store with his sister. He followed his passion and talent for writing and armed himself with a great understanding of SEO which led him to write for some amazing startups. When he’s not writing, he’ll often attend writers' meetups or travel to new places with his partner.

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