data cap

A data cap or bandwidth cap refers to the limit on the amount of data provided to a customer by a service provider. The contractually guaranteed data volume relates to a fixed period and a fixed fee. If the agreed data transfer is exceeded, the data cap comes into effect. It usually refers to a certain amount of data that the customer can transfer in a fixed period of one month for a fixed fee.

If the amount of data transferred exceeds the agreed amount of data, then the customer receives a dedicated bill for the additional amount of data. These additional costs are higher than the agreed fees. As an alternative, the service provider can reduce the data rate provided.