Now a days many hosting providers advertise that they offer unlimited space or bandwidth. I’ve observed that is especially something US based companies practise not just in web hosting but also internet and telecom operators. In US there doesn’t exist similar consumer protection laws as there are in through out EU so they are quite free to make false claims about their products and services.
There’s no such thing as unlimited resource. They are relying on the fact that average customer doesn’t use up all their allocated space or bandwidth. Many times in these services a small procentage of customers take up majority of the resources so you might end up getting less than you expected. We take a different kind of approach. Rather than saying you get unlimited bandwidth and storage we set certain limits and guarantee that you get that amount of space and bandwidth. We also don’t penilise you for going temporarily over your limit but if you are going over the limit long term then we’ll ask you to upgrade to the next tier or buy more bandwidth or space so that everyone gets what they have paid for.