A recent study published in the INFORMS journal Management Science has identified unlimited mobile data plans as a potential key factor in reducing digital inequality. This research underscores that removing data caps significantly benefits low-income and rural households, especially regarding their access to educational materials. Traditionally, improvements in internet connectivity were thought to favour wealthier segments of society. Still, this study challenges that notion by demonstrating that less privileged families are likelier to exploit new digital opportunities when free from data restrictions.

Karthik Babu Nattamai Kannan, the lead researcher and an assistant professor of information technology and operations management at Cox School of Business, Southern Methodist University, highlights the difference in usage patterns for educational content. “Low-income households increased their use of education data by the equivalent of five digital textbooks per month, while higher-income households saw an increase of just three,” Kannan explains. This demonstrates a significant leveraging of resources among disadvantaged families, aiming to bridge the educational divide.

The study extends beyond mere entertainment and media consumption. Kannan emphasizes, “This isn’t just about streaming videos or browsing more websites. Disadvantaged households are using this opportunity to access educational resources that can substantially improve their lives, levelling the playing field in ways we haven’t seen before.” The research titled “Can Improvements to Mobile Internet Service Help Reduce Digital Inequality? An Empirical Analysis of Education and Overall Data Consumption,” analyzed data collected over two years in partnership with a primary U.S. telecommunications provider.

The findings revealed that families in rural areas and those with lower incomes experienced the most substantial increases in internet usage—generally, specifically for educational purposes—after transitioning to unlimited data plans. These results support the notion that unlimited data can help bridge the “homework gap,” ensuring that students in underserved communities have the necessary resources to succeed.

The timing of this research is crucial as it aligns with the Federal Communications Commission (FCC) ‘s current deliberations concerning the impact of data caps on internet access as part of Proceeding #23-199: Data Caps in Consumer Broadband Plans. The FCC has recognized the importance of this study by inviting the authors to present their findings via a web conference in October 2025 and to contribute their research papers to the FCC’s system to support the rulemaking process.

Eric Overby, a co-author of the study and a faculty member at the Georgia Institute of Technology, suggests a practical approach to solving this issue that avoids costly infrastructure investments. “We offer a practical solution that focuses on leveraging the widespread use of smartphones, which are already present in over 90% of U.S. households,” he states. This study challenges traditional views and provides hope for millions of Americans struggling to access the internet, arguing that unlimited data is more than a luxury—it is a crucial lifeline for communities on the wrong side of the digital divide. Through these findings, the researchers urge policymakers and telecommunications providers to prioritize digital equity and enhance access to educational resources across all demographics.

More information: Karthik Babu Nattamai Kannan et al, Can Improvements to Mobile Internet Service Help Reduce Digital Inequality? An Empirical Analysis of Education and Overall Data Consumption, Management Science. DOI: 10.1287/mnsc.2022.03770

Journal information: Management Science Provided by Institute for Operations Research and the Management Sciences