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They don't, it is simply a scam to attract customers.

It is simply impossible for a company to offer unlimited space or bandwidth to use. As hosting companies and their associated technologies are themselves limited (i.e. bandwidth or hard disk space), unlimited offerings are usually just an advertising gimmick. Often you will find clauses embedded deep within the company's terms of service contract that negate the unlimited offering. The clauses are usually arbitrary, such as excessive CPU usage will be grounds for account termination.

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