In this article, an innovative approach for magnetic data communication is presented. For this purpose, the receiver coil of a conventional magneto-inductive communication system is replaced by a high-sensitivity wideband magnetic field sensor. The results show decisive advantages offered by sensitive magnetic field sensors, including a higher communication range for small receiver units. This approach supports numerous mobile applications where receiver size is limited, possibly in conjunction with multiple detectors. Numerical results are supported by a prototype implementation employing an anisotropic magneto-resistive sensor.