January 12 2010|10.46 AM UTC

Tony Adam

Canceling your Nexus One? You might be $550 poorer

Category: News, WirelessTags: , ,

Turns out picking up a Nexus One from T-Mobile with a contract could be quite costly, that is, if you cancel your plan. As it turns out, on top of any fees that might incur if you cancel after the 14-day trial period, Google is charging an “Equipment Recovery Fee”:

Nexus One Phone

You agree to pay Google an equipment subsidy recovery fee (the “Equipment Recovery Fee”) equal to the difference between the full price of the Nexus handheld device without service plan and the price you paid for the Nexus handheld device if you cancel your wireless plan prior to 120 days of continuous wireless service. For example, if the full price of the Nexus handheld device without service plan was $529 USD and the price you paid for the Nexus handheld device was $179 USD with a service plan, the Equipment Recovery Fee you pay will be $350 USD in the event you cancel within the first 120 days of carrier service.

Just like Google states in their Terms of Sale for Nexus Device, you could be charged up to $350 if cancel your service within the first 4 months of buying the phone. What makes it even worse is, if you cancel after the 14-day trial and up to the 4 month period, you could very well be charged up to $550 for canceling service. (approx. $350 from Google and $200 from T-Mobile).

Just as Gizmodo points out, they are basically making sure that people aren’t selling the Nexus One aftermarket and unlocked without contracts, agreements, etc. for profit. Basically, if anyone is going to make $350 on the phone, or anything on the phone for that matter, it’s going to be Google.

Do you think Google charging you a $350 “Equipment Recovery Fee” is fair? Tell us your thoughts…

Share this article:
  • Digg
  • Reddit
  • del.icio.us
  • StumbleUpon
  • Facebook
  • Tipd
http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/digg_48.png http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/reddit_48.png http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/stumbleupon_48.png http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/delicious_48.png http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/google_48.png http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/yahoobuzz_48.png http://www.billshrink.com/blog/wp-content/plugins/sociofluid/images/twitter_48.png

{ 4 comments… read them below or add one }

Nick January 12, 2010 at 11:56 am

The phone retails $529, not $179. People are only paying $179 for it because Tmobile is subsidizing your Nexus One to the tune of $350 dollars per. Tmobile’s incentive is to recoup that cost over the 2 years you’re under contract. Obviously if you break the contact, this incentive is no longer there, so why should anyone be surprised that they are responsible for the full price of the device?

This article is sensational and irrational.

Reply

Rob January 13, 2010 at 6:41 am

Kudos to Google, and T-Mobile, for this. In today’s eBay/craiglist world where people are out to make a quick buck, this will certainly hinder a majority of those that try to fraudulantly activate service for T-Mobile, or other carriers as well.
Of course, there will always be those who have stolen someone’s identity and will get away without having to pay the ETF’s but hopefully there are backup measures in place to curb this activity too.

Reply

Platinum Blaxx January 14, 2010 at 2:07 pm

Google and T-mobile really are into the new money market of making money. The Nexus-one is manufactured for a very cheap price and is marked up beyond its scope of operation. Therefore, if Goggle and T-mobile believed that they had a very good USA approved and tested phone it would have a lower price that would allow it to be more consumers hands and they would have an opt out of contract agreement if the phone did not best against others in the same markey.

The Nexus-one is just another over rated phone with a piss poor wireless service provider.

Make your money count!!!

Regards,

Platinum Blaxx
7 Figure Entertainment, LLC
PBi & M2g

Reply

Matt January 20, 2010 at 11:09 am

I don’t know about this wacky platinum guy,

but the nexus is way overpriced for it’s real cost. It probably costs (hardware only) in the range of $100. Think about that with the $500 pricetag.

meanwhile, tmobile is a great provider, one of the cheapest with the freelancer’s union 10% discount. Just don’t live in rural places or coverage will probably suck.

Reply

Leave a Comment

Previous post:

Next post: