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”:
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…