AfterDawn: News

Google slashes Nexus One early termination fee after FCC investigation

Following an FCC investigation into the overall industry, Google has slashed the fee for Nexus One owners who decide to drop their contract early.

The early termination fee, or as Google calls it, the "equipment recovery fee," is now dropped from $350 USD to $150 USD for T-Mobile users who purchased the phone but no longer want their T-Mobile contract. The $150 is on top of the $200 that T-Mobile charges for breaking the contract early.



Says Google: "Google's overall financial philosophy with regard to operator service plans remains unchanged: We make no profit from commissions from operators or from equipment recovery fees, and our recovery fees are based on operator charges to Google for early termination of service."

Written by: Andre Yoskowitz @ 8 Feb 2010 19:06

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• 7 comments

• cyprusrom

  Quote:If the math is correct, it appears that there is now a way to get a Nexus One for cheap, if you are willing to cancel a new service contract.I'd guess the math was incorrect, you probably forgot to add he initial cost for the phone:
  
  $[179(2.yr. contract)+ 150 google+ 200 verizon]= $529, the cost of buying the phone with no service...

  8.2.2010 19:18 #1

• i1der

  Good Math!!!
  And thats not counting with the activation fee, and other hiden costs from first bill, thats usually scary(the 1st bill)

  8.2.2010 20:32 #2

• DVDBack23

  Quote:Quote:If the math is correct, it appears that there is now a way to get a Nexus One for cheap, if you are willing to cancel a new service contract.I'd guess the math was incorrect, you probably forgot to add he initial cost for the phone:
  
  $[179(2.yr. contract)+ 150 google+ 200 verizon]= $529, the cost of buying the phone with no service...Cypress you are right! For some odd reason thought the phone retailed for $129 with service, not $179, don't know where my head is! Have updated the article :)

  8.2.2010 20:40 #3

• xnonsuchx

  "equipment recovery fee" seems to imply that you wouldn't have to pay it if you turn in your phone if you terminate your contract early. Is this the case?

  8.2.2010 21:36 #4

• KillerBug

  Says Google: "Google's overall financial philosophy with regard to operator service plans remains unchanged: We make no profit from commissions from operators or from equipment recovery fees, and our recovery fees are based on operator charges to Google for early termination of service."
  
  Anyone else see the problem when they claim nothing has changed, and that they were not making a proffit before, despite the fact that they can break even for $200 less?

  8.2.2010 23:53 #5

• cyprusrom

  "Not making profit" does not equal "breaking even". We also don't know if at the same time T-Mobile dropped their charges to Google for early termination.

  8.2.2010 23:58 #6

• alimaam

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  SPAM removed

  9.2.2010 02:29 #7