Google lowers, but doesn't drop, Nexus One early termination fees

Moral of the story is if you don't like the Nexus One return it within 14 days.

Google today has said it will charge users a mere $150, rather than $350, if they quickly terminate their T-Mobile contract after buying phone at a reduced price with a T-Mobile contract. It is also giving a break to existing T-Mobile customers who buy the phone with a carrier contract, then change their plans. This is a nice happy ending to the story I reported a couple of weeks ago.

Google's fees are in addition to early termination fees charged by T-Mobile, which comes in at $200. But the change makes the fees reasonable and not punitive (did I say punitive? Google's original fee structure specifically declared that the fees were not to be considered punitive!)

This unique circumstance, where the phone retailer (Google) as well as the carrier (T-Mobile) charge users fees to cover the cost of the same phone is the subject of an FCC investigation. The FCC is investigating other wireless carriers about how they notify users of the early termination fees, too.

Previously, double-whammy termination fees would cost users $729 if they bought a subsidized phone, but cancelled the T-Mobile contract within 120 days. The unlocked phone sells for $529. With today's change, users will wind up paying $529, with both Google and T-Mobile taking a cut. Fair enough. If you already have a T-Mobile plan, and you change it, you could wind up paying Google as little as $50 beyond the purchase price for backing out of your T-Mobile contract. Plus, you'll be on the hook for whatever T-Mobile decides to bill you.

Here's the direct quote, from

"You agree to pay Google an equipment subsidy recovery fee (the "Equipment Recovery Fee") in the event you cancel or downgrade your wireless plan within 120 days of activation of wireless service. If you activate a new line of service with T-Mobile, your Equipment Recovery Fee will be $150 USD if you cancel or downgrade your service plan within 120 days of activation. If you are upgrading an existing line of service with T-Mobile, your Equipment Recovery Fee will be $50 USD if you cancel or downgrade your service within 120 days of activation. You authorize Google to charge the applicable Equipment Recovery Fee directly to the credit card or other payment method used to purchase the Nexus handheld device upon cancellation or downgrade of your wireless plan. You will not be charged the Equipment Recovery Fee if you return your Nexus handheld device to Google within the 14 day Return Policy period as set forth below.

The message is clear: If you hate your phone or your service, make sure you return within the first two weeks.

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• Google
• Wireless / Mobile
• early termination fees
• FCC
• Nexus One
• T-Mobile