Google eases off ETF in face of FCC concerns

Google on Monday quietly dropped the cost of the controversial Equipment Recovery Fee for the Nexus One to $150. The company's updated Terms of Sale now list a price less than half the $350 it had charged originally. The fee still takes effect within 120 days and stacks on top of T-Mobile's own $200 early termination fee.

The surprise drop is likely a direct reaction to an FCC inquiry questioning Google as part of a larger investigation in to early termination fees. In its complaint, the agency criticized Google especially for charging a separate fee of its own when no other phone hardware manufacturer does the same. Under the original scheme, a Nexus One buyer on T-Mobile leaving early would have paid a total of $729, or $200 more than the fully unlocked phone. The new price now is at least in step with Google's unlocked price.

ETFs as a whole have drawn increasing attention as carriers have increasingly used these as disincentives to switch to a potentially better service. While carriers like AT&T have kept ETFs on the iPhone and other smartphones relatively low, without separate hardware fees, Verizon triggered much of the FCC's concern as it doubled its own ETF to $350 to keep buyers of the Droid from defecting to a competitor.

By Electronista Staff