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Google drops Nexus One early cancel fee to $150

updated 05:35 pm EST, Mon February 8, 2010

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.

 
Previous Comments

ETF to two companies?!!

02/08, 05:50pm reply

Seems sorta stupid. If the customer wasn't thrilled with the experience of having the phone and service (which I presume was paid to one company on setup), then by all means, make them hate the experience over all.

Tell ya what, I'll pay one company, then let THEM work it out. Google does not seem to be behaving very intelligently here.

Flying Meat

Fresh-Faced Recruit

Joined: Jan 2007

0

comment title

02/08, 07:14pm reply

Sorry google, don't think this is going to help the sales of your POS phone too much.

appleuzr

Fresh-Faced Recruit

Joined: Aug 2006

0

i wouldn't be surprised

02/08, 07:36pm reply

if the $200 just would get the amount Google actually earned for the phones back up to $529. They probably are giving Verizon a big discount to push it. And verizon is just gouging customers....

nowwhatareyoulookingat

Fresh-Faced Recruit

Joined: Jul 2009

+1

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