Ending Nexus One contract pricier than buying unlocked

By Matthew
Jan 12, 2010
  1. If you plan to buy Google's Nexus One smartphone, here's some food for thought: cancelling a Nexus One contract is more expensive than just buying the phone unlocked. Phandroid and others have discovered the phone's Terms of Sale states that cancelling your account not only incurs a carrier Early Termination Fee (ETF) -- which is standard -- but Google will charge you an additional "Equipment Recovery Fee."

    Read the whole story
  2. Vrmithrax

    Vrmithrax TechSpot Paladin Posts: 1,285   +238

    It's only pricier because T-Mobile is taking a $200 bite out of customers who bail on them. This story is all over the net, with people ranting about Google being "evil" because of it, but this is not an uncommon practice for direct sellers of unlocked phones - it's just been brought out into the open with this high-profile phone, making Google look like the originator of the idea and all-around bad guy. The subsidy agreement that Google sells to T-Mobile under gives the phone to them for less than cost, with the remainder paid back after the customer has stayed with the provider for x days (120 probably). If the customer drops out before that, the phone (if it comes back) goes back to inventory as used, can't legally be sold as new, and has to be refurbed or just trashed by Google.

    If this wasn't in place, it would be easy for scammers to pop in, get the Nexus for $180, then break the T-Mobile contract for $200, and the scammer then skips away to ebay with a $380 Nexus they can resell for a big profit. T-Mobile gets their pound of flesh, but Google is left holding the bag for a loss. So, Google is just watching out for their own business interests.
  3. Burty117

    Burty117 TechSpot Chancellor Posts: 2,890   +645

    Your posts are amazing! once I totally agree, I too have seen this report, even on the BBC news website and its a little unfair on people attack google like they are. As I think you once said, don't get into a contract!
  4. slh28

    slh28 TechSpot Paladin Posts: 1,706   +170

    What's the big deal? If you enter into an 18 month contract, you are contractually obliged to stay with the carrier for 18 months! Any get out clauses are just a bonus. If you don't want a contract just get it sim free...

    Anyway isn't this the case for all phones, not just the Nexus?
  5. Hay we are only talking 4 months here guys.
    It seams to be a device to keep people from simply buying a phone on contract then breaking that contract in a few days and getting a Google phone for just $380 (the $180 plus $200 T-Mobile fee for breaking the contract)
    if there was no ETF from Google they would never get there money out of the phones.
    This is as silly as the people who are complaining about Google advertising on there own search page.
  6. Vrmithrax

    Vrmithrax TechSpot Paladin Posts: 1,285   +238

    It's typically present for any phone that is also sold in an "unlocked" version besides the contractually locked version. The problem is, in the US most wireless customers buy phones that are locked into a specific service provider, at huge subsidies, so the ETF that most folks are used to experiencing is only with the wireless provider themselves. Up until recently, actually confronting a hardware manufacturer ETF has been fairly rare here, statistically speaking. It's there in the fine print on contracts in several big networks (typically smartphone contracts), but interestingly enough there has never been a big stink raised over it until Google's foray into the market.
  7. derbyjozef

    derbyjozef TS Rookie

    Hey does anybody use this one?Well I purchase that just before few days,Simply awesome phone.All latest features.Well All of those functionality and software are work so nicely with android..Please share your thoughts for it.Thank you so much in advance for your support and suggestions...
  8. jobeard

    jobeard TS Ambassador Posts: 9,156   +598

    Salt on the injury; In Europe, all phones are unlock -- in fact -- don't support locking!
    U.S. domestic service is a manopoly and contrary to the Sherman Antitrust Act !! :)
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