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Google Lowers Controversial Nexus One Fee

Google Lowers Fee, Adds Support Line

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Update 2: Google has now reportedly lowered the $350 fee to $150, and launched a support line for the phone at 888-48-NEXUS.

Update: The FCC has sent letters regarding early termination fees to Google, AT&T, Sprint, T-Mobile, and Verizon. In its letter to Google, it says:

…where new options may subject consumers to substantial ETFs, potentially from more than one entity, the Commission has a special interest in ensuring that consumers have a clear and complete understanding of the rates, terms, and conditions on which the communications services are being offered and the rationale for those rates, terms, and conditions. The combination of ETFs from Google and T-Mobile for the Nexus One is also unique among the four major national carriers. Consumers have been surprised by this policy and by its financial impact. Please let us know your rationale(s) for these combined fees, and whether you have coordinated or will coordinate on these fees and on the disclosure of their combined effect.

Original Article: Google made big waves in the mobile industry early in the year, and the effects of those waves are being felt quite hard by some users. The Nexus One’s release has gotten off to kind of a rocky start.

Google Nexus OneThe issues plaguing customers of the much-anticipated Google phone have been widely publicized. Most of the gripes have dealt with Google’s customer service (or lack thereof) for the device, and trouble with 3G connections. More recently, however, complaints of outrageous early termination fees have popped up.

The trouble for users is that if they got the Nexus One with a two-year contract from T-Mobile, they end up having to pay about $550 to terminate early. The thing is, they have to pay T-Mobile’s regular fee, but they also have to pay Google a fee. Needless to say, that has caught some people off guard.

Google’s fee is a $350 "Equipment Recovery Fee". It applies to customers who cancel their contracts within the first 120 days.

According to Niraj Sheth
with the Wall Street Journal’s Digits Blog, "A Google spokeswoman said in a statement that the fee is "a way for the company to recoup the subsidy it gives to contract customers."

"’This is standard practice for third-party resellers of T-Mobile and other operators,’ she said. A T-Mobile spokesman said that the carrier’s early termination fee is standard for its customers on contract."

While the combination of the aforementioned problems may not bode well for Google’s reputation in the mobile industry at the moment, the good news for the company is that they are projected to come out on top in the smartphone race eventually. Crunchgear says Google and Android will "own the smartphone market" eventually. Time will tell if that is an accurate depiction of things to come, but for now, people just seem upset.

Related Articles:

> Google Unveils Nexus One "Super Phone"

> Nexus One Sales Of 5-6 Million Units Forecast

> Google Tries to Carve Out its Place in Mobile

Google Lowers Controversial Nexus One Fee
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  • http://www.integritytechgroup.com John Delaney

    I’m not a big fan of the cancellation fees wireless carriers have put on their customers, but 120 days is nothing to complain about. If you benefit from a subsidized price on the phone, 4 months is hardly anything to bitch about. What a bunch of sniveling whiners. My guess is that they wouldn’t be happy if it were only 30 days.

    How about this. If you don’t want the cancellation fee, pay full price for the phone and quit complaining, please!

  • http://www.controldatainc.com Agency collection

    4 months is not much. If they pro rate the fee this means you may still have a termination fee for closing the account 6month or even 1 year. I know cingular used to charge up to a 2 year termination fee in the early days.

  • http://www.colemaboard.org Colema Board

    Nothing can compete with the Ihone, but I suppose people have got to try.

    • http://www.kratomcapsules.net Kratom Capsules

      As soon as somone comes up with something comparable, Iphone will have somthing newer and better.

  • http://www.djembedrumshop.com/ David Cochrane

    I have noticed that the display is not viewable in direct sunlight as well as unable to use 3G service, even in areas where other Android phones access 3G successfully.

  • Guest

    From what I can read, the Dragon/Passion IS the Nexus One. It was called the Dragon by HTC, but named Nexus One by Google.

  • noiser

    Google nexus is comes in the market with big expectation .Google introduce this to compete with the apple I phone.I think only Google can compete with apple.

  • Morgan Timney

    If you sign a 2 year contract you accept that you have made that commitment… it’s common sense that they charge early termination fees and I am sure it is part of the contract that is signed.

    Google has provided so much and so many awesome services for free, people have been ‘spoiled’ and are now expecting an awesome phone/gps/mp3player/do-all for practically free too. But any supplier of products has to cover their costs or face a sure demise, so if Google is to continue, it has to do this.

    I say ‘grow up!’ you either want want they are offering at the contracted price or you go elsewhere (and sign someone else’s contract).

    • Guest

      If it is a contract then Google should sell a phone that WORKS!v Contracts are two sided and google has dropped the ball with hardware that is not ready to sell.

      Mark

  • mark

    It is not the consumers fault if Google phones wont work on G3. I would give the phone back too. (and NOT pay the charges) This is absurd they charge disconnect fees to unsatisfyed customers. What good is a satisfaction policy if they still charge $550 if not satisfyed. Sounds like a good money maker to me. Google gets $$ if people are happy and gets money if people are unhappy! WOW

  • http://decksanfrancisco.com Deck Boards

    They think we’re so stupid, that we’ll beleive that a cell phone costs them over $400 to make. IWhat do ya’ll think it really costs to manufacturer and deliver a popular cell phone line, per indvidual phone?

    $50?

    $100?

    NO WAY it’s over $150.00

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