Google charges its own ETF for Nexus One in addition to T-Mobile's ETF

By on Jan 12, 2010 at 12:01 PM
Services January 12, 2010

Here’s a bit of interesting news on the purchasing and cancellation process for the Nexus One. If you buy the device subsidized, and you decide to cancel your contract after the 14-day period (30 days for California) but before 120 days into your contract, Google can charge a termination fee of its own — on top of the carrier ETF. Shocking? Yeah, a little bit. You’d imagine that if you’re paying for a subsidized device and you cancel your contract, you’d just be paying the remainder of the subsidy. Why isn’t this completely surprising? Well, if you purchase a handset with a wireless data plan from an authorized third party, like an electronics store, you sometimes end up getting into the same agreement. Many third-party retailers charge their own fees on top of carrier fees. Still, it doesn’t make it right. Here’s what Google has to say:

Please note that the Equipment Recovery Fee is imposed by Google and not your chosen carrier and is in addition to any early termination fees that may be charged by your chosen carrier in connection with termination of your wireless plan prior to fulfillment of your chosen carrier’s service agreement term.

BGR decided to get in touch with T-Mobile and it is pretty much confirmed: if you cancel after 14 days (again, 30 in California), T-Mobile will charge $200 for breaking the contract, and Google will charge the difference between the subsidized cost of the phone and its full price. Think long and hard before you make the purchase with a service plan: $200 ETF for T-Mobile, $350 for Google and $179 for the device itself will cost you $729 in the end if you cancel. At that rate, you might as well buy it at the unlocked, unsubsidized price.

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  • James

    That’s a bunch of crap.

  • tullster

    BGR — should be GBR — the google bitch report.

  • Mark

    When people say “ETF” instead of “Early Termination Fee” it makes it sound less bad… I love acronyms and all, but not in this case. I mean I want to get mad when I hear “termination” and “fee”

  • Diabl0

    ahh yes, BIG G getting the cashcow out of consumers.. Not only that, Tmo’s plan obliges you to get a 500 minute plan and nothing else.Don’t like the deal? Google’s Answer is get our unlocked phone.. Okay?

    lol details: http://bit.ly/nexus-one-disadvantages-compiled-details

  • Rabalac

    That’s not right… I get it if you paid $500 for the phone overall and pay tmobile for minutes used, but If the phone is $529 and you paid $179 to sub it, then the balance is $350. Tmobile should get $200 from the $350 leaving google with $150 and that should cover the overall price of the phone. They are robbing us an extra $179 for absolutley nothin…

  • empyrean

    They are making sure that people aren’t buying up the phones and selling them at inflated prices to make a profit off the phones.

  • Mr. Hyde

    *sigh* I wish you people actually knew what you were talking about and not just complaining

  • Gilbert “Mr Cell”

    Damn shut up about the ETF dont buy the phone unless your going to use it for your self the only people that should be mad are the ones who want to buy it then turn around and cell it. :) :):):):):):)

  • Donovin

    This is something that Indirect retailers use all of the time. It is to ensure that the reseller of the T-Mobile service is paid commission for their contract. If a customer cancels their service within 120 days from activation the commission for the contract is not paid to that retailer. Besides, it’s pretty clear that Google would rather you buy the phone without agreement to cut the BS of waiting fot commission from T-Mobile. Thus, the 500 EM TTW plan for each and every line without the ability to have a family pooling plan.

  • smokinf350

    Same thing goes if you buy from Amazon if you cancel or lower you plan in 120 days they hit you with the fees $100 bucks or more. That is how they sell you the phone for so cheap compared to directly from Att Verizon Sprint or Tmobile. It is nothing new so get over it. Whats 120 days anyway….

  • smokinf350

    My bad 181 days

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