Following an FCC investigation into the overall industry, Google has slashed the fee for Nexus One owners who decide to drop their contract early.
The early termination fee, or as Google calls it, the "equipment recovery fee," is now dropped from $350 USD to $150 USD for T-Mobile users who purchased the phone but no longer want their T-Mobile contract. The $150 is on top of the $200 that ... [ read the full article ]
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Quote:If the math is correct, it appears that there is now a way to get a Nexus One for cheap, if you are willing to cancel a new service contract.
I'd guess the math was incorrect, you probably forgot to add he initial cost for the phone:
$[179(2.yr. contract)+ 150 google+ 200 verizon]= $529, the cost of buying the phone with no service...
Cypress you are right! For some odd reason thought the phone retailed for $129 with service, not $179, don't know where my head is! Have updated the article :)
"equipment recovery fee" seems to imply that you wouldn't have to pay it if you turn in your phone if you terminate your contract early. Is this the case?
Says Google: "Google's overall financial philosophy with regard to operator service plans remains unchanged: We make no profit from commissions from operators or from equipment recovery fees, and our recovery fees are based on operator charges to Google for early termination of service."
Anyone else see the problem when they claim nothing has changed, and that they were not making a proffit before, despite the fact that they can break even for $200 less?
"Not making profit" does not equal "breaking even". We also don't know if at the same time T-Mobile dropped their charges to Google for early termination.
