Google's Nexus One has two early termination fees

It is to no surprise that Google's Nexus One has taken off to a fantastic start. Consumers are thrilled with the phone, despite the device having trouble with utilizing 3G. However if you are in the market to get one of these pretty devices, let it be known that you will be charged two Early Termination Fees (ETF).

Most carriers already implement an ETF for customers who end their contract early, but consumers with a Nexus One will also have to pay Google an ETF of $350. Straight from the Terms of Sale:

"You agree to pay Google an equipment subsidy recovery fee (the "Equipment Recovery Fee") equal to the difference between the full price of the Nexus handheld device without service plan and the price you paid for the Nexus handheld device if you cancel your wireless plan prior to 120 days of continuous wireless service. For example, if the full price of the Nexus handheld device without service plan was $529 USD and the price you paid for the Nexus handheld device was $179 USD with a service plan, the Equipment Recovery Fee you pay will be $350 USD in the event you cancel within the first 120 days of carrier service. The Equipment Recovery Fee is equal to the line item in your confirmation email setting forth the discount on the full priced Nexus handheld device related to your carrier service plan activiation. You authorize Google to charge the Equipment Recovery Fee directly to your credit card, or other payment method used to purchase the Nexus handheld device, upon cancellation of your wireless plan. You will not be charged the Equipment Recovery Fee if you return your Nexus handheld device to Google within the 14 day Return Policy period as set forth below.

You agree that the Equipment Recovery Fee is not a penalty but is for liquidated damages Google will incur as a result of such cancellation. These damages may include, but are not limited to, loss of compensation and administrative costs associated with such cancellation or changing of wireless service provider(s), market changes, and changes in ownership. 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."

So if you're looking to get one of these devices, and you are not sure whether or not you can hold a contract with a carrier the best route would be to purchase the phone completely unlocked for $530.

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39 Comments

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This has been standard practice for as long as I can remember... The "Google ETF" is them charging you the payout T-Mobile is giving them for you signing a contract. If you buy a product from any cell phone reseller they will always tell you that if you change or drop your contract within the first 120 days you'll have to pay them a fee on top of the carrier ETF...

http://wireless.amazon.com/help/200308000/...ationLayoutId=2

That is Amazon, for example. So this isn't major news. It isn't nice as I'm sure Google could eat the charge as the person will be on Android anyways, but they aren't pulling anything new.

People just don't understand that they're letting 2 different companies charge you for the phone. You're paying double for it. I know it's simple to say stay in the contract the 4 months but that's not always the case. It shouldn't be legal to have 2 companies charging you for one product.

Go on a phone contract and you're up for exit fees... simple
Just because this phone is the "Google Nexus One" doesn't alter reality.

Jelly2003 said,
Go on a phone contract and you're up for exit fees... simple
Just because this phone is the "Google Nexus One" doesn't alter reality.

Of course if you bothered to read the article, you would know with this you're getting charged 2 ETFs. With every other phone you only get charged 1. That's what the problem is.

/- Razorfold said,
Of course if you bothered to read the article, you would know with this you're getting charged 2 ETFs. With every other phone you only get charged 1. That's what the problem is.

+1

The Nexus 1 doesn't change reality, just the terms of service customers are expected to sign. And these terms have something not seen in other mobile contracts: TWO ETF's.

Now don't you wish you read the article first?

Why are people complainig? first of, you could always buy it unlocked (and then sell it). Secondly, if you do decide to buy it with a contract then like vaximily said, pay for 4 month and then pay the ETF from the carrier, whats the biggie?

people likes to complain, obviously there are a lot of costs behind the nexus one and in my opinion $500+ is legitimate for a phone. If i were to buy an iphone on ebay 'unlocked' i would have to pay at least $200+ more than the nexus, not to mention the specs are almost half compared.

As for programs offered for the android, obviously you cant compare it to the iPhone since the iphone has been around for twice the amount of time (more or less) than the android so what do you expect?

Being an early adopter means that you incur some sort of loss which you should have taken into consideration from the first place.

pielor said,
Why are people complainig? first of, you could always buy it unlocked (and then sell it). Secondly, if you do decide to buy it with a contract then like vaximily said, pay for 4 month and then pay the ETF from the carrier, whats the biggie?

people likes to complain, obviously there are a lot of costs behind the nexus one and in my opinion $500+ is legitimate for a phone. If i were to buy an iphone on ebay 'unlocked' i would have to pay at least $200+ more than the nexus, not to mention the specs are almost half compared.

As for programs offered for the android, obviously you cant compare it to the iPhone since the iphone has been around for twice the amount of time (more or less) than the android so what do you expect?

Being an early adopter means that you incur some sort of loss which you should have taken into consideration from the first place.

You get charged 2 ETFS!! Thats why..

Imagine if MS or Apple did this, it'd be an outrage.

It's just another example of the blind google following...

There are other reasons for canceling a contract, aside from selling or trying to profit from a device.

pielor said,
Why are people complainig? first of, you could always buy it unlocked (and then sell it). Secondly, if you do decide to buy it with a contract then like vaximily said, pay for 4 month and then pay the ETF from the carrier, whats the biggie?

people likes to complain, obviously there are a lot of costs behind the nexus one and in my opinion $500+ is legitimate for a phone. If i were to buy an iphone on ebay 'unlocked' i would have to pay at least $200+ more than the nexus, not to mention the specs are almost half compared.

As for programs offered for the android, obviously you cant compare it to the iPhone since the iphone has been around for twice the amount of time (more or less) than the android so what do you expect?

Being an early adopter means that you incur some sort of loss which you should have taken into consideration from the first place.

The entire point is that you are charged TWO early termination fee, one from the carrier and one from Google. As far as I know, and I'm not that involved with the mobile phone market, no other company does this.

Leaving a contract early is sometimes due to the bull**** you have to put up with when you get defective phones or something else like that. I've had a phone die on me. Then they replaced it at no charge. Within a week, the replacement broke. They replaced that one and then the next one broke a couple weeks later. All being defects that they all admitted were not my doing. When I got ****ed and told them I wanted out of my contract because I'm not getting what I paid for. They said no. I signed a contract and have to stick with it whether the phone works or not. In the end, I just cancelled anyways, let them charge me the ETF and then threatened court to fight it and they wiped the record out.

That's just one example of why someone would want out of a contract early.

pielor said,
Why are people complainig? first of, you could always buy it unlocked (and then sell it). Secondly, if you do decide to buy it with a contract then like vaximily said, pay for 4 month and then pay the ETF from the carrier, whats the biggie?

people likes to complain, obviously there are a lot of costs behind the nexus one and in my opinion $500+ is legitimate for a phone. If i were to buy an iphone on ebay 'unlocked' i would have to pay at least $200+ more than the nexus, not to mention the specs are almost half compared.

As for programs offered for the android, obviously you cant compare it to the iPhone since the iphone has been around for twice the amount of time (more or less) than the android so what do you expect?

Being an early adopter means that you incur some sort of loss which you should have taken into consideration from the first place.

Your position confuses me... Being charged 2 ETF's which are both meant to cover the expense of the phone is outrageous... I don't think you really understand this issue...

Dogmai: That is not canceling a contract. If you kept receiving defective phones and told the carrier that you were not getting what you paid for then that's a case where they are not fulfilling their contractual obligations. In such an event the contract is considered "broken" and at that point you no longer have to fulfill your end of it.

That's why they wiped out your record when you threatened legal action.

Why hasn't anyone pointed out the fact that this is only during the first 4 months of the contract? It is clearly stated in the article... so to avoid the double penalty, just pay for the service until you hit 4 months, then cancel and just pay the ETF from the carrier. Just my two cents.

The first time I really can say that Google has been ultra cunning and stooped to a level we have only seen with Microsoft in the past.

djpailo said,
The first time I really can say that Google has been ultra cunning and stooped to a level we have only seen with Microsoft in the past.

Yeah. At least Apple goes right out and tells you about the ungodly high fees they charge you

And how does this involve Microsoft? I've never seen a shady charge like this before from them, so I'm not sure what you're talking about there at all... This charge isn't right at all...

hmm. I could be misreading this, but if the carrier is initiating their usual contract with a phone, and he manufacturer is adding hardware "insurance", then it seems to me the consumer is getting double charged if they quit early because the carrier/phone sucks. Contracts are in place to make sure carriers recoup costs from phone discounts, so either the carrier gets their money or Google does, not both. Seems wrong.

The government or someone, needs to step in and stop this from happening. It's not right that two different companies get to charge you for the phone if you terminate early. Either that or no one buys the phone. I guess that's all they really need to say is to read the contract before signing or agreeing to it. If you don't like it, don't buy it???

No, the government does not need to step in. Consumers need to do their homework and decide if they want to sign a contract with these terms. If Google outlines these terms and consumers voluntarily sign for it, you can't launch an attack on Google.

Don't like the terms? Don't sign. If enough people are turned off by these terms then Google will have to consider revising them.

^ I agree. People often make themselves out to be the "victim" in these kinds of cases, when they're the ones that signed the dotted line. Quit being lazy and read.

I guess this is to prevent resale or something but it's definitely why I'm not an early adopter this time around. This spec will be the norm before long.

I've been trying to sell my HTC Magic for a while....quite a mistake, I wish I would have thought about more before buying a stupid Android phone

Yeah please tell. Is it because the Magic is basically a G1 without a keyboard or because you somehow think one of the leading smart phone OSes is "stupid"?

I'm getting tons of crashes on the phone (android.acore and com.android.phone), the applications are mostly inferior to their iPhone equivalent (so much for an "open" platform).

The phone itself has some pretty big flaws too (no headphone jack? wtf)

Oh yea and I forgot that it likes to drop calls in the first 30 seconds (not a carrier issue but a phone one)

Rudy said,
I'm getting tons of crashes on the phone (android.acore and com.android.phone), the applications are mostly inferior to their iPhone equivalent (so much for an "open" platform).

The phone itself has some pretty big flaws too (no headphone jack? wtf)

Open platform refers to the fact that you don't have to jailbreak it to install what you want on it and you don't need to install the digital abortion that is iTunes in order to run it.

Yea but the problem is that the controlled environment of the Apple Appstore seems to be attracting more developers and even when they do make their app for both platform they seem to spend more time on the iphone one (eg: Bejeweled, Facebook).