Google’s Nexus One smartphone has been well received, but complaints
about the search giant’s lack of retailing savvy are starting to pile
The latest that has bloggers clamoring: double termination fees levied
by both Google and T-Mobile that can add up to a whopping $550 for
customers who cancel their contract.
Even for the wireless business, that’s a large number (not to mention,
more than it costs to buy an unlocked Nexus One). T-Mobile charges Nexus
One customers $200 for canceling at any time in the first eighteen
months of their 2-year contract.
The rub is that on top of T-Mobile’s fees, Google charges its own $350
“Equipment Recovery Fee” for Nexus One buyers who cancel their contracts
in the first 120 days. That means anyone who buys the phone online with
a T-Mobile contract and wants to get out within 3 months are going to
have to fork over a hefty total of $550 (excepting a 14 day risk-free
In comparison, Verizon Wireless levies a prorated $350 fee- the highest
in the industry- for canceling on its contracts.