Cost of Breaking Nexus One Contract Could be More Than Cost of Handset!

For those you who purchased a subsidized Nexus One  with T-Mobile and are thinking about canceling your contract you better listen up.  If you you cancel your contract after the 14-day trial, it’ll cost you between $50 and $200. In addition to this, Google will charge you an additional equipment recovery fee. of According to the Google Terms of Sale Google has the right to charge you up to $350 if you cancel before the 4 month mark, which is essentially their way of thwarting any plans you may have to sell a former contract phone for profit. Basically, Google will charge you whatever you didn’t pay for a Nexus One due to subsidies. In other words, you’d owe Google $350 if you bought a Nexus One for $180 through T-Mobile—which brings the cost of your Nexus One up to $530. Add on any fees from T-Mobile on top of that and your Nexus One is costing you more than a new one unlocked.

Source: Gizmodo

  • This is another example of where Google may not have thought out this whole thing enough. Maybe this whole selling of phones direct is like all the other Google products (beta for a looooong time). Don't get me wrong I love the Google products but when you are trying to target the average consumer you need to keep things simple.

  • The equipment recovery fee is nothing new. Other re-sellers do the same.

    Or hold on to the phone at least for 120 days…. 🙂
    Or buy the phone unlocked if you're close to the end of your current contract with t-mobile and get a un-subsidized plan with your Nexus One.

  • John Lane

    This is just another example of the insanity of our "free market place" phone system. If it were truly a free market, I could buy the phone of my choice from any source, select the service provider I want for a particular area, buy their sim card and install it in my phone and off I go. Would we put up with having to buy a different TV depending on whether we were using Comcast, Timewarner, Directv or Dish network? So why am I forced to buy a new phone if I change service providers. All that has managed to accomplish is boost profits of the the phone mfrs and I end up with a drawer full of old phones that are now an environmental problem. Great!

    • It looks like it's moving towards this model.
      You can buy the Nexus One unlocked. In the future, more models can be bought unlocked (from Google). T-Mobile is offering plans that don't subsidize a phone and are therefore cheaper. These plans are monthly and don't have a ETF.

      Right now, as far as i know, only T-Mobile offers such post-paid plans… so choice is still limited 🙂

      But i think it's a good step in the right direction.

  • Sokar

    Other companys do the same they are just not obvious about it. MAIL IN REBATE – Its the same way. You dont get the manufactures discount until you past there set period of time thats why it always takes so many days to process.

  • This makes a perfect sense.This phone is sweet. My friend who works for Google has one and I got to play with it for a few minutes this weekend. The screen is super clear. it’s fast. The phone feels good in the hand. I happen to like the track ball. Call quality is a little better than the Droid. Two cool things she showed me: voice texting and bar coding. You can use the phone to read bar codes and pull up reviews and other info about the product. Pretty cool. Of all the big phones out right now – iPhone, Droid, Pre, etc. – I would get this in a heartbeat. The virtual keyboard was fine for me, I only send about 500 text a month and they are not conversations. Some people might prefer a hard keyboard, but that’s going to be the case for them no matter what.

  • eisa

    i think this is the phone to beat all phones.
    i have had black berry, iphone an all the best of phones this o am totally interested in.

  • Eisa

    dammmmmmmmmm the best if you are not ah techie you will be intrigued if you are ah techie you should be going crazy with interest. (Google) i think you out did the rest.

  • Fallenagnel

    dude, I want that Nexus One it's kick ass! i use to have an iphone 3g.. just got pissed that i couldn't send videos through mms.

  • It is quite interesting to consider the cost of breaking nexus one contract could be more than the cost of handset.  In the scenario, there is no benefit going for the latter. thanks for sharing the information.