[Infowarrior] - Google double-dipping on Nexus One cancel fees?
Richard Forno
rforno at infowarrior.org
Tue Jan 12 15:19:08 UTC 2010
Google double-dipping on Nexus One cancel fees?
updated 08:15 am EST, Tue January 12, 2010
Carrier subsidized Nexus One has two ETFs
http://www.electronista.com/articles/10/01/12/carrier.subsidized.nexus.one.has.two.etfs/
Google is making buyers of the subsidized Nexus One pay twice if they
cancel early, according to the company's own Terms of Sale. The search
company charges an "Equipment Recovery Fee" of $350 for the smartphone
if they cancel their service before 120 days have passed. It
explicitly warns that the fee is above and beyond whatever T-Mobile
might charge and could result in customers effectively buying the
Nexus One twice if they leave.
The terms justify the secondary charges as compensating for
"liquidated damages" to Google when the phone hasn't been in use long
enough to recover costs. However, T-Mobile's own Early Termination Fee
is intended to cover those losses and again clouds the issue.
Google hasn't responded to the concerns as of this writing. Unlocked
Nexus Ones aren't affected by the pricing system.
The secondary fee is a blow to Google's attempts to position the Nexus
One as a new business model, where the company branding the phone, not
the carrier, is responsible for sales and support. Others also sell
phones directly but either leave all cancellation fees to the carrier,
such as with Apple's iPhone, or else are like Nokia and limit the
majority of their own sales to full-price, unlocked devices. [via
Phandroid]
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