While this offer seems appealing, it is important to
remember to read the fine print. A recent CNET report
reviews the contract and terms of sales associated with the purchase
of an activated Nexus One, and what it reveals may curb consumer
termination fees (ETFs) are something we’ve all become
accustomed to, but with T-Mobile and Google teaming up for the Nexus
One, things are getting a little out of control.
fees are used to compensate for the fact that phones bought under
contracts are offered at discounted prices. In T-Mobile’s contract
for the Nexus One, that corresponds to a $50 to $200 charge for early
terminations after the 14-day grace period.
the fees don’t end there. If the phone is bought for the subsidized
price of $179, Google reserves the right to charge a "equipment
recovery fee," totaling up to $550, which is $21 more than the
unsubsidized cost of the phone. These fees are outlined in the terms
of sale as a means to "liquidate damages Google will incur as a
result of such cancellation," and "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."
With this, the
question becomes whether or not these ETFs are enough to deter
potential customers, especially considering that this phone is brand
new. And for those techies out there that are looking to have the
latest, remember you do get 14 days to try it out.
quote: Just buy the phone outright. That's what I've been doing and I never buy subsidized phones. I can come and go as a please with any providers.
quote: However, I do like the idea of a prorated ETF. That makes perfect sense.
quote: Don't like to pay $500+ for a phone? Then quit your bitching about ETFs. Remember, cell phone service is optional.