The Nexus one has some BIG ETFs!  (Source: Kansas City Star)
Early termination on a Nexus One can cost $550

Google’s Nexus One became available on January 5 through T-Mobile. The phone sells for $529 without a contract, Google also offers the phone for $179 contingent upon a two-year plan with T-Mobile.

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 interest.

Early 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.
Generally these 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.

Unfortunately, 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.

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