A subsidized Nexus One from T-Mobile ($180) is rather tempting given the disparity in price from an unlocked version ($529), but you might want to read the fine print, bucko. Surprising that this wasn’t sniffed out last week, no?
(More on Techland: Nexus One Review: The Hardware’s Not the Problem, Android Is)
It’s come to light that Google is imposing an ETF (early termination fee) of $350 on subsidized Nexus One phones on top of T-Mobile’s ETF of $200 if you choose to cancel your contract after the 14-day trial period or within 120 days of service. There’s no way of getting around it either because it’s explicitly stated in the contract that you agreed to.
You agree to pay Google an equipment subsidy recovery fee (the “Equipment Recovery Fee”) equal to the difference between the full price of the Nexus handheld device without service plan and the price you paid for the Nexus handheld device if you cancel your wireless plan prior to 120 days of continuous wireless service. For example, if the full price of the Nexus handheld device without service plan was $529 USD and the price you paid for the Nexus handheld device was $179 USD with a service plan, the Equipment Recovery Fee you pay will be $350 USD in the event you cancel within the first 120 days of carrier service. The Equipment Recovery Fee is equal to the line item in your confirmation email setting forth the discount on the full priced Nexus handheld device related to your carrier service plan activiation. You authorize Google to charge the Equipment Recovery Fee directly to your credit card, or other payment method used to purchase the Nexus handheld device, upon cancellation of your wireless plan. You will not be charged the Equipment Recovery Fee if you return your Nexus handheld device to Google within the 14 day Return Policy period as set forth below.
You agree that the Equipment Recovery Fee is not a penalty but is for liquidated damages Google will incur as a result of such cancellation. These damages may include, but 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. Please note that the Equipment Recovery Fee is imposed by Google and not your chosen carrier and is in addition to any early termination fees that may be charged by your chosen carrier in connection with termination of your wireless plan prior to fulfillment of your chosen carrier’s service agreement term.
There’s still time to opt out of your contract assuming you ordered last Tuesday, but after January 19th you’re in it for the long haul. Like I said, should have checked the fine print.