Google reduces fee to break Nexus One contract

February 9, 2010 By JOELLE TESSLER , AP Technolgy Writer

(AP) -- Google Inc. is shaving $200 off the fee that it charges customers of its new Nexus One phone to break a service contract with T-Mobile, as federal regulators continue to probe such fees and the rationale for them.

Google's "equipment recovery fee" applies to customers who break their two-year T-Mobile contract after a 14-day trial period and before 120 days. A $350 fee that applied to new T-Mobile customers was lowered to $150, while a $250 fee for existing T-Mobile customers upgrading to the Nexus One was cut to $50.

Customers would still have to pay a separate early termination fee to T-Mobile USA Inc. That fee is $200 for customers who break a contract after the 14-day trial period and before 120 days. After that, it is prorated.

Although Google gave few details about why it made the change, T-Mobile said it had nothing to do with a Federal Communications Commission inquiry into early termination fees across the wireless industry.

"We have been looking for ways to improve our customers' experience, so we were able to work with T-Mobile to find a better solution for our customers," Google said in a statement.

Last month, the FCC sent letters to AT&T Inc., Verizon Communications Inc., Sprint Nextel Corp., T-Mobile and Google seeking information about their fees. Among other things, the FCC asked why customers who use Google's phone on the T-Mobile network have to pay fees to both companies if they break a contract.

The Nexus One phone costs $179 for customers who sign up for a two-year plan with T-Mobile, or $529 for those who purchase a version that can be used with any wireless network using GSM technology, including T-Mobile's. Google and T-Mobile do not charge termination fees for the higher priced version.

Explore further: Sprint to pay $17.5 million to settle fee suit


Related Stories

Sprint to pay $17.5 million to settle fee suit

August 12, 2009

(AP) -- Sprint Nextel Corp. has agreed to pay $17.5 million to settle a lawsuit claiming the fees it has charged customers who end their wireless contracts early are illegal.

FCC asks Verizon Wireless to explain fees

December 4, 2009

(AP) -- The Federal Communications Commission on Friday asked Verizon Wireless why it recently doubled the fees it charges customers when they break their contracts on "smart" phones.

FCC seeking information about wireless fees

January 26, 2010

(AP) -- Federal regulators are asking the nation's big wireless companies whether they give customers adequate notice about early termination fees for breaking a service contract before it expires.

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...

Glider pilots aim for the stratosphere

November 20, 2015

Talk about serendipity. Einar Enevoldson was strolling past a scientist's office in 1991 when he noticed a freshly printed image tacked to the wall. He was thunderstruck; it showed faint particles in the sky that proved something ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.