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Remember when we learned that Google’s Nexus One ETF (technically Equipment Recovery Fee) was not only a whopping $350 but also was imposed in ADDITION to T-Mobile’s ETF – and then we threw a hissy fit? Well the FCC promptly started an investigation and it looks like Google is either admitting they overdid it or doing some pre-emptive cost maneuvering – the WSJ is reporting they lowered the ETF from $350 to $150.
It’s true, it’s true… check out the new deets at “Terms of Sale for Nexus Device“:
I thought the $350 pricetag was outrageous but that wasn’t even my main complaint. I don’t understand why both T-Mobile AND Google are forcing these fees for cancellation/return. They’re systems/inventory/shipping is obviously integrated in some way if you’re able to purchase a T-Mobile contract through Google’s website, right? Do the customer a favor and condense those 2 separate ETF fees into one and choose either T-Mobile or Google to institute it.
The $150 is much more reasonable and I can appreciate the reason for its existence… but I think we’ve got a long way to go in terms of transparency and consumer education with these fees. At least this is a start.
” I don’t understand why both T-Mobile AND Google are forcing these fees for cancellation/return.”
Amen to that. I wonder if the investigation is still ongoing and if so, what the reasoning is behind this dual ETF.
Don’t like it, don’t buy it. They’ll get the picture.
Google has the audacity to charge $150 in addition to the 200$ that T-Mobile charges? What the fuck is wrong with these companies! In fact, what the hell is an ETF even doing here in the first place? The disgusting truth is Google’s no different than the other companies. I hope the FCC gets to the bottom of this crap. You don’t see this kind of shit in literally EVERY OTHER COUNTRY OUT THERE!
ok, now what about verizon?
I’ll consider the N1 for Verizon if I can actually touch it before buying it. Too bad there is no HTC Sense built in… I like my Eris.
ETF stands for Extra Terrestrial Fees… thats just the price you pay for staying in america…
I think you can blame Tmobile for the double ETF. Basically, Tmobile already have a standard $200 ETF for their contract. But when they subsidize for Google, they requires 4 months of contract before they pay Google the $350 subsidy. Google just pass it on to the buyer. Tmobile tries to hide behind and quietly charge the double fee.
Google should just sell it for $530 and leave it for the carrier to give the refund based on the contract you sign. If you don’t want the ETF, then pay full price and don’t get into contract. Instead of complaining, the American user should just pay full price like all other countries out there.
@Gilbert O.
Most other countries have a model more similar to the one that Google is trying to push. Mainly, that the consumer buys a phone and then goes to a carrier for service. In return the consumer pays the full price for the phone (for the Nexus One it would be the ~$500 price). In the U.S. it is customary for the carrier to subsidize the pricing of the handset, offering it to you well below its retail price. In exchange they get you to commit to a service contract where they expect to make back the price subsidy difference. If you take the phone that the carrier partially paid for and terminate your contract, they are out some money, so they make you reimburse them for their contribution to your phone purchase (at least that is the way it is supposed to work).
@Jonathan
Great response, way to set the Trolls straight as to how the market works. This is a good move by google and it should equal out to around the price of the phone now when terminating a contract. See, the universe balances itself out.
Actually this is a bit of a bargain compared to some UK contracts. Take out a contract face to face i.e. in a shop and you tend to be liable for pretty much the whole contract price as soon as you walk out the door so the ability to cancel and only owe the equivalent to the sim free handset price seems pretty good and quite fair. I assume this only applies for a limited period after you sign up
@Chris: wait for the HTC Incredible. It’s coming to Verizon soon, has rumored specs similar to the N1, and has Android 2.1 with HTC Sense. As for the ETFs, it is indeed ridiculous. I mean, if you stop and think about it, Google will sell you the phone outright for $530, but the combined ETF fees add up to $550, $20 more than if you bought the unlocked version. In what universe does that make any sense? Since the phone with contract is $180, the $350 one would be somewhat justifiable in terms of recovering the cost of the phone, but the other $200 one is complete bull. As it’s been said, there needs to be ONLY ONE termination fee from one of the companies, and it should be reasonable.
the truth is they impose these ETF fees because people always try to take advantage of the system. You buy the phone at the discounted rate, sell it on e-bay for triple the money and pay the ETF fee. So this is what people who use the discounted rate for what it is intended for has to deal with. If you plan on keeping the phone for personal use and are gonna keep it for a couple of years it does,nt what the ETF is you will not have to pay it. They give you the phone at discounted rate because the make their money off the cell phone and data plan. If you dont plan on keeping phone two years just buy it out rite!!
To be pedantic, Rob, I believe you mean “Their systems/inventory/shipping is obviously….”, not “They’re….”.
Lol it’s funny how people get so pissy about this. If you don’t want the phone…don’t buy it. Plain and simple. Why are you all worried about an ETF? If you’re worried about it even the slightest bit…don’t buy the phone. I’m sorry but I’d never buys something that I wasn’t sure I was going to keep for a long time. You guys are just ranting about something so ridiculous that shouldn’t even be an issue.
THIS ARTICLE IS WRONG COMPLETELY. THE 150 DOLLARS IS THE EQUIPMENT SUBSIDY. MEANING GOOGLE CONSIDERS THE 180 (PHONE PRICE)+ 150 (SUBSIDY) = THE COST OF THE PHONE. THIS DOESNT MEAN THAT IT TAKES 320 DOLLARS TO MAKE THE PHONE IT MIGHT BE CHEAPER BUT THATS WHAT GOOGLE SETS ITS COST OF THE PHONE FOR THAT PRICE. COST IS NOT TO BE CONFUSED WITH SUGGESTED RETAIL PRICE. GOOGLE WILL ONLY CHARGE YOU THE 150 IF YOU CANCEL BEFORE THE 6 MONTHS. EVEN IF YOU CANCEL BEFORE THE 30 DAYS GOOGLE WILL CHARGE 150 DOLLARS BUT ONLY IF YOU DONT RETURN THE PHONE. IF YOU CANCEL AFTER 30 DAYS BUT BEFORE SIX MONTHS GOOGLE WILL CHARGE YOU 150 AND T MOBILE WILL CHARGE YOU 200 (EARLY TERMINATION FEE). AFTER SIX MONTHS OF SERVICE GOOGLE CANT CHARGE YOU ANY LONGER BUT T MOBILE WILL STILL CHARGE 200.
THE REASON FOR THIS IS BECAUSE GOOGLE DOESNT ONLY MAKE MONEY OF THE PHONE SALE T MOBILE ALSO GIVES THEM A GENEROUS COMISSION FOR SIGNING UP A CUSTOMER FOR A TWO YEAR CONTRACT. THEY ONLY GET THAT MONEY IF YOU STAY AS A T MOBILE CUSTOMER FOR AT LEAST SIX MONTHS.
ONE WAY TO AVOID THE 150 DOLLAR CHARGE IS TO REPORT THE CARD THAT YOU USED TO PURCHASE THE NEXXUS ONE AS STOLEN.
THIS WILL MEAN YOU WILL GET A NEW CARD WITH NEW NUMERICAL DIGITS AND WILL MAKE YOUR OLD CARD INVALID. ONCE YOU CANCEL WITH T MOBILE (BEFORE 30 DAYS TO AVOID EARLY TERMINATION FEE) GOOGLE WILL TRY TO CHARGE YOUR OLD CARD AND FAIL. HA HA HA. WORKS LIKE A CHARM THIS IS HOW I GOT A NEXUS FOR 320 USD. LMAO.
@GIO Google will just turn you into collections since you cut off their means of collecting payment from you and essentially left them hanging. This is no new scam to major companies. I Hope your credit doesn’t mean anything to you.
I wish everyone got this worked up about all those bullshit fees at the bottom of our cell and phone bills that they don’t tell us about then the ETF..
Did you mean that its priced is $150 now…?
Woww.. i want to buy it then :)