$350 ETF on Nexus One

Nexus_One_TmoNews_wm

Let this be a lesson, always read the fine print.  Google imposed a $350 early termination fee if you cancel your plan with the Nexus One before the first 120 days, and after the first 14 are over (but of course, you should have known this from the leaked pricing and terms and conditions).  This Google ETF, an equipment recovery fee in this case, is on top off the $200 ETF from T-Mobile.  So yeah, that is a grand total of $550 if you can’t decide if you like the Nexus one in the first 14 days, or can’t stick it out for 4 months.  So here is your warning, if you are unsure about the Nexus One, decide before January 20th or pay for the phone twice over.

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  • Alex V

    the real google rears its ugly head.

    • Wilma Flintstone

      No, the real google was there all along, it’s just that people are finally starting to see how screwed they got if they don’t like the Nexus One after buying it. I put this news in a thread on this site a while back, I’m not sure how many people saw it though. I’m glad tmonews finally brought this to everyone’s attention. I knew something was wrong back when Google was being secretive about this device.

  • http://www.tmonews.com Rukuss

    There is also a restocking fee of $45.00 when you open the package.

  • Dennis P

    Just keep the damn phone then. Dont try and cancel not a biggie.

    • ItsMichaelNotMike

      That’s right people, Dennis said it right, albeit bluntly.

      It’s a hassle dealing with phone returns. Fact is, it’s very expensive.

      A company has to dedicate employees to handle the return, check over the phone and getting it ready for sale as a refurb (or to be used on a warranty exchange).

      Two weeks (or 30 days here in California, woot!)is plenty of time to decide whether one likes a phone, or not.

      Think about it. How many other products can you take for a test drive, so to speak, for two weeks, then return it for any reason, no reason or ridiculous reason.

      Test drive brings to mind car purchases. Automobiles are way more expensive than a Google phone. But once you drive a $30,000 car off the lot it’s yours (an obligation you agree to after a short test drive, certainly not a two week time period). Want to return it the next day because you don’t like it, after all. Fine, but the dealership will buy it back as a used car, if you are lucky.

      Yep, don’t be complaining about cell phones and cancellation fees.

  • Billz

    Stop being cheap…if you don’t want T-Mobile, or don’t want a contract, then pay the damn $530!!!

  • Richard

    @Alex V. This is the case with anyone else you buy a phone and service through outside of the carrier themselves. You enter into a contract with both companies so it’s not just a Google thing it’s a best buy mobile thing and a walmart thing and wirefly and letstalk and amazon and so on

  • peter fitzenwell

    What a kick in the pants. Looks like I will be waiting for the next big thing that Tmo releases

  • Brian

    Android a free and better OS!? Nope! It cost you $350 extra for the OS which doesn’t have many features other ones have already for many years.

    I guess one of the benefits you get from Google and Android phones. LOL.

    Enjoy it fanboys!

    • chaoscentral

      Hey fanboy! guess what this fee is for the scalpers who buy phones at the subsidized price then sell them on ebay for about $600, if the phone is returned to Google within 14 days of cancellation there is no $350 charge. It’s the same EXACT policy on Amazon.com as someone else already pointed out. So please stop being an immature fanboy and get your damn facts straight before trying to poke fun. Makes you seem a bit less childish.

      Thanks :)

  • sorandkairi

    We already knew this. It actually says it on the website so, if any1 does get charged for they are dumb@sses period

  • SW

    Did anyone not know this? I am having trouble believing nobody knew this…Amazon has the same terms for their phones…

    “When you purchase your device with service from Amazon.com, we automatically pass along an instant discount from the carrier to you. This discount has been provided to you based on your agreement to (a) activate a new, or extend an existing, line of service for this device with the carrier, and (b) maintain this service in good standing for a minimum of 181 consecutive days. If you do not activate or extend a line of service in connection with this device, or if your service is canceled/disconnected before 181 consecutive days, Amazon.com will charge you $250 per device, plus applicable taxes.”

  • Trill

    This isn’t anything new and its clearly stated on the site as well as some of the leaked documents we got. I bet most of you are what many called iphone users whoo come and try to down other devices. I wonder what kind of fee others charge but its not that big of a deal, why would you return it after the grace period anyway or at all?

    Just buy it unlocked its not a problem so get over it this really doesn’t even need to be posted really.

  • Richard

    yeah, those smart enough to read what they are signing were well aware of this. I love how all the blogs today have been releasing a story about this. This just in for all the idiots that sign a conrtact w/o reading what’s in it. That should be the headline for all of them

  • chaoscentral

    Why is everyone making such a big freaking deal out of this? When you buy the phone you have to click a box to agree to the Terms of Sale, and if you read through it guess what it’s there… Also you can avoid this “ETF” which is called an Equipment Recovery Fee by returning the phone. This is guaranteeing that Google is getting the full price for their phone so people can’t buy them at the $179 and scalp them on ebay for $600+… If you send the phone back within 14 days of cancellation or data plan removal you will NOT be hit with this fee, end of story and please stop making such a big deal out of it, it’s not that big a deal honestly.

  • eYe

    What’s so hard to understand? Google sells this phone for $530, end of story. T-mobile will not pay Google subsidy unless you stay with T-mobile for 4 months so it’s only fair that Google reclaims that money from you. It’s not ETF, it’s the difference between what you paid for the phone and what the price of the phone is. Google is being upfront about it, it’s say’s right in their “Terms of Sale” which everyone who buys a phone has to agree with. If one does not read what they agree to – it’s their problem. This is not even worth a post on a blog, yet everyone is talks about it like it’s fresh news. Every retailer has that kind of policy in place, Amazon, BestBuy, Wirefly, you name it. Yet, when Google announces same terms of sale – they are evil all of the sudden.

  • Bigg

    Man this is nothing new, why is everyone getting mad for? It’s just like you go to a 3rd party dealer like lets talk or something to get a phone. Lets say free touch pro 2 with lets talk, if you cancel within 120 days, you have to pay them a certain fee plus 200 for cancelling your tmobile contract. Nothing diff here, google being a 3rd dealer.

  • ItsMichaelNotMike

    Another point, while we all look at this from our personal perspective, e.g., “I want to return MY phone” Google, or any company, has to look at it from the thousands.

    Imagine you are selling these things. There’s all kinds of hassles and perils.

    There’s people who damaged the phone, but they hide the fact and try to return it within the two weeks or by making a warranty claim.

    There’s people who want to return it with no consequences to them, meaning no cost. Why should that be the way things work? Why should the company bear the cost of handling the return, including paying salary and benefits for 10 to 20 employees to handle returns and warranty claims.

    Why should the company have to eat the “damage” because under the law a company cannot sell a returned phone as new, it has to call it a refurb or it can only be used to replace a warranty claim phone.

    Why should the company eat all those costs (“damages”), especially when one is simply changing his or her mind.

    Also, while we all like to focus on our own situation, assume Google gets 5000 returns from people exercising his or her two-week return privilege, and an additional 2000 from people in California returning phones within 30 days. I think those numbers are really low. In any event, that’s 7,000 phones.

    7,000 x $530 = $3.7 million in returns. I think a company is entitled to take steps to lessen the impact of that number, including restocking fees and or imposition of an ETF.

    Lastly, if a company could not take steps to defray the impact costs from returned items, Google would do what any company would reasonably do, pass on the cost to us, specifically by increasing the retail price of the N1 to absorb the cost of returns to the company.

  • Wael

    So it’s only 4 months? But the Tmobile part os 2 years right?

  • Android fan (Not so much Google’s store)

    That’s right. Google’s “ETF” is not for the full length of the term. It works the same way at any big T-Mobile dealer (Wirefly and most of the others are 180 days). Not so big a deal. What IS a big deal is that they tack on a $45 restocking fee (nobody else does this), their return period is only 14 days (the others are 30), and they offer zero customer service support. Google says their out to change the phone industry. Nice work so far.

  • alan

    @ ItsMichaelNotMike – good point and well said. i wouldnt know how many people change their mind and return their phones just because they want to own the new phone out. We even have or had people that would get a “weekend phone” that they would return on monday. what losers… anyways im glad google is doing this because its preventing people from buying it and selling it on ebay. And the one plan 79.99 thing is preventing people from buying the phone under one account and using it for another. I know it prevented a friend of mine from getting his because he did not want to put his friend on a 500 min plan because he had an unlimited plan. I wonder if googe has a strategy on how they are going to prevent insurance fraud because we have been told that t-mobile and assurion will be insuring this phone with a deductible cost of $130 and i already know people who r planning to pull this nonsense.

    all i have to say is that this whole google direct via mail thing just reminds me how cool it is to have an apple store at almost every mall/shopping center in beautiful SOCal… I cant stand buying crap online because you have to return it the same way you bought it. The good news is that at least childish and whining costumers will not come and complain at the retail store cuz now we will be able to say “go talk to google!” gotta love this!

  • strv21

    In response to the $350 ETF from google. If you read the fine print it’s not an ETF. It is a equipment recovery loss fee. You are paying the difference from the new customer price/upgrade pricing and retail. So please be cautious on what phony info your posting.