
Google Defends Nexus One Termination Fee - fiaz
http://blogs.wsj.com/digits/2010/01/12/google-defends-nexus-one-termination-fee/
======
arantius
> That means anyone who buys the phone online with a T-Mobile contract and
> wants to get out within 3 months are ...

... fools who aren't responsible enough to sign a contract in the first place,
and just getting what comes to them.

Either way, it's cheaper to buy the unlocked phone.

[https://www.google.com/phone/choose?locale=en_US&s7e=](https://www.google.com/phone/choose?locale=en_US&s7e=)

Subsidized phone: $179 Subsidized service: $80 * 24 months (click "more")
Total: $2099

[https://www.google.com/phone/choose?locale=en_US&s7e=](https://www.google.com/phone/choose?locale=en_US&s7e=)

Unlocked phone: $529

[http://www.t-mobile.com/shop/plans/cell-phone-plans-
detail.a...](http://www.t-mobile.com/shop/plans/cell-phone-plans-
detail.aspx?tp=tb1&rateplan=Even-More-Plus-500-Talk-Text-Web)

No-contract plan: $50 * 24 Total: $1729

If you're stupid enough to sign up for a contract that costs more than the no-
obligation version, and then you want to welsh on that contract: you've got to
pay the penalties.

------
wmf
The article doesn't mention that $179 upfront plus $550 in termination fees
would add up to $729 -- for a phone that only costs $530 unlocked.

Rather than shaking up the industry, Google's hybrid business model for the
Nexus One is turning out to be _worse_ than the traditional "the phone company
owns you" system. That's quite an achievement.

~~~
pasbesoin
Did not yet read the article. But responding to your comment, on the other
hand one might say that Google is encouraging the consumer to think through
the subsidized phone purchase model and perhaps nudging them to purchase
outright (if/when one thinks it through).

If you don't like the product/service, the phone is unlocked. Sell it used,
recouping hopefully a significant fraction of your investment, and move on.

I don't know whether this is practical nor corresponding to their intent, but
it comes to mind. I'm also unfamiliar with the ease and thoroughness involved
in a user wiping their phone of user data before resale.

EDIT: Read the article. They claim the Google $350 charge only applies when
service is canceled within the first 120 days. Depending on the monthly fee,
one would be better off just waiting out that period (ignoring the impact of
possible unsatisfactory phone service during that time)? There is also an
initial 14 day trial period.

I don't mean to be overly favorable towards Google. In particular, some of the
support woes that have been surfacing are in line with my past experiences
with them. If you aren't high profile, seeking support can be talking to a
wall.

Also, The overall fees involved do seem excessive. The T-Mobile plust Google
fees during the first 120 days seem like a double dip.

~~~
wmf
_...Google is encouraging the consumer to think through the subsidized phone
purchase model..._

No, because Google doesn't document these fees in an understandable way. It's
the same old "it looks cheaper but it's actually more expensive" business
model, but now it's _much_ more expensive.

~~~
pasbesoin
Fair enough (meaning your comment). I'm not familiar with their documentation
in this regard, but it wouldn't surprise me.

------
nkassis
I don't get why t-mobile and google both have to charge. What is the logic
behind two early termination fees?

