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Google Charges ETF For Nexus One On Top of Carrier's

dumbnose sends along the news that Google is double-dipping on the Nexus One early termination fee. Ars sorts out the double dose of fine print from Google and T-Mobile. What it boils down to is, if you give up on your Nexus One between 14 days and 120 days after the sale, it will cost you $550: $350 to Google (automatically charged to the credit card you used to buy the phone) and $200 to T-Mobile. After 120 days the Google fee goes away and after 550 days the T-Mobile ETF begins prorating. A poster on Dave Farber's email list provides another perspective on the "restructuring of the handset premium."

6 of 165 comments (clear)

  1. Early termination fee (ETF) by Chris+Pimlott · · Score: 5, Informative

    It's customary to explicitly define the acronym before its first use in the main body.

  2. It's the T-Mobile ETF that doesn't make sense... by argent · · Score: 5, Insightful

    It's not the Google ETF that's the problem, it's the T-Mobile one. You're buying the phone from Google, not T-Mobile. If you trigger Google's early termination fee, T-Mobile shouldn't be out of pocket at all, and shouldn't be charging you anything.

  3. Separate handset and communications charges by InakaBoyJoe · · Score: 5, Insightful

    If you buy the phone on a contract, you pay $80 a month. If you buy the phone without a contract, you still pay $80 a month.

    Why aren't people questioning this practice? Carriers justify ETFs on the basis of having to subsidize handsets, but they turn around and charge the SAME amount to customers who aren't taking advantage of the subsidy. Thus artificially suppressing the market for unlocked / open phones.

    The system in Japan makes more sense. When you buy a phone, you choose to pay the full cost up front, or pay in 12 or 24 installments (and of course if you want to cash out early, you have to pay the remainder of the balance, just like any installment plan). The communication charges are SEPARATE from the phone charges. So the end result is that the user who wants a "free phone" simply pays a bit more monthly than the user who paid for their phone up front.

    The money the carriers would save trying to explain, justify, and collect those arbitrary "early termination fees" probably justifies switching to this more sensible system. And it would encourage a free market for phones. Why aren't the regulators/attorneys/etc. stepping in where they should?

    1. Re:Separate handset and communications charges by RManning · · Score: 5, Informative

      If you buy the phone on a contract, you pay $80 a month. If you buy the phone without a contract, you still pay $80 a month.

      I have an unlocked Nexus One. T-mobile has two separate types of plans: one with a subsidized phone and one if you provide the phone yourself. For me, I pay about $20 less per month then if I had gone the subsidized route.

      I believe T-mobile is the only major carrier in the US that does it this way.

  4. WOW, slashdot IS full of GOOG fanboys... by keepper · · Score: 5, Insightful

    Come. The. Freak. On. !!

    Why does google get to charge this? They get the kickback FROM the carrier, so have the carrier do the ETF.

    Why does the carrier AND google, get to charge fees? Not even the iPhone, a phone that carries a higher retail value without a plan, do such a high termination fee.

    It seems google can do no wrong on slashdot. It can have the cake, the party, eat the cake, and snuff the party goers, and all is well in slashdot-google-fanboy land.

    Come on guys.

  5. Re:And buy what as an alternative? by Anonymous Coward · · Score: 5, Insightful

    Okay so I need a cell phone to do my job, and keep in touch with my family. .. How do I check my email and keep my calendar with one of those?

    You don't. You do email and calendar at your desktop computer. You pick up the cheap $50-with-1-year-contract cellphone when it makes a noise indicating someone wants to talk to you.

    You don't need immediate mobile email access to keep in touch with family. Read your mailbox once per day (or every few days) when you get to your desktop. If someone has an emergency, they can fucking call you. If it's not an emergency, a delayed turnaround is fine.

    And if you are required to read email/calendars immediately for your job, then don't worry, because your employer is going to buy the phone.

    it's basically telling me to find a job and a lifestyle that doesn't require a cell phone.

    Yep, it's pretty clear you don't know the diff between a cell phone, and a ridiculously powerful (expensive) handheld personal computer. The two are merging but they're sure as hell not quite the same thing yet. One costs $50 and the other costs $500. Quit saying that you want a cellphone (a $50 device) and then bitching that the $500 overkill device costs too much. Get the $50 one and make your fucking phone calls like you said you wanted to.