NNSquad - Network Neutrality Squad
[ NNSquad ] Cancelling Nexus One triggers TWO "early termination fees"?
With all the controversies about cell carrier early termination fees (ETF), Verizon's recent doubling of their ETF in some cases, and general confusion regarding the topic, it appears that Google's Nexus One and T-Mobile *may* have further muddied the waters. I say *may* because my hope is that the issue being reported by observers below is a misinterpretation of a situation, not an accurate analysis. The problem *appears* to be this. Contractual terms for buying a subsidized Nexus One through T-Mobile seem to indicate that if you want to cancel service and return the phone within a few months (after the brief trial period), you must pay Google the associated difference between what you paid T-Mobile for the subsidized phone and the cost of an unlocked (unsubsidized) phone. This makes basic sense so far. The problem is that this is seemingly not exclusive of T-Mobile's own significant ETF. Normally, when you buy a subsidized phone, the carrier ETF is designed to recover the additional cost of the phone (beyond what you paid the carrier directly for the phone at the start of the contract) when you cancel early. But it *appears* that in the Nexus One case, if you cancel early on, you end up having paid: 1) The subsidized cost of the phone (paid to T-Mobile) 2) The cost of the Nexus One minus the amount you paid to T-Mobile for the phone (paid to Google) AND 3) The T-Mobile early termination fee In this sort of cancellation sequence, (2) would not normally exist. It appears that you end up paying handsomely more than the actual cost of the phone if you buy a subsidized phone through T-M and cancel within a few months. It could perhaps be argued that this "premium" extra payment can somehow be justified, but at first glance it's a particularly unusual arrangement. I hope that we see additional clarification about this soon. http://bit.ly/79kJci (Android Phone Fans) --Lauren-- NNSquad Moderator