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[ NNSquad ] WSJ: Google defends Nexus One early termination fees


WSJ: Google defends Nexus One early termination fees

http://bit.ly/628LDk  (WSJ)

This is getting more confusing, not less.  

Normally, when you buy a subsidized phone, you deal
only with the carrier.  In the case of Nexus One, you're
dealing with the carrier *and* Google.

Components of a subsidized N1 cancellation within 120 days after
the 14 day trial period:

a) The fee you've paid to T-Mobile to buy the subsidized N1 in the first place
b) The fee that Google will charge when you terminate in
   the above time frame
c) T-Mobile's early termination fee

In the normal subsidization scenario, we're dealing with just
(a) + (c).  Now for the N1 we have (a) + (b) + (c).

If you bought an unlocked N1 from Google at full price, the
parameters would also be different.

Even if the numbers are argued to be fair, this situation
seems unreasonably confusing to consumers.

I had thought that a primary "revolutionary" aspect of the N1 "direct
marketing" model was going to be a simplification of the user
experience.  Oops.

--Lauren--
NNSquad Moderator