Google Slashes Nexus One Early Termination Fee

Google has decided to cut down the current $350 early termination fee for its first mobile phone venture – the Nexus One. Nexus One update

The new fee is $150. Google admitted that the $350 is too much to charge when one decides to stop using the phone.

Initially, customers who decided to cancel their Nexus One accounts within four months or 120 days are charged with $350. (The fee is waived, however, if the unit was returned within 14 days after purchase.) This has been controversial because if the unit has been bought with T-Mobile subscription, T-Mobile will charge an additional $200. That’s $550 all in all.

If a unit has been bought unlocked, it will only cost $529. That’s smaller than the total early termination fee.

The US Federal Communications Commission (FCC) has also started inquiries regarding high wireless early termination fees. Last November, Verizon doubled its fee from $175 to $350. That’s now equivalent to the new Nexus One rate. FCC, for now, can only advise consumers to really check what they are signing for since early termination fees are more like “switching” penalties. Anyone can verify that one only realize what he or she is signing for when informed on how much they need to pay for early termination.