Is Google’s Nexus One Whopping Termination Fee $350 Justified?

by Gaurav Kheterpal on January 13, 2010

Google Nexus One - Heavy Price for Termination?

Google Nexus One - Heavy Price for Termination?

While there’s been no shortage of accolades for the Nexus One ever since it was launched, there’s also been no dearth of complaints from consumers after they started receiving the Google phone. While a majority of customers have complained about the below par 3G performance and lack of professional customer service related to Nexus One, many who were fed up of the phone and decided to return it were in for a rather rude shock – a Whopping Termination Fee of 350$ if the phone is returned after the 14 day trial period but within 120 days from date of purchcase. The termination fee is applicable ONLY if you buy the Nexus One with a two year contract from T-Mobile ($179) and does NOT apply if you buy the un-subsidized version ($529).

While the termination fee is clearly listed by Google on the ‘Terms of Sale for Nexus Device’, I’m not sure many people bothered to even read it amidst all the euphoria surrounding Nexus One launch. What’s worse, there’s a termination fee levied by T-Mobile as well :(

T-Mobile levies a termination fee of $200 for Nexus One customers if they cancel their two year contract any time within the first 18 months. If you cancel the contract with 91-180 days left on your two year contract, you pay 100$ and if you cancel it with less than 90 days remaining, you pay 50$.

So, what does it means for you - If you’re thinking of returning your Nexus One and cancelling your T-Mobile contract, it will cost you a whopping 550$! I’m not aware of any carrier or any mobile phone company all over the world which charges such a high termination fee and I least expected it from a compan like Google, given it’s ‘Do No Evil’ mantra :)

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitter,Identi.ca, or Friendfeed

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