The Google Nexus One online ‘terms of service’ page recently featured a post pertaining to a $200 reduction in the “equipment recovery fee” of the handset – from $350 down to $150.
The announced ‘recovery fee’ reduction for Google Nexus One apparently comes in reaction to an federal Communications Commission’s inquiry into the fees that carriers and phone-makers charge from customers for early termination of their mobile phone contracts.
Google charges the “equipment recovery fee” from subscribers who abandon or downgrade their T-Mobile USA wireless service contracts within four months. The Google fee is over and above the $200 that T-Mobile charges its subscribers who break a mobile phone service contract after a few months of service.
The lower “equipment recovery fee” on the Nexus One taking effect January 4 onwards, will chiefly be applicable to customers who terminate their contract after the handset’s 14-day trial, but before four months. However, customers terminating the contract after four months will not have to pay any fee.
Noting that lower equipment recovery fee comes in consultation with T-Mobile, Google said in a statement: “Google's overall financial philosophy with regard to operator service plans remains unchanged: We make no profit from commissions from operators or from equipment recovery fees, and our recovery fees are based on operator charges to Google for early termination of service.”











