Google Nexus One Business Change: Huge ETFs
Wow. And just when we had declared the Google Nexus One to represent no real business change.
While I’ll be standing by that statement for the most part, in not reading the contracts I missed one huge business change that folks who opt to take the Google / T-Mobile subsidy and get their Nexus One phones inexpensively could run up against:
Cancel early, and you owe not just T-Mobile, but also Google an early termination fee.
And it’s a fee that would make Verizon proud: $350 to Google, $200 to T-Mobile.
What ever happened to Google and their “Don’t Be Evil” motto? The little company that’s become more influential than any other has created the first fee to a phone manufacturer for early plan termination, which would be fine if in doing so they had eliminated your liability to the carrier. They’ve not. The Google Nexus One, as cool as it is, is feeling more and more like a giant rip-off.
When I bought my Droid from Verizon one of the things that made me jump when I did was the knowledge that Verizon was getting ready to raise their ETF from $175 to $350. Verizon’s caught grief from the FTC for this, but next to the $550 you might pay to back out of a Nexus One contract that’s looking pretty tame.
I’m all about business change. I was disappointed when I thought the Nexus One looked like no business change at all. Now, I wish that had been correct.
Link to this pageTags: Android, business change, don't be evil, ftc, Google, nexus one, t-mobile, verizon
May 14th, 2010 at 1:26 pm
[...] Any phone running Android is a “Google Phone”. Google launched the Nexus One amidst much anticipation and with great fanfare, showed us a road map for a time when we’d be able to buy phones and take them to any carrier, telling us they were changing the entire phone business, selling the Nexus One using a business model that made no sense and charging incredibly high Early Termination Fees. [...]