Google Knocks $US200 Off Nexus One "Equipment Recovery Fee"

It will no longer cost you more to cancel a Nexus One contract than it does to buy a Nexus One. But Google's still imposing a $US150 "equipment recovery fee" on top of T-Mobile's $US200 ETF.

The change comes on the heels of an FCC inquiry into out-of-control termination fees. Up until now, Nexus One owners were expected to pay $US350 in the event of cancelling or downgrading their T-Mobile contracts within 120 days. With the new Terms of Sale, however:

"You agree to pay Google an equipment subsidy recovery fee (the "Equipment Recovery Fee") in the event you cancel or downgrade your wireless plan within 120 days of activation of wireless service. If you activate a new line of service with T-Mobile, your Equipment Recovery Fee will be $US150 USD if you cancel or downgrade your service plan within 120 days of activation."

Obviously, Google doesn't want folks selling phones under contract for profit, and they claim not to make any money off of equipment recovery. But while $US150 extra is better than $US350 extra, it's still a huge fine to impose on someone for changing their mind. [Google Terms of Sale via WSJ]

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