Canceling a Nexus One T-Mobile contract costs more than a Nexus One

Christmas PD5FM $10 discount“If you buy a subsidized Nexus One with T-Mobile and you cancel your contract after the 14-day trial, it’ll cost you between $50 and $200. Sounds pretty standard, but Google will charge you an additional ‘equipment recovery fee,'” Mark Wilson reports for Gizmodo.

“Google has the right to charge you up to $350 if you cancel before the 4 month mark, which is essentially their way of thwarting any plans you may have to sell a former contract phone for profit,” Wilson reports.

“Add on any fees from T-Mobile on top of that, and geeze, your contract-less Nexus One is costing you more than a new one unlocked,” Wilson reports.

Full article here.

Electronista reports, “Google is making buyers of the subsidized Nexus One pay twice if they cancel early, according to the company’s own Terms of Sale. The search company charges an ‘Equipment Recovery Fee’ of $350 for the smartphone if they cancel their service before 120 days have passed. It explicitly warns that the fee is above and beyond whatever T-Mobile might charge and could result in customers effectively buying the Nexus One twice if they leave.”

Full article – “Google double-dipping on Nexus One cancel fees?” – here.

[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]


  1. This is pretty standard. I’ve never bought a cell phone where this wasn’t the deal. This article fails to make it clear that as long as you cancel early enough you can return the phone and pay nothing to google. If you buy a phone that is subsidized and ruin it or don’t return it–so it can’t be resold at least as a refurbished model, you should be charged for the thing.

  2. Just how Google works, we want your information and if you don’t Google will charge you for the privilege of being being released by Google.

    Google “As Evil as we want to be, As long as we’re as Evil as Microsoft but, claim to be less evil then everyone else.

  3. Face,

    This is NOT standard. An early terminator fee for the contract is standard – such as AT&T;’s $175. But for the phone manufacturer to charge an addition fee of almost double what you bought it for in the first place… that’s a scam if there ever was one. Google IS evil.

  4. What a bunch of idiots.

    The extra charges only apply if you don’t return the subsidized handset.

    Standard contract law: until the contract if fulfilled the item sold remains the property of the seller. If the item isn’t returned to the seller, the seller has the right to charge you for it.

    Journalists make the worst engineers/technicians/lawyers/doctors/policemen/teachers/etc.

  5. Man there’s some Google hating people on here. Sorry, but I fail to see what the problem is? Google is charging people the difference of the cost for an unsubsidized phone. Why in the hell wouldn’t they?

  6. I don’t have a problem with that, for two major reasons:

    1. I’m a capitalist, and I believe every company should have the right to not only make money on sales, but protect themselves from list revenue.

    2. I’ll never own a Nexus One.


  7. Even as someone who likes Android, I realize that this is just ridiculous. I love my iPhone and i love my Droid–prefer my droid for customization and iPhone for the pure Apple experience–but Nexus owners are getting screwed, and big time. They go to a crappy service provider, and pay a good bit for the phone, and face paying over $700 dollars if they cancel early, and purchased the phone at the subsidized price.

    I’ll stick with Moto and Apple…

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