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Google Phone Faces More Criticism Over Fee

January 12, 2010, 3:13 pm

Google made big waves in the mobile industry early in the year, and the effects of those waves are being felt quite hard by some users. The Nexus One's release has gotten off to kind of a rocky start.

Google Nexus OneThe issues plaguing customers of the much-anticipated Google phone have been widely publicized. Most of the gripes have dealt with Google's customer service (or lack thereof) for the device, and trouble with 3G connections. More recently, however, complaints of outrageous early termination fees have popped up.

The trouble for users is that if they got the Nexus One with a two-year contract from T-Mobile, they end up having to pay about $550 to terminate early. The thing is, they have to pay T-Mobile's regular fee, but they also have to pay Google a fee. Needless to say, that has caught some people off guard.

Google's fee is a $350 "Equipment Recovery Fee". It applies to customers who cancel their contracts within the first 120 days.

According to Niraj Sheth
with the Wall Street Journal's Digits Blog, "A Google spokeswoman said in a statement that the fee is "a way for the company to recoup the subsidy it gives to contract customers."

"'This is standard practice for third-party resellers of T-Mobile and other operators,' she said. A T-Mobile spokesman said that the carrier’s early termination fee is standard for its customers on contract."

While the combination of the aforementioned problems may not bode well for Google's reputation in the mobile industry at the moment, the good news for the company is that they are projected to come out on top in the smartphone race eventually. Crunchgear says Google and Android will "own the smartphone market" eventually. Time will tell if that is an accurate depiction of things to come, but for now, people just seem upset.


Related Articles:

> Google Unveils Nexus One "Super Phone"

> Nexus One Sales Of 5-6 Million Units Forecast

> Google Tries to Carve Out its Place in Mobile


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