Google has cut a fee charged to users who cease using its
Nexus One smartphone before four months from $350 to $150, making it somewhat
more palatable for users dissatisfied with the device to put it down.
Not long after Google began selling the Nexus One from its own
Webstore Jan. 5,
bloggers who read the terms of sale page noticed Google vowed to charge users who ceased using the device early a $350 Equipment Recovery Fee.
Consumers who bought a subsidized
Nexus One for $179 through T-Mobile and canceled the contract before 120 days
must pay Google an Equipment Recovery Fee in addition to the $200 Early
Termination Fee they would pay to T-Mobile.
A Google spokesperson explained to eWEEK that the ERF is
a way to recoup its investment because it subsidizes the devices purchased with
T-Mobile service.
"This is standard practice for third-party resellers of
T-Mobile and other operators, and you will find similar policies for other
mobile service resellers," the spokesperson said.
The slash in the ERF popped up on the Nexus One terms of sale
Web page.
"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 $150 USD if you cancel or downgrade your service plan
within 120 days of activation. If you are upgrading an existing line of service
with T-Mobile, your Equipment Recovery Fee will be $50 USD if you cancel or
downgrade your service within 120 days of activation."
The move also comes in the wake of a broad probe into
ETFs by the Federal Communications Commission.
The FCC Jan. 26 sent letters to AT&T, Google, Sprint
and T-Mobile asking how ETFs are charged and if consumers are adequately
informed of the ETFs. Verizon Wireless first sparked the FCC's interest in ETFs
Nov. 15 when it was disclosed the wireless carrier would double the penalty
fees to $350 for certain subscribers who leave their contracts early.
Meanwhile, spotty 3G is one reason Nexus One users might
cite as reason to void their contracts with Google and T-Mobile. Google is pushing out a software fix for this to
the Android 2.1 operating system on the device.
To help mediate the 3G service and other complaints, Google
expanded its service for the Nexus One to include phone support in addition to
online help. TMO News reported that 888-48-NEXUS (63987) is
now live from Google and open from 7 a.m. EST to 10 p.m. EST daily.
Sales of smartphones based on Google's Android OS are
looking up, according to comScore. The researcher said U.S. marketshare for Android is now
5.2 percent, rising 2.7 percentage points in December 2009. Attribute that
growth to strong sales of the Motorola Droid, which has sold hundreds of
thousands of units since November.
Android could well push past Palm, which dropped to 6.1
percent from 8.3 percent in September, in the next comScore survey. RIM was the
leading mobile smartphone os with 41.6 percent share of U.S. smartphones.
Apple was No. 2 with 25.3 percent share, followed by Microsoft with 18.0
percent of the market.
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