Google lowers its equipment recovery fee
According to the Wall Street Journal, Google will lower its Equipment Recovery Fee (ERF) for the Google Nexus One from $350 to $150. The original $350 fee was unusual and unreasonable because it was on top of T-Mobile’s $200 Early Termination Fee (ETF). This brings the total early termination fee (including the $200 charged by T-Mobile) to $350 which is the exact amount needed to cover the subsidy customers received for the subsidized Nexus One.
In addition to the unreasonable fees for early termination, Google’s direct retail strategy has also been plagued with support issues. Customers didn’t know if they should go to T-Mobile for support or go to Google. Sam Diaz of ZDNet believes that Google would be better off focusing on Android and leaving the retail sales and support to partner carriers who are more experienced in these matters. Based on what we have seen so far, I would have to agree with Sam’s assessment.
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