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andrewruess
andrewruess 6 months ago
Nexus One on T-mobile: Contract or Unlocked?

Looked at the pricing for the Nexus One on T-mobile. Lets consider a 500 minute plan with unlimited data and text.

Unlocked phone = $529
Even More Plus = $60, or $1440 for two years
Two year total package = $1969

Contract phone = $179
Monthly plan = $80, or $1920 for two years
Two year total package = $2099

Plus, the contract phone has a $350 ETF. Did anyone else catch that? Look at the Nexus One ETF = $350. Wow.

So of course I ordered the unlocked phone. =)
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22 replies
peterto
peterto gdgt staff 6 months ago
Whoa, when did T-mobile raise the ETF? They're doing a Verizon on this.
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andrewruess
Terms of sale: www.google.com­/phone­/static­/en­_US­-terms­_...

The money shot: "You agree to pay Google an equipment subsidy recovery fee (the "Equipment Recovery Fee") equal to the difference between the full price of the Nexus handheld device without service plan and the price you paid for the Nexus handheld device if you cancel your wireless plan prior to 120 days of continuous wireless service. For example, if the full price of the Nexus handheld device without service plan was $529 USD and the price you paid for the Nexus handheld device was $179 USD with a service plan, the Equipment Recovery Fee you pay will be $350 USD in the event you cancel within the first 120 days of carrier service. The Equipment Recovery Fee is equal to the line item in your confirmation email setting forth the discount on the full priced Nexus handheld device related to your carrier service plan activiation. You authorize Google to charge the Equipment Recovery Fee directly to your credit card, or other payment method used to purchase the Nexus handheld device, upon cancellation of your wireless plan. You will not be charged the Equipment Recovery Fee if you return your Nexus handheld device to Google within the 14 day Return Policy period as set forth below."

Huh. Reading this again, I wonder if this means the ETF is only for the first 120 days, or this 120 fee is separate from T-mobile's standard $175 ETF too. Meaning you have BOTH.
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thechiman
The $350 Equipment Recovery Fee (ERF) is different from the T-Mobile ETF. If you cancel your service within 120 days, you agree to pay the ERF to Google or return the phone. But returning the phone implies you must pay a $45 + $15 restocking and refurbishing fees. I think that's the case from what I read in the TOS.

Hope that helps. I'm sure it didn't.
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andrewruess
Man, that is ridiculous. If I get any other T-mobile phone and pay for the subsidized contract price, at least I get to keep the phone after I pay the ETF.

In this situation, I have to give the phone back to Google (and pay $45 restocking) or pay the ERF, AND still pay the T-mobile ETF.

Weird.
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superflush
Yes, I realized this when the leaked pricing came out. So it still looks like it is definitely cheaper to get it out of contract and unsubsidized. Plus, you don't have a contract. And they don't appear to be trying to prevent people from taking up the $60 plan. I think I'll be switching to that exact $60 plan soon.
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mohanpram
529 dollars is pretty steep. So I am going to have to save up and buy the unlocked on, as the plan that they want us to get is a joke.
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deinfinityx
You can easily switch the plan if you want, that is just the cheapest plan they offer. For like $30 more you can get unlimited everything.
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peterto
peterto gdgt staff 6 months ago
Ah, that does make sense. It's still pretty steep for an "Equipment Recovery Fee".
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rscully
I bought the t Mobile version and the AT&T card worked fine in it. Also now that I unlocked my iPhone the t Mobile card works fine in it too. In my case here in Quincy California my service is far better than AT&T. More bars in many more places!
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Commguy
Google checkout charged me another $30 in taxes so don't forget that. =/
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superflush
Yea, I checked out the price once you checkout. Odd that they are charging tax, as I would think that they don't need to.
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corey2535
Okay so if I were to buy the Nexus with two year contract for 180 and pay the 80$ payment for the four months which would be 80 more than the 60$ plan and then switch over to the non contract plan for the 35.00 then it would cost 295.00 total. Is this right?
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superflush
No, they wouldn't let you switch to that plan when you have signed the contract. Hence, the contract.
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Quinn
$350 ETF is freaking nuts, and furthermore, if you cancel your contract before your 1 year upgrade, you don't keep the hardware. They'll take the phone back. Or so my understanding. Nuts. Just spend the extra $300, and get it unlocked.
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neuregulin
Well, now the only question is whether TMobile will allow you to use the $60 unlimited plan on the N1..... any other hidden trap there.... wait to see
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deinfinityx
You should be able to use any plan, if you buy it unlocked then you can throw what ever plan you want at it just as long as the plan has a data plan attached.
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markzip
FWIW: Of course, it will also work as just a regular phone. Working fine for me with my grandfathered cheap cheap cheap plan.

No T-mo signal here, so no point turning on the data and only talking to the ATT EDGE tower.
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toddjy
You get to keep the phone if you pay the $350 ERF. But we don't know what T-Mobile will be charging on top of that. It doesn't say what happens after the 120 days; if the ERF gets reduced by some amount each month. Probably at least $100 if you terminate in the final month of the two year contract (just because you'd be a shmuck if you terminated then). $10 a month for 20 months would leave $150. $15 a month would leave $50.
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Gijsbregt
What are he dimensions of the box in which google ships this to you in?
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markzip
About 10" by 7" by 6"
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toddjy
I called the local T-Mobile and they said they would charge $200 for breaking contract.
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