Google Lowers Nexus One "Equipment Recovery Fee" to $150

Google has lowered the "equipment recovery fee" it charges for those who buy a Nexus One at a discount with a T-Mobile contract to $150, down from $350. InformationWeek reported that the move was in the face of pressure from the Federal Communications Commission (FCC)

"Google's overall financial philosophy with regard to operator service plans remains unchanged," Google said in a statement. "We make no profit from commissions from operators or from equipment recovery fees, and our recovery fees are based on operator charges to Google for early termination of service."

Users will still be subject to an additional early termination fee of $200 from T-Mobile itself if they return the phone after a 14-day grace period, but before 120 days. Combined, the two fees once combined to $550, $21 more than the $529 price of buying a Nexus One directly, without a subsidy based on a carrier contract.

Google and T-Mobile received some criticism for this when the device was first announced. The new fee structure would make the cost of returning the device early $350.