Google Lowers Fee For Breaking Wireless Contract
Two weeks after the FCC sought information from wireless providers about early termination fees, Google has lowered the fee it charges customers for breaking a two-year contract for its new Nexus One mobile phone on the T-Mobile USA network, the Associated Press reported Monday.
Google has dropped its "equipment recovery fee" on the Nexus One to $150 from $350 for customers who cancel or downgrade their wireless service contracts within 120 days, while those who break the contract after that time will not have to pay any fee. However, customers will still have to pay a separate early termination fee of $200 to T-Mobile, according to the AP.
Last month, the FCC sent letters to several wireless phone providers including Google, AT&T, Sprint Nextel, T-Mobile, and Verizon Wireless seeking information to determine whether consumers are adequately informed about early termination fees. "We're glad Google has lowered their fee as a direct response to [the] FCC inquiry," Free Press Policy Counsel M. Chris Riley said in a statement. "This is clear evidence that the wireless industry needs an active cop on the beat to look out for consumers."
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