WSJ: Google defends Nexus One early termination fees

[Dave Farber <dave () farber net>]

Begin forwarded message:

> From: Lauren Weinstein <lauren () vortex com>
> Date: January 12, 2010 3:54:00 PM EST
> To: nnsquad () nnsquad org
> Subject: [ NNSquad ]  WSJ: Google defends Nexus One early  
> termination fees

> WSJ: Google defends Nexus One early termination fees
>
> http://bit.ly/628LDk  (WSJ)
>
> This is getting more confusing, not less.
>
> Normally, when you buy a subsidized phone, you deal
> only with the carrier.  In the case of Nexus One, you're
> dealing with the carrier *and* Google.
>
> Components of a subsidized N1 cancellation within 120 days after
> the 14 day trial period:
>
> a) The fee you've paid to T-Mobile to buy the subsidized N1 in the  
> first place
> b) The fee that Google will charge when you terminate in
>   the above time frame
> c) T-Mobile's early termination fee
>
> In the normal subsidization scenario, we're dealing with just
> (a) + (c).  Now for the N1 we have (a) + (b) + (c).
>
> If you bought an unlocked N1 from Google at full price, the
> parameters would also be different.
>
> Even if the numbers are argued to be fair, this situation
> seems unreasonably confusing to consumers.
>
> I had thought that a primary "revolutionary" aspect of the N1 "direct
> marketing" model was going to be a simplification of the user
> experience.  Oops.
>
> --Lauren--
> NNSquad Moderator



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