Nexus One returners may need to pay $550 fees

NEW YORK, USA: Purchasers of the Nexus One Android phone could be on the hook for as much as $550 if they return the phone after a two-week grace period, according to information from Google Inc and T-Mobile USA.

Google, which last week unveiled the phone made by HTC Corp, said it would require a $350 "equipment recovery fee" from customers who return Nexus One after the buyers remorse period but before the end of a 120 day period following the purchase for a subsidized rate of $179.

On top of this, such customers will also owe an early service termination fee to Deutsche Telekom's T-Mobile USA, which charges $200 for early service termination on a pro-rated basis. This means that the fee drops gradually over the course of the two-year contract.

Customers of phones from other manufacturers typically just have to pay a fee to the wireless network operator if they break a service contract.

A Google spokeswoman explained that the equipment recovery fee is equal to the subsidy which Google provides for the Nexus One phone, which it sells via its Web site. Google does not charge a fee to customers who leave after 120 days.

Customers who decide from the start that they do not wish to be tied to a two year service plan with T-Mobile could opt to pay $529 for the Nexus One, which is less than people who give back the subsidized phone after 14 days.