Another speed bump on Google’s plan to take over the mobile phone world.
Google Inc. lowered a fee charged on customers who drop its new Nexus One phone early, following an inquiry from federal regulators examining fees charged consumers who break mobile phone contracts early.
Google has reduced its “equipment recovery fee” to $150 from $350 on its new Nexus One handset. The fee is charged on subscribers who dump or downgrade their T-Mobile USA Inc. wireless service contracts within 120 days. The fee is in addition to the $200 fee charged by T-Mobile on subscribers who break a mobile phone service contract within the first few months of service.
And here’s a curious statement from Google on the change:
“Google’s overall financial philosophy with regard to operator service plans remains unchanged: 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,” the company said in a statement.
So does that mean the company no longer makes a profit on equipment recovery fees now that it has lopped $200 off the price? Or did T-mobile also change the amount it charged Google?