Nexus One mobile phone users, already outraged about inconsistent 3G coverage and confusing customer service, joined with bloggers today to gripe about a $350 equipment recovery fee Google is imposing on phones that are returned before 120 days and after the 14-day trial period.
The fee is listed on Google's "terms of sale" language on its website and comes in addition to T-Mobile USA's standard $200 early termination fee (ETF) for customers that purchased a subsidised version of the device for $179 with a two year T-Mobile contract.
A T-Mobile spokeswoman confirmed that both fees could apply before 120 days on a T-mobile plan, but noted the $200 ETF from T-Mobile drops to $100 if customers terminate with 91 to 180 days left on a two year deal, and to $50 with fewer than 90 days remaining.
Customers buying unsubsidised $529 Nexus One devices through Google do not have to pay the $350 equipment recovery fee.
A Google spokeswoman sain that the $350 fee is a way for Google to recoup the subsidy it gives to contract customers, calling it a "standard practice" for resellers like T-Mobile. Separately, iSuppli has calculated the cost of the Nexus One's hardware and component costs at $174.15. That total does not include manufacturing, software, accessory and royalty.