Though early termination fees (ETFs) may not be our favorite aspect of cell phone contracts, they serve a purpose in compensating carriers for subsidized devices. If you are considering canceling your contract prematurely, it’s crucial to be aware of any associated fees. The Nexus One, like many other phones, incurs such charges if you terminate your T-Mobile contract within a specific period.


  1. Why do cell phone companies impose early termination fees?
    Early termination fees are designed to recover the costs associated with subsidizing devices when customers cancel contracts prematurely.

  2. How much is the termination fee for canceling a T-Mobile contract with the Nexus One?
    The termination fee for canceling a T-Mobile contract with the Nexus One ranges from $50 to $200 after the 14-day grace period.

  3. What is the equipment recovery fee for the Nexus One?
    Google imposes an equipment recovery fee of up to $550 for terminating the contract within 120 days of service.

  4. Is the equipment recovery fee justified?
    According to Google’s terms of sale, the equipment recovery fee covers liquidated damages the company incurs due to contract cancellations.

  5. Why is the Nexus One’s equipment recovery fee higher than the unsubsidized model’s price?
    The equipment recovery fee for the Nexus One may seem high, but it accounts for various costs associated with canceling the contract.

  6. Do other retailers impose similar fees for returning phones?
    Yes, third-party retailers like also charge fees for returning phones, but the Nexus One’s unique purchase model limits choices.

  7. Can customers opt to purchase the Nexus One from carriers?
    Unlike other phones, customers must buy the Nexus One directly from Google, limiting purchasing options and impacting termination fees.

  8. Why is there criticism surrounding Google’s Nexus One purchase model?
    Critics argue that Google’s termination fees are excessive and may not align with customer expectations.

  9. Is Verizon facing scrutiny for its termination fee practices?
    Verizon’s termination fee policies are under review by the FCC for potentially penalizing customers unfairly.

  10. What fees can T-Mobile impose for early contract termination?
    T-Mobile, like other carriers, may charge ETFs if customers terminate contracts before their term ends, including activation and administrative costs.

  11. Are early termination fees common in the industry?
    Yes, early termination fees are a standard practice in the telecommunications industry to ensure carriers recoup device subsidies.

  12. How can customers avoid early termination fees?
    Customers can avoid ETFs by fulfilling their contract terms or exploring alternative options with their service provider.


Early termination fees are a common aspect of cell phone contracts, aiming to offset device subsidies provided to customers. Understanding the fees associated with canceling contracts, such as the Nexus One’s equipment recovery fee, is essential for informed decision-making. While these fees may raise concerns among consumers, exploring alternatives and contractual obligations can help mitigate potential charges. As customers navigate the complexities of cell phone contracts, being aware of termination fee policies and available choices is crucial for a satisfactory mobile experience.

For more information on navigating cell phone contracts and termination fees, visit our website and explore resources to empower informed decision-making.