$350 Early Recovery Fee for Nexus One: Recoups Subsidy?

GoogleNexusOneAds.jpgGoogle wants to make the super phone buying process simpler, but if you return your Nexus One phone after 14 days will be hit with a $350 "Early Recovery Fee" along with a Early Termination fee  $200 for canceling at any time in the first eighteen months of their 2-year contract.

According to Computer World, a Google spokeswoman said in a e-mail that the $350 fee is a way for
Google to recover the subsidy given to contract customers, calling it
a "standard practice" for resellers like T-Mobile.

During the press conference, reporters wanted to know why the Nexus One was not free and subsidized by advertising.  Customers can't go to a store to try-out a Nexus, and have only 14 days to try it out.

Google's Andy Rubin said that Google would not get into the manufacturing business, there are however in the "fee" business like the carriers.  If you buy a Google Nexus One phone even with its fab first impression, you should have great faith in Google.  There also have been problems reported with the T-Mobile network and the Nexus One as well as long delays in customer service emails.  The Nexus One ads also claim that the wallpaper has sentience. 
You agree to pay Google an equipment subsidy recovery fee (the
"Equipment Recovery Fee") equal to the difference between the full
price of the Nexus handheld device without service plan and the price
you paid for the Nexus handheld device if you cancel your wireless plan
prior to 120 days of continuous wireless service. For example, if the
full price of the Nexus handheld device without service plan was $529
USD and the price you paid for the Nexus handheld device was $179 USD
with a service plan, the Equipment Recovery Fee you pay will be $350
USD in the event you cancel within the first 120 days of carrier
service. The Equipment Recovery Fee is equal to the line item in your
confirmation email setting forth the discount on the full priced Nexus
handheld device related to your carrier service plan activiation. You
authorize Google to charge the Equipment Recovery Fee directly to your
credit card, or other payment method used to purchase the Nexus
handheld device, upon cancellation of your wireless plan. You will not
be charged the Equipment Recovery Fee if you return your Nexus handheld
device to Google within the 14 day Return Policy period as set forth
below .

You agree that the Equipment Recovery Fee is not a penalty but is for
liquidated damages Google will incur as a result of such cancellation.
These damages may include, but are not limited to, loss of compensation
and administrative costs associated with such cancellation or changing
of wireless service provider(s), market changes, and changes in
ownership. Please note that the Equipment Recovery Fee is
imposed by Google and not your chosen carrier and is in addition to any
early termination fees that may be charged by your chosen carrier in
connection with termination of your wireless plan prior to fulfillment
of your chosen carrier's service agreement term.