Google's Nexus One Won't Be So Cheap After All

The folks at gadget enthusiast site Gizmodo.com have picked up a nice little scoop on the price and contract details for the forthcoming Google (NASDAQ: GOOG) Phone.

If these details prove accurate, some people might not be so happy with how much money they will have to shell out for the Android-based phone.

The screen shot of the Nexus One, the product's name, shows a device that looks similar to the Motorola Eris in terms of hardware design and layout, but its price without a contract is closer to the Motorola Droid.

For those wishing to buy the Nexus One unlocked and unsubsidized, it will set you back $530.

Typically, most U.S. carriers subsidize the cost of their mobile phones with long-term service contracts -- a model that's made many handset manufacturers reluctant to offer devices without a carrier partner willing to help cut down on the initial price tag for buyers.

No carrier has been officially announced for the Nexus One, but the leaked documents indicate T-Mobile will be at least one of the partners.

According to the documents, T-Mobile offers a two-year contract that drops the price on the phone to $180. There is only one rate plan available -- the $39.99 plan with 500 talk minutes. For unlimited texting and Web access, it becomes $79.99.

It's unclear how many current T-Mobile users will want to migrate to the new plan, however. Existing customers cannot keep their current plan if they want a subsidized Nexus One; they have to change to a new plan, which is only available for accounts with a single line. If you don't like it, you have to buy the unlocked phone.

The same applies to T-Mobile Family plans, Flexpay, SmartAccess and KidConnect subscribers. If you want those services, then you must buy the phone at the unlocked and unsubsidized cost.

Also, if you cancel your plan before 120 days, you have to pay the subsidy difference between what you paid and the unsubsidized price, so get ready for a $350 cancellation fee. Or you can return the phone to Google. You also authorize them to charge this directly to your credit card.

Additionally, the documents indicate that users can buy a total of five Nexus One phones per Google account.

Google had not responded to press queries as of press time.


Google, Android, smartphone, nexus one, T-Mobile