Google Nexus One Woes for Existing T-Mobile Customers

by Antonio Wells Jan 5, 2010 10:12 PM – 22 Comments

I stayed glued to Wall Street Journal’s live blog summary of Google’s Android announcement in anticipation of the Nexus One official launch. As an existing T-Mobile customer I wanted to know the details on how to get the newly dubbed “superphone” as an existing customer. Sadly, I learned the deal for existing customers was not well thought out. Actually for us customers to jumped on the T-Mobile G1 a year ago utilizing that upgrade package would not qualify for the $179 discounted upgrade price (you must have satisfied at least 22 months of your contract to qualify discounted price).

Existing T-Mobile Customer Woes who want the Nexus One:

Cancel Contract to your Port Number

If you want to to port your phone number you will have to cancel your existing contract and pay the carrier early termination fee (provided you’re eligible to port it)… see details:

Transfering your mobile phone number will terminate your current wireless service plan. If you are still under contract, you may be charged an early termination fee by your current wireless service provider. We can check your phone number’s eligibility for transfering now. Your number will not be transfered until after your phone is activated.

Only One Plan Type Offered

There currently is only one plan type for Individuals, no Family plans included:

500 talk minutes. Unlimited nights and weekends. Unlimited T-Mobile to T-Mobile minutes. Unlimited domestic messaging including SMS, MMS, IM. Android Unlimited Web. $79.99 per month.

T-Mobile has No Control

Nope, no control over the sale of the device, you have you use Google’s web store to purchase the device (my apologies for the double-negative). At least you, in theory, could get the Individual plan then call/visit T-Mobile to change the plan to something more suitable.

Sales Tax

Expect to be charged Sales Tax in states on orders where Google has a presence, see Terms of Sale.

No Insurance

Unfortunately you won’t be able to insure the unsubsidized Nexus One. Something I used to boast over iPhone fanboys.

In conclusion, being the true Google fanboy I will still get the Nexus One as it represents the latest in Android Devices with the fast 1GHz Snapdragon processor and more importantly software advances with the Android operating system 2.1. Join my rant… or rant against me in the comments below.

Update: Pay $550 to Canel & Return the Nexus One

I must add to this; if you to sign-up as a new customer for the T-Mobile subsidized Nexus One, and if you’re unhappy with the phone and want to cancel your contract… you’ll be paying $550 ($200 for T-Mobile contract cancellation and $350 to Google for “Equipment Recovery Fee”, better to buy the unsubsidized version for $530)! Ooouuuccchhh!

Categorised in: Apps Blog

22 Comments

By Don Tucker on January 5, 2010 at 10:24 pm:

Well I am going to wait and see what comes down the pike. I am a year or so into a G1 contract and love the plan that I have now (Family Plan). Guess they want to sell a bunch of phones, but with conditions like listed, they are missing a boat load of converts to this great new smart phone.

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By Romain Guy on January 5, 2010 at 11:06 pm:

Remember, even when bought subsidized with T-Mobile, the phone is unlocked (both SIM-unlocked and firmware unlocked.)

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By Keith on January 5, 2010 at 11:06 pm:

I bought the G1, bought the myTouch3G on launch day, and I really want the Nexus One. I’m in a corporate plan with many lines – I asked our T-Mobile account rep for a deal, he said he’ll get back to me. Hope he pulls some miracle – $530 is a lot of $$.

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By JDizzle on January 5, 2010 at 11:08 pm:

Waste!!!! TMobile’s coverage sucks, especially 3G. And on top of that they r screwing their current customers, the ones who keep their profits up and making them pay $100 more than a brand new customer would pay! TMobile’s prices are ridiculous! $80 and only 500 minutes to call other phones(on other networks) during the day and no family plan option? I’m on a family plan with sprint and we pay $130 for unlimited data, mobile calls to any carrier and messaging! We have 500 minutes for landlines during the day! We have Heros and once they get upgraded to 2.1 like the Nexus they will be just as good of phones. Wooptee doo Snapdragon processor and 1/2″ bigger screen.

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By Chris on January 6, 2010 at 12:31 am:

I, too, have the G1 and a family plan. Still, buying an unlocked Nexus One is roughly $370 cheaper over the course of a 24 month contract for me.

I currently pay $80 and some change for a 700 minute family plan + 400 text for one phone + unlimited web for one phone.

If I were to buy a subsidized Nexus ($180), I’d be forced to switch to the $80 Even More 500 + unlimited text & web. Then I’d still have to add the cheapest plan to that account – the $30 Even More Plus 500 plan. ($30 more per month than what I pay now, over 24 months = $720).

So, $900 more than what I pay now if I get the subsidized phone.

OR

$530 more by simply buying the unlocked phone.

Maybe I’m missing something…

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- By ES on January 6, 2010 at 9:31 am:
  
  Completely agree. Unfortunately we, as Americans, have gotten used to this carrier centric way of doing things. They subsidize our phones, and in return we lock ourselves into these long term contracts. One of the interesting subplots about the whole nexus one launch, is the more universal idea of selling a phone. If you do the math as the poster before me has accurately done, it almost always makes more sense to purchase a phone unsubsidized,and free of carrier committment. Also, for those of you who downplay some of the hardware specs, such as the snapdragon processor, or the OLED screen, as underwhelming, then you’re probably right in your assessment that you don’t need this phone.
  
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By adamfan on January 6, 2010 at 1:02 am:

Well, I’m so happy my Blackberry Curve 2-year contract expired yesterday and now I’m a month-to-month gal. That makes it just in time for me to purchase Nexus BUT I’m going to wait a few days or weeks to watch for more comments from owners of the Nexus to help me decide if I should buy it or stay with my month-to-month with T-Mobile.

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By Larry Kelly on January 6, 2010 at 7:08 am:

I say, hold your horses, wait two months, then get the Nexus for Verizon.

By the way, pretty sad I couldn’t leave this comment with my Moto Droid as it was rejected because of Java script and cookie requirements. I thought this was an Android place to be!

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- By Android Tapp on January 6, 2010 at 7:47 am:
  
  This is definitely the “Android place to be”, you may have to turn on Javascript/Cookies to post in the comments… else our comment filter won’t allow you to comment.
  
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By ES on January 6, 2010 at 9:52 am:

There seems to be a lot of resentment directed towards TMO, when I doubt that TMO has anything to do with the decision making in regards to the marketing and sales of the nexus one, including the price. While I agree that TMO’s 3G coverage area is lacking, it continues to grow. AND, those that do get it can enjoy 7.2 HSPA speeds, which is at least double that of any other carrier in the US. Verizon has had a very effective battle cry regarding their 3g coverage being superior to every other carriers. however, as every major carrier inevitably expands their 3g coverage to the point of saturation, coverage area will very soon become a moot point, and the next battleground will be speed, which TMO has taken an early lead in.

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- By Android Tapp on January 6, 2010 at 10:00 am:
  
  I agree. Personally I never have trouble with T-Mobile’s 3G coverage, however I am in a major metro city. I do enjoy mocking my iPhone buddies who look like they’re using Google Skymaps off the. Corner of the room. Soon 3G speeds won’t be an issue.
  
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  - By ES on January 6, 2010 at 11:14 am:
    
    Actually, I think you meant to say that coverage area wont be an issue, area saturation is an inevitability sooner rather than later. The next 3g battle will take place over speed. That is where Tmo is the leader. That speed will be brought to bear when google voice allows us to truly be minute free and go VOIP(made a couple of VOIP calls this morning over Skype on Fring and there was a marked improvement on the new 7.2 HSPA 3g connection vs. the previous 3.6 iteration)
    I think this is part of a bigger plan for google and TMO. The subsidized plan is obviously geared towards the new TMO customer (or one who is willing to break their existing contract), the even more plus plan contract that the nexus one is sold with is mimimal (500 min)and in place to appease TMO. The even more plus plan for the rest of us is contract free. I speculate that this is because future versions of google voice will, again, allow us to be truly VOIP, and the need for “minutes” will be minimal. I think in the long run those of us who purchased contract free (unsubsidized) will be pleasantly surprised at how all this shakes out.
    
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- By skdvrDBH on January 6, 2010 at 3:11 pm:
  
  While Google controls all pricing and selling, it is a no-brainer to me what happened here. T-Mo is giving kickbacks but only in their interest. They are MOST interested in new customers, and next most interested in ARPU, hence the pricing plan. Getting people switched over to T-Mo from someone else are gold, which getting switched up to the expensive full plan is next most interesting.
  
  I checked at a store today, and you can convert you new Individual plan to a family plan if you like.
  
  Nonetheless, as a long time loyal T-Mo customer, I’m ticked. What would be cool is a financing plan for phone for 2 years at some low interest rate, then you don’t have to fork over the whole $530 and can go with the $20/mo cheaper PLUS plans from T-Mo.
  
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By Mattbeme on January 6, 2010 at 7:29 pm:

The problem is perception. Finally there is a compelling enough device that pushed a bunch of these Family Plan people over the smart phone edge and I feel TMO failed to execute. How would you feel if you were a major share holder(which I’m not; I wish) and TMO royally pissed off a large chunk of the Family Plan subscribers? Why is this problematic? These groups will generally move as a group. Instead of irritating single customers now the potential exists to lose groups. In-other-words “Lets irritate the people who have influence on up to four other subscribers”.

I agree that new customers are king for any business but you have to have options and from what I’ve been reading Family Plan subscribers don’t feel they have options. Options are the fix to almost all. Variety. Choice.

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By Jerry on January 6, 2010 at 10:55 pm:

I have been a T-Mobile customer since 2001 and they were Powertel in our area. Including our T-Mobile @Home service, we have 8 lines and pay well over $2500 a year in phone service. Any time I have spoken to customer service I have always gotten plenty of help once they looked up my record and saw how loyal we have been. Now Google is telling me I have to pay full price for a phone, even though my Blackberry line is eligible for an upgrade? I don’t think so. Google may end up costing T-mobile at least one very long-time customer.

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By Matt on January 7, 2010 at 10:16 am:

While most of your points are valid, I have to quibble with your first complaint about early contract termination. You make it seem like this is part of the “not well thought out” aspect of T-Mobile’s participation in selling the phone. I’m not sure why it’s a surprise, though. Early contract termination fees are something you’ll find with every carrier for every subsidized phone.

If you mean it wasn’t well thought out because the G1 was sold only a year earlier, well that happens too. Just look at the various revisions of the iPhone.

And I’m not sure what you mean by “port your number.” If you’re already on T-Mobile, there is no number porting. You just switch SIM cards. Do you mean that the alternative is that you get another contract with TMo and get yourself another phone number? Well, that’s another thing entirely.

Sorry, it just seemed oddly put, is all.

But other than that I agree with you. I’m a little pissed that you’re very limited on what type of plan you get. I’m currently on the plan that gives me unlimited minutes and data but no text. They’d probably make me pay for the texting…

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- By Android Tapp on January 7, 2010 at 11:37 am:
  
  The overall message was generalized as not well thought out for the consideration of existing T-Mobile customers. But its becoming clear the initiative is geared at new customers, more importantly Google’s new concept of buying a cell phone.
  
  As far as porting your number, I found it very weird that it even asked me to port my number back to the same carrier, worse it ultimately did not allow it. Try yourself and see.
  
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  - By Matt on January 7, 2010 at 3:18 pm:
    
    Ah, I see. Very strange indeed. I wonder why they need to port the number.
    
    Well, I’m an existing customer, but have no contract, so hopefully I’ll be able to get the phone and not have a difficult time getting it set up.
    
    Not to find the cash to afford it!
    
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By Juice on January 9, 2010 at 1:45 pm:

Hey Antonio, you forgot to mention that even if you are not under contract you are still forced to pay a premium price for the phone. No existing tmobile customer qualifies for the $180 price. You will pay hundreds more than that. Total BS. Nice job tmobile you just lost a lot of loyal customers.

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By SKK on January 10, 2010 at 1:51 pm:

I want one. I am a T-mobile customer customer from 2003. I am eligible for an upgrade from the last 4 years. I am trying to get Nexus One for the last week and after countless calls to T-Mobile and being bounced between T-Mobile and Google/HTC I am still not able to get a subsidized N1. I have been waiting for this phone from a long long time. I have not upgraded my phone at T-mobile for the last 4 years in anticipation of a phone from Google. Looking at the way I am treated by Google and T-mobile, I might have to go to iPhone now after resisting the temptation and waiting for GOOG Phone all these years; they leave me no choice.

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By demian on January 13, 2010 at 12:38 pm:

I am also a T-mobile costumer and I have been since 2003. I have three weeks left to my contract and I have been very interested in the Nexus One and for the last week or so, i have been looking for a new phone to retire my dying Wing phone. The nexus one sounds like a great phone and i been looking around at different service plans with Verizon, Sprint and ATT… I have not found any other service plan that remotely covers at the same cost savings of what i pay now with T-mobile. But this new marketing gimmick from google doesn’t support the loyal costumer… and it definitely, annoys me that i have to pay full price, or $370 or whatever instead of the promised $180.

i use about 1200 minutes a month on my current phone… if T-mobile is going to look good with this adventure with google, they better shape up and support there current costumers or they will, find me walking over to ATT and getting a IPhone (they have a month) Btw… isn’t IPhone coming out with a new version of their phone in the near future?

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By Adam on February 11, 2010 at 12:50 pm:

Same sad story here. 8 year TMobile customer. Loyal. Patient. I used to really like how TMobile was responsive to their customers, more nimble than the bigger players. More stylish.

But this is an insult. I tried to get answers from the customer support line. Nothing there but people who sound helpless.

I sent emails to a bunch of executives at TMobile based on email addresses I found online.

Please also sign that petition that’s out there. I can post the url here with permission. There are currently 1850 people who have signed it. I guess TMobile doesn’t mind losing those 1850 customers to AT&T.

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