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And if You Think $550 in Nexus One Early-Termination Fees Is Bad, Just Wait Until Verizon Gets Involved

John Paczkowski — Tue, 12 Jan 2010 16:32:55 +0000

Caveat emptor: Purchase a subsidized Nexus One from Google and you’ll pay dearly if you cancel service early. ComputerWorld notes that according to the device’s Terms of Sale, the search company charges an “equipment recovery fee” of $350 in the event users cancel service before 120 days have passed. This, in addition to the $200 early termination fee charged by carrier T-Mobile.

From the Nexus One Terms of Sale:

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….

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 [emphasis added] in connection with termination of your wireless plan prior to fulfillment of your chosen carrier’s service agreement term.

The costs of canceling a T-Mobile Nexus One contract within the first four months after purchase, then, are as follows:

$179 USD, the purchase price of the device.
$200 USD, the early-termination fee T-Mobile assesses for contracts canceled with more than 180 days remaining on term
$350 USD, Google’s equipment recovery fee

Grand total: USD $729.

That’s $200 more than the cost of the device unsubsidized.

So if you’re unhappy with the Nexus One you purchased on contract, do yourself a favor and wait at least four months before terminating it.

What was it that Google VP of Engineering Andy Rubin said last week? Something about making the cellphone purchasing process simple and worry-free? If that really is the goal here, implementing ETFs that make canceling a Nexus One contract more expensive than the price of the unsubsidized device itself hardly seems a good way of going about it.

I’ve asked Google (GOOG) to explain the rationale behind its $350 equipment recovery fee and will update here if I’m given one.

UPDATE: This just in from Google:

Google provides a subsidy for devices purchased with T-Mobile USA service. If a consumer cancels service after 14 days, Google recoups this subsidy in the form of an equipment recovery fee. After 120 days, the equipment recovery fee will no longer apply. This is standard practice for third party resellers of T-Mobile and other operators, and you will find similar policies for other mobile service resellers.

The T-Mobile early termination fee is separate and handled by T-Mobile.

1000 AOL to Employees Go the Way of Dial-Up

John Paczkowski — Mon, 11 Jan 2010 18:00:28 +0000

[ See post to watch video ]

Nexus One: $174.15 in Parts, $355.85 in…er…Incidentals

John Paczkowski — Mon, 11 Jan 2010 15:59:05 +0000

If you were to build it yourself, Google’s new Nexus One superlative-phone would set you back about $174.15, according to a teardown conducted by iSuppli. (See table at right; click to enlarge.)

That’s almost $5 less than the $179 T-Mobile is charging for the device with a two-year service plan. But its about a third of the phone’s unsubsidized price–$530.

Which is interesting because, according to Google (GOOG) VP of Engineering Andy Rubin, the guy who quarterbacked the Nexus One’s development, smartphones, even “super” ones–shouldn’t be that expensive. “The thing I carry around in my pocket every day…shouldn’t cost four hundred dollars,” Rubin once told Ken Auletta, author of “Googled: The End of the World As We Know It.” “That’s absurd. If you add up all the components, somebody is making a lot of money.”

That somebody, in this case, would appear to be Google–though to be fair, iSuppli’s analysis doesn’t account for manufacturing, packaging, and software expenses, not to mention R&D costs, which are likely quite substantial.

One last point worth noting here, the Nexus One’s teardown cost is slightly more than that of Apple’s (AAPL) iPhone 3GS. iSuppli figures the cost of materials for that device is about $172.46.

Motorola's Droid Is Smart Success for Verizon Users

Walter S. Mossberg — Thu, 05 Nov 2009 02:10:06 +0000

Verizon Wireless customers tend to love the company’s fast 3G network. But many tech-oriented Verizon loyalists gripe about the carrier’s high-end smart phones, which haven’t matched the cachet and versatility of the Apple iPhone sold by AT&T (T). In fact, some Verizon customers have switched to AT&T simply to get an iPhone.

[ See post to watch video ]

But this week, Verizon (VZ) is rolling out a device that finally gives it a more credible alternative. This new $200 phone is the Motorola Droid and it’s the first Verizon model to run Google’s (GOOG) Android smart-phone operating system. I’ve been testing the Droid, and while it has some significant drawbacks, I regard it as a success overall. It’s the best super-smart phone Verizon offers, the best Motorola (MOT) phone I’ve tested and the best hardware so far to run Android. I can recommend the Droid to Verizon loyalists who have lusted for a better smart phone, but don’t want to switch networks.

Like the iPhone, the Droid is really a powerful hand-held computer that happens to make phone calls, and is a platform for numerous third-party programs, or apps. Currently, Android offers over 12,000 apps. That is just a fraction of the 100,000 apps available for the iPhone, but it’s well above what the newer BlackBerry or Palm (PALM) phones offer.

The Droid is also the first phone that runs the 2.0 version of Android, which sands off some of the rough edges of Google’s platform and adds some features—notably, a free voice-prompted turn-by-turn navigation program. Android still isn’t as slick or fluid as the iPhone’s OS, in my view, but it has some functionality Apple (AAPL) omits, including the ability to run multiple third-party apps simultaneously.

The Droid is a handsome, squared-off device with a gorgeous, huge, high-resolution screen, bigger and sharper than the iPhone’s. There’s also a slide-out physical keyboard. It’s only a tad longer and thicker than the Apple product. But it’s 25% heavier, which makes it less comfortable to carry around in a pocket.

The Droid also has a higher-resolution camera than the iPhone’s: five megapixels versus three megapixels. And the camera has a flash, which the Apple lacks. In my tests, pictures came out OK, though not dazzling, and videos I shot were quite good.

Motorola’s Droid

The Droid’s large 3.7-inch screen looked great, but it lacks multitouch features, such as two-finger zooming, and it seemed less responsive than some other touch screens I’ve tested.

Battery life is listed at a whopping 6.4 hours, and, in my tests, the Droid easily lasted through the day on a single charge. Phone calls were crisp and clear, and I never suffered a dropped call. Verizon’s network was speedy and reliable for Web surfing, email and social networking. I copied some songs and videos onto the Droid by plugging it into a computer, and all played properly.

The Droid, whose $200 price comes only after a $100 mail-in rebate, requires a minimum $70 monthly service plan for two years, and text messaging costs extra. It comes with 16 gigabytes of memory, in the form of a removable card, and can handle up to a 32-gigabyte card.

Unfortunately for lovers of physical keyboards, I found the one on the Droid to be pretty awful. It has flat, cramped keys that induce too many typing errors, yet lacks auto-correction. I found myself using the virtual on-screen keyboard, which was pretty fast and accurate for me, and did include auto-correction.

Another downside: The Droid’s screen has only three panels for displaying apps, versus 11 on the iPhone, and some large apps, called widgets, hog much of the space on these panels.

Like the Palm Pre, the Droid tries to integrate social networking with contacts, though in a more limited way. It handles Google’s Gmail and Facebook, as well as Microsoft Exchange for corporate email and data. A nice feature lets you tap a contact’s picture and get instant options for ways to communicate.

The Droid can do some cool tricks with a couple of $30 optional docks, one for the car and one for the desk or nightstand. When placed in the car dock, the phone automatically displays a horizontal view with large buttons, including one for the built-in navigation system. In my tests, this navigation system worked pretty well, even showing photos of certain intersections. But it also gave me a couple of bad directions, such as sending me the wrong way at a fork in the road.

When placed in the desktop dock, the Droid displays the time and a different row of large icons from when it’s in the car dock, including music and an alarm clock.

I ran into one odd flaw with my test Droid, and with a second test unit tried by a colleague. Neither could send a photo via multimedia messaging to either my iPhone or her BlackBerry. Verizon was able to send pictures this way to my iPhone from other Droids, and it suspects some flaw in our test units.

The Droid is potentially a big win for Verizon, Motorola and Google, as well as for loyal Verizon customers.

Find Walt Mossberg’s columns and videos online, free, at walt.allthingsd.com. Email him at mossberg@wsj.com

Unlike Google Voice, Vonage Now Available on iPhone

John Paczkowski — Mon, 05 Oct 2009 15:00:54 +0000

Apple seems to have gotten over its aversion to apps duplicating core iPhone functions. This morning Internet telephony company Vonage released an app that allows iPhone users to make calls over Wi-Fi and AT&T’s voice network. Place a call in range of a Wi-Fi signal and it will be routed over AT&T’s (T) data network; place it out of range of Wi-Fi and it will be routed over the carrier’s voice network, where it will consume minutes from the caller’s AT&T service plan

Interesting, given the recent flap over Google Voice for iPhone, which Apple (AAPL) hasn’t yet allowed into its iTunes App Store because it “appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voice mail.”

How is Vonage’s (VG) app different? Its features and functionality are certainly very similar to those of Google Voice.

Apple won’t say, but the company did tell the Associated Press that Vonage’s app falls under the same category as other VoIP applications that have already been approved for the iPhone.

A BlackBerry Priced Right For Newcomers

Katherine Boehret — Wed, 12 Aug 2009 07:52:03 +0000

Web browsing and email have comfortably migrated to mobile handhelds like the iPhone, BlackBerry and Palm (PALM) Pre. But many of these gadgets still cost a lot compared with cellphones that come free with renewed two-year contracts.

This week, I tested a new BlackBerry that costs less than any other BlackBerry did at launch—that is, if you buy it at the right place. Research in Motion’s (RIMM) BlackBerry Curve 8520 costs just $49 at Wal-Mart (WMT)—or $130 if you buy it at T-Mobile. Both prices are with two-year T-Mobile contracts.

[ See post to watch video ]

The BlackBerry Curve has been one of the company’s most popular models. All iterations of the Curve combine a full QWERTY keyboard with a sleeker, more stylish look than bigger BlackBerry models like the Bold. And Curves typically cost less than their larger counterparts. In February, RIM refreshed its Curve brand for the first time in over two years with the 8900. This model was a real upgrade for Curve users, thanks to a brighter screen, faster performance and flatter keys that were easier to press. But six months later, it still costs as much as $199 (after rebate)—a steep asking price considering how some older 8300-series Curves are offered for around $50 with two-year contracts.

This newest $49 Curve 8520 lowers that price barrier. Its monthly T-Mobile service plans are also relatively inexpensive, starting at $55 for voice and data (not including MMS or SMS messaging).

It has two features never before seen on a BlackBerry. First, in place of a trackball or scroll wheel, this Curve uses a trackpad—a mini version of those used for mouse navigation on laptops.

Second, it has designated physical buttons for playing, pausing and skipping ahead or back within media like videos and music. These rubbery buttons are built into the top edge of the BlackBerry.

I like the look of the Curve 8520—especially how the surface covering its screen extends down to the trackpad and its four surrounding buttons, giving it a smooth facade. It comes in two colors, black and frost (I used the black). Its low price, alone, will be enough to draw customers.

But something about the way its keyboard and navigational keys worked felt cheap. Letter keys felt light and hollow while the Send, Menu, Escape and End keys around the trackpad clicked as I touched them.

The specifications of this BlackBerry tell the tale more specifically. Its 320×240 pixel screen looks faded next to that of the Curve 8900, which is 480×360. The blinking red indicator light at the top front corner of all BlackBerrys is a barely noticeable dot on this device.

And its camera is only two megapixels, not 3.2 megapixels like on the 8900, and is the first on a BlackBerry not to have a built-in flash. Also, it doesn’t run on the fast 3G network, though it uses Wi-Fi and automatically connects to trusted networks when in range of them.

First-time smartphone owners may not notice or care about these small details, but veteran BlackBerry users will pick up on them right away.

The Curve 8520 incorporates useful physical features found on previous models like right- and left-side convenience keys that work as handy shortcuts. It comes with a 1-gigabyte microSD memory card so users don’t have to buy their own before loading this device with photos, music and videos.

A strip of rubber runs around the Curve’s edge, covering up and smoothing over its convenience keys and volume buttons. This rugged addition isn’t visible from the front of the BlackBerry and it will probably go a long way in preventing nicks and dings. The word “Curve” is imprinted on the back of the BlackBerry, proudly branding this model.

The navigational trackpad is a cinch to use and moves the cursor up, down, right and left with very little effort. To select, one needs only to press in on the trackpad just as with the trackball. Unlike the trackball, which rolls in place and can get stuck once in a great while, the trackpad doesn’t have any moving parts.

The physical media keys on the Curve 8520′s top edge work to instantly start playing media from any screen, like a music video that I watched. If you were to use your BlackBerry as your sole portable media player, these would be more valuable. And their position on the top of the Curve makes them easy to reach if the device is in a pocket or purse.

In my everyday usage scenarios, I usually forgot about these shortcut buttons and just used the trackpad to find and select a track or video for playing.

BlackBerry’s App World store for applications that users can load onto the device still only offers 2,000 apps, compared to Apple’s (AAPL) 65,000. This means that for now, this new Curve can’t be enhanced with as many outside programs, which is a real downside. And if you do download a lot of apps, or music or videos or photos, you may have to get a bigger memory card.

The Curve 8520 isn’t made for BlackBerry fanatics. But it’s a good entry-level BlackBerry for users who still haven’t let go of their basic cellphones. At Wal-Mart’s $49 price, it’s hard to beat.

Edited by Walter S. Mossberg

Write to Katherine Boehret at mossbergsolution@wsj.com

Pre-diculous

John Paczkowski — Fri, 13 Mar 2009 10:00:57 +0000

According to Palm (PALM), Pre was chosen as a name for its new smartphone because “it’s anticipatory.” If that’s the case, then it couldn’t be more well-suited to the device which has left observers waiting in frustrated anticipation for official word of its price and launch date. During a joint Palm/Sprint Webcast Thursday to discuss the Pre’s upcoming launch, the companies had little of note to say. The big takeaways from the event: Palm and Sprint are sticking to their first-half-of-this-year schedule for launch, they are not giving any updates on pricing, and the Pre will be offered with the standard Sprint service plans. Beyond that, we’re to understand that the Pre “feels great in the hand” and that the two companies are very excited to be working together.

Fascinating.

Xohm: No Long-Term Commitments Besides Baltimore Residency

John Paczkowski — Mon, 29 Sep 2008 21:01:12 +0000

Among the announcements forgotten for a moment amid the shrieks of agony and general keening on Wall Street today, this one from Sprint Nextel heralding a single-market launch of Xohm, its new WiMax wireless service. The company lit up only Xohm in Baltimore today, fulfilling its promise to have the service up and running by the end of September. That said, it’s still nearly a year late.

Still, it sounds promising. With downlink speeds in the 2-4Mbps range, Xohm is about twice as fast as current cellular broadband networks. Sprint’s service plans include a $25 monthly home subscription, a $30 “on-the-go” plan and a $10 day-pass program. All three require a PC card or modem and a subscriber agreement permitting Xohm to “use various tools and techniques designed to limit the bandwidth available for certain bandwidth-intensive applications or protocols, such as file sharing.”

So much for that “open network” promise. Well, at least Xohm is up and running, right? Sprint Nextel (S) first announced plans to deploy a nationwide WiMax network in August 2006.