Subsidized Nexus One pricing not available to existing T-Mobile customers
By Nilay Patel 
posted January 6th 2010 1:05PM
posted January 6th 2010 1:05PM
Remember when you ran out to buy a T-Mobile G1 right away when it was launched 14 months ago? Google apparently doesn't -- it's only extending the $179 subsidized price for the Nexus One to new T-Mobile customers, meaning existing customers are being told they have to pay the full sticker of $529 for the Snapdragon device. As you can imagine, that's got quite a few T-Mobile customers pretty angry -- especially since Google's systems aren't even allowing upgrade-eligible T-Mo subscribers to purchase at a discount, and there's no customer service line to call and complain. We're hoping this is just a glitch while Google takes its first steps into direct phone sales, but we'll keep an eye on the situation.
[Thanks, Mike]
I'd be threatening Tmo that I'd move to Verizon in the Spring if they wouldn't allow the upgrade, lol
@surfernerd6987
That's cool, but it's not tmobile, it is google. The phone isn't even sold through Tmobile, it's sold through google.
@Leachpunk
Yeah, unfortunately, T mob cant do anything about it. Its Google's dumb ass move. Whats the big deal about having it unsunbsidized anyways? Is that not what ebay is for?
They also wont let you get it on a plan if your a family either. Its for individual plans only. Oh, and dont forget they dont want you talking too much on it, with that measly 500 minute standard plan and all.
Well, I guess I will keep my G1 for a while longer. Love the potential of Android still, but man, its turning to crap quickly.
All
you can sign online petition here
http://www.petitiononline.com/nexusone/petition.html
Currently 223 signatures.
@surfernerd6987
Here's how to get an upgrade discount:
1) Make new account
2) Port existing number
3) Eat ETF on old account
@Kamokazi unfortunately if you read the small print, if you return the phone during the first 10 months, then you hafta pay the difference or return the phone along with paying the ETF ... so .. def not the best plan .. and i hope no one is actually planning on doing this :P
@surfernerd6987 Why does everyone misspell Sprint "Spring?"
It seems like the odds are so high, I'm surprised Sprint itself isn't riddling its website with typos.
@Pulldovr
I don't get it. Why SHOULD existing customers get subsidys? They haven't finished paying for the FIRST subsidy.
News flash: when you sign a two year agreement, you're stuck with that phone for two years. If a new one comes out, don't expect your daddy to help you pay for it. Man up and pay the extra cost. Or, you know, keep the phone you have.
Sheesh.
@KidDynamic
So misguided, any carrier has an option to upgrade after 11 months or 22 months. The 11 month upgrade is not as big of a discount as the 22 month upgrade discount. So yes, existing customers should be entitled to discounted/upgrade pricing. Plus, it is extending our contracts for another 2 year period. That means they have us locked down for that time.
@nertalker Um...those kinds of typos are usually perpetrated by the same type of individuals who read over things too fast to see wha they actually say *ahem*
@KidDynamic Believe it or not, there's actually "current customers" who have long passed their 2-year subsidy, and should now be eligible for a new subsidy (even at a reduced amout) on a new phone...which is exactly what Google is disallowing here.
@ the rest o' y'all... I'm not entirely surprised that Google is initially limiting who can get the phone through normal (subsidized) means. I'm not saying it's right, but I can see how the company might make a move like that at first to have some way to gauge exactly how much business the hardware "draws" to the specific carrier.
@kseniacoff 286 after I signed.
@sirphunkee
As per the read link:
"Existing customers may still be eligible for a lesser discount depending on the age and type of their current plan. Your discount eligibility will be determined automatically during the ordering process."
And the link from that read link:
"Nexus One without service: $529
Nexus One with new, 2-year T-Mobile US service plan for new customers: $179
Nexus One with new, 2-year T-Mobile US service plan for qualifying existing T-Mobile customers who are adding data plans: $279
Nexus One with new, 2-year T-Mobile US service plan for qualifying existing T-Mobile customers who are upgrading their data plans: $379"
People are upset that they don't get the lowest possible price if they're already with T-Mobile. Or at least that's kinda what's happening. Engadget didn't really make a distinction. Of course, Engadget gets lots of pageviews from confusion, so it's not in their best interests to report the issue clearly.
@KidDynamic Okay but what about someone like me. Who bought a G1 on Craiglist, isn't under contract and is eligible for a full discount from T-mobile. Sure I could cancel my account and get a new one, but then I'd lose my number. I already called and they said if I cancel my current contract to open a new Nexus One account I would lose my number. My only other options are to pay the $379 price, lose my current unlimited plan and keep my number or pay the full $529 price and keep my plan and number. VERY LAME! I've been a good paying customer for 4+ years and should be able to get the same discount as some asshat who breaking their contract elsewhere and moving to T-mobile.
Oh and I'm almost positive that T-mobile is to blame. They set the pricing structure and Google sells the phone so T-mobile doesn't have to deal with us.
@Leachpunk
Google didn't arbitrarily decide the discount pricing. They get financial incentives from the carrier and pass the savings on to the customer. It is T-Mobile who decided how much each type of customer is worth. The results are:
Price of hardware: $529
New voice and data plan: worth $350, phone sold for $179
New data plan: worth $250, phone sold for $279
New contract: worth $150, phone sold for $379
Google is just the messenger/vendor.
@KidDynamic Not always true. I am on a two year contract with two lines on a family plan. I bought mine and my ladies G1's from CraigsList before setting up the service (they were cheaper than getting them subsidized from TMO). Now, I am on an existing contract (strike 1), on a family plan (strike 2), that has unlimited data on two lines (strike 3). I qualify for NO subsidies at all.
I've been a Google/TMO fanboi since day one... but this really has me pretty pissed off. TMO tech support/billing/customer service says that it is out of their hands... they aren't the ones selling it. Google doesn't seem to care at all with no customer service/support plan in place.
Overall, what should have been an good experience with some, and an awesome experience for Android fans who've helped shape the product and community, has instead turned into a giant loogie right in the face.
Man, I guess I just feel so let down by the pricing structure and the rules to purchase/use this phone.
Do you really think that Google is taking a $350 hit to convince people to sign a Tmobile contract that they receive no benefit from? Google may be selling the phone, but Tmobile is writing the subsidy rules.
@surfernerd6987 I guess google just want to make a clean slate for all users may it be your an old t-mo users or not. Seeing google releasing their Nexus One to multiple carriers is just a dream come true, and now it not only on a GSM unlock but to CDMA too? This is sweet.
Although the rumors that Nexus One will be open for AT&T didn't push through (oups for ATT) Carrier Details: http://bit.ly/nexus-one-on-multiple-carriers-details
@Leachpunk
But it is tmobile... Google's not the one subsidizing it. You dont get a cheaper price because you sign a 2 year google contract, you get a subsidy because you're signing a 2 year tmo contract.
@KidDynamic Its not just people still on contract, mine expired over a year ago and they still wont give me the discount, not to mention anyone using a family plan.
It may be just a glitch. From google.com/phone :
Existing T-Mobile customers may qualify for upgrade pricing.
@Snake Robot Podium
yes, they do, but the pricing is $280/$380 depending on the plan you currently have (even if not on a contract w/T-Mo now, i.e. ppl who never were on a contract or past 1 or 2 year contract duration).
So yes, existing customers are treated worse than new. Thanks a bunch T-Mobile & Google.
@kseniacoff
I don't think you understand how it works. Existing customers haven't finished paying off the previous phone they got for 'free'. That's why they have to pay more for the N1 than new customers.
@Timmmmmm my $200 G1 was hardly free ...
@Timmmmmm Did you even bother to read the post you replied to? Customers who have paid that off and aren't under a contract are still treated worse.
dont blame google. this is t-mobiles fault. or actually, just simply how the US phone market works. the carriers pay more to independent dealers for new customers than existing ones. this is how it is with most stores and most carriers. go to letstalk.com or wirefly.com and you will see the same thing, cheaper phones for brand new customers. hell, even walk into a best buy or radio shack and you'll see the grid of different prices listed. have you guys been living under a rock? the only reason carrier stores themselves have the same pricing for all customer types is because they offer the worst discount available. youre almost always going to get ripped off for going directly through your carrier.
@Timmmmmm
you don't understand. Existing t-mo customers who signed a contract >22 months ago and therefore again qualify for purchase of a subsidized phone (having completed "paying for the phone they got for 'free'") are ineligible for the $179 pricing. Instead, if they sign a new contract, they get the less-discounted 279 or 379 pricing. Normally, such a customer could buy a discounted phone just as if they were a new customer. However, since Google is setting these prices, it's different.
That is just too much $. Sorry google you're one person less from total world domination
@uck
one person less from total world domination would mean that you decided to hand them your money.
"one person further away" or "one less toward their goal of" however, would mean that it was too expensive for you.
@Prokanda
Actually its ambiguously bad grammar either way.
@Prokanda
Does it matter that much to you? The Internet is full of douches.
I wish to upgrade, but 530 bucks is a lot at once. I am a current Tmobile customer and wish they offered this
That's pretty bad. My wife is on T-Mo (under my name) and I'm on Sprint. My contract has passed (SERO), and I was toying with the idea of going for a new plan due to lack of phones available now under SERO. The N-One looked good, and was thinking I could get a good deal on a family, but if they look at it as if I'm existing and not adding, then no-go.
*Existing customers that are out of contract! 14 months no, two years yes.
"...especially since Google's systems aren't even allowing upgrade-eligible T-Mo subscribers to purchase at a discount"
They actually are giving a discount. If you don't have an internet data plan it's a discount of 250ish? And for everyone complaining, you only need to keep the plan for 120 days...
I was just telling a friend of mine (on t-mobile) that he needed to wait for the n1 before upgrading his sidekick. Doh!
@theschneidster If you really consider him a friend, then you'll give him half of the money to get out of his Sidekick.
@theschneidster
T-Mobile offers a 14-day return before you're stuck.
Lame.
@Banksta3 Right? You have a Sprint logo as your avatar, when is Sprint getting some new Android phones? I am out of contract w/ them but I am waiting for a really good Android phone.
@Valicore actually, he apparently doesn't know how to resize photos. his avatar says "print". i wouldn't trust his lying words.
Umm that's not true at all, Nilay. Existing T-Mob customers eligible for an upgrade get it for $280 if they don't already have a data plan or $380 if they do.
@MarcusMaximus By the way, if you want to know how I know this, my Nexus One that I bought yesterday for $280 is out for delivery right now.
@MarcusMaximus Oh and this is the last one, but here's a link for reference: http://www.google.com/support/android/bin/answer.py?hl=en&answer=171784
@MarcusMaximus I'm an the unlimited loyalty plan which they offered me to upgrade to without a contract renewal from my G1 plan. and there are no upgrade paths for me.
@dougi Woah, really? I'm on an unlimited loyalty plan too with the G1 but had to re-up my contract(I was only able to do that because I moved off a family plan to an individual plan about 8 months ago and they apparently made me eligible right away after that... unless the same thing that happened for you happened for me and I just didn't know about it..., and the G1 service plan apparently doesn't count as a data plan). How were you able to get them to not make you re-up?
@MarcusMaximus
That's still ridiculous to charge existing custom $100 more.
This is one of the reason I keep switching between verizon and t-mobile in the past 10 years. Verizon does not treat existing custom differently.
@yejun T-Mobile doesn't treat existing customers wrong either. This is completely on Google, not on t-mobile.... T-mobile is not selling the phone.
@MarcusMaximus
Did you get pushed to the $79.99 plan?
@gerrrg Indeed I did, though it hasn't shown up on my T-Mobile account yet. I'm guessing that'll happen when I actually get/activate the phone?
@Leachpunk
That's not case when you buy t-mobile phone from 3rd party dealer.