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]
No, no, no, no, no.
It is CHEAPER to buy a Nexus One unsubsidized. Let me explain.
The subsidized version requires an $80/mo Even More + Text + Web plan with 500 minutes, unlimited text, and 10GB of web.
The unsubsidized version qualifies for any plan, including the $60/mo Even More Plus + Text + Web, which has the same 500 minutes, unlimited text, and 10GB of web.
Over two years, the subsidized version costs $80 * 24 + $180 (plus taxes and fees), or around $2100.
Over two years, the unsubsidized version costs $60 * 24 + $530, or around $1970.
Even if you finance the extra $350 for the unsubsidized version on a credit card at (say) 15% APY, pay nothing on the card for 2 years, then pay it off in full at the end, you end up paying $2082.22 for the unsubsidized version, which is STILL less than the subsidized version.
@brianwsnetworknet
I'm really getting tired of this argument. $100 (or $530) is NOT the same as $100 a year, or two years from now. It's called the "time value of money"--look it up. Yes, you pay slightly more when you finance the phone purchase through the 2yr contract, but it saves you from paying the full $$ up front--which is worth something. I'm pissed b/c they are not giving me that option, and subsidizing new customers off my monthly payments. So just drop this garbage; this "it's cheaper" argument has no genuine economic validity.
@Bugdog Point being, it's just not the issue here--the issue is us current customers (especially with family plans) getting screwed relative to new/other customers. Especially the 279/379 distinction--wtf is that? The best Tmo customers are getting the shaft on every level. It's BULLSHIT.
@Bugdog
Look dude, you're right... you're not getting it.
Example: I have an unlocked Nokia E71. I paid $285 for it. I buy 1000 minutes from T-Mobile every 6-9 months for $100. I use Gizmo5 VOIP whenever I am in wifi range at a rate of 2 cents per minute. And I do not pay for a data plan, because there is wifi everywhere I go.
It has cost me around $700 to use my phone for the past two years.
If I buy a Nexus One... It will cost me $530 upfront. Approximately $300 for cellular minutes and $100 for VOIP minutes totaling approximately $1000 over the next two years. Conversely, to purchase an iPhone I would have to pay $199 upfront and $79 a month. With the unlocked phone, I save $1095 over the course of two years.
Some people will go data only, saving themselves serious money. Regardless, do not assume that everyone has the same needs as you when it comes to a cell plan.
BTW... if you no somewhere I can put my money to earn the interest rate that would be required to make your time value of money argument fly under my scenario... please let me know. I will forgo all other purchasing and place all my cash there.
@Bugdog
You'll note that I accounted for the TVM in my post by assuming that you're going to finance the difference.
The up-front difference for the un-subsidized phone is $350; the savings over two years is $180.
So, you're paying $180 to borrow $350 for two years. That's an APR of about 23%, which is bad even for a credit card.
@Bugdog
Additionally, current customers can absolutely convert to the new "plus" no-contract plans, even if you're under contract.
Convert to the no-contract plan, put the extra $350 on a decent rate credit card (you do have one, right?) and you still come out ahead. You don't pay the extra now, and the $20/mo savings can be used to pay back the credit card over time.
Or, pay it up front and don't pay finance charges.
@Bugdog Bullsh*t. If you take the $350 and leave it in the bank, it is going to get maybe a few bucks worth of interest, if you spend it on the phone up front, it will save you $130 AND the risk of having an ETF (although you paid more up front, so there still is a sort of ETF because of lack of ROI of the device). Which is a better investment? DUH!!!
Oh yeah, and if you don't have the $530, you damn well shouldn't be buying expensive toys. There are a lot more affordable options out there, like StraightTalk and Tracfone for those that don't have cash to blow on NexusONEs, DROIDs, and iPhones.
Google is a customer service nightmare. It is the main reason that I didn't sign right up for an unlocked Nexus One. They utilize an "open-source" customer service philosophy: They rely solely on message boards were consumers can figure things out among themselves.
damn, all I do are 1 year contracts. Hope Verizon has a 1 year option
I am on t-mobile with a sweet family plan and unlocked is defiantly the way to go for huge savings in the long run. My family plan is:
700 shared minutes , 2 lines.
One line with blackberry unlimited data and text, 5 myfavs (free numbers) and other with 5 myfavs , unlimited regular data and unlimited wifi t-mobile hotspot access.
15% AAA discount.
= $112 total a month INCLUDING tax and fees.
so $560 (nexus) + 24 x 112 = $3248, for TWO phones on T-mobile. One balckberry with ~ 700 minutes*, myfavs, unlimited data and text.
One a Nexus with unlimited US call minutes, cheap international call minutes, unlimited text due to Google voice combined with myfavs. Unlimited data and unlimited t-mobile wifi hotspot (!)
*Because I will route all calls through google voice the blackberry will have a much greater share of the 700 family minutes.
Google voice is why tmobile are locking down the plans for this phone, they don't want you to use myfavs and google voice to make and receive free calls, it may also be why goole is registering your number to pass on your associated Google voice number to T-mobile....
Cant get a Nexus on my Tmobile family plan. F#ck you Google
BAHAHAHA...wow. Horrible, horrible job of taking care of your customers T-Mobile. Come over to Sprint guys, it's WAY better. Trust me.
I just contact T-mobile to tell them that I was going to cancel my account. I am on a month to month plan (my previous contract expired nearly a year ago), so I said it is ridiculous that I cannot receive the fully discount. The representative asked that I wait 24 hours, because he thinks that something is wrong with Google's website, and that I should receive the full discount. We'll see. If not, bye-bye T-mobile! I'm not paying over $300 for a phone on a 2 year contract.
iam a current t-mobile cust and i was able to order mine last nite for the 179.99. already been shipped and getting it tomorow.
I was on the phone w/TMO earlier, for a different (N1-related) purpose -- the issue being discussed here doesn't apply to me, but I mentioned it to the rep (he was friendly) -- he said there's some "confusion between TMO and Google" at the moment on N1 pricing for current/upgrading customers, and that they're trying to "work it out" (he said they've been getting customer complaints all day).
Not sure why my comment didn't post but, in short, Google and Tmobile just fucked every loyal paying customer that supported Android when the G1 was the only phone to buy.
To make it worse, Tmobile's Android phones suck compared to Verizon and Sprint. The only alternatives we have are the Cliq, the Behold II, and the Mytouch...all lame when compared to the Hero, the Moment, the Eris and the Droid.
The final piss in the face is Google just confirmed that the g1 isn't getting Android 2.1. So not only are g1 users screwed, we can't even upgrade to the true successor to the G1 without taking it in the ass.
Thanks for nothing Google and Tmobile...assholes.
I can only imagine that Google's marketing rationale here is something like "new users/adopters at all costs" and sort of using T-mo simply as a pawn in the scheme; caring about as much about existing T-mo customers as they care about say, Rogers Wireless customers.
@miguel4g
I couldnt even get past the second step it says that its trying to communicate with t mobile but it just sends me back to the second step. I am totally eligible to upgrade but google store wont let me upgrade with t mobile! im starting to get pissed!
This whole thing is just crap. Existing T-Mobile customers are being forced to change their rate plan just to get this phone. Either that or buy it at retail which is no bueno with me. I don't just have $530 laying around to spend on a cellphone. And I'm not going to go through the drama of adding a line just to get a new phone. Screw you Google. I'll keep lugging around my G1 a little while longer. And screw T-Mobile for subjecting it's loyal customers to this drivel.
To hell with T-Mo, I purchased A Touch Pro 2 for almost full price in August, I was told by the CSR that Win. mobile 6.5 would be provided 2 weeks after launch. Well here we are almost 3 months later and no 6.5 for the TP2
They will NEVER get another dime from me for a phone, I'd rather switch!
And this latest policy with the Nexus One just proves that they are no better than Verizon or ATT!!!
First of all, everyone needs to understand that this phone IS NOT related to T-mobile and thus should NOT blame t-mobile on the price of discount, If you were to call T-mobile for support on the device or to purchase the device they would simply direct you to HTC for support and Google for purchase, the only thing t-mobile will help you with is your billing issues(minutes, payments, and such), second you should thank Google for attempting to work out a deal with t-mobile to get the phone to us at a discounted rate, 3rd Google WILL give existing customers that are NOT on the "GET More Plus" or "family" plans a $200 discount on the phone from the unlocked $529 price as long as the customer is in good account standing with t-mobile and is eligible for FULL t-mobile upgrade. I know this is the case as my friend, who has been with t-mobile as long as i have (since it was voicestream) JUST did this yesterday.
Here is how:
1. go to google.com/phone
2. click "Get your phone"
3. click "Tmobile" then "continue"
4. select "no modify my existing individual plan with t-mobile"
5. input the requested information
6. select "I'd like to upgrade the phone on my existing T-Mobile individual plan."
7. agree to terms and service
8. continue
wait a little while while they contact t-mo and verify account standing and eligibility, then you will get the page that says your eligible (if you are) and the price, which is $349
DUMB just plain DUMB. I feel like a used whore. I have my payments automatically deducted from checking every months for 2 1/2 years. I spread the word to everyone that T-mobile was supreme. Then I get shafted and told my full upgrade eligibility isn't worth the same as a new customer or new line. "We've already got you so we don't care about you", says T-mobile.
If they don't fix this unfair pricing BS in 2 weeks, I will no longer be with T-mobile....PERIOD.
Google didn't set the pricing, T-mobile did. Their pricing says we don't value our existing loyal customers!!!! SHAME ON T-MOBILE
Damn! And I just got the MyTouch two weeks ago after renewing my contract!
I have absolutely no tolerance for this. Google is great for pioneering this open source movement but their handling of this release gets a C- at best. Even though this is the age of massive mobile data usage and voip, people still reserve the right to be able to talk. After all it is A PHONE isn't it? T-Mobile needs to lean on Google to allow current customers to purchase with the same or better discount as new customers. As it stands there would be no T-Mobile without current customers. Google and T-Mobile need to get the kinks worked out fast or their highly touted launch will be remembered as just another hoax. I noticed Google's stock receiving a pretty big bump leading up to the launch. I know they've noticed the trend since. I'm hoping it continues until they get this straightened out.
Either way, I am going to wait for the Sony Experia X10 to determine which phone to go after. So far Google and T-Mobile are making the choice easier by the day.
Jesus, T-Mobile has a bunch of greedy morons for customers.
@ASEVENSEE4
We're tightwads. Why do you think we're with T-Mobile in the first place?! ;^)
I talked to a T-mobile rep yesterday and here is what they told me to do if you are in my situation - My current situation is I'm in a family plan under my wifes name, my phone is ready for an upgrade and I want the Nexus One. The TMO rep said I should order the phone as a new TMO user with a new number. Once received and activated contact TMO and have the $79.99 plan canceled, port my old number to the phone and then I will be in my current family plan. Of course I'll have to renew it for 2 more years but it is worth it for this phone! Hopefully this is correct because I'll probably order this on Friday
@robertandroid
Let us know how that works out. Sounds like a minefield for accidental ETF's or other hidden fees.
@StalkyTheFish will do. I'll call TMO right before I order and see if I get the same answer first. The rep did tell me that even those ordering the phone at $179.00 with the $79.99 plan could change the plan once activated. Once you own the phone you are in TMO hands for the service. I also think that once TMO starts selling the phone directly plans can be chosen at the time of order. Why Google is forcing this plan is a mystery to me unless they figure it is the easiest way since they are in the phone business not phone plans.
Wait. Is that the Polar Clock as a wallpaper on the Nexus One? Does it work? (don't think so...?)