Google have agreed to reduce the fee for those customers who end their service contracts early for the Nexus One.

The fee has been slashed from USD 350 to USD 150. This fee is the fee that would apply to new customers that join the T-Mobile network, whilst those existing subscribers of Deutsche Telekom AG are charged just USD 50.

This move follows on from an inquiry by the Federal Communications Commission which back in January had sent letters to both Google and wireless companies as part of a consumer protection inquiry.

The FCC has asked Google, Sprint Nextel, AT&T and Verizon Wireless to explain how they tell their customers about the fees involved if they decide to end their contracts early. Verizon Wireless have said that they have already reduced the amount of devices that are subject to the fee of USD 350. Source – moneycontrol.com