Google Inc. has lowered by $200 the fee it charges customers who break a standard two-year contract for its new Nexus One phone on the T-Mobile USA Inc. network.

The Google fee was dropped to $150 from $350, but customers who break a contract on the phone will still have to pay an early termination fee of $200 to T-Mobile.

The lower “equipment recovery fee” on the Nexus One, which took effect on Jan. 4, will apply to customers who break their contract after the 14-day trial period but before 120 days. Customers who break the contract after 120 days will not have to pay any fee.

Google also lowered the equipment recovery fee for existing T-Mobile customers who upgrade to the Nexus One from another handset and then break their contract to $50 from $250.

The Nexus One phone costs $179 for customers who sign up for a two-year plan with T-Mobile, or $529 for those who purchase an unlocked phone that can be used with any GSM wireless network, including T-Mobile’s.

Read the full story on ABC news.

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