Google Inc. on Friday cut the price of its Nexus One mobile phone by $100 for some buyers who are already subscribers to Deutsche Telekom AG's T-Mobile USA.

The Internet search company said existing T-Mobile subscribers with data plans were initially being charged $379 for the Nexus One, while subscribers without data plans were paying $279. Under the new pricing plans, all T-Mobile subscribers will pay $279, and those that had purchased the phone at the higher price will be refunded the difference.

The phone sells for $529 without wireless service. New subscribers, however, can buy the phone for $179 with a two-year contract from T-Mobile, currently the only U.S. carrier that provides a Nexus One wireless plan.

A Google representative said the company realized the pricing was confusing for T-Mobile subscribers who want to upgrade their phones to the Nexus One. The move might help squelch some of the criticism that has tarnished Google's first branded phone since its launch last week.

While the phone was built by Taiwan's HTC Corp., Google is selling it directly to consumers through a Web store. By selling it online and convincing operators to offer wireless plans through its site, the Internet search giant wants to speed innovation, lower costs and establish a new model for the way mobile phones are sold.

But early praise was quickly overshadowed by a series of reports about connectivity snafus, customer service shortcomings and eye-opening "recovery" fees. Shares in Google were down 1.0% at $583.61.

Source:totaltele