For people that are considering getting a discounted phone from Verizon and are not planning to stay with them, here is some info from a DIFFERENT forum (gosh, I hope I don't get in trouble for this
"I just picked up 2 storms yesterday from Best Buy and I specifically asked the same question knowing that I will cancel the service within 30 days and keep the phone at the same time. Keep in mind that I was talking to the store manager and not just a normal employee.
It would be as follows:
If you cancel within 30 days and return the phone = full refund for everything even for the minutes used with the exception of the activation fee.
if you cancel within 30 days and DID NOT return the phone = VZW pays for the minutes used. No ETF since you terminated before the 30 day guarantee period but Verizon will charge you $400 for each phone.
if you cancel between 31 to 180 days and DID NOT return the phone = you will get charged by VZW $400 for each phone + the $175 ETF for each line.
if you cancel after 181 days and DID NOT return the phone = VZW will only charge you the $175 ETF and the phone is yours to keep.
Hope this helps."