Verizon did away with "new every two" a long time ago...
Verizon will subsidize your purchase however. That is... you purchase a $600 iPhone with a 2 year contract, and they only charge you $200 (they pay the other $400 or whatever).
But as far as "new every two" it's gone.
http://reviews.cnet.com/8301-19512_7-20028438-233.html
EDIT: I guess it does say in that article that if you had an existing NE2 plan, it would carry over:
my bad... maybe you are eligible
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with that said, I went to Verizon to get my iPhone. They had to order it (obviously) and it was fine. A tad bumpy in the sense that they didn't have me "sign the agreement" while I was in-store so I got an email the next day that said I had to log in and "sign the agreement".
This actually worked out in my favor (or so I thought). I had originally gotten a 32gig and after doing some research and talking to friends, I changed my mind and opted for a 16gig. Too late... until I got that email. I simply signed in and "declined the agreement" and changed to a 16 gig iPhone.
Now though, wish I woulda just kept the 32.
oh well... tldr.