The original terms of the contract are only interesting for historical reasons. That agreement has probably been amended several times. The first time was when the 3G came out and ATT provided a fat subsidy.
Apple has the chips do whatever it wants. The real issue likely CDMA vs waiting for LTE or Verizon being pigheaded about stupid stuff like putting it's logo on the phone, mandatory apps, extra user fees, or getting a cut of iTunes store profits. No matter how much people think they're in love with Verizon they're still a giant phone company and phone companies have always road roughshod over consumers.
Apple has the chips do whatever it wants. The real issue likely CDMA vs waiting for LTE or Verizon being pigheaded about stupid stuff like putting it's logo on the phone, mandatory apps, extra user fees, or getting a cut of iTunes store profits. No matter how much people think they're in love with Verizon they're still a giant phone company and phone companies have always road roughshod over consumers.