Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Verizon reduces the ETF by a certain amount per month of the contract. It's different for different situations, such as what type of phone and whether or not the phone was purchased on the "edge up" plan, etc.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.