Can someone explain this Verizon iPhone 4 plan?

Wasn'tMe

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I was looking Verizon web page a few days ago and it said
A plan for a free IPhone 4 for $40 a month, 2 year contact
$350 for early termination, unlimited talk and text.
Pick how much data you'll use, this is my question, how does
the data thing work and how much will it be or what are the options?
 
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