According to the Engadget articles linked above, Verizon changed the pricing late in the development process because they smelled a rat on Microsoft's side and

According to the Engadget articles linked above, Verizon changed the pricing late in the development process because they smelled a rat on Microsoft's side and didn't trust them to deliver a product that would sell well. By all indications, they got wind of Microsoft's political struggles and at that point were as willing as Microsoft's managers to just fulfill their contractual obligations as quickly as possible and let the thing die quietly.