Not sure how many times this has to come up.
From another thread by Romple.
"So I was bored and this thread is precious so I went to the VZW customer agreement.
I don't care about who says it's legal or not. Just quoting it cause a lot of people apparently have never read it. This is technically what we all agree to when we sign up.
If you cancel a line of Service, or if we cancel it for good cause, during its contract term, you'll have to pay an early termination fee. If your contract term results from your purchase of an advanced device after November 14, 2009, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. (For a complete list of advanced devices, check verizonwireless.com/advanceddevices.) Otherwise, your early termination fee will be $175 minus $5 for each full month of your contract term that you complete. Cancellations will become effective on the last day of that month's billing cycle, and you are responsible for all charges incurred until then. Also, if you bought your wireless device from an authorized agent or third–party vendor, you should check if they charge a separate termination fee.
What Are Verizon Wireless' Rights to Limit or End Service or End this Agreement?
We can, without notice, limit, suspend or end your Service or any agreement with you for any good cause, including, but not limited to: ............ or (ii) if you, any user of your device or any account manager on your account: ......... (d) modify your device from its manufacturer's specifications; or (e) use your Service in a way that negatively affects our network or other customers. We can also temporarily limit your Service for any operational or governmental reason.
Unlimited Smartphone and BlackBerry Plans and Features
These Wireless Email plans and features cannot be used: (1) for access to the Internet, intranets or other data networks except as the device’s native applications and capabilities permit, unless you subscribe to Mobile Broadband Connect; or (2) for any applications that tether your device to laptops or personal computers other than for use of the Wireless Sync or the BlackBerry solution, unless you subscribe to Mobile Broadband Connect.
We may monitor you compliance, or the compliance of other subscribers, with these terms and conditions, but we will not monitor the content of your communications except as otherwise expressly permitted or required by law. [See verizonwireless.com/privacy.] "
The Droid's "unlimited data plan" is NOT "Mobile Broadband Connect." The latter is a separate service plan that provides up to 5 gigabytes of download/upload per month for an additional $30 per month.
Information about whether such a plan is available for the Droid is inconsistent, to say the least, but even if it IS available the plan limits tethering to five gigabytes per month.
On the other hand, tethering apparently IS allowed for the Droid Incredible. VZW even details how to do it on their website IF you subscribe to the Mobile Broadband Connect plan. Thus, I'd expect such a plan to be extended to the Droid, as well. However, once again, such a plan has a five gigabyte per month limit. Period.