Switching to simple to smartphone - what happens to upgrade?

I have a question and I couldn't find a similar case online. Hope some of you can give me some light.
I currently own a simple phone from Verizon and it is already eligible for an upgrade. I have been saving this upgrade for a while to go for the next iPhone (at that time, I was expecting June release of iPhone 5…).
But anyway, I hear rumors that Verizon is dumping its unlimited data plan on July 7 and, from I experience from my brother and sisters, I would probably need more than 2GB of data.
So here was my plan:
1. I will buy a cheap used smartphone from ebay or craigslist
2. I will activate the new smartphone and get on the unlimited plan
3. In about 2-3 months when iPhone 5 comes, I will switch to iPhone 5 at upgrade price (rather than the full price)
I am wondering whether 1) if I switch to a smartphone now, I would lose my upgrade eligibility, and 2) whether this kind of unlimited data plan transfer would work.
Any ideas?

Your plan is exactly how you would have to do it. If you purchase a phone from eBay or Craigslist (meaning, not at the subsidized price from a retail party such as Verizon, Amazon, Best Buy, etc) it will NOT affect your current contract or upgrade eligibility. You will, as you said, have to add on the unlimited data, and you will be grandfathered in once the tiered plans are introduced. It sounds like you've got it covered

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