1) Current customers with a basic phone that are eligible for a 2-year upgrade will have to purchase a new smartphone at the discounted upgrade price, re-sign a 2-year contract and add a smartphone data plan.
2) Current customers with a basic phone, but are still under a contract may be eligible for an early upgrade. If so, they purchase the new smartphone, re-sign a 2-year contract, and add a smartphone data plan.
When this is done, the customer will receive a special PIN Number to be used on the Verizon Trade In site, which will instruct them to mail in their basic phone within 30 days. After the phone is received, they will be sent a $100 Verizon Wireless Gift Card within 3 weeks.
Our tipster informed us that this info was given to Verizon Employees in the Western region, so it's not clear yet if other regions will be offering the same promotion.