QUOTE "On Item 2 Verizon offers the Galaxy Nexus as a subsidized phone and it is currently a $199.99 upgrade, thus your upgrading to a Nexus in September would probably be $199.99 plus a tiered data plan. Since you apparently would be starting a new contract with AT&T then for AT&T it would seem to be $399.99 from Google plus a tiered data plan. So the same Nexus phone available with both Verizon and AT&T, but apparently $200 more with AT&T." END QUOTE
If he buys the Nexus from Google, he does NOT need a contract. He just brings his own equipment and would be on a monthly no contract plan. His phone and no strings attached. Nexus would not be subsidized phone.