OK I'm not sure anymore. Some quick googling makes it seem as though it uses data. When I bought my first blackberry, I was told it uses texts. There appears to be a lot of confusion (still) on various forums, it seems that some of Verizon's phones do use texts, and some (like blackberries) do not, and the sales/support reps tend to not understand the difference.
I was told many times by different VZW employees that it uses texts, so either they were wrong (not surprising) or it has since changed.
Sorry for the confusion...