this is nothing new Verizon already has a $6 lifeline phone
You have to hunt on their site but they already have an Economy I Service that is $6 for the line and 6 cents per minute. And in many areas their is a flat rate unlimited local for just a few dollars more.
I think this is just an example of Verizon trying to use the press to boost its stock prices by appearing to have a way to challenge the "VOIP threat" (which another of their divisions has joined already).