Verizon originally was going to require customers that would like to buy the Motorola Xoom to also purchase a data plan. You could order the Xoom and sign up for a data plan and then cancel after the first month for those that want to use it for Wifi only. That required a 1 month $20 payment as well as paying for the $35 dollar activation fee. Today Verizon has came out and changed that.
Verizon has since changed the initial plan and is now allowing customers to buy the Motorola Xoom tablet outright with no data plan for $800 with no contract. This is great news for those looking to buy. I'll personally wait for the Wifi only version. Verizon has not yet updated the site with the changes but we have been told they are in effect. Best Buy is also honoring this change so feel free to walk in to Best Buy and get your own. If they aren't all sold out of course. I did want to mention that Verizon Wireless customer service says that if you already purchased a Xoom and paid for the required fees and data plan, you can call them and have the plan removed and the cost will be refunded to you.