There is clearly a problem with this setup. It is interesting that you cannot activate a factory unlocked iPhone on Verizon. We can propose work arounds, but it is very easy for the person to say that they spent a fortune on an iPhone world phone and it isn't fair that they do anything else. I understand their point, but I'm not sure what the answer is. Perhaps now that the iPhone is jailbroken, someone can come up with a utility to shut off the CDMA module. Apple certainly would never approve such an App for the App store.

My understanding was that Reliance was not supporting EVDO in India so I am not sure that the speed should be that bad. Are you sure that you are getting access to Reliance's 3g network. If you are only getting access to their old 1RXTT network, then you may have roaming issues which Verizon can sort out.

Another work around is a portable MiFi style unit with a local SIM card in it. You can suck the data from it and still get your phone functions from Reliance. I know that this is more money, but these devices are $150 or so for an unlocked unit and you will pay for it in the reduced data charges on this trip alone.

Apple clearly blew it, but international roaming is never perfect. Everyone should always have their phone unlocked and have some sort of a backup SIM just in case.