Verizon expects the device to be certified "shortly"
Verizon has opened the curtain a bit and explained the LTE device certification procedures a little, especially in regards to the LTE-ready Nexus 7 (2013). If you recall, users are having mixed experiences trying to get the new device registered and activated on Verizon's LTE network, leading to a bit of understandable outrage.
Verizon sent a statement late yesterday noting that the Nexus 7 was not yet certified for their network, and as such could not be activated. Today they expand on that.
The Google Nexus 7 is not yet a Verizon 4G LTE certified device, though it entered our process in August and we expect it will be certified shortly. Once the device is certified, we will work with Google to enable the device to be activated on our 4G LTE network.
They go on to explain that they have one of the most rigorous testing procedures of any carrier, and that certified third-parties, who are actively selected by both Verizon and the device manufacturer, are hard at work.
While this answer doesn't address any issues about the C block auction rules and how they may be in violation of them, at least it's something. Like you, we're waiting to hear word from Verizon that they will be happy to take your money every month while using the new Nexus 7.