Verizon iphone 4 with bad esn what can i do with it?

I would like to connect to a phone service thats not contract

Often times a bad ESN is associated with the phone because it was on an account with a large unpaid balance. If this is the case, you will not have a way to get it on Verizon again. They've essentially banned it from the network.

To the best of my current knowledge you can:
a. Try to sell it (Please don't do this without telling someone about the ESN issue)
b. See if you can use it on a prepaid service that is compatible with Verizon phones. Straight Talk would be one of these. Only issue is that these services often times actually use Verizon's network and it's very possible that they would share this database.

It's possible the phone at this point may be useless. If this is the case, sell it. Someone may buy it for the parts.

The main thing that people do with bad ESN phones is use them for Page Plus which is a small Verizon subsidiary that has very similar coverage with way cheaper plans. The other alternative if you live in an appropriate Cricket area you can flash it to work with their cell phone service.

The other answer is correct the phone was either reported lost/stolen or the account it was on has an unpaid balance. You can't use it with straight talk as they are a sim based company. The 2 companies you could potentially flash it to are Page Plus or Cricket. Usually the stores have the faculties to do this for you if you sign up for service with them. Like he said if you sell it LET THEM KNOW IT HAS A BAD ESN and can't be used on a Verizon account