This deal is available to both new and current Verizon and AT&T customers who are eligible for an upgrade, but you will need to sign a two-year contract to nab this phone at this price. But that's not all.
Unfortunately, this deal is only available in-store so you will have to visit a Walmart near you, rather than just order one from the website. You can call ahead to make sure a particular location has the phone in-stock but Walmart is not posting such a list online. Just a few minutes ago, I called the Walmart in Fremont, California, and was told the sale is real and that they have the 16 GB model in stock.
If your grad or dad is looking for the 16 GB iPhone 4 and you live near a Walmart, pick up one of these before it is out of stock. Both AT&T and Verizon are selling the same model for $199.99 on their respective websites so save yourself some money by getting the same phone from Walmart instead.