Verizon is scheduled to launch its first Windows Phone 7 device in late March WinRumors has learned.

Verizon officials may be planning to announce the device as soon as Monday February 28 according to people familiar with the company’s plans. Verizon will introduce the HTC 7 Trophy as its first Windows Phone 7 device for $200 on a two-year contract. Verizon’s CDMA rival Sprint announced their first Windows Phone 7 device on Thursday, the HTC Arrive will launch on March 20 priced at $200. WinRumors understands Verizon’s offering will arrive in late March around the same time as Sprint.

Both Verizon and Sprint devices will ship with Microsoft’s “NoDo” update. “NoDo” is Microsoft’s first platform update and will include the highly anticipated copy and paste feature. Windows Phone 7 copy and paste has been demonstrated recently in full thanks to an unlocked emulator. Microsoft’s first update will also improve application start-up and resume times.

“NoDo”, the codename for Microsoft’s first Windows Phone 7 update, has been ready for some time. The software giant RTM’d the update in December and has been busy preparing the Zune client software and Marketplace to handle the updated software. WinRumors understands the update has been delayed a number of times due to concerns from operators and device manufacturers.

Microsoft said in September that no CDMA versions of Windows Phone 7 devices would be available until 2011. Microsoft Senior product manager Greg Sullivan said the company had to make trade-offs. “Even Microsoft doesn’t have unlimited resources. We had to prioritize doing fewer things, really, really well”, Sullivan said in an interview with CNET. The software giant made an active choice earlier in the year to delay CDMA versions of Windows Phone 7 but confirmed the decision in mid-September.