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SIM card stores contacts?

I recently had to restore my iPhone 4S to take care of some issues I was having,  After restoring, I wanted to import my contacts.  I found an "Import SIM Contacts" option under Settings - Mail, Contacts, Calendars.  Now, from what I understand, the Verizon iPhone doesn't store contact info on the SIM card. It only uses the SIM card for connecting to a GSM network for international roaming.  So I tried the "Import SIM Contacts" and to my surprise, it worked!

Can anyone explain this?


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