On the new iPhone software, you can search for a contact using the first and last name. For instance, if you want to search for a contact, say Bob Smith , you would type B S (that’s B, then a space, then S) in the search field. The iPhone will filter out all the contacts with first and last name starting with B and S. You can further refine the search by typing more letters. This is a great time-saving feature; thanks, Apple!

January 15, 2012
This does NOT explain HOW to get the keyboard while in Contacts to type the name sought.