Use An iPhone Contract-Free
9:12 pm, July 2nd, 2007, Leander Kahney

According to Erica Sadun at TUAW, the iPhone can be used with an old SIM card. She activated her phone, then popped out the SIM card and put in an old one. The iPhone continued to function as an iPod, plus web and email via Wi-Fi.
However, I’m pretty sure this won’t work with an unactivated iPhone — and in the comments someone noted that it’ll likely get disabled when iTunes checks for a software update.
Posted by Leander Kahney in iPod | Comment on this article
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There’s very little you can do with an unactivated iPhone. However, you can have a contract-free activated iPhone with a working SIM by going Prepaid.
Erica Sadun, on July 3rd, 2007 at 11:38 am
Alex King here also wrote about his iPhone w/o any AT&T service
http://alexking.org/blog/2007/07/02/iphone-without-service
Thomas Han, on July 3rd, 2007 at 10:33 pm
[...] [via Cult of Mac] [...]
Swap out the AT&T SIM card for an expensive WiFi-enabled iPod | Computers,Software,Hardware,SEO,Mac,Apple, on July 8th, 2007 at 12:18 pm