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Hi, cell phones have become more a convenient toy for me. I only really use it in places I have Wi-Fi and don't really need the phone to be connected all the time. I am also sick of paying the stupidly high fees these Canadian companies charge. As such I am considering getting an iphone. However, I do not want it to have a voice or data plan. As such, I would not have a SIM card. Can I activate and use an iphone with Wi-Fi only in this manner?

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Well then why don't you just get an iPod Touch.

The ipod touch doesn't have a microphone does it? EDIT: Apparently the new one does. This might be the way to go. Does it have bluetooth?

As for the $100 a year, that's not bad and I might look into it. I would prefer not to though.

Why do you need a microphone?

For the occasional call. I only really get a phone call every couple of months from work, but I do still need to be able to do it.

It looks like the ipod touch does indeed have bluetooth. I have found a problem with Skype though. Even with paying for a skype number, you can't receive incoming sms messages :(

Well to answer your original question, you need a sim card (Needs to be from AT&T here in the US) to activate the iPhone before you can use it. However you can use an old sim card even if it isn't associated with a plan anymore. I know this because I used my old canceled AT&T sim card to activate my wifes phone before jailbreaking and unlocking it for use with T-Mobile.

As far as sms and voice messages occasionally, I have used the txt free service occasionally with my iPod touch. I know they offer a voice service as well, but I have not used it. http://itunes.apple.com/us/app/textfree-unlimited-send-text/id305925151?mt=8

Only the newest iPod touch has a built-in microphone. But yes, it also supports Bluetooth headsets.

I have found a problem with Skype though. Even with paying for a skype number, you can't receive incoming sms messages :(

Since you need calling and texting servies albeit occasionally, it'll be far more convenient to get an iPhone. Otherwise you'll need Skype + a Skype number + any SMS/texting app (which will have no link to the Skype number).

If you can get iPhones unlocked in Canada, do you not have the equivalent of Pay As You Go tariffs (like the UK)? Alternatively, you may be able to get away with sticking in just a normal, generic (mini-)sim if you choose the options to stop data usage on the iPhone itself.

Thanks for that! It seems like the perfect route, especially since it has an extra battery as well. The Apple Peel 520 is supposed to come out with an iPod Touch 4G version this month, so it shouldn't be too far off either. Now to figure out if it will work with our cell carriers here since the FAQ says "All GSM and GSM compatible SIM cards. CDMA SIM cards are not supported. SIM cards with an enabled PUK2 or PIN2 code are also not supported." I have no idea how to tell if they would have PUK2 or PIN2, but I'll try to find out.

You could use Google Voice for that.

Google voice is not available in Canada. I found that Fido actually has free incoming sms on their prepaids though, so use skype for cheaper outgoing, and the incoming will be free. I'll be golden. I can't think of a reason to not head this route. I'm just waiting on the peel 520 v. 2 to come out for the new ipod touch 4g.

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