Do you need service to use facetime on an iPhone?
I just bought an iPhone and I got the itunes thing set up. My phone's not activated with service yet. Can i still use facetime?
You will need either cell service or Wi-Fi access.
Via Wi-Fi, yes.
You don't need phone service, just connect to your home Wi-Fi or if out then any external Wi-Fi like McD's, coffee shops, panera, etc… That basically like using an ipod that way, you can use imessage that way also.
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