I don't have a SIM card for an old iphone?

My friend gave me her old Iphone (she used it as an ipod too) and i think its the oldest kind. I just updated then restored and its telling me i need a SIM card to access it. I don't have one. I also don't need one. I just want to use it as an ipod. How do i tell it that?

Jailbreak it.
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