iPhone Tech support
For older versions of iPhone such as 1G/2G, what you need to have is original SIM card for technical support. This is important without which it would be of no use. However, 3G iPhone and 3GS iPhone can use any SIM card to activate the phone that is to be used for your iPod Touch. So do not throw away or sell that old iPhone. Instead, why not create a nice surprise gift for someone who has been waiting to get an iPod Touch.
