IPhone 3S was used with Bell, then unlocked to use with Rogers. Now I want to use it as iPod (Don't want to activate as phone),but when connecting to iTunes I'm getting message: There is no SIM card, disconnect and insert new SIM card. Help?

I have an old iPhone 3S, that was used with Bell. My friend lost her phone and I lend her this one, which she unlock to use with Rogers. I got it back and want to use as an iPod not the phone, but when I connected to iTunes I am getting this message: "There is no SIM card installed in the iPhone you are attempting to activate. Please diconnect and insert a SIM card".
I went to Bell and Rogers where we tried inserting active cards but message never changed.
On the phone itself I am able to get wifi but finish with "Your phone could not be activated because the activation server is temporary anavailable."
I run diagnostic from iTunes:everything is working properly, only message out of normal is "iTunes is not running in safe mode"
How can I sinc this phone with iTunes, so I can use it to lisen to music?
Any help will be apriacieted

I can not get to iPhone screen, so no way to get to Settings. That is the problem. When I connect phone to iTunes I get screen asking to insert SIN card. On the phone I'm getting Cinfigure screen asking Launguage , Country or Region, Wi-Fi, ( I can connect to my home wi-fi), and last screen "Activating your iPhone". After two minutes of waiting IM getting message: Your iPhone could not be activated because the activation server in temporary unavailable. try connecting to iTunes or try later or contat apple.com/support.
Like I mention, I went to Bell as well Rogers store and tried to insert active SIM card with no results.
Yes, my friend unlock the phone to use with Rogers but I don't know where

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