How do i clear my old iphone 5 of data?

I saw in these support communities that I should go to settings/general/reset and then select "erase all content and settings" which is fine and good until I put in my password, hit erase iPhone, then select it again after I get a warning it can't be undone, then I get asked for my Apple ID password then get the error message "verification failed.  there was an error connecting to iCloud".  Well, no kidding.  It's not going to connect to iCloud or anywhere else for that matter since I don't have service on my old phone, my service is on my new phone.  Why is it trying to connect to iCloud when I do not use iCloud, anyway?  As much as I love Apple products, some of the problems I've run into (like the new phone being shipped with iOS 8.0 instead of 8.1 so I couldn't sync until I downloaded the 8.1 upgrade) just should not happen when you spend this kind of money on a product.

I suspect it is trying to connect in order to turn off Activation Lock (Find my iPhone) and/or iMessage etc. as described in What to do before selling or giving away your iPhone, iPad, or iPod touch - Apple Support
Can you connect it to wi-fi (possibly at a public location if you don't have it available personally)?

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