How do I use my iPhone 4 as an iPod?

I got an iphone 4 for my birthday but dont want to activate it because i have another phone which I use. I am trying to setup the phone so I can use it as an ipod but in one of the steps after I connect it to my wifi it says SIM Required  Please insert a SIM card. I dont have a sim card for it and dont want to get a service plan.  Can I buy just a sim card at a att store and will it go pass that step?
My iphone is on ios 7 with AT&T

activating it have any effect on the phone you currently use.
dont want to get a service plan.
You don't need a service plan.  You just need a sim card

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