How to Setup and activate new iphone 5 factory unlocked

Hi I have recently puchased new iphone 5 factory unlocked from Apple online store USA. now I am trying to setup and activate my phone on wifi in different country but I am unable to do that. My phone says
"Activation failed"
"Please dissconnect and insert a SIM Card in the iphone"
Do i really need a sim to activate my phone. cant i use my phone for browsing on wifi without sim ?
Plz help me
Regards
Adnan

"Do i really need a sim to activate my phone."
Yes.
"cant i use my phone for browsing on wifi without sim ?"
A new iphone will not do anything until you have activated with a carrier.

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