If i buy an iphone, can i use it as ipod touch?

Just a question asked by a noob. If i buy an iphone (more cheap) than an ipod touch, do i need to sign a contract to buy it?
I'm mexican but i want an iphone only for the music and camera. Do i need to sign a cotnract o something like that.
P.D Sorry for my bad english.

You can use an iPhone just for music and the camera (as if permanantly in Airplane mode) if you want.
I presume you mean you have the chance of buying a used iPhone more cheaply than an iPod touch, since retail price of an iPhone is still 2 or 3 times that of iPod touch.

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