If iPhone needs repair, can I use my old cell phone as back up?

If I need to send my iPhone in for battery replacement or repair, will I be able to use my previous cell phone until I get my iPhone back?
The newly posted iPhone Service FAQ states that Apple will be "renting" AppleCare Service iPhones for $29. I realize that none of the info stored on the SIM will transfer to my old phone, but I can always sync contacts to that phone from my computer, and I'd rather do that than shell out $29 for a loaner.
By the way, don't most cell companies provide loaner phones for free? Why is Apple charging $29... other than because they can.
iMac G5 2.0   Mac OS X (10.3.9)   iPhone 8GB, 12" PowerBook, mBox, ProTools, GarageBand

Definitely...your iPhone sim card will work fine in any of our current phone models (as long as they are gsm/cingular/at&t...yada yada yada). Voice service will be instantly transfered to the phone and your data service will continue to work with the temporary phone's browser...Just remember, the opposite isn't true. You can't take the sim out of another phone and expect it to work in the iPhone without repeating iActivation. Hope this helps!
Black Macbook   Mac OS X (10.4.10)   I LOVE MY iPHONE!!

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