Is it safe to update my iPhone 4 16gb Softbank Locked to the latest OS? I'm hesitating to update its OS because I heard it might be permanently locked and I can't use it even as an iTouch. Please confirm!

Is it safe to update my iPhone 4 16gb Softbank Locked to the latest OS? I'm hesitating to update its OS because I heard it might be permanently locked and I can't use it even as an iTouch. I understand that Softbank locked iPhone can never be unlocked, but not using this as a phone. I'm using this as an itouch.
Please confirm if I can update its OS? or what happens when i Update its OS.

If you are just using the device as an iPod touch, it won't matter if you update it, so long as you still have a Softbank SIM in the device. It doesn't have to be active, but you will need it to activate the device after you update the firmware. It won't be locked to where it cannot be used as a Touch, unless you consider not activating it, but that is something you can still do.

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