Original iPhone not activated, Help

I have an original iPhone (from 2007) that has never been activated. Can I use the iPhone as an iPod and have access to wireless internet without activating the phone? An Apple representative informed me that I may place a deactivated sim card in the phone and that would allow me to use the iPod and wireless features. Does anyone know if that is correct? Does deactivated sim card mean a sim card that was once used in an active iPhone? Thank you

I thought that the iphone must be activated in order for anything to work. Once it has been activated, then it can be used as an ipod, even when de-activated.

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