Performing reset to factory settings iphone 4 ios v6.0

I have an iPhone 4 running ios 6.0.  I performed a reset to factory settings and selected reset all and my phone started notifying me of sms I have already received, so I reset all content.  My phone"s status is "no service" and the screen is prompting me to connect to itunes or wifi.  I suspect my phone is jailbroken without me knowing about it.  Shouldn't I be able to reset the phone back to factory settings without tether?

That's the new normal for an iPhone straight from the box.  It's called the Setup Assistant.  The Setup Assistant steps an iPhone user through the setup process, including connecting to a Wi-Fi network, signing in with or creating a free Apple ID, setting up iCloud, turning on recommended features such as Location Services and Find My iPhone, and activating iPhone with a carrier.
Just turn the phone off without going through the Setup.

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