Selling old iPhone - is this correct?

toddngina

macrumors member
From CNet:

"Q: Let's say I bought my iPhone last year and I want the iPhone 3G. Can I give my old iPhone to my sister or sell it on eBay?
A: No, once an existing iPhone user activates service for an iPhone 3G, their first-generation handset will be unusable as a phone. You won't be able to replace it with another AT&T SIM card and use it to make calls. This also means that you can't buy an old iPhone on eBay and expect to activate it on AT&T's network. However, you can use it as a media player and a Wi-Fi device for browsing the Web."

Is this true? So my phone is bricked if I terminate service on it and sell it? That's not good.
 
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