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Carrier Transferring old SIM to iPhone 12 during setup?

I did have the same questions and reached out to Verizon. They also have a FAQ (link attached).
You can use a 4G/LTE SIM on the 5G network (both “Nationwide” and UW). It will work with the iPhone 12. However, they recommend you upgrade to a 5G SIM as the old SIM may not work with “future enhancements” of the 5G Network.

Hence, I ordered a new SIM (alongside the SIM free iPhone 12 Pro) and will activate with that SIM just in case.

SIM card and eSIM FAQs | Verizon Customer Support

Learn how to setup and activate a new SIM card. Replace a lost card or install a new one when you bring your own device (BYOD) and switch to Verizon mobile.
www.verizon.com
 
The iPhone 12 Pro comes with a SIM that says “5G” on it. I initially swapped SIM cards, which worked. But then I decided it was best to keep the 5G-labeled SIM card so I swapped them back and called Verizon. I just had to provide the new iPhone’s IMEI and ICCID numbers and my new iPhone activated without a fee. I recommend going this route for Verizon customers who buy the iPhone from Apple. Although it’s convenient to dial 611, you may want to call from another number because your call will drop when the activation occurs.
 
AppleFeller said:
Verizon will require a new 5G simcard to be in the phone, make sure you request this at your carrier or a local apple store when you receive your 12 Pro Max if ordering unlocked sim free model. A new SIM card in general also ensures optimal cellular voice and data performance on the device.
Click to expand...
I purchased sim free from Apple. I put old sim from 11 Pro into new 12 Pro. Works great. I don’t care about 5G at this time and my Verizon plan isn’t 5G. I locked my 12 Pro on LTE in settings. Verizon rep told me when I’m ready I can upgrade to 5G plan and sim.
 
My 12 came with instructions from AT&T on how to activate the new SIM.
It’s a simple self-service website.
Put in your phone number and the SIM info and reboot the phone.
Done.
 
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