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iPhone used without data service, input Sim card?

Someone told me once that they used their Sim card from a non data phone in the iPhone and it worked as far as cell service goes, like a iPod Touch with cell.

Is that true? I'm about to get the new iPhone 4s and I was thinking about selling my old iPhone 3G really cheap to a family member so they could use their ATT sim card in my ATT iPhone but not have to buy the 3G service, I know the 3G part won't work but as long as the cell part works they should be OK.
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moon_blue69

Sorry I got wrong. I thought it was iphone 3. Yes it will work on all phones. 3G is only for faster download. It will work as a normal phone. Why not throw a sim in and see it yourself.
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...GSM sim card from anywhere in the world and from any GSM service provider into your iphone you want,

One small note - this is providing your modem part of your phone is not locked to a service provider, which is normally the case (but changing) in the US.
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Thanks for the info, that's good to know. Once I get my new phone I figured we can test it to be sure.

AT&T reserves the right to add the data plan to your account automatically if they determine that you are using an iPhone without one.

Is there any way they can tell if you don't tell them?
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Thanks for the info.
iPhone
iPhone

The iPhone is a smartphone made by Apple Inc. It and the iPad, along with several other mobile devices from Apple, run on the iOS operating system, which has its own topic, as does the iPad for device-specific questions. Native iOS applications are written in Objective-C or in Swift using the Cocoa Touch frameworks or HTML5 compiled with the help of a package manager such as Adobe PhoneGap; a common IDE is Xcode.

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