This particular no-contract phone is fast, runs Android 4.4.2, and can be used without activating. In fact, it is very easy to bypass the initial activation screen with a special key sequence – volume up, volume down, back, home – pressed after restart at the language selection screen. After bypassing that screen just once, the phone is happy to run unactivated indefinitely after that – it will never present that activate screen again. Use airplane mode to prevent phone from looking for a network to save battery, and flip on WiFi and Bluetooth. It's like a $50 iPod touch. Nice deal.
You can get this phone from a number of places, as shown in links below. Of course, there are other no-contract phone choices you could make (check all no-contract carriers – Boost Mobile, Virgin Mobile USA, T-Mobile, etc.). If you're willing to compromise on the phone software or other capabilities, you can get decent "MP3 player phones" for $30 or even $20.
- Amazon.com ($50)
- Best Buy ($50)
- Fry's Electronics ($40)
- Walmart ($50)
- Verizon Wireless ($80 and claims full retail is $249)
- LG Life's Good (info page)
So that's like a $35 iPod touch. Even nicer deal!