I am in a ancestral plan and have have this one phone for about 3 years immediately. Can i buy a new unlocked/pre-paid phone and insert the plan sim card within it? Will it work that way?
Answers: That's the imaginative intention of SIM cards. They are supposed to work that way. However, in attendance are various potential "gotchas," such as whether the alien phone is truly unlocked, whether it is a GSM phone, whether it works on the same band, etc. But, in opinion, yes, it is supposed to work the way you describe.
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