In a cost cutting move, my employer will no longer pay for my iPhone usage in March. As of the end of this month, I'll be done with the 2 year contract with AT&T. My company has already given me a cell phone and will give me the iPhone. Can I just use the iPhone like an iTouch if I take out the SIM card? There are games and utilities on the IPhone which I still would like to use with my wifi. Is this possible?
Yes it will keep working as a Touch, however, you will
need the SIM if you ever plan on upgrading the OS when new updates come out. When an update comes out it needs the SIM to
activate even though the SIM doesn't have a plan.
Really there is no reason to take the SIM out. When they cancel the plan, the SIM just is not valid for an active account, but should be kept for OS updates.