1st gen iphone. no sim. yes wifi. factory setting wont let me sync

Okay so I have the 1st gen iphone!! haha And I finally upgraded to a new phone. So my problem goes like this: I wanted to update to the new ios 6 to my old iphone so I can download newer apps that require it. I wanted to keep this phone for music and the like just because. so i backed up my all info on the iphone to itunes and click update and download. So it goes about doing what it does backing up.. restored to factory settings.. and then when it is suppose to sync my music and etc the iphone tells me "activation request could not be completed. If the problem persists, please contact customer care" My assumption is that it needs the sim card to go about this process? I think its odd because I don't remember and ipod needing to this, id figure its just the same. ANY SUGGESTIONS OR HELP IS GREATLY APPRECIATED!!!