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Activation
Activation is the process by which a new (or newly restored) iPhone can get by the "Emergency Call Screen" to access the SpringBoard. The code in charge of this resides in lockdownd, which is always running on iOS and monitors the activation status of the device. Lockdownd patches (which requires a low-level jailbreak) activate your phone and obviate the need to activate legitimately through iTunes with an official carrier however the iPhone cannot be used to communicate unless a unlock is found for the baseband
Activation is handled by https://albert.apple.com/WebObjects/ALActivation.woa/wa/deviceActivation
iTunes uses AMDeviceCopyValue on ActivationInfo to generate an Activation Token and sends it to Apple's activation server.Once the phone number provided in the Activation Token can be matched with the data in the Activation Token, the server will generate a WildcardTicket and signs it with Apple's private key.iTunes then calls AMDeviceActivate with the WildcardTicket; The device gets the WildcardTicket and checks if the signature matches.If it does, it get pasts the emergency call screen and allowing the use of the iPhone. All devices actually go through this process including the iPod touch.Although the iPod touch can be 'activated' without an internet connection, some services such as YouTube and Push Notifications will fail to work due to not having a valid authentication token(iPad and iPod touch: Unable to use YouTube or Push notifications)so connecting to iTunes will activate the iPod Touch fully.
The iPhone needs a cellular data connection for the first time, after the activation in iTunes. You can make calls if an alert says "iPhone is activated." If you don't have a cellular data connection (3G, EDGE, GPRS) you won't be able to make calls and you have only 1 bar of reception. If you only have 1 bar and no carrier at the status bar, it isn't activated correctly.
