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Does that also work for people who never had data service and is a wi-fi only phone for calling, no cell/mobile service?
VoLTE doesnt count against your data plan, you dont even need a data plan to use VoLTE. In fact, most carriers require VoLTE these days so when you first insert the sim card, your carrier has sent a configuration profile instructing your phone to turn it on. You can turn the data to "off" but it still leave it on for VoLTE calls only.
I know the SIM gets some information when the phine is turned on. I have never had data service on phone before, and I gave up cell service entirely awhile ago, so I was wonding how the iPhone could stay connected for service that has never existed or been used on phone.
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You mean like a VOIP number like Google Voice? Then no, your call get dropped when you move out of wifi range.