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1st question: it's about the phone activation.
1. you have to use iTunes to active your phone.
2. you don't need iTunes, you active your phone when you set up your phone.
2nd question:
1. what's the difference between setting up has a new phone and then restore app/music from a backup vs just restore from a backup to the new iPhone 5?
2. alos how do i get all my settings from my old iPhone to transfer over to my new iPhone?