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Used phone with AT&T plan?

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Warning:  I am a complete tech novice.

 

I have an iphone 4 that is about to bite the dust.  I am on a family plan with AT&T and was told when my brother upgraded his iphone that when I decided to upgrade mine, I would lose my unlimited data plan that I've had for years since it "no longer exists".  I now have the oppurtunity to buy an iphone 5C from a friend.  How does this affect my plan, SIM card, etc.?  I have only ever purchased phones from the AT&T Store.


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