T-Mobile is pretty adamant about you renewing your contract and adding their G1 web package to your account just to allow you the privilege of buying their G1, or soon to appear G2. If you really just love HTC phones and have to have one, which I do not – you should see my third replacement G1, it now has a cracked screen 
I’ve owned a few HTC’s, and I’ve hated them all. But hey, maybe you won’t or maybe you want to have one of the first Android prepaid phones, so I will tell you how to use one with a prepaid account.
How to use a G1 or G2 on prepaid or without the G1/myTouch Bundle:
- Get a g1 or G2 (T-Mobile myTouch 3g). You can find them on E-bay, Craigslist, where ever.
- Get a friend with a g1 and the g1 web bundle.
- Have your friend insert their SIM card in your phone and activate it for you, using your Google account.
- Once the phone is setup, insert your prepaid sim card.
This will activate the phone, and if anything happens to the phone in the future such as needing a factory reset, you will need to have your friend set the phone back up for you using their SIM card (it doesn’t have to be the same friend).
The only issue I have come across with this is a friend of mine activated her phone using my SIM card. She called T-Mobile and the woman on the phone was angered that she did not have the required bundle, and made a big deal out of it and told her she was disabling her phone. Her phone still works, though. Only the HTC Dream is available at this point in time, but the steps will work for the HTC Magic, or it’s new official name the T-Mobile myTouch 3g.
Hi will this work if I sign up for their plan on a month to month basis, as I already have a used phone. Then, I insert my prepaid sims card and see if it works–with a sidekick plan–and, then call to cancel the month to month data and voice plan? Thanks