Starting Android For The First Time; If You Don't Have A Sim Card - Google Nexus One User Manual

Android basics

Starting Android for the first time

The first time you power on your phone (after setting it up, as described in "Your phone
and accessories" on page 15), you're prompted to touch the Android logo to begin
using your phone.
Then you're offered a chance to learn about your phone, you're prompted to create or
to sign into your Google Account, and you're asked to make some initial decisions
about how you want to use Android and Google features.

If you don't have a SIM card

If your phone doesn't have a SIM card installed, you can't connect to mobile networks
for voice and data services, but you can connect to a Wi-Fi network to sign into your
Google Account and to use all the features of your phone, except voice calling.
If you start Android the first time without a SIM card, you're asked if you want to touch
Connect to Wi-Fi to connect to a Wi-Fi network (instead of to a mobile network) to
set up your phone. To learn more, see "Connecting to Wi-Fi networks" on page 68.
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Nexus One User's Guide