Yes, but it would require activation because the iPhone is special
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.
You could take it out, and put it in a regular phone, and it would have all of your contacts that are stored on the SIM card, your phone number, and your texts.
Basically, all the SIM card does, is send a signal to AT&T whenever you make a call. But, it sends that signal from your phone, not the actual card itself.
Make sense?