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That’s what I am currently doing. I don’t have a cellular plan for the Apple Watch and only have it synced to my iPhone. You don’t have to get a carrier plan for the Apple Watch. However, you do need to be in range of your iPhone for it to have its functionality if you’re not going to get a cellular plan for it.
Yes, you can still use this without ever adding it to your cell plan. It works just like an Apple Watch that only has GPS. (Only by Bluetooth, within a certain range from your phone)