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Yes, it needs a data plan/SIM card to work. If you purchase through the installment plan there are various data tiers at different price points. You can also pay the full price of the hotspot then use a prepaid SIM card inside the device. This is the method I use since I only use the hotspot on trips and add money to the prepaid account when needed. $35 gets you 15GB on the prepaid plan The SIM card is inside the device under the battery.
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