Wireless Cell Phone

I use AT&T and need a new cell phone but don't want to pay the asking price they normally charge. Someone told me I could buy a phone from an AT&T prepaid phone plan and put my sim card in that prepaid phone and it will work. Is that true? Will there be any limits to how the phone will work even if it's from the same provider?
What's a GSM phone?

Yes.. You can buy go phone from att, replace with your SIM and start using it. You can also buy any unlocked GSM phone and use too.

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