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fee for activating phone?

I am a verizon customer and was given a phone by a friend that they are no longer using, I checked and it can be used on verizon. Is there a fee to activate this phone? 

Also I am eligible for an upgrade. I just don't have to time to phone right now and want to use this one until I do. If I choose to activate this phone from my friend will that take the place of my new every 2 upgrade?

Thank you for your time.

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