Many AT&T customers are experiencing problems with activation due to the servers being overloaded. The same problem occurred in previous years due to multiple simultaneous activation attempts. I've called AT&T, but they said there is nothing they can do. In the past, at least we were able to use the phone for non-cellular features while we waited for the activation to go through and we only had to try once. We are being prompted to try again after the failed activation attempts this year. Apparently, you can take your phone into a corporate AT&T store for activation if you have one nearby.