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I just upgraded from a Bionic to the Moto X this week. The x was activated, and the phone no longer works on the Bionic, but it is still working on WiFi, emails etc. Is this just a grace period? When I look at my Verizon account the Bionic is not shown.
Right, your Bionic is no longer a cell phone on the Verizon system (it won't get cell or data services over the air), but on wifi it will still do just about everything it could do before - except make phone calls and text messages.
I went from a Bionic to a Moto X, too. I love it! I fire up the old Bionic every once in a while to keep the battery charged and update a few apps. And it still makes for a great MP3 player at the gym!
The old phone is yours to do whatever you want with it. As others have said, it will still work as a WiFi device, MP3 player, etc...just not a "phone." I factory reset my Bionic and keep it as a spare phone in case one of the phones in my home crashes, buy that's just my plan. Some folks sell their previous phones. It's your choice.
You can actually use your old phone as a phone as long as you are connected to wifi. You need to install Google voice and groove ip apps. People will call your Google number and groove ip will ring your phone.
And, as sajokaz mentioned, it's always good to keep around as an insurance policy. If anything happens to your new phone you can always reactivate the Bionic on Verizon and use it as long as you want.