Yes, No (unless you want to pay per minute, rather than getting a monthly minute plan), Yes
SIM card is what "locks" the phone (and what connects you to the service provider). It's a little plastic memory chip that goes into your phone (usually underneath the battery). Until the SIM card is put in the phone, it's unlocked and can be used on any network. Once you put the SIM card in, the phone can't be switched to a different network (phone number can be changed by the provider)-there are ways to unlock some phones, but it's a twitchy process and doen't always work, sometimes it ends up frying the phone.