[miketab]

Originally Posted by dishe

That's an interesting idea.
But something worth noting is that I'm fairly certain all GSM carriers in Israel offer free incoming calls. If you purchase a prepaid SIM, you could talk all you want as long as people are calling YOU. If you want to call back, it might cost less than 2.50 a day. But- you wouldn't have data this way. Prepaid data is pretty pricey. Thankfully, most of Jerusalem has free WiFi (Ben Yehuda, even parts of the old city).
I went to visit for a week last year, and found myself able to get and respond to email over WiFi (just make sure to keep GSM data off) in most public places, and the rest of the time people could call me (or I could SMS someone to call me back- sms is cheap per message as well).

But enough about *HOW* to use it there, the OP's question was if it will work. Yes, it will. Nothing further is required.

yes with local sim you get unlimited incoming even if you used all your prepaid minutes credits. Also as I explained above there is prepaid real 3G data!