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Getting a SIM card in Spain

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I'm starting to research the options for traveling with our phones for our 3-week trip to Spain in May. We both have the iPhone 5, which requires a Nano SIM card.

After looking at the international plan for Verizon, I think we're better off with a SIM card. Any recommendations for companies as well as where to buy the cards? We will be arriving on a Sunday morning and traveling directly to Toledo, so unless there are good options in the airport, we might be better off purchasing a SIM card in Toledo. Should we purchase the SIMs at the airport or Toledo? If we wait till we get to Toledo, are there recommended shops or businesses?
The trip will be in Toledo, Andalucia (2/3 of our traveling will be here), and then Madrid, so coverage should be good for a broad region.

Are needs are relatively simple: contacting owners of our rental apartments, a friend in Madrid, staying in touch with each other. We may have limited contact with home, but that's not a priority. We travel with an iPad, so trip research and other social contact we will do using WiFi at hotels & apartments.

I'm overwhelmed by reading the plans and the differences between each of the major companies, so any suggestions or advice is most welcome!

Thanks,
Paule

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