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How do I use a SIM card in Spain and Portugal?

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I have an iPhone 5. Verizon is my carrier and my (inexpensive) plan does not allow me to get a one month international plan added. I stopped into the Apple store and asked about my options. The representative recommended I wait until I'm in Spain to purchase a SIM card. He showed me where it is inserted and to use a paperclip to open the slot. Where in Spain does one purchase a SIM card and will they help me get it up and running? Will the same card work in Lisbon? Is it possible to purchase before heading to Europe?

Will be in Madrid (first stop in Spain) for 11 nights and Lisbon for 6 nights. I don't plan to make phone calls (at least I hoped I don't need to) but want to use the internet for maps, etc. I found using my iPod on my last trip was great but had to be where there was free wifi. Now that I have a smartphone I'm looking forward to the convenience of having it as I walk about.

If a SIM card is not the best way to go, how easy is it to rent a smartphone over there? Or is there such a thing as a disposable phone with internet access?

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