Originally Posted by PhilMcK
Just tried and it didn't work. I disabled data connection as soon as it booted and it then connected to wi-fi successfully but still got the same error when I tried to setup my gmail account.
I'm in the same situation as you. Work sim, no data capability. Thanks for your tip though, will have to borrow my wife's sim to get it working and then swap back to mine.
The answer to the title of this thread is 'Yes it can'. I found the problem I had was due to the network at my office. I got home and everything worked fine without any need for a factory reset etc. using wi-fi only. Perhaps that feature has been fixed in newer versions of the phone?