Product Activation Failed error message when trying to associate Live ID in Windows Phone

When signing in to your Windows Phone 7 with a Windows Live ID you will be for an activation code. If, during your first Windows Live ID sign in on Windows Phone 7, you receive an error stating that an activation code is required to continue setting up your phone, then this article may interest you.

The error message may appear as follows:

ACTIVATION REQUIRED. An activation code is required before we can finish setting up your phone. Please contact customer service. You can skip this step and do it later. Call support.

In Windows Phone 7, during your first Windows Live ID sign in, a background validation is performed prior to completing the sign-in process and connecting to Windows Phone 7 services such as Xbox LIVE, Marketplace, and Hotmail. In rare cases where this validation fails, you may be prompted to enter an activation code before Windows Live ID sign in can be successfully completed.

If you tap skip on the “Activation Required” screen, you will skip Windows Phone 7 activation and the Windows Live ID sign-in screens but you can still use your phone to make calls, run applications, send text messages, and browse the internet. The next time you try to use a feature of Windows Phone 7 that requires Windows Live ID sign in (such as Xbox LIVE gaming, downloading an app from the Marketplace, or adding a Windows Live email account), you will be prompted to sign in with your Windows Live ID which will then prompt you with the “Activation Required” screen.

The appearance of the “Activation Required” screen does NOT reflect a problem with the Windows Live ID you’re attempting to sign in with.

KB2431699 states that, to receive a Windows Phone 7 activation code, you will need to contact Microsoft Customer Service. To reach Microsoft Customer Service, Windows Phone 7 customers in the U.S. can call 1-800-MICROSOFT. Contact information for other countries can be found by visiting Microsoft.

Once you receive the new activation code from Microsoft Customer Service, you need to enter the activation code into the designated fields on the “Activation Required” screen and then tap activate.

If you previously chose to cancel your Windows Live ID sign-in by tapping skip on the “Activation Required” screen, you can start the Windows Live ID sign in process again by adding a Windows Live account to your phone.

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Anand Khanse is the Admin of, a 10-year Microsoft MVP Awardee in Windows (2006-16) & a Windows Insider MVP. Please read the entire post & the comments first, create a System Restore Point before making any changes to your system & be careful about any 3rd-party offers while installing freeware.