You phone must be unlocked to accept other cell phone providers SIM cards - if you're with AT&T getting your phone unlocked is easy - here is a link to their device unlock request site:
https://www.att.com/deviceunlock
When you arrive in Italy look for official cell phone provider store, don't just use kiosk re-sellers - whole process goes much smoother when dealing with provider directly based on my experience.
First of you will need an identification document such as passport or driver's license.
There are few cell phone providers in Italy, but WIND seems to have best package geared towards travelers:
120 min of talk, 120 SMS/Text Messages and 2GB worth of data
This is what WIND SIM card looks like:
on the back of the card there is your Italian phone number and pin code.
You will need to re-enter your pin code if you restart your phone or battery goes dead.
Once you have new WIND SIM card inserted into your phone you should see it under "Carrier" in iPhone settings and you will also get a welcome text message from WIND in Italian ;):
To verify that you have Data coverage use the following menu - it should say "internet.wind" under APN:
Reset cell data usage on iPhone to track amount of data being used:
That's all there is to it - enjoy using your phone while traveling and not having to worry about enormous charges!
To check account balance dial: *123#
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