I own my Samsung Rugby SGH AM7 phone (paid for) did a reset, why does it ask to contact provider when I don't use it as a cell phone any longer? have a for an unused phone?

You own phone but its software/firmware is still locked to providers network notify provider to be released so if you want to connect to a different service you can --

Could be it is a provider linked phone. you will need the code for the model of phone you have and follow instructions to set it to be a Provider free phome

When you reset your Samsung Rugby SGH-A137, it's possible that the firmware may have been set to automatically connect to the original mobile network provider when the device is powered on. This is a common behavior for cellular devices, even if the device is no longer being used as a cell phone.
To bypass this, you may need to contact your original mobile network provider and request that they release the device from their network. This can typically be done by providing the device's IMEI (International Mobile Equipment Identity) number and proof of ownership.
Once the device has been released from the network, you should be able to use it without being prompted to contact the provider. If you continue to experience issues, you may also want to try manually configuring the device's network settings to use a different network, or disabling the cellular capabilities altogether if they are not needed.