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A Microsoft account gives you access to several functions on your phone such as Outlook.com, Windows Store and OneDrive. To activate a Microsoft account on your phone you need to set up your phone for internet.
1. Find "Sign in with a Microsoft account instead"
Slide your finger downwards starting from the top of the screen.
Press All settings.
Press Your email and accounts.
Press Sign in with a Microsoft account instead.
2. Activate Microsoft account
Press Email or phone and key in your email address.
Press Password and key in your password.
Press Sign in.
3. Return to the home screen
Press the Home key to return to the home screen.