Many devices such as hands-free headphones, speakers, keyboards and other peripherals require bluetooth connections.

Step 1 - Tap 'Settings'

 See Below

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Step 2 - Tap 'Bluetooth' and Toggle it on

 See Below

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Step 3 - Pair up
Your iPhone will search for devices to pair with. When you see the desired device, tap it to pair your iPhone with it.  Apple has a great FAQ on the iphone bluetooth functionality.
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