To make the most out of your Lumia phone, it is highly recommended to either sign in with one of your Microsoft accounts or create a new Microsoft account. If you already have any of the below accounts, you can use them to login when your Lumia asks for your Microsoft account credentials:

- Xbox Live - Hotmail, MSN or Outlook.com - Windows Live ID - Microsoft account

Having a Microsoft account gives you a lot of benefits:

- Download apps and games from Windows Phone Store (Microsoft Marketplace) - Automatically sync your contacts and calendar to Outlook.com - Upload, store, and share pictures, video clips and documents on OneDrive - Keep track of and lock your lost phone with Find My Phone - Get your gaming achievements on your phone, and add to them when you play games on your phone

Creating a new Microsoft account is easy. You can start from here: https://signup.live.com/signup/

To find out more about the Microsoft account, please visit Microsoft’s web site:http://www.windowsphone.com/en-GB/how-to/wp8/start/microsoft-account