Error "The Apple ID has not yet been used in iTunes Store"
Download the latest version of iTunes for your Mac or PC. Install it and log in with your Apple ID. If it presents the terms and conditions for Apple ID, accept them and follow the instructions on the screen.

If you are asked for credit card information, and you don't want to provide it (maybe you will only be getting free apps), you will have to register for a new Apple ID, this time creating it directly in iTunes. That is, the iTunes program on your computer, not on the phone.

Note! Do not use a web browser to navigate to https://appleid.apple.com and create your Apple ID. You must create it inside iTunes, and you must click on one of the free items (like a free song). Sadly, that's the only workaround in case you don't want to provide credit card information.

These two web resources might be helpful.


http://support.apple.com/kb/TS5366
http://support.apple.com/kb/HT2534


Excerpt:


  If you haven't created your Apple ID, follow these steps to create an
  Apple ID and store account at the same time, without adding a payment
  method.