3gs ios 5 activation issues

Hello,
I have a 3gs running IOS 5 on AT&T. I recently resotred the phone to factory defaults and I'm going through the IOS 5 setup. Activation fails as the phone is not recognizing the sim card.
I have been unable activate via itunes or over the air.
Any suggestions?

I had the exact same problem. Phone worked perfectly fine on previous firmware. Carried out the update and couldn't get passed activation screen due to it not recognizing my sim card. I tried a number of times but had no luck.
I logged into Apple support and went through the fault and ended up being rung by one of their team. They advised me to again, carry out the update and to try it all again. Nothing. Exact same results. Gave them a call back and spoke to somebody else after giving them my reference number, and was told the fault obviously lay at their end.
They then informed me that my phone still had 72 days of harware warranty on it (even though its a 2nd hand phone) and told me that a repair would be free.
AWAY IT WENT!!!!!
BUT......................
Today I receive an email to say that it will not be repaired as the repair it requires would cost more than the value of the phone! ***? Surely if the phone worked perfectly on previous firmware and fails on update then it is their issue. Nobody at any point during my conversations or emails with Apple staff had told me that this would be a possible outcome. I was told it would be repaired or replaced. My advice, get in touch with them directly. I've now seen hundreds of people having this issue and Apple obviously know about it but will most likely deny any knowledge of any faults.
I will be calling them tomorrow to take it further (with all my manors in place and a cool head) but if I dont get any real answers or results I feel a call to Watchdog or such agencies may be needed. I'll try and inform you of my progress.
Chris.

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