Bought iphone 4s in the us simfree MD237LL, inserting israeli sim (cellcom carrier) and it's not working

I bought in MIchigan iphone 4S in the us, was told it is simfree. The iphone is MD237LL, us carrier AT&T. Inserted the Israeli sim card (cellcom carrier) while the iphone is connected to the pc and the itunes working and got the message:
This SIM card inserted in this iphonedoes not appear to be supporeted.
only compatible sim cards from a supported carrier may be used to activate iphone. please insert the sim cardthat came with your iphone or visit a supported carrier's store to recieve a reaplcement sim card
disconnected the iphone and reconnected it and got the same message on the itunes.
what am I suppose to do?
Thank you

You said simfree. That generally either means "unlocked", which does not come with a SIM card installed, or locked, but without a contract commitment, which may come without a SIM card.
AT&T will unlock it for you if you are a current or former customer in good standing, or you can provide proof of purchase for a no-commitment phone from an authorized retailer, meaning either an Apple Store in the U.S. or an AT&T Store.
If you bought it anywhere else, you can not get it unlocked.

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