Could not activate mobile data network - iPhone 3GS

Hi, I really need some help please.
Last week I started to get this message everytime I tried to use internet services, email, web or apps. I was on 4.1.2 and the phone was officially unlocked and running a T-Mobile sim with auto-update carrier file installed.
I reset the phone, restored it and never worked, subsequently, I have done this many times, reset network settings, hard reset, soft reset and I eventually upgraded to 4.2.1. This still never solved the issue.
After countless restores and resets and iTunes updating the carrier files, nothing is working. I contacted T-Mobile who said there are no connectivity issues, must be the handset. I then contacted Apple who advised the handset is out of warranty and an 'out of warranty' repair will cost minimum £146.
The phone works fine calling, messages and on Wi-Fi it's only internet services that do not work. Is there anything else I can try or has anybody experienced the same problems?

Thanks for the advice. That was one thing I hadn't tried purely becuase it is such a pain in the ***. I reset the phone and set it up as a new one and bingo, it worked fine. I then went to restor from backup, after which, same issue, Could not activate mobile data network, so another reset and now I'm pretty furious that all my phone contacts, apps and messages have all gone.
Next question would be how to transfer phone contacts from phone to sim. I have lost all new numbers that have gone into the phone for the last year, so if I reset again, restore from backup, transfer numbers to sim, then reset again and set up as new phone I should be able to recover numbers at least.
<Edited by Host>

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