HT1430 CAN'T ACTIVATE MY OLD IPHONE

I just bought a new Iphone 5 and gave my old Iphone 3gs to my daughter.  She went ahead and tried to update it, something I had never done, and now we can't use the Iphone.  We keep getting a message saying COULD NOT ACTIVATE IPHONE.  I try restarting it but the same messame comes up again. If it helps at all, when I press the i (info) letter that appears at the bottom of the screen, it says:  IMEI 01 215800 301481 0    ICCID:   UNKNOWN

Your new phone has the authorization for use (sim card activation from your provider).   Old iPhones can be used like an iPod, no problem.  But not to make calls unless you establish service for that phone with a provider.

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