HT1766 i have i phone 3G and i update it from i tunes and it says there is no sim

i have i phone 3G and i update it from i tunes and it says there is no sim

There is nothing wrong with Apple's activation servers. They are up & running just fine.
We're Sorry, Activation Server Temporarily Unavailable, contact Customer Care...Your request Could Not Be Completed?"
99.9% of the time, the cause of this issue is the fact the phone was jailbroken/hacked to unlock it for use on networks other than the network the phone was originally locked to. Apple maintains a database of officially unlocked iPhones, and when Apple's servers detect phones such as yours, activation stops & you get the message you got.
So, you need to get a sim card from the carrier the phone was originally locked to, or get it officially unlocked, if you want to activate it. Because it appears that it was not officially unlocked.
Apple has started to get "tough" with hacked iPhones, & simply won't permit their activation
Also, read here:
http://support.apple.com/kb/ts3424

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