I bought new Iphone 5 and trying to activate it. It says itunes cannot connect to network try again?

This new iphone 5. i try activating it on wifi through phone it says i need sim card. and using itunes it says error cannot connect to itunes network try again. This is gsm unlock phone !

Did the receipt say unlocked? Apple sells iPhones without a contract but
still tied to a wireless carrier, and iPhones that are not tied to a wireless
carrier. Both are are the same price. Price paid is not a guarantee of an
unlocked iPhone.
What does it say when you look at Settings=>General=About=>Carrier?

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