I cannot use  my iPhone to make calls or send text messages after upgrading to ios 7

I just upgraded to ios7 and I can no longer  make calls or send text messages.  The screens seem to be locking.   Does anyone know what I can do to fix it?

My wife is having the exact same issue after updating to the new iOS 8.1.1 and we've tried all the same steps even restoring the phone as a new phone. We've contacted our service provider and they've told us to go to apple to potentially "remove" her serial number from their servers to allow it to work properly on the service we have. We are desperate as purchasing a new phone right now is not an option and she desperately needs her phone for work and life.
Iphone 5 8.1.1

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