IPhone 3GS 32GB, no service/searching

I have an iPhone 3GS 32GB, i recently updated to iOS 6.1, and since then my phone is always searching or i have no service, i will get a message saying i need to restore my phone with itunes. I am on GiffGaff network and the carrier setting are all input correctly.
I will restart my phone and then i'll have the iOS lock screen where i can only make emergency calls from, I cant unlock my phone to access anything, no music etc. Sometimes i will turn my phone on and off and the problem will be rectified, but then it will just lose signal again and i will be forced to restart over and over again until i can acces everything.
Its very unreliable as a phone now, any help and suggestion would be greatly appriciated.

These are the screen shots i've managed transfer to myself while i was able to to get wifi.

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