Iphone 3GS cannot detect SIM card

Hi My iphone 3GS cannot detect the SIM card.
The phone shows full bar for service provider but 3G unable. It cannot receive incoming calls and make outgoing calls.

I am assuming you updated to version 5.1.1, not 5.0.1 since no legitimate version of 5.0.1 is available.
Where is this iPhone from and what means did you use to unlock it?

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