Iphone 3gs restores fine but goes back to recovery logo after restarting

Question

i would appreciate any help that i can get, i have an iphone 3gs locked to fido and my phone carrier is also fido, so when i restore, the sim successfully unlocks it, aldo it doesnt say phone is activated, but it still takes me to the home screen and the phone and everything works fine; i can make calls, receive calls, sync with itunes and everything works perfectly. However when i restart it, it goes back to the recovery logo and although my sim is still in it, it constantly says searching... where it use to show the carrier name and remains on the restore screen and restarts itself every 10 minutes or so
I am getting really frustrated with this, i have tried everything, hard/soft reset, restoring my phone many times, resetting network settings, but itunes either says restore again, insert a valid sim with no pin lock to activate phone, or cant activate phone at this time, try again later. i tried calling my carrier company and they even replaced my sim that i got especially for this phone by telling them that i have a 32 gb iphone 3gs, but still same this, they even tried to unlock it in their system by taking down my phones IMEI and serial Number but still no luck, it still restores fine, carrier and everything works fine but after restarting goes back to the restore screen and wont budge until i restore again
is it a hardware issue? my phone is not under warranty, i am on 4.3.5
i would appreciate any help
Thank you in advance

Answer 1

try using a diff computer
if you can't try creating new user account on that computer
if none works then your looking at a hardware condition... hope your warranty is still valid