Iphone 5 keeps searching network problem....

My iphone 5 today suddenly started started searching network,
I took out the SIM card , it still kept searching for network instead of saying no sim or no service.
I reset network settings, then all settings, turned phone on off several times, put back sim in, hard reset it etc.
I haven't restored it from itunes that I will do next but I am wondering if any one had simlar problem.
Taking SIM card out should changed it to no sim or no service but it doesn't do that so that is weird. It doesn't matter which location because I was in my car when it started searching and I came back home still the same.
Another thing is it doesn't give me an option to select carrier manually as that option has disappeared from the settings.

Well I had the exact same problem with my Iphone 5s, I tried many things such as turning the airplane mode on/off, restarting the device and also did a network settings reset. Nothing helped.
The next thing I did was to do a general reset via iTunes to factory settings (Made a backup first. Very important if you can connect to iTunes, it's a MUST). When the phone booted-up again, I had to ''activate the phone. But to activate it, I needed a connection with a network. But that was the whole problem so I was stuck and couldn't do anything with the device.
So I called the Apple support centre. We tried a few things, they all dindn't work. The last option (which worked for me) was to do a recovery (I have no idea what this reset is called)  via the device+ iTunes.
To perform the reset, please follow these steps and hopefully it will work for you as well.
1. Open iTunes
2. Connect your USB cable to the computer, NOT to your device yet.
3. Power Off your device, and be sure that it is Off.
4. Press the home and hold it.
5. Connect the USB cable to your phone. You will see a iTunes logo on your device, you can release the home button.
6. Do a recovery via iTunes. iTunes will now recover the phone.
If it doesn't work the first time, try again. I had to do it twice and luckily it worked the second time.
I hope that this will help, Good luck!

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