Iphone 5 "No service" when cellular data is switched off

Hi I've had my iphone 5 for about 3 weeks now.
I used to switch off cellular data on my iphone 4 because I'm always near
wifi at home or at work, because I don't want any nasty bills at the end of the month.
I switched cellular data off on my iphone 5 and noticed that I lose network service, and when cellular data is re-enabled I get service again!
I thought it was maybe just a bug so I Restored.
But same issue, then I waited for newer firmware hoping the issue would be fixed and updated to 6.1
but the issue has still not disappeared.
I then decided to ask another iphone 5 user to switch their cellular data off to see if it did the same thing.... It also lost network!!!
I am on Telecom and the other user on Vodafone. (Newzealand)
I don't have this issue with my old iphone 4, so what's going on?
Does any one else have this issue?

No, it's not a common issue with the iPhone 5.
Replace the SIM. 
Reboot the router.
Confirm the router is running the latest version of firmware available.
If the problem continues, take the device to Apple for evaluation and possible replacement.

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