IPhone 5 that was purchased as 'unlocked' won't work with my carrier!

I purchased a few days ago an unlocked iphone 5 from an apple store at Barcelona in full price of 667 euros and i can't get it to work with my carrier.
I live in Israel and there is no way i can contact that store.
I tried looking for a relevent place to ask this question or get help but this site won't offer any for my kind of problem.
can someone please give me an advice what to do?!
Is there a chance i've been fooled to believe it is unlocked and it really isn't?
Thank you very much for your help, i will appreciate it very much!

When i try to activate the iphone both via Wi-Fi and via connecting it to iTunes i get the following message:
"this iphone is not currently setup to work with carrier you're attempting to use. please insert another sim card from a supported carrier or request that this iphone be unlocked."

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