Locking iPhone via icloud doesn't work

I recently lost an iPhone 5. I went on to my iCloud account and locked the handset via the find my iPhone app. I have since discovered that it's of no consequence at all, apparently. My telco informed me that the SIM was replaced and the phone has been used since then to make calls. Hmmm - bit of misinformation I think - not the theft proof device I'd been told about.
Pity, I really enjoyed the extra performance from the new hardware...for all of three days!

@diesel vdub - I'm not sure where you read into my post that I expected an app would be digital handset theft prevention system, but, if you've used the app to locate a lost device, you'll notice that you can put a message on the screen, make the device play a very annoying sound and wipe the device. At what point would you assume that the app wasn't intended as a theft deterrent from it's capabilities? Please do go through the motions of using an app before discussing it's features and relevant merits based on your perusal of the marcoms. As someone closer to the trough when the device was first launched, I do have a very good idea of what the internal apps are intended for.
For the rest of the gentle souls who offered advice, thank you for your compassionate, sympathetic advice.
The first things I did in order were, reported the theft to the NSW (my state in Australia)Police, reported the IMEI number as belonging to a stolen device with my service providor and made certain they moved it onto the list of stolen iPhones.
My initial post was to express dismay with the apps shortcomings and to make those operating on my earlier foundation of faith aware, that reliance on the app is, in my expereince, a fruitless exercise.

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