My replacement 4S from Apple won't activate ?

I purchased my original 4S from Craig's List last year and it was running on FIDO. Last week it developed a problem with it's wireless antenna and I replaced it using Apple's OOW service for $200.- + taxes. Now the replacement phone won't activate on FIDO and I was told that it is probably locked to another carrier ? Why would that be the case when I have paid for a new phone ? So should I return it to Apple and get my money back as I now have a $200 paperweight. The whole thing is quite stupid and illogical and I can honestly say it's the last Apple product I buy. It's all such a pain it is simply not worth the time.

First off who told you it was locked to another carrier and secondly what did Apple say when you contacted them about the problem?

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