Phone not working since 5.1.1 Upgrade

I received my Iphone as a gift 2 months ago. It was bought in China from an official Apple store. I then went to my local service provider and received a micro-sim on a pay-as-you-go deal. Phone worked perfectly for 2 and half months. I did the 5.1.1 update two nights ago and now the phone is saying:
"Only compatible sim cards from a supported carrier may be used to activate iPhone. Please insert the sim card that came with your iPhone or visit a supported carrier store to receive a replacement sim card."
I visited both VODACOM (in South Africa) and IStore (3rd party retailer of APPLE as there is NO Apple store in Africa). I put in the original AT&T sim, the phone switched on and recognises me but obviously there is no service because AT&T is not in South Africa. I then put in my Vodacom sim and it rejects it. I used the phone perfectly for 2+months and since the update this problem occured.
Help.

HI. If you read the question properly ... You will read that the phone was purchased from an official Apple store in China! I live in South Africa and no where on the African continent is there an official Apple store. So the phone is NOT a reject or hacked phone.
BUt it could have possibly reverted to an AT&T lock even though I never had to unlock it!!! It worked perfectly until I did the 5.1.1 update

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