"The SIM card inserted in this iPhone does not appear to be supported." On an unlocked replacement iPhone 5.

I live in the UK and recently got my US model (A1428) iPhone 5 repaired at a UK Apple store. They replaced it with the exact same model.
The original phone was factory unlocked and I was assuming that the replacement phone would also be. Having done some tests it seems like it is unlocked (e.g. it has 5/5 dots reception and 3G) but I cannot get past the activation stage [iTunes doesn't do the job either]. The following message keeps showing up:
The SIM card inserted in this iPhone does not appear to be supported.
The SIM card that you currently have installed in this iPhone is from a carrier that is not supported under the activation policy that is currently assigned by the activation server. This is not a hardware issue with the iPhone. Please insert another SIM card from a supported carrier or request that this iPhone be unlocked by your carrier. Please contact Apple for more information.
I am planning on bringing it back for help. In the meantime I am able to (using itunes) enter recovery mode, do a restore, update the iOS, etc. but I doubt that would help so I am currently avoiding it.
Any guidance is appreciated.

The message you received indicates that the phone is locked to a carrier other than the one for which you have a SIM. You'll need to take the issue up with Apple. Nothing you do with iTunes is going to make a difference. 
I'm quite surprised that the UK Apple Store replaced a U.S. purchased phone. They usually won't.
Best of luck.

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