Unable to unlock my iPhone's SIM

When trying to unlock sim card on my iPhone 4S I see "Unlocking" screen with no reaction for a very very long time (two minutes, still no progress). When I enter wrong PIN, it shows the error, but it's unable to unlock the screen when correct pin is entered.
Any help is much appreciated.

If you try to unlock with the wrong code with three invalid codes, it will block you from trying again. You will have to get a PUK code from your carrier to unlock that and if you fail with that after 10 tries, your SIM will be dead and require replacement (possibly purchase).
I suggest you either call (if you can on another phone) Apple for support, stop by your carrier, or a Genius Bar.

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