Upgrading unlocked 3GS from os3 to os6..and now it won't activate! Someone help me please!

Hello,
iPhone 3GS (8GB)
Many of my apps stopped working because I was still running on operating system 4. I upgraded from os4 to os6 on my unlocked 3GS...and now it won't activate. I get the below error message:
"Your iPhone could not be activated because the activation server is temporarily unavailable. Try connecting your iPhone to iTunes to activate it, or try again in a couple of minutes"
Well, I tried with iTunes and similar error message that activation is not possible at this time. I have waited and tried many many times over the past week and it won't activated
This 3GS phone I bought from a friend in the UK. It was locked to the carrier O2 in the UK. I had it unlocked and have been using a prepaid carrier since. I am currently studying in Spain and need help how I can fix this issue?
The nearest Apple store is 1 hour away. I took it to a local phone technician and he said it could not be fixed. I can't believe that this is true as it is just a software problem because the hardware of the phone works perfectly.
I would greatly appreciated if any expert out there could help me please!
Many thanks,
Daniel

Hi..thanks for your advice!
Ok, I am student so buying a new phone is not possible ;( This experience has turned me off Apple anyway! All I did was click yes to their iTunes upgrade prompt asking me if I want to update....and now I don't have a phone and can't access all my backup etc on my iTunes because it seems the only way to get to it is with another iPhone!?
I can't believe that through the Apple recycling program I could possibly get $50 for this phone because the hardware is perfect but there is no support for this issue...feels like Apple is just trying to force everyone with hacked phone to buy new ones!

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