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It is waiting for the Sidekick feature activation, which AT&T doesn't have. You can try having them add a data feature, but I doubt it will work. Sidekick was specifically made for T-Mobile and not meant to be used with any other provider.
Tmobile does not give out the Sidekick unlock codes , at least in the US as far as I know . Instead,go to ebay. Type in "unlock sim card". There will be hundreds of these. They are unlocking sims. Find one for your Sidekick 3. Look in the seller's ad. Many times they list supported models including hiptops/sidekicks/Sharps/Dangers. If in doubt, email them and ask. They have "universal " models too. Depending on the model, you may have to cut your sim a little . The sales ad will often show you how. There are newer ones which you don't have to cut the original sim too. I use whatever works. You get the unlock sim and put your regular phone sim on top of it and slide it into the sim slot together just as if it were just the regular sim by itself. You turn on the phone like normal. If all goes well, it will bypass the system lock and boom, you're on another network. This does not work if you take the sim unlock card out. You need it in there at all times to stay unlocked. Always ask your sellers questions to be sure if it supports your model or not. . Don't pay more then $10-15 max. If you look you can often get them for as little as 6-7. Good luck.
I found this guide online. Please let me know if this works!
"1) Insert the ATT SIM card into the back of the T-Mobile Sidekick ID (it should be located behind the battery).
2) Turn on the Sidekick ID, wait for the screens to load.
3) When the screen says "Waiting for Activation", hold the top left button (the "Menu" button with the three lines) on the Sidekick ID and hold the letter "L" on the QWERTY pad at the same time. After a few seconds, let go of the buttons.
4) If Step 3 is done correctly, the Sidekick should be directed to the jumpscreen and display all of the Menu's of the Sidekick ID.
my service provider said that is because it is waiting to be linked to the internet... in order to use it as a phone until then.... press and hold down L and the menu button for three seconds...and it will unlock the phone aspect but you still have to wait the time period for internet use...