That means your iPhone is locked to a certain carrier (phone company) which means you can only use their sim card.
But no worries, here is a link to a guide on how you can unlock your iPhone:
http://www.fixya.com/support/r5537989-unlock_iphone_4_3gs_3g_or_older_ios
For more iPhone / iPod touch tips, click here.
If you need online help about jailbreaking and unlocking, you can contact me personally at this email: [email protected] or add me on Skype: ebayseller.ca
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