Only thing I can think of.. is that maybe the phone is set to use UMTS only and not GSM?
Try looking under:
Menu / Tools / Settings / Phone / Network
And see if the option for Network Mode is set to GSM or UMTS or Dual Mode.
If it is set on UMTS try changing it to GSM and see if it will then connect to the network. The Dual Mode option should allow it to switch between the two automatically. I prefer setting my phone to GSM as it will help save on battery power.
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