IOS 6 won't activate and doesn't read the sim card?

I recently updated my iPhone 3GS to IOS 6 and when I go through every thing it says Could not activate iphone, try connecting your Iphone to Itunes to activate it" but when the iphone is in power with itunes it reads the phone and asks for a sim card, but doesn't read the sim card I have in it it is an AT&T sim card.

I don't think that iOS 6 is compatible with anything lower than the 4.

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