IPhone 4 not registering SIM Cards after Factory reset?

My boyfriend has been having issues with his iPhone 4 for a wee while now and I decided last night that the best thing to do was to factory reset it. It was running very slow and it kept crashing.

The iPhone NEEDS a sim card for the set up process, so my boyfriend had a o2 P&G SIM in it, despite the fact it was never used for it's intended purposes. He lives up the Glens in Scotland and signal is non existent, so the phone was being used as a tablet. Just for Facebook browsing and Skype through the Wi-Fi.

So I factory reset it and now when it's coming to the set up the iPhone isn't accepting any SIM cards. Telling me that all the carriers are unsupported under the activation policy and the SIM is invalid.

I contacted o2 earlier who said that the sim was no longer usable and I needed to get a new one. So I tried the phone with two other active SIM cards from the household, one of which o2 and the other on 3. Neither of which worked, the same message was displayed.

So the iPhone now is SIMless, but before I go buy a new SIM I wanted to know what the best process to go through was. Do I need to unlock the iPhone?

iPhone 4

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