IPhone or Micro Sim not working?

Ok, so my old phone (an LG tablet - Service provider Orange), went through the washing machine in my shorts (I know, silly me… )
Anyway, I just got my new iPhone in the post. It seemed fine, working and all. My old simcard still works, but only has about 3 numbers on it, so I didn't bother transferring them.

I've been fiddling around and working it out, playing and so on, but it wouldn't send or receive messages or calls. I thought this was because I have awful signal at my house, but I went up the road with it, and it still says "No Service" in the top right corner.
Wi-Fi works, but I can't use my phone as a phone…

Anyway, I used the extender thing to put the microsim into another phone, and no signal, at all. I used my old sim, and it managed to find a signal, even in my house!
So, I'm guessing I have a faulty microsim, but can anyone tell me if I'm worng, or if I've managed to miss something in the setup to make it work? If not, can you suggest what I should do - I'm guessing I have to go into town and ask the orange people x.x

If the iphone is unlocked, its def a problem with the sim

EXPLODE!