My iPhone says no service does this mean its blocked?

I bought this iphone from ebay. It says no service after I inserted my sim. So does this mean it Is blocked?

No, it means you haven't got a signal from where you are.

If it was blocked, it would say 'Invalid SIM'. 'No Service' means that your phone can't find signal. Try going outside or in a high area. If you have an iPhone 4, for now, don't hold the two black stripes on the side of the phone, near the bottom.

It might service problem near your area. It might be because of faulty antenna in your phone. This article might help you too.
http://www.iphoneattunlock.com/fix-no-service-signal-error-att-iphone-unlock

Try to change the sim with other service provider then check out what it says! If similar message (no service) comes then problem is with your iphone not with service provider

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