Why factory unlocked iphone 4s is showing that the iphone is not activated?

I bought factory unlocked iphone 4s on ebay for my sister-in-law who is in europe. And the seller assured that it is factory unlocked and will work perfectly. I have non activated sprint sim card and when i inserted it in to the iphone it showed that "the iphone is not activated.contact the carrier". What does it mean? Does it mean that the phone is not factory unlocked?

It's not activated to a carrier you can still use it as an iPod so to speak. You can choose to go with any carrier since your unlocked

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