You iPhone simcard may just have been jostled loose. The sim card sits in a tray, accessible using a paper clip. Try removing it and replacing it, that may help.
Is there a SIM card in the phone, isn't it?
If so try to extract the SIM card and clean gold contacts with electronic circuit cleaner or GENTLY rub the contacts with a pencil rubber.
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You have to insert a sim card to your phone so you can make calls.
Using a needle or the sim ejector tool, open the sim card slot and then insert your sim card there.
SOURCE: where to insert sim card in iphone 3gs
At the top of the iPhone you will see a small hole. Use a paperclip to push in the hole and the sim card try will pop out.
Put your sim card in the tray and put back in the iPhone
SOURCE: my iphone 3Gs cannot read
Actually, there is no problem. That only means, your iPhone is locked to certain sim carriers. If you want to use your sim on your iPhone, you need to jailbreak it and then unlock it. And I got all tips for you to do those stuff.
Jailbreak iOS 4.3.1
http://www.fixya.com/support/r8857739-jailbreak_ios_4_3_1_using_redsn0w_pc
Unlock the iPhone
http://www.fixya.com/support/r5537989-unlock_iphone_4_3gs_3g_or_older_ios
Read the warnings very carefully before you try and do anything.
For more iPhone / iPad / iPod touch tips like jailbreaking and unlocking, CLICK HERE.
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