Why does it say my cellular data isn’t working that I need to update my iPhone 7 but it’s up to date

Troubleshooting iPhone 7 no service:

1.

Please check -> iPhone 7 Repair Program for "No Service" Issues

iPhone 7 Repair Program for "No Service" Issues - Apple Support

2. 

If it doesn't help, remove and reinsert the SIM card.

If it doesn't help visit your carrier, maybe the SIM card is damaged, ask for a replaced (new) card. Normally it is free.

Ask also to check if the SIM tray is bent, as even a tiny misalignment can cause the SIM card to not fully connect with the internal contacts in your iPhone.

3.

See these Apple articles below:

If you see No Service, Searching, or SOS on your iPhone or iPad

If you see No Service, Searching, or SOS on your iPhone or iPad - Apple Support

Manually update your carrier settings on your iPhone or iPad

Manually update your carrier settings on your iPhone or iPad - Apple Support

Update your network provider settings manually on your iPhone or iPad

Update your network provider settings manually on your iPhone or iPad – Apple Support (UK)

If you see a Cellular, Ultra Wideband, or Apple Pay Issue message after an iOS update or restart

If you see a Cellular, Ultra Wideband, or Apple Pay Issue message after an iOS update or restart - Apple Support

4. 

iPhone 7 is > 6 years old, which also affects the battery life. The hardware remains old, so does the battery.

If it is still possible, have the battery replaced.

The battery can be replaced by Apple or an Apple Authorized Service Provider.

See this Apple article: iPhone Battery Repair & Replacement - Apple Support

If you are going to replace the battery, see -> Get your iPhone, iPad, or iPod touch ready for service

Get your iPhone, iPad, or iPod touch ready for service - Apple Support

The price is approx $ 69.

If you want to know exactly, call Apple directly, see Contact Apple for support and service -> Contact Apple for support and service – Apple Support (UK) 

or 

call 1-800-MY-APPLE

Refer to this support article to learn how to manually update your carrier settings on your iPhone or iPad --> Manually update your carrier settings on your iPhone or iPad - Apple Support