UNABLE TO ACTIVATE

I factory reset my iphone after I got an "cellular issues detected" error in my network settings. Now when I try to set up my iphone, I select the language, select the country, it asks me to connect to wifi, and then it says Unable to activate and then ask me to shutdown the phone.

I put the phone in recovery mode and connected it to itunes. When connected to itunes it attempts to update the phone. After this it attempts to restore the phone and then I get an error message as shown in the screenshot attached. and yes I have inserted the sim and re connected. nothing worked. My sim worked fine in the phone until randomly one day just stopped connecting to the network. Apple support suggest that its an issue with my carrier and my carrier suggest it is a device issue. However my sim worked fine in an old spare phone.