Help with Iphone 3g Activating process!

I just updated my old Iphone 3g from 4.3.3 to 5.1.1 and when I try to activate my Iphone 3g it says that there is no service but I already put my Sim card in. When it was on verison 4.3.3 I still used my iphone normally. I tried to take the sim card out and in again and then I tried to use another Sim card but it still didn't work. I tried to activate it on Itunes but it also says that I need to put in a Sim card to activate. I just activated my Iphone 4 and it worked perfectly with no issues. And I just knew that the place where u need to put the sim card is broken at that whole but im still able to get it in and out. Is that the problem?

Please help!