I am also facing the same issue.
four days back, my power buttton stopped working.
Then my sim card slot stopped reading like it was stuck at gsm/cdma band.
Even without simcard it said searching..
then I changed the power button and antenna strip myself as my iphone5 is uk ee and i live in india.
Everything was fine and I booted the phone.
The power button worked like a new device... but the searching problem still remained.
I hard resetted my phone but to no vail. even Find My phone was not turning off.
then I forced my phone to recovery mode and downloaded iphone5,2 7.0.2,11A501_restore.ipsw from web and flashed it.
At the start it recognised and everything was good until the "restoring iphone firmware" was stuck at the end point.
I tried every trick on net. Even tried to downgrade.. but it was blocked.
at the last it is either stuck at firmware or itunes unknown error (3)
Please somebody help me to recover this PAPERWEIGHT to a phone again...