iPad 2 won't update error 16 apple won't repair

Hi,

My iPad 2 has the message Ipad cannot make/receive calls and required an update. It was working perfectly other than this message. I plugged into iTunes and it would not update and advised to restore. Tried to restore and get the error message '16'.

I took it to the apple store who tried to update it for me. Same problem happened, it gets stuck on the progress bar and the error message appears in iTunes. Apple have said they are not able to fix it at all and it's now useless.

Has anyone else had the same problem? It's 2 years old, out of warrantee and purchased from three.

Thanks