Got iPhone 4 from Canada using in Bahrain – SIM Not Recognised [Q]

I had a friend purchase two iPhone 4 from Canada and ship it across to be in Bahrain.
I put in the micro sim, and connected to the iTunes, but I get a prompt that the sim is not recognised, and that I need to either insert the carriers sim that came with phone, or visit the carriers outlet.

1. iTunes 10.0.1.22 on the system (windows)
2. cannot verify the os I have on the iPhone as I either get the “Connect to iTunes” or emergency call
3. used microsim on friend’s iPhone (purchased from US), and it works
4. tried using AT&T microsim, and I got the same prompt
5. online purchase was made on/around sept 10th from Canada
6. read about using the phonebook sim, but I believe that doesn’t work anymore
Guys , need your experienced advice, as I have two of these at home, and currently all they’re doing is looking amazing, but nothing more than that!

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