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Gateway is not sending messages. Modem log reports "Cannot access SIM Card"

If you experience the following problem:
a) Modem Status on the device is "Disconnected". 
b) Modem log (menu Settings Sysinfo Gammu log) says: "Cannot access SIM Card"

For example: Gammu log: Mon 2013/11/18 16:11:54 gammu-smsd[1836]: Error at init connection: Can not access SIM card. (NOSIM[49])

This error happens when device cannot communicate with a SIM card.
Perform the following steps to resolve the issue:
1) Make sure your SIM card is properly inserted into SIM tray.
2. Make sure the SIM card is activated. Test if you can send and receive messages in normal phone.
3) Powercycle your device. Please remember that you must insert a SIM card when the device is SWITCHED OFF.

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