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

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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]: Terminating communication: Can not access SIM card


1) Make sure the SIM card is activated (you can send and receive messages in normal phone)
2) Please remember that you must insert a SIM card when the device is SWITCHED OFF.


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