There are three possibilities to get this error mesage.
*Problem with sim
May be you have not inserted the sim in the correct position.Try to check it.Also check with other sim cards.
*Locked to a particular network:
If the phone is locked with a particular network and you are trying to insert other network simcard this error will occur.To unlock the network you can approach Simpleunlocking.com or unBBlock.com (specifically for Blackberry mobiles) and unlock.
*Problem with phone:
If all the above options does not work out then your guess is correct.There may be a hardware problem.Try to contact the nearby mobile store.
spicy
July 2013