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iPhone 4s has no bars but internet still works

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Hi everyone,

I have an iPhone 4s 32GB that was passed down from a friend of mine who could not get it to work. After inspecting the phone, I noticed that when an O2 sim card is placed in the phone, the carrier logo/name 'O2-UK' appears along with full bars and the '3G' logo. However this only lasts about 2 minutes before the signal bars turn into 5 dashes. The part that confused me most is that the 3G symbol stays there and I am able to browse the internet with no problems, I'm just not able to make any calls or text.

I've tried restoring the phone, resetting network settings, changing sim card etc, all the things out the book basically.

I've repaired many iPhones in the past, both hardware and software and I have never come across this problem before. Has anyone had this problem before and managed to fix it?

Thank you.

*P.S the phone is locked to O2*

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