Hoooly ****. That was a rollercoaster.
I finished downloading the iPhone 5 ipsw, and set to work.
I backed up the iPhone 4 fresh. After it was finished, I plugged in the iPhone 5 and began the restore process. I have an extremely shoddy internet connection right now (just moved and mine isn't setup yet), so when I remembered that iTunes had to connect to the internet for the restore, I was a bit worried. Regardless, after searching every spot for the best wifi signal I could muster, I began the process.
After about 3 minutes of the spinning wheel on the screen for verifying the restore, it finally completed and began restoring the phone. The software updated and verified successfully, and then the firmware began. About 3/4 into the firmware update, the bar stopped, and itunes showed the spinning wheel and verifying firmware. Then it errored and the phone went into recovery mode.
Error 1 was the code it was giving me. I looked at Apple's error codes and saw that Error 1 indicated a hardware problem with the device.
I tried a few more times... placing the ipsw in the default itunes location and using the restore button without pressing option, using the other usb port, etc.
No luck. Error 1, every time.
Some further googling lead me to see some discussions of error 1 happening when there is baseband corruption, and I started to get a very bad feeling. I thought that perhaps at some point I might have unlocked the phone, or prevented a baseband update, and that those hacks had probably carried over and corrupted the baseband. This would not be a fun thing to deal with normally. On day 2 of the device being out, without any tools, jailbreaks, or information out there, this might not be solvable by me. I was having visions of having to send my phone back to Apple and use my iPhone 4 for another 2 or 3 weeks before I was able to get a replacement.
I read somewhere that when people got the error on 5.1.1, they only needed to kick the device out of recovery, so I went to Tiny Umbrella. The iPhone was showing as an unknown recovery device, and gave me the option to exit recovery. The first time I tried, it crashed. I thought that Tiny Umbrella probably hadn't been updated to support the iPhone 5. The second time I launched it, it told me there was a new version. It was only a very minor update though, and the blog didn't mention it. I downloaded it, and tried again. This time, it didn't crash, and the iPhone restarted. The sun began to rise over the horizon, and the light started peaking... and then dark clouds took over the sky as the phone returned into recovery mode.
I decided to restart the computer and try one more time. If it didn't work, I was going to call AT&T and have them return service to my iPhone 4. I should mention that at this point, my phone had been out of commission for about 3 hours (very, very slow internet, so doing research and restoring the phone took a lot of time), and I have to head to work in a few hours, and I absolutely need a phone.
It went through the same process, got stuck at the same place, wheels spinning while verifying the firmware update... and then... it kept going. The restore completed normally. No errors!
I still wasn't out of the woods. After the phone restarted, I began restoring from the iPhone 4 backup. This process went normally as well.
I set up the phone, turned off the wifi, and tested the data connection.
The web page loads without issue. It worked.
Problem:
After activating a new iPhone 5 and restoring it to a backup created by the old jailbroken iPhone, data connection does not work on the new phone. Attempting to use the data connection gives the error "Could not activate cellular data network - You are not subscribed to a cellular data service".
Diagnosis:
This problem is a result of modifying the APN files on your old jailbroken phone at some point, likely from many iOS versions ago. The interface to modify/delete those APN files are no longer around. Since the corrupted APN files are included with the iPhone backup in iTunes, restoring the iPhone 5 using the backup has overwritten the default APN files with the corrupted files.
Solution:
This requires having access to your previous iPhone with all of your data on it, and the previous iPhone must be jailbroken.
1. Use iFile or SSH into the phone and navigate to /private/var/Managed Preference/mobile
2. Delete the file named com.apple.managedCarrier.plist
3. Move all backups of the old jailbroken iPhone into another folder. Backups are located here. ~Library/Application Support/MobileSync/Backup (You can access this by selecting the finder and then going to "Go > Go to folder")
4. Create a completely new backup of the old iPhone (Control click on device name in iTunes and select Backup)
5. Restore new phone using iTunes. After it is complete, setup the phone as normal, and when given the option, choose to restore from iTunes backup. In iTunes, select the backup you just created for the old phone and restore it.
The phone should restore normally, and your data connection will be fixed.
Notes: I do not know what was causing the Error 1 problems I was having. I tried kicking it out of recovering using Tiny Umbrella, switching the USB port, using/not using control-restore, and restarting the computer. I did not use control-restore the time it was successful, I just used the normal iTunes recovery process.
Cheers!