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I am now getting a new error when I try to activate after having left the phone alone for a bit - "Activation session expired." I had to reboot the phone to try again, only to get nowhere fast again
 
I would be pissed! I guess there is always tomorrow.
Well, after an hour on the phone with Apple and 3 hours with the phone, they have come to the conclusion the phone is bricked. The AT&T error was a symptom. They are sending me to sales to get me a new phone, waiting on a timeline as to when that will happen. FML.

Too many other having the same problem so yours is not bricked.
 
Finally worked!!!!! After 3.5 hours of trying I was able to activate it and set everything up! (I have AT&T). Hopefully it starts to work for everyone else. Good Luck!
 
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