The last time I had that restoring my iPhone, I had to get it replaced at the Genius Bar. The restore would always fail on the last part, where it when to apply the firmware.
-1 is a BB problem,
try making a NO_BB custom IPSW with redsn0w or use sn0wbreeze
That is a hardware (baseband) problem. You need to replace and/or reflow the baseband chip on the logic board.
The reason why jailbreaking works is because it bypasses activation, but your modem chip is damaged.
Just klick Fix recovery in Tiny Umbrella when that error appears.