I now have this issue. At first it started out with needing a cellular network update, then I called my service and they pointed me to Apple. Talked to Apple for over an hour today with a senior tech and they could not solve it. They actually made my phone UN-usable. It now says “Unable to Activate. An update is required to activate your iPhone.” When I plug it into my Mac it says to activate and update, so I do, but then it says “Activation Failed. The operation timed out.” They said "Sorry we can't fix it. You'll have to mail in it for repair." so I asked if this would be free because it's the hardware/update and they said NO. It can cost around $300 to repair.....WHAT?? Please tell me someone found a way to resolve this issue. No way am I paying that kind of money. Bare in mind I have the Iphone 7. I heard they were recalling Iphone 7s.