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iphone blocked?

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Joined
30 Dec 2009
Posts
926
Location
Wigan Lancs
I bought an iphone 4 that was unlocked and used it without issue then lost it 18 months later. I had it on a sim only deal and the sim was blocked by my provider and they sent me another sim for another unlocked iphone I bought.

Now I found the phone behind the glovebox in my car, which was a nice surprise so I decided to do a full reset as a workmate was going to buy it.

My question is. if that phone was originally on a certain network will restoring it to its factory settings lose its unlocked state as my mate says his sim is not campatable and I have tried my sim in it and get the same or has my provider blocked the phone too?
 
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