Got the same issue for Nexus 4 with "Your sim card doesnt allow a connection to this network" and it's solved.
You don't need to ROOT anything or Reset to factory's settings!
How-To Fix (LG Nexus 4):
Switch between Aeroplane Mode ON/OFF, reboot your device and Voila! :)
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Ref: https://code.google.com/p/android/issues/detail?can=2&start=0&num=100&q=&colspec=ID%20Type%20Status%20Owner%20Summary%20Stars&groupby=&sort=&id=42214
