iPhone Activation with NO SERVICE problem
It sounds like you have a physical problem with your iPhone; specifically the SIM card slot.  It could be a broken connection within the slot itself or a problem with  the circuitry.  The fact that the SIM works fine in another phone eliminates it as a potential problem

In order to activate your phone, you need to be connected to your carrier’s network.  This means you need a valid SIM.  Since your phone can’t read the SIM, it can’t connect.  Unfortunately, there’s no DIY fix for this.  Apple or an authorized service center will replace the phone’s logic board; there are some repair shops that might be able to do board level repair.

Until you get that fixed, you can’t activate it.