Not quite sure what you mean. I set up the Koodo account, no problem. And on the Iphone it recognizes the carrier but I wouldn't have reception. (I am right downtown which is why I don't think this is normal.)
When the new sim was purchased, was it activated? If not, that is the problem. If so, turn airplane mode on within the phone for about a minute then turn it off. When you see the network connection, make a call, send a text, use the internet. See if that worked.