You have not specified a username and password for the gateway
Quote:
<parm name="UserName" value="" />
<parm name="Password" value="" />
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You don't always need the DNS bit, that depends on your carrier (for example you don't with Vodafone but you do with O2), but you will always need a username and password for your APN (in your case the APN is gprs.simi.is)