i am using Huawei E160E and faced the same problem...so i tried
installing usb-modeswitch and usb-modeswitch-data (see bug #546728)...it
didn't work...then i installed wvdial & restarted my pc...it works after
that...no problems...maybe you could try it?

Cheers!

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 [Lucid] Huawei USB Modem E160 does not work for unknown reason
https://bugs.launchpad.net/bugs/592564
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