gnokii identifies Nokia E50, but still gives Initialization failed (11)

Hi there

I've received used Nokia E50, and I've decided to use it as a SMS
gateway. I've bought CA-70 cable and started to play with gnokii. I
had some troubles finding correct combination of modprobe's to get the
tty working, but I did it finally. Standard gnokii from Debian testing
couldn't connect to the phone at all, so I got CVS version, and this
got me somewhere. With --identify I have some output, but only
partial, and it still ends with "Initialization failed (11)" error.
Here's the debug output:

GNOKII Version 0.6.28cvs
LOG: debug mask is 0x1
Config read from file /home/leafnode/.gnokiirc.
phone instance config:
model = AT
port = /dev/ttyUSB0
connection = serial
initlength = default
serial_baudrate = 19200
serial_write_usleep = -1
handshake = software
require_dcd = 0
smsc_timeout = 10
rfcomm_channel = 0
sm_retry = 0
Initializing AT capable mobile phone ...
Serial device: opening device /dev/ttyUSB0
Serial device: setting RTS to high and DTR to high
Message sent: 0x00 / 0x0004
41 54 5a 0d                                     | ATZ
write: [ATZ<cr>]
read : [ATZ<cr>ATE1<cr>AT+CMEE=1<cr>AT+GMM<cr>AT+CGMM<cr><cr><lf>OK<cr><lf>]
Message received: 0x00 / 0x0028
02 41 54 5a 0d 41 54 45 31 0d 41 54 2b 43 4d 45 |  ATZ ATE1 AT+CME
45 3d 31 0d 41 54 2b 47 4d 4d 0d 41 54 2b 43 47 | E=1 AT+GMM AT+CG
4d 4d 0d 0d 0a 4f 4b 0d                         | MM   OK
Received message type 00
read : [OK<cr><lf>]
Message received: 0x00 / 0x0004
02 4f 4b 0d                                     |  OK
Received message type 00
read : [OK<cr><lf>]
Message received: 0x00 / 0x0004
02 4f 4b 0d                                     |  OK
Received message type 00
read : [Nokia E50<cr><lf><cr><lf>OK<cr><lf>]
Message received: 0x00 / 0x0011
02 4e 6f 6b 69 61 20 45 35 30 0d 0a 0d 0a 4f 4b |  Nokia E50    OK
0d                                              |
Received message type 00
read : [Nokia E50<cr><lf><cr><lf>OK<cr><lf>]
Message received: 0x00 / 0x0011
02 4e 6f 6b 69 61 20 45 35 30 0d 0a 0d 0a 4f 4b |  Nokia E50    OK
0d                                              |
Received message type 00
Message sent: 0x00 / 0x0005
41 54 45 31 0d                                  | ATE1
write: [ATE1<cr>]
Message sent: 0x00 / 0x000a
41 54 2b 43 4d 45 45 3d 31 0d                   | AT+CMEE=1
write: [AT+CMEE=1<cr>]
Message sent: 0x06 / 0x0007
41 54 2b 47 4d 4d 0d                            | AT+GMM
write: [AT+GMM<cr>]
Message sent: 0x06 / 0x0008
41 54 2b 43 47 4d 4d 0d                         | AT+CGMM
write: [AT+CGMM<cr>]
Initialization failed (11)
Serial device: closing device
Telephone interface init failed: Command timed out.
Quitting.
Cannot unlock device.
Command timed out.

As you can see, the phone replies to only some of the AT commands.
What could be the problem - phone or software?

Regards
   Leszek Krupiński