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I tried de-registering and re-registering, reset to factory settings and nothing helps.
I have 3G connectivity and able to send book samples to this device via 3G by initiating transfers from my desktop computer browser.
I was also able to return borrowed book by initiating return from my desktop computer browser - book got deleted from my device via 3G. So there is definitely communication between my Kindle and Amazon.
I contacted Amazon support.
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