On integrating modem in AppManager, I get "Modem is not connected properly" error message, what should I do?

On integrating modem in AppManager, I get "Modem is not connected properly" error message, what should I do?

SMS Server should be configured for sending SMS alarms via Modem. Available in Windows build only.

Prerequisites:
  • Connect your GSM Modem to the Serial Communication Port in Applications Manager host.
  • Only a serial cable must be used for connectivity.
  • Supported mobile phones and Modems:
    http://goo.gl/9ava4
  • Applications Manager uses "SMS API" from smslib & it has listed the supported modems.
    http://smslib.org/doc/compatibility/
If your modem/mobile phones is not in both lists, then check if it meets below criteria:
  • Modem/Mobile phone must have GSM functionality with a provision to insert the SIM card.
  • Should support 7bit (GSM default alphabet), 8bit and Unicode (UCS2) encoding.
  • Applications Manager uses AT commands to send SMS, so the device should respond to AT commands (Test using Windows HyperTerminal).
If above criteria match, Applications Manager may support that modem/ mobile phone with below steps:

Edit <AppManager Home>\working\conf\SMSServer.conf with any text editor by opening it with 'Run as Administrator' option. 
Change the baud rate (serial.baud=9600) to the specific baud rate of that modem/mobile phone and restart Applications Manager.
Attempt to configure the Modem again.