diff --git a/src/nm-policy.c b/src/nm-policy.c
index aed2f89..ed41f2e 100644
--- a/src/nm-policy.c
+++ b/src/nm-policy.c
@@ -854,13 +854,15 @@ device_state_changed (NMDevice *device,
 {
 	NMPolicy *policy = (NMPolicy *) user_data;
 	NMConnection *connection = get_device_connection (device);
+	NMDeviceType device_type = nm_device_get_device_type (device);
+	int is_modem = (device_type == NM_DEVICE_TYPE_GSM) || (device_type == NM_DEVICE_TYPE_CDMA);
 
 	switch (new_state) {
 	case NM_DEVICE_STATE_FAILED:
 		/* Mark the connection invalid if it failed during activation so that
 		 * it doesn't get automatically chosen over and over and over again.
 		 */
-		if (connection && IS_ACTIVATING_STATE (old_state)) {
+		if (connection && IS_ACTIVATING_STATE (old_state) && !is_modem) {
 			g_object_set_data (G_OBJECT (connection), INVALID_TAG, GUINT_TO_POINTER (TRUE));
 			nm_log_info (LOGD_DEVICE, "Marking connection '%s' invalid.", get_connection_id (connection));
 			nm_connection_clear_secrets (connection);