How can you get modem manager gui to automatically start on kubuntu 14.04 LTS when usb modem is inserted and also how to make it access contacts on the sim card

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As for your first question - try systemsettings / device actions and create one called modem. You might have to experiment a little. A surefire way is of course to write your own udev rule.

Unfortunately I cannot help you with your second question as I don't have a modem.

HTH