- I've also faced the same problem
- Did try SBH-20 with other handset and couldn't have any dificulty to pair it.
- Did repair my C5502 with PC companion and reinstalled 4.3 and then did the factory default setting.
Later found that its the bluetooth hardware issue.
I went to service center and let them know about all the installations and tweaks I did with my phone. And they happily replaced my set with the newer one within 2 days...!
I must say SONY's after sales service is equally great..