In order to make the above dongle work on my current version of Ubuntu 11.10, I have to run
sudo usb_modeswitch -v 0x12d1 -p 1003 -V 0x12d1 -P 1003 -R
and remove the modem and connect again.
Have anyone tried the E220 on the new Ubuntu 12.10? Does it work without such problems?