Yes. I would like to confirm, seems to happen only when you make the connection 
available to all users. 
Connection usually works. Although I only noticed this bug because it wasn't 
working, and I wanted to look at the connection settings, and I noticed at that 
point my broadband wireless wasn't even any more in the list of possible 
network connections. 

It seems The exception "insufficient privileges" occurs BEFORE one is shown the 
authentication dialog. 
This would sound like to me, a reason why authenticating at that point does not 
help the situation (because the damage to the program flow has already 
happened.) 
After authentication, the dialog just disappears with the error message.

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NetworkManager won't allow user to edit settings of Mobile Broadband connection
https://bugs.launchpad.net/bugs/456261
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