Why does System fail to get registered to SAM with error "gaierror [Errno -2] Name or service not known" ?

Issue

• Why does System fail to get registered to SAM with error "gaierror [Errno -2] Name or service not known" ?
• This is the backtrace.

2015-06-05 10:23:41,222 [ERROR] subscription-manager @utils.py:224 - [Errno -2] Name or service not known
Traceback (most recent call last):
  File "/usr/share/rhsm/subscription_manager/utils.py", line 202, in get_server_versions
    if cp.supports_resource("status"):
  File "/usr/lib64/python2.7/site-packages/rhsm/connection.py", line 700, in supports_resource
    self._load_supported_resources()
  File "/usr/lib64/python2.7/site-packages/rhsm/connection.py", line 687, in _load_supported_resources
    resources_list = self.conn.request_get("/")
  File "/usr/lib64/python2.7/site-packages/rhsm/connection.py", line 554, in request_get
    return self._request("GET", method)
  File "/usr/lib64/python2.7/site-packages/rhsm/connection.py", line 457, in _request
    conn.request(request_type, handler, body=body, headers=headers)
  File "/usr/lib64/python2.7/httplib.py", line 973, in request
    self._send_request(method, url, body, headers)
  File "/usr/lib64/python2.7/httplib.py", line 1007, in _send_request
    self.endheaders(body)
  File "/usr/lib64/python2.7/httplib.py", line 969, in endheaders
    self._send_output(message_body)
  File "/usr/lib64/python2.7/httplib.py", line 829, in _send_output
    self.send(msg)
  File "/usr/lib64/python2.7/httplib.py", line 791, in send
    self.connect()
  File "/usr/lib64/python2.7/site-packages/M2Crypto/httpslib.py", line 51, in connect
    socket.getaddrinfo(self.host, self.port, 0, socket.SOCK_STREAM):
gaierror: [Errno -2] Name or service not known