Activation of Red Hat Network Satellite certificate fails with "[Errno -2] Name or service not known"

Issue

• Red Hat Network Satellite certificate Activation on Satellite server is failing with following traceback:

Traceback (most recent call last):
  File "/usr/bin/rhn-satellite-activate", line 42, in <module>
    sys.exit(abs(mod.main() or 0))
  File "/usr/lib/python2.6/site-packages/spacewalk/satellite_tools/rhn_satellite_activate.py", line 596, in main
    activateSatellite_remote(options)
  File "/usr/lib/python2.6/site-packages/spacewalk/satellite_tools/rhn_satellite_activate.py", line 290, in activateSatellite_
remote
    ret = s.satellite.deactivate_satellite(systemid, rhn_cert)
  File "/usr/lib/python2.6/site-packages/rhn/rpclib.py", line 649, in __call__
    return self._send(self._name, args)
  File "/usr/lib/python2.6/site-packages/rhn/rpclib.py", line 383, in _request
    self._handler, request, verbose=self._verbose)
  File "/usr/lib/python2.6/site-packages/rhn/transports.py", line 171, in request
    headers, fd = req.send_http(host, handler)
  File "/usr/lib/python2.6/site-packages/rhn/transports.py", line 702, in send_http
    self._connection.connect()
  File "/usr/lib/python2.6/site-packages/rhn/connections.py", line 198, in connect
    socket.AF_UNSPEC, socket.SOCK_STREAM)
gaierror [Errno -2] Name or service not known