Install zone fails : Unable to contact valid package repository

Installation of zone on a solaris 11 server fails.

# uname -a
SunOS sun03 5.11 11.0 sun4v sparc sun4v
 # cat /etc/release
                          Oracle Solaris 11 11/11 SPARC
  Copyright (c) 1983, 2011, Oracle and/or its affiliates.  All rights reserved.
                            Assembled 18 October 2011

#  zoneadm -z mstsunv01 install
A ZFS file system has been created for this zone.
Progress being logged to /var/log/zones/zoneadm.20120713T122436Z.mstsunv01.install
       Image: Preparing at /zonemstsunv01/mstsunv01/root.

 Install Log: /system/volatile/install.2940/install_log
 AI Manifest: /tmp/manifest.xml.Iua4Tf
  SC Profile: /usr/share/auto_install/sc_profiles/enable_sci.xml
    Zonename: mstsunv01
Installation: Starting ...

              Creating IPS image
              Error occurred during execution of 'generated-transfer-2940-1' checkpoint.