IPad 2 cannot be activated...activation server is unavailable

Question

I'm unable to activate my verizon iPad 2 after I did a "delete all data and contents".  It was working fine for few years until then.  I keep getting "activation server is temporarily unavailable".  I cannot activate thru iTunes either.  Restore using iTunes didn't help...it keeps failing during the activation process with the same error.  I purchased it from the Apple store and though it's the 3G model, I never activated any services through Verizon.
I took it to genius bar and they uinvestigated for 10-15 mins...came back and told me they cannot do anything about it and to replace the iPad for $250. 
I believe the problem is on their end as the error suggests (new software making old devices obselete?).  My iPad was working fine until I deleted all data and contents.  Why should I foot the bill for a problem that is not within my device?  This is so frustrating!!! 
Has anyone come across this issue and have a remedy?  Appreciate any inputs. 

Answer 1

I ran into this same problem last weekend with my iPad2 Verizon (I never activated the cellular service).  Spent 3 hours on the phone with Apple.  They claimed it was a Verizon issue.  Spent 2 hours at the Verizon store.  They said it was an Apple issue.  Spent an hour at the Genius Bar.  They told me to contact Apple Care.  After a 30min call with Apple Care they put in a ticket to “Engineering”.  A Day later they called me back and said it was a hardware issue and that I would have to either buy a refurbished one or a new one.  Today I was prepared to go buy a new one but in a last ditch effort I attempted one LAST activation.  I was in a rush so I blew through some of the screens…
…here’s how it was accidently fixed for me…
The iPad was already connected to WiFi but was turned off.  When this happens you go back to the start screen where it asks you which language.  I hit next, then next again (which country), then next again (this is the WiFi page). I did NOT let the WiFi screen load. I simply hit next before it could get a reading on anything.  Boom!  Right into a successful activation! 
So if your iPad2 is stalling and not activating, make sure you’re logged into your WiFi network. Turn your iPad off.  Turn your iPad back on and just hit NEXT, NEXT, NEXT, NEXT, quickly without letting the pages load completely. 
Good luck.  I hope this works for you too.