My iMessages won't work on my iPhone 5. Any help would be appreciated.

As the title says, my imessages just wont work on my iphone 5. I have tried everything from a dfu restore, to turning imessages on and off, resetting network settings, turning off sending as sms, etc. etc. If I put my sim card into a friends iPhone 5, my iMessages activate and work right away.
Every message I send seems to send as a text.
iMessages in settings is activated and looks like its working but will only send as a sms. I cant receive iMessages either.
My iphone is out of warranty and Im all out of options.  If this is a software problem, can I get a replacement iphone through apple as this is obviously not a hardware issue?
Thanks. Any help would be much appreciated.

I have restored as a new phone and it still doesnt work.
As for creating a new Apple ID, Ive tried that and it doesnt work. It still defaults to my number and it wont allow to send an imessage as it reverts to SMS when I type in a contact in the messages app.
I tried starting new conversations from the Apple ID as well but didnt have any luck.
I believe its something that isnt getting wiped out through the restore process.
I wish I could escalate my issue to someone who could look at the underlying code and see whats wrong with the phone

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