My iPhone 5 won't send iMessages anymore. It only sends text messages anymore. What's going on?

I just recently got a new iPhone 5 because my old 5 completley broke for no reason and had to get a replacement from Apple. But now, I can't send or receive iMessages. Every time I try to text an iPhone user, it pops originally as it's going to send an iMessage but then it says it can't be sent and sends a text instead. It's getting real frustrating and I have reset the phone several times already, went into settings and turned iMessage on and off and done everything that I can. What else can I do? About to take it back and get an S4 when it comes out.

Try this procedure to be sure of a proper restart.
Close all open apps by double-tapping the home button, then swiping up and off the screen with the app window (not the smaller icon).
Reset your device: hold down the home button along with the sleep/wake button until the screen goes black and you see the Apple, then let go. (No data loss)
I would also try: Settings > General > Reset > Reset Network Settings

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