Regarding Apple call, it's a mess - after a very detailed conversation where the representative even sent me an email with a link to upload my iPhone data for further analysis, I thought our complaints had been heard. Then I visited the Apple Support website to check the Case ID that was assigned to the issue and... It was closed!
I called them back to check why the case was closed since The issue was not resolved? And then I spoke with 2 other guys that essentially heard from the supervisors the only choice I had was to restore as a new iPhone. I did it. Twice. No luck.
I was so ****** off - but seems I've got a call regarding the closed Case ID - I'll call them back tomorrow and listen to te feedback.
Regarding FaceTime activation, yes, iPhone uses SMS to activate that. Since our iPhone 5 is not capable to send SMSs... No activation. Yes, I'm in the very same situation.
I'll post an update as soon as I call back Apple Support.
Best,