iPhone 4, iOS 7.0.4, iMessage & Facetime waiting activation?

Help! I have an old iPhone 4 with the newest iOS (7.0.4) that I want to give to my nephew. Since he is young, I do NOT want to pay for cell phone service. I only want him to be able to text message me and our family via iMessage and to be able to use Facetime over his wireless internet at his home. Yes, everyone that I want him to be able to use iMessage and Facetime with has an iPhone or iPad with their own Apple IDs.

He has his own Apple ID, its been confirmed via email, and I can send him text messages via iMessage and Facetime with him, however when I go into Settings > Messages or Settings > Facetime it says it is awaiting activation.

Can someone tell me what to do to get iMessage and Facetime activated with his Apple ID only? I have searched through here and Google, waited for more than 3 days now and it still says "Waiting for activation"

Here are the settings for each:

Settings > Messages >

iMessage is switched on

Send Read Receipts is off

Send as SMS is off

Send & Receive is set to his Apple ID

and You can be reached byiMessage at has the email address of his Apple ID checked.

MMS Messaging is switched on

Group Messaging is switched on

Show Subject Field is off

Charcter Count is off

There are no blocked email address or apple IDs.

Settings > Facetime >

Facetime is switched onIt is set to his Apple ID

You can be reached by Facetime at has the email address of his Apple ID checked

There are no blocked email address or apple IDs.