That there is no SIM card installed. The iPhone 5 requires a SIM card for activation and to work properly. One should have been included with your phone order; if not, check with your local Verizon or Apple store.
I'm guessing that place's phone still has the SIM in it.
Mine did and I got that error as well yesterday.
It seems some people have been having an issues where all of the sudden, the SIM card isn't being recognized (in my case, I had successfully made a call with the phone just minutes before and then all of the sudden, it's telling me no SIM card).
Rebooting the phone nor resetting the network settings worked to get it to recognize the SIM card.
I ended up powering off the phone, popping the SIM card out, leaving it out for a couple minutes, and then putting it back in.
When I powered the phone back up, it recognized the SIM card and so far, it's been fine.
Good deal on getting that worked out; I hadn't heard of others having that issue, other than the SIM not being installed. Hopefully your 'fix' will also work for the OP.
We've been having the same problem, with the No SIM message. After re-booting, the phone will work for a while, and then the problem will reappear. We took the phone to the Verizon store, and they said they were out of SIM cards, but did verify that there was a problem with our SIM card. So, evidently, this is becoming a common problem. They advised us to go to the nearest Apple store, which is too far away. So, now we're contemplating returning the phone.
had the same issue with mine, took it in to the Apple store Monday, I was told that they have had some instances where people with ip4 & 4s used their bachups to initialize their ip5 through itunes and caused a software glitch, he took mine back down to factory settings and I had to reinstall everything, when I connected to itunes I selected set up as new device. it was a pain but as of today I have not gotten no sim!
I was one of those cases where I restored form a ip4 backup via iTunes. Guess I was sort of lucky with mine as I haven't had any additional problems with the NO SIM issue since I removed it and re-inserted it. (Did not have to start from scratch as a new device and reload everything manually).
However, I also did a reset of the network settings on my ip5, so maybe that helped as well.
Just got my iphone Wednesday. I dont' have a home phone line so before deactivating my iphone4, I called Verizon and asked if I could do this online and was told "Yes." Everything went fine. But then I got the "NO SIM" message and could not make a call. I reset network settings and removed the sim card for a few minutes and then re-installed it. Nothing. I went to work the next day and called Verizon from there. They had me removed the sim card and then reinstall it. They also did something to the system. And it worked! No issues yet.