Infinite SMS Becomes Finite, After All
To be clear, Google’s free SMS feature isn’t gone. They’ve only blocked non-Google apps like Infinite SMS from utilizing it via any APIs. Free text messages through the Gmail web interface, which we've written about previously, still work fine.

Infinite SMS is a third party app that has been using Google technology to provide free SMS for users, while we were paying for the cost of the text messages. While Google is supportive of third party apps, we've decided we can't support this particular usage of our system at this time. SMS chat is still just an experiment in the early testing stages in Gmail Labs. We're blocking all external XMPP clients from sending SMS; we're not singling out Inner Fence.More commentary from Innerfence:
Google has claimed no grievance with Infinite SMS other than its success. Their given reason for the block isn’t abuse or wrongdoing; it’s that we brought too many users (and thus too much cost) to an experimental service.Yep, in other words, the app was too popular for its own good.