iphone has trouble with IA5 (international alphabet 5) you should check your carrier to see how they deal with sending and receiving sms.
here,read my post here where we had a similar issue with cricket wireless,in the end to get it to work we convinced cricket to adjust the way they deal with sms and that corrected the problem for us.
[Only registered and activated users can see links. ]
but if sms was working until 6xx then it is def the flash and not the carriers issue
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