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The text messaging feature is new starting with firmware version 355B16. It uses a proprietary protocol (not "SIMPLE"). Text messages can be sent to a handset in two ways:

from a messaging server from the snom alarm server compatibility list
from another handset (peer-to-peer)

To enable text messaging, go to the Management Settings page on the Web User Interface of the base station.

Snom Service Hub > Text Messaging Between Handsets > M700_Managements_Settings.gif
Once this in done you will need to do a chain reboot on the multicell page to activate Text Messaging.

Applicable devices:

M25
M65
M70
M80
M85
M90

recommended firmware 670.2

Please be aware that this procedure clears-out all the settings on the handset and de-registers it from the DECT chain.
After the master reset you must re-register the handset to the DECT chain.

You can now send text messages from one handset to another.