hi i want to know what happens in a gsm modem if it receives many no of sms at a time. say some 1000 sms at a time and it will again receive 1000 sms after every 2 minutes.
1 Answers
Depending on the modem's memory size, it will run out of memory (You can store a certain number of SMSs on the SIM, and a certain number on the device, dependent upon the available memory). The will send "unable to process" back to the SMSC, with cause "the short message cannot be stored due to lack of memory." (3GPP 27.005, 2.4.1.10 and 2.5.2.7)
The SMSC (short message service centre) will then re-try to send the message for its defined timeout period. If it doesn't manage during this period, it will notify the sender of failure.
Competition servers, and similar, which receive large amounts of SMSs are set up to deal with this situation, and usually connected directly to the SMSC (i.e. they get their SMSs over an internet connection and don't rely on the memory of a modem)

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Please see http://stackoverflow.com/questions/5056903/what-are-the-best-practices-for-building-an-sms-server/5059723#5059723 for implementation considerations. – Bernd Jan 11 '13 at 09:07