Google Adds SMS Capability To Chat.

We just got word that Google has added SMS capability to chat.
Google has added it as a test project in Gmail Labs, but it is available for the public to use. To turn it on, go to the Labs tab within Gmail’s settings and enable it.
The service is easiest if you have your friends’ phone numbers stored in your contacts already. If not, start typing a phone number into the chat search function and send an instant SMS to them.
The SMS will come in as a 406 number. Google has designated thousands of these 406 area code numbers and if you are a regular user, it will become your dedicated Google SMS number.
Your friends can reply to the SMS and it will come straight into the chat convo. As usual, if you aren’t logged in anymore, it will show up in your email.
I wonder if Google was incentivized by any carrier?

Update: We have word from an in house Google worker that says they indeed have contracts with carriers for this and revenue is coming in.

A tiny exclusive