Eircom said it is committing €20m over three years to modernise the Irish landline by introducing new digital phones with SMS capabilities for businesses and home customers.
The investment will be spent upgrading eircom's network, as well as paying for the necessary equipment and marketing of the products and services.
The telco said that SMS will be on offer from September of this year through the new phones, eircom 4012 and 4012 Micro.
These phones will have SMS caller identification, a 200 name address book, speaker-phone facility, 300 metre range, time, date and alarm.
Brendan Nevin, eircom's marketing director said: "From our research we know that three million text messages are sent every day in Ireland and we believe we can grow this figure further.
"With the new eircom 4012 range of phones which includes a built-in address book and easy accessibility due to the fact that they are cordless, customers will have the flexibility and reliability to do more with their landline for considerably less cost".