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I too am skeptical if text2teach is the best way to use cell phones in teaching students, but I do believe at this grade level any technology is good for them to be around. The other methods of e-learning with cell phones and internet are difficult because, as mentioned above, there are very high costs in developing countries' networking of such technologies, and there are many problems with the newer-tech items that are introduced in such countries at low-cost (look at beginning OLPC models).
Back on topic, I don't think it is a "dumb" idea at all to introduce these pilot programs into schools, especially at such a young age it is important to become familiarized with technology. Not only for later in life, but new/fun technology increases students' excitement to learn. One girl on the video even said that children come to school JUST for text2teach.