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Is there an app or a way I can have my text messages that are sent to my phone displayed on the N7 and use the N7 to reply back to them ?
Yes, I have been using Google Voice for the passed 2 years on Android. I don't even have a phone service anymore but I continue using Google Voice for texting.
I use Mighty Text. It works flawlessly, and has a Chrome app, so that if I'm at work, I can send/receive texts from my work computer. It's also free. Another option is Tablet Talk, but I believe that one isn't free.
Airdroid is another option...
I also use Google Voice. It works great on wi-fi. Only downsides are you can't send to those short numeric codes, like text to '112233' and no mms, only sms.
I use Mighty Text. It works flawlessly, and has a Chrome app, so that if I'm at work, I can send/receive texts from my work computer. It's also free. Another option is Tablet Talk, but I believe that one isn't free.
Right, those are the only downsides to Google Voice. Another one is you can't make phonecalls from the tablet version. I hope someday this changes.
I use GrooVeIP to dial from my tablet, works great! You may have to make some echo adjustments in the tweaks but once set, you're all good. There's a free version that works great to test it. I got the paid version so it will integrate with my native call log and dialer.
As for the original question, I've used MightyText since it came out and have had no issues except contact pictures sometimes not showing up (big whoop.)
With Nexus 7 (WiFi only) you can make phonecalls with (sideloaded) GoogleVoice plus a dialer like Talkatone, which also allows textmessaging. However you can only send SMS to the US - to outside the US I use the Skype messaging to mobile (not free). http://tinyurl.com/agtjw6v....you can't make phonecalls from the tablet version. I hope someday this changes.