Several applications available for the iPod touch allow you to send text messages for free. These applications do not come standard on the iPod touch, but you can download them through the "App Store" icon on the home screen on your iPod. Your iPod touch must be connected to Wi-Fi to download the applications that allow you to text. Your iPod touch must also be connected to Wi-Fi for the services to send and receive text messages after you download them.
Use AIM to send text messages to cellphones and communicate with other AIM users via instant message on your iPod touch. This free application allows you to sign in with your AIM screen name and add cellphone numbers as contacts so you can send texts to these numbers. Cellphone users who receive your messages can reply, and you'll receive their messages as incoming instant messages through the AIM application on your iPod touch.
Install and use TextNow, a free text-messaging application, on your iPod touch. TextNow allows you to send text messages to contacts you add in your iPod touch and displays your messages in bubbles that appear in IM-style, making it easy to keep track of your conversations. The main TextNow screen shows each contact as a separate entry. Touching a contact opens the history of messages to and from that person.
Download text Plus from the App Store to send and receive text messages from your iPod touch. The text Plus application allows you to send messages to individual contacts or add several people to a conversation so that everyone sees your message without having to send it multiple times to different people. This application also allows you to add pictures to your outgoing messages.