This article on DigitalWizard describes how you can easily make a system that can control your home appliances like lights, fans etc from SMS commands. The project is based on PIC18F4520 MCU which is a 40 pin high performance microcontroller from Microchip Inc. It has a 16×2 LCD module as the main output unit to show various status messages to the user, thus making it extremely user friendly. GSM connectivity is achieved using a SIM300 or SIM900 modems.
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