Can this used with Arduino to send SMS to phone?
It is a GSM module, so yes, you can send SMS in text mode with a simple standard AT+ command:

AT+CMGF=1
OK
AT+CMGS=&quot;+391122222222&quot;
&gt; The Quick Brown Fox... [CTRL-Z]
+CMGS: 198
OK

Detailed doc on http://www.developershome.com/sms/cmgsCommand.asp and http://www.developershome.com/sms/operatingMode2.asp
It's straightforward serial communication, but if you want Arduino-specific setup/code, check this page.