USART connection between ATMega16 and SM5100B-D gsm/gprs module

Question

I have been struggling with usart interface between these two devices. After the code has been ran, i can see TX and RX flashing, but no message actually passes through, which is my ultimate goal. Any idea how to troubleshoot this problem. The code is kind of borrowed from another stack question which has not been answered

    #define F_CPU 7372800UL

#include <avr/io.h>
#include <util/delay.h>
#include <avr/interrupt.h>
#include <stdlib.h>
#include <stdio.h>
#include <string.h>



#define FOSC 1843200// Clock Speed
#define BAUD 9600
#define MYUBRR FOSC/16/BAUD-1

void USART_Init( unsigned int ubrr){
    /* Set baud rate */
    UBRRH = (unsigned char)(ubrr>>8);
    UBRRL = (unsigned char)ubrr;
    /* Enable receiver and transmitter */
    UCSRB = (1 << RXEN) | (1 << TXEN);
    /* Set frame format: 8data, 2stop bit */
    UCSRC = (1 << URSEL) | (1 << USBS) | (3 << UCSZ0);
}

void USART_Transmit( unsigned char data ){

    /* Wait for empty transmit buffer */
    while ( !( UCSRA & (1<<UDRE)) )
    ;
    /* Put data into buffer, sends the data */
    UDR = data;

}

void USART_Transmits(char data[] ) {
    int i;

    for(i = 0; i < strlen(data); i++) {
        USART_Transmit(data[i]);
        _delay_ms(300);
    }
}

unsigned char USART_Receive( void ){

    /* Wait for data to be received */
    while ( !(UCSRA & (1<<RXC)) )
    ;
    /* Get and return received data from buffer */
    return UDR;
}



int main( void ){
    DDRA = 0xff;
    PORTA = 0xff;
    USART_Init ( MYUBRR );

    char text_mode[] = "AT+CMGF=1";
    char send_sms[] = "AT+CMGS=";
    char phone_number[] = "0038**********";
    char sms[] = "gsm/gprs sadness";

    USART_Transmits(text_mode);
    _delay_ms(1000);

    USART_Transmits(send_sms);
    _delay_ms(1000);

    USART_Transmit(34);
    _delay_ms(300);

    USART_Transmits(phone_number);
    _delay_ms(300);

    USART_Transmit(34);
    _delay_ms(300);

    USART_Transmit(13);
    _delay_ms(300);

    USART_Transmits(sms);
    _delay_ms(1000);

    USART_Transmit(26);//ctrl+z
    _delay_ms(300);

    //USART_Transmit(13);//enter
    _delay_ms(3000);

    while(1){   
        //USART_Transmits("alfa");
        //_delay_ms(200);
    }

    return 0;
}