'There is a market (for predictive texting) but it needs to be promoted,' he added.

T9's software contains a database of 26,000 Tagalog words. The software, meanwhile, allows users to edit and define new words such as local jargon or slang words.

Tegic plans to promote T9 even further in emerging markets like India and Brazil that have been experiencing an upward trend in SMS use. The company plans to appoint an office in Hong Kong early next year to look after the region including countries like Vietnam, Thailand, and the Philippines.

'In the future, we want to work closely with local carriers in order to promote T9 to users,' Tsuchiyama said.

Based in Seattle, Washington, Tegic Communications is a subsidiary of America Online Inc. and makes software related to mobile data services such as SMS.