Despite the fact that mobile broadband subscribers have already exceeded the number of fixed broadband users in the Philippines, the number is still way behind compared to other countries.

Although the telco trio of Smart Communications, Globe Telecom, and Sun Cellular has been busy expanding their mobile broadband offerings lately, the number of Filipinos using wireless broadband – whether through their phones or USB dongles -- is still way behind compared to other countries.

This is despite the fact that mobile broadband subscribers have already exceeded the number of fixed broadband users in the country, telecom executives and industry observers said.

GSMA senior director for services Jaikishan Rajaraman noted during the recent Philippine Telecom International Summit 2009 that the introduction of 3G service three years ago has not dramatically increased the mobile subscriber base in the country, which stands at “less than a million.”

Local reporters, who engaged Rajaraman in a roundtable discussion, told the GSMA executive that Filipinos are still somewhat hesitant to use their 3G phones to connect to the Internet because of high cost and slow speed.

Although 3G-enabled mobile connectivity has not really taken off yet, users of USB dongles or plug-ins have nonetheless swelled in recent months.

For instance, top mobile Smart Communications has about 700,000 Smart Bro subscribers, a majority of which are USB plug-in users.

Globe Telecom, meanwhile, has 180,000 subscribers for its Globe Tattoo wireless plug-in broadband service.

Gokongwei family-owned Sun Cellular has also entered the fray with its pre-paid wireless service and now has a few thousand subscribers of its own.

Nitin Bhat, senior vice president for ICT practice in Asia Pacific at Frost & Sullivan, said the mobile broadband market is starting to run into some “economic challenges.”

Bhat mentioned cutthroat pricing models and the huge data traffic, particularly video, as two factors that may hold back the expansion of wireless broadband.

GSMA’s Rajaraman said it is important for mobile broadband growth to continue in emerging markets as it is “deeply transformative,” pointing out that remote areas will have the opportunity to harness the power of the Internet like their urban counterparts.

Rajaraman said GSMA, an organization that looks after the interest of GSM suppliers and operators, also favors mobile broadband to be accessed via 3G, particularly HSPA (high speed packet access) technology, over WiMax.

WiMax, he stressed, is hyped beyond its capabilities in terms of its coverage area. “It’s also not cheap that’s why there are very few users around the world. WiMax will have a hard time catching up,” Rajaraman said.