Digitel is the number 3 telecoms firm in the country, widely seen as being responsible for driving down the prices of mobile phone services and calls with its innovative approach to the business.
A successful acquisition would increase PLDT's market share to 70 percent and could boost profits as well for the firm.
The country's No.1 Telco posted a 6 percent drop in first quarter net income, squeezed by competition from rivals like Digitel, and a strong peso that has hit revenues.
PLDT president Napoleon Nazareno said the company lost 300 million pesos (about $7 million) in core income, as the peso surged to a 5 percent appreciation from last year.
[Napoleon Nazareno, PLDT President]:
"As anticipated, the operating conditions for the first three months of 2011 were quite challenging given the combined effect of slower economy and the continued intense competition within the telecommunications industry."
Volumes of data, voice calls, and long distance calls were also down, likely due to the popularity of free Internet platforms such as Skype and GoogleTalk.
PDLT's share price has fallen nearly 3 percent so far this year, underperforming the market which has gained 2.4 percent.
PLDT chairman Manny Pangilinan said the market for mobile services is reaching a saturation point.
[Manny Pangilinan, PDLT Chairman]:
"Growth on the existing legacy platforms are reaching saturation already, so the industry is looking for ways to grow, not only here but also abroad. So they're looking at broadband, data, video, all sorts of businesses that could drive the companies forward."
PLDT is also planning to launch its own brands of smart phones and tablets as well as its own Apps store, in a possible move to boost earnings in data services.
