BONN, Germany ( TheStreet) -- Deutsche Telekom ( DT) is weighing an initial public offering or spinoff of T-Mobile USA, the fourth-largest U.S. wireless provider, a report says.

Deutsche Telekom recently has held discussions with several banks, including Deutsche Bank, about underwriting an IPO for the unit, sources told the Wall Street Journal.

According to these people, the most likely scenario for Deutsche Telecom would be to sell about 20% of the division to investors and retain the rest.

Other options under consideration include a partial spinoff of the business. A merger with a U.S. rival is also on the table though less likely, the Journal's sources added, since it would face regulatory and technological hurdles.

A spokesman for Deutsche Telekom declined to comment for the newspaper.

Deutsche Telekom historically has been risk averse and may ultimately scrap the plans for an IPO, the sources said. Still, there is a feeling "the status quo isn't working for T-Mobile," said one source, the Journal reports.

T-Mobile's market share in the U.S. is about 14%, below rivals AT&T ( T), Verizon Wireless ( VZ) and Sprint ( S), the Journal notes.

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