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T-Mobile USA Reportedly May Be Spun Off

Deutsche Telekom is weighing an initial public offering or spinoff of wireless provider T-Mobile USA, a report says.

BONN, Germany (


) --

Deutsche Telekom

(DT) - Get Free Report

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


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



T-Mobile's market share in the U.S. is about 14%, below rivals


(T) - Get Free Report


Verizon Wireless

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, the



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