Deutsche Telekom is considering an IPO for its U.S. subsidiary, Bellevue-based T-Mobile USA, according to a report in the Wall Street Journal.
Other options being considered include spinning the U.S. unit off into a separate company or merging it with another U.S. carrier, although that’s less likely, the report said.
T-Mobile USA would have an equity value of around $20 billion, the Journal said.
DT will spend the next few weeks discussing T-Mobile USA’s fate internally and decide on a plan within two months, the report said.
T-Mobile USA has languished under perceptions that its wireless network is inferior and lacks reach, a major shortcoming as customers turn to their cell phones to surf the Internet and stream video. In the third quarter, 77,000 users walked away from T-Mobile USA, while AT&T and Verizon Wireless added millions of customers.
Taking T-Mobile USA public would be a way to fund the build-out of new wireless technology that will keep its services current without relinquishing control of a business that had long been a corporate growth engine for Deutsche Telekom.
A spokesman in Bellevue declined to comment.