Deutsche Telekom AG is considering an initial public offering for T-Mobile USA Inc. to appease shareholders and help fund the U.S. wireless unit’s network buildout, the Wall Street Journal said.

The company, Europe’s largest phone carrier, has held discussions with banks, including Deutsche Bank AG, about managing an IPO, the newspaper said, citing people familiar with the matter who it didn’t name.

A spinoff would reward Deutsche Telekom investors, who have watched share prices decline 10 percent this year. The company spent almost $3 billion in the first three quarters of last year building out its U.S. high-speed third-generation wireless network to stem customer losses to larger rivals AT&T Inc. and Verizon Wireless.

A T-Mobile USA spokeswoman referred comments to Deutsche Telekom. Philipp Schindera, Deutsche Telekom’s senior vice president of corporate communications, declined to comment when reached after regular business hours.

Deutsche Telekom lost 77,000 U.S. mobile customers in the third quarter. At the end of that period, T-Mobile USA’s network covered 167 million people. Rene Obermann, chief executive officer of the German parent, said in November the goal is to have 220 million to 230 million subscribers when the expansion is completed.

Deutsche Telekom dropped 10 cents, or 1.1 percent, to 9.24 euros today in Frankfurt trading.

Source:Bloomberg