Deutsche Telekom AG is seeking an initial public offering or spinoff of its U. S. wireless service T-Mobile USA, the Wall Street Journal reported on Thursday afternoon.

The newspaper revealed that the German phone giant has initiated talks with banks about underwriting the IPO. The company is speculated to pose a decision over the next couple of months if it will have an IPO and how it would spend the cash.

However, Deutsche Telekom preferred to remain quiet over The Wall Street Journal article, and T-Mobile USA representatives quoted they can't comment on speculation or rumor.

T-Mobile USA, the fourth largest wireless operator in the U. S, is currently far behind its national competitors, AT&T, Verizon Wireless, and Sprint Nextel.

It has also behind to the 3G market, and the operator, which acquired more spectrums in the Federal Communications Commission's AWS auction, is still building that network.

The recent estimates reveal its earnings before interest taxes depreciations and amortization as $6 billion, T-Mobile USA would have an equity value around $20 billion and could take on $12 billion in debt and maintain an investment-grade rating, the Journal said, citing people familiar with the matter.

Over the few quarters, T-Mobile has been witnessing decreasing number of subscribers, while AT&T and Verizon Wireless have added millions of new customers under it sphere.