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<\/a>It’s no big secret that Deutsche Telekom hasn’t been very pleased with the performance <\/a>of its American wireless arm, T-Mobile USA. In September, we reported that the German telecom giant was considering a merger with Sprint<\/a> — shortly after T-Mobile UK merged with Orange<\/a> to create the largest wireless company in the UK.<\/p>\nNow The Wall Street Journal is reporting that Deutsche Telekom is considering an initial public offering<\/a> for T-Mobile USA — a move that’s meant to help save the struggling fourth-ranked carrier. According to anonymous sources, DT has had talks with a few banks to fund the IPO. The proceeds from the deal would likely go towards expanding T-Mobile’s network in the United States. A final decision from the company on how it intends to move forward, as well as what it would do the extra cash, is expected in the next few months.<\/p>\n T-Mobile was the last US cellular provider to roll out a 3G network, and even Deutsche Telekom has admitted<\/a> that the company has lost subscribers due to the lack of 3G availability. Even though it got off to a slow start, T-Mobile is working hard in 2010 to roll out what would be the fastest 3G network<\/a> in the US, featuring 21Mbps HSPA+ technology. In comparison, AT&T plans to bring its 3G network only up to 7Mbps speeds by the end of 2011.<\/p>\n Unlike other US carriers, T-Mobile hasn’t yet announced any 4G network plans.<\/p>\n At this point,\u00a0 an IPO seems far more likely for T-Mobile, rather than any sort of merger. It would be too costly to merge the carrier’s GSM-based network with Sprint’s CDMA technology to be worthwhile. AT&T, the only other major GSM provider, is an unlikely candidate for a merger — especially considering that T-Mobile’s 3G operates on a different frequency than AT&T’s.<\/p>\n Even with an IPO, it remains to be seen if T-Mobile can compete with the likes of AT&T, which has seen its subscribers grow steadily thanks to the iPhone, and Verizon, whose 3G network is widely regarded as the best in the US. 2010 looks to be a particularly good year for Verizon — given the arrival of the Palm Pre and Pixi, more high-end Android phones (including the current T-Mobile exclusive, the Nexus One), and potentially even the iPhone (if AT&T loses exclusivity).<\/p>\n Whatever Deutsche Telekom decides, it’s going to be an uphill battle for T-Mobile in 2010.<\/p>\n