Sale of all of T-Mobile USA "Unlikely"

Deutsche Telekom AG considers a complete sale of its troubled U.S. wireless unit T-Mobile USA as "unlikely,"  Chief Executive Rene Obermann says.

"We continue to look for a long-term solution to improve earnings in our U.S. business," Obermann  told shareholders at Deutsche Telekom's annual general meeting. "However, a complete sale like the one to AT&T is considered unlikely."

Among the options some believe T-Mobile USA could consider is a spin out of the asset to shareholders or a merger with a smaller regional provider. Few seem to believe T-Mobile USA realistically can grow its way to greater scale on an organic basis.

The problem is that Deutsche Telekom itself says it must increase its return on capital or reduce its capital investment in the U.S. market. That will be tough as T-Mobile USA continues to bleed its most-profitable customers and lags the other leading U.S. mobile firms in creating Long Term Evolution fourth generation networks.