Deutsche Telekom is discussing a merger of its T-Mobile USA unit with MetroPCS Communications as it reviews options for the customer-losing business, according to sources.

The German telecom giant is considering a stock-swap deal that would give it control over the combined entity, which would be publicly listed, said two of the people, who declined to be identified because the talks are private.

Other options include an initial public offering or an outright sale of T-Mobile USA.