Deutsche Telekom is considering an exit from the UK market as it looks to recover cash following the failure of its proposed US$39 billion sale of T-Mobile USA to AT&T, according to Bloomberg sources. The German operator group is reportedly looking at the possibility of selling its 50 percent stake in the Everything Everywhere joint venture that it created with France Telecom-Orange in 2009.

The sources said the possible scenarios for Deutsche Telekom leaving the UK include France Telecom buying its stake in Everything Everywhere, or a transaction involving a third party – such as a private equity consortium or another operator.

The sources said Deutsche Telekom is yet to hire any investment banks to oversee a deal and a decision on whether to exit the UK isn’t likely until later in the year, as the company is currently prioritising improvements in operational performance.

A Deutsche Telekom spokesman told Bloomberg that the company has a “long-term commitment” to the UK market and is happy with how Everything Everywhere is performing.

Deutsche Telekom hoped to use the proceeds of selling T-Mobile USA to cut its EUR13 billion debt and repurchase EUR5 billion of its own shares, as well as to fund fibre and wireless network upgrades in Europe. The German company did however receive US$3 billion in cash from AT&T as a result of the T-Mobile USA deal collapsing.

Revenue growth in developed markets has slowed in recent years, leading operators to re-evaluate their options. Following a review of its European portfolio, France Telecom sold its Austrian and Swiss operations in recent months, and is now focusing its efforts on emerging markets.