Deutsche Telekom is reportedly in talks to combine its T-Mobile USA unit with MetroPCS, Reuters reported on Tuesday.
According to Reuters' sources, the deal is already closed and the companies are expected to make an official announcement very soon.
Deutsche Telekom and MetroPCS were not available for comment.
Deutsche Telekom tried to sell its U.S. business T-Mobile USA to AT&T but faced regulatory opposition. The company is obviously looking for a solution for its U.S. unit, which has to compete with much bigger rivals in the U.S.
MetroPCS typically offers budget smartphones to cost-conscious customers.