AT&T and Deutsche Telekom (News - Alert) AG apparently refuse to throw in the towel on somehow having AT&T use the assets of T-Mobile USA.

The latest twist to this never-ending scenario is that Deutsche Telekom – the parent company of T-Mobile (News - Alert) USA – could form a joint venture to combine assets of both companies.

The joint venture option, first reported by The Wall Street Journal, appears to be an option if the current proposed takeover of T-Mobile by AT&T (News - Alert) fails.

The proposed $39 billion deal has faced several roadblocks with lots of opposition coming from government regulators.

The Journal did not reveal its sources for this story but described it as something now on “the back burner.”

Discussions already have taken place on the joint venture option between AT&T and Deutsche Telekom.

In August, the U.S. Department of Justice filed a lawsuit to prevent the $39 billion deal from taking place. The case is expected to be heard in court in February.

In addition, TMCnet reports that AT&T is planning to withdraw its application for the deal from the FCC (News - Alert) to concentrate on the Department of Justice case. But the withdrawal of the application could be challenged by the FCC. In anticipation of that move, AT&T has threatened to file a lawsuit against the FCC if it blocks the withdrawal of the application, according to a report from TechZone360.

It was also pointed out that a joint venture could possibly get around competition issues coming from the Justice Department, if T-Mobile USA stays as “a viable competitor,” according to a Wall Street Journal blog post.

On another front, secret negotiations are apparently continuing between AT&T and Leap Wireless (News - Alert) to come up with a last-minute solution to save the troubled proposal to let AT&T acquire T Mobile USA for $39 billion, according to TechZone 360, citing a report from The New York Times.