Deutsche Telekom posted a hefty loss for 2001, for the first time since Germany's largest company was listed in 1996.

The telecom giant lost 3.5bn euro (�2.1bn, $3bn) for the year, compared with a 5.9bn euro profit a year ago.

The loss, caused mostly by huge interest payments on the company's mountain of debts and write-offs from overpayment for acquisitions were larger than analysts had predicted.

The company spent 1bn euro on phasing out brands such as VoiceStream in the US and one2one in Britain.

Preparing for listing

Earnings before interest and tax were 15.1bn euro, up 17% from the previous year.

The company attributed the rise in earnings mostly to its T-Mobile unit, still earmarked for a separate listing this year.

The floatation of the mobile unit is expected to bring Deutsche Telekom some 10bn euro and ease the company's debt burden

The performance of the company's US loss-making VoiceStream is thought to be instrumental to the planned floatation. The precise date of the listing is still unknown.

Debt burden

Deutsche Telekom is under severe pressure over its 62bn euros debt and some investors have expressed concerns about the company's plans to ease the burden.

Deutsche Telekom's attempt to raise 5.5bn euros from the sale of its cable assets to Liberty Media failed last week, as regulators blocked the deal.

Shares in Deutsche Telekom edged 0.35% higher to 17.09 euros in the early trade on Tuesday.