NEW YORK (Reuters) - Sprint Nextel is in talks to sell its iDen wireless network to either NII Holdings Inc or private equity investors, according to CNBC.


CNBC said on Friday that a sale of the network, which is used by public safety and construction workers, was not expected any time soon and did not name any sources for the report.

The news comes a day after the embattled No. 3 U.S. wireless service canceled a $3 billion convertible sale it had announced the day before.

Sprint and NII were not immediately available for comment.

The report pushed Sprint shares up 6 percent, while NII shares were down about 1 percent.

Analysts say a sale of the network, which it bought from Nextel Communications in August 2005, would be pose regulatory and operational difficulties as it has been closely integrated with Sprint's existing operations.

But they said Sprint, which is struggling to stem customer losses amid service problems, is looking at all options to improve its financial performance.

"Every piece of the business is for sale at a certain price right now because they continue to struggle," said Stifel Nicolaus analyst Chris King.

Latin American service provider NII is one of the few operators around the world that uses the iDen technology, making it a logical candidate for an investment in the Sprint network.

But King noted that an investment in the iDen network, rather than an outright purchase, could make better sense for NII, which operates in countries such as Mexico and Brazil that have faster wireless growth rates than the United States.

Stanford Group analyst Michael Nelson questioned whether Sprint would be able to find a private equity buyer in such a tough credit market.

"Even if they want to sell iDen I don't think there's a buyer," Nelson said.

Sprint shares rose 39 cents to $8.19 on New York Stock Exchange. NII shares were up 48 cents at $53.14 on Nasdaq.

(Reporting by Sinead Carew; Editing by Derek Caney)

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