Sprint Nextel CEO Dan Hesse

Sprint Nextel CEO Dan Hesse told the Kansas City Star that the operator would hang on to the Nextel business after all and “rejuvenate this important asset.”

In a statement, Hesse said, “The iDEN network is a key differentiator for Sprint as it allows us to offer products and services no other carrier in the industry can match.”

Earlier this year, the operator suggested it might unload the division, which it purchased nearly three years ago for $38 billion. Since that time, the operator has struggled to integrate backend systems such as billing and customer service.

In making the announcement, Hesse also said the company would renew its relationship with Motorola that supports the iDEN network and devices.

Although a couple of companies expressed interest in the Nextel business, the credit markets made it difficult for any player to raise the capital needed to consummate the deal.