Sprint Nextel’s earnings may have been weak, but its conviction to keep its long-distance network remains strong.

Sprint’s former Chief Executive Gary Forsee had resisted selling the long-distance business, despite continued calls from analysts for a sale of the unit after he spun off the company’s local telephone business.

On Thursday, Forsee’s replacement Dan Hesse sounded even more attached to the business. While he would not rule out a sale of the unit, he said there were many reasons why Sprint should hold on to it.

“People forget when you talk about a wireless network, it’s primarily wireline. The backbone is a core part of the network.” Hesse said, adding that the wireline network was important to helping Sprint support high-speed data services.

“If somebody came with an incredible number of zeros behind a check or what have you, we’re always open to it, but it would be, number one — a huge distraction — and, number two — for the variety of reasons I’ve described, it’s a tremendous asset for this company,” he said.

Hesse also noted that his biggest rivals Verizon and AT&T had both bought long-distance networks.

AT&T has a “a backbone network because they know it’s crucial to their wireless business.” he said. “Verizon bought a backbone network because it’s crucial to their wireless business and it’s also crucial to competing in the enterprise segment which is the most valuable segment in the market.”

Although some investors have previously said that Sprint’s weak financial position, management changes and customer losses might make it vulnerable to a buyout, Morgan Stanley analyst Simon Flannery said in a research report “we do not believe that Sprint is likely to be acquired.”

Sprint posted a $29.45 billion quarterly loss due to a huge goodwill write-off, forecast deepening customer losses and ended dividend payments for the foreseeable future. Fitch Ratings cut its rating on the No. 3 U.S. wireless telephone company to junk status. Shares of Sprint fell to a five-year low and closed at $8.09, down 86 cents, or 9.6 percent.

(PHOTO: Dan Hesse, from Sprint website)
(Reporting by Sinead Carew and Jesssica Hall)