That decision is leading many to speculate that a long rumored merger between Sprint and T-Mobile USA is a possibility, given that both would use LTE for their 4G needs.
The merger makes no sense now, as T-Mobile uses GSM/UMTS for 3G while Sprint uses CDMA. Deutsche Telekom, the parent of T-Mobile has entertained offers to sell its American unit.
T-Mobile is the fourth biggest carrier in the U.S., with 34 million subscribers, while Sprint is third at 48 million. Both trail leaders Verizon and AT&T by a large margin.
When asked about a merger, Hesse said there was "logic" behind a move like that: "I don't see a need to scale larger, but if there's an acquisition that makes sense for us, I do want to have a balance sheet that would give me the flexibility of making good acquisitions when we see them."