Sprint Nexel will start selling the next version of Apple’s iPhone, iPhone 5 in mid-October, according to a report in the Wall Street Journal.

Sprint’s stocks have already gone up by 10.12 percent to close Tuesday at $ 3.59.

Combined with the company's marketing focus on its unlimited plan, iPhone would drive a rebound in subscriber growth, said Mizuho analyst Michael Nelson, who said it could help Sprint exceed his expectation for fourth-quarter net subscriber additions of about 190,000.

The Wall Street Journal reported that Sprint will start selling the device alongside with Verizon Wireless and AT&T.

Verizon and Sprint both use the same network technology, so it made sense for Apple to extend its distribution to Sprint.

The rumors of iPhone 5 coming to Sprint have been making the rounds for some time. But the new twist in the tale is that Sprint would launch only a 3G version of iPhone 5, not 4G.

From recent discussions with industry contacts, we believe Sprint and Apple are moving forward toward a launch of the iPhone 5 concurrent with the refresh that next occurs with AT&T and Verizon. We believe this phone would be 3G, but not 4G, capable, RBC Capital Markets analyst Jonathan Atkin wrote in a note to clients.

Sprint would sell iPhone 4 as well along with iPhone 5, in line with Apple’s strategy of selling a cheaper version of iPhone 4.

Apple's next generation iPhone is rumored to be compatible with both CDMA and GSM network.