REDMOND, Wash.—AT&T Wireless updated its guidance for this year following the recently completed acquisition of former affiliate TeleCorp PCS.
The nation’s third-largest wireless operator said it expects mid-teen-percentage growth in service revenue for the year with TeleCorp, up from its previous guidance of low double-digit growth. AT&T Wireless also said it expects the early closing of the TeleCorp acquisition coupled with the impact of competitive pricing and the current economic climate to reduce its mobility earnings before interest, taxes, depreciation and amortization percentage growth to the low to mid-20s on a reported basis.
AT&T Wireless also said it plans to add an additional $500 million in capital expenditures related to TDMA capacity expansion and some acceleration of the buildout of GSM/GPRS in select TeleCorp markets.
On a consolidated basis, AT&T Wireless expects to add around 3.5 million customers during the year, a 20-percent growth rate, ending 2002 with around 21.5 million wireless subscribers.
