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AT&T ups revenue growth forecast on new pricing model
  AT&T inc. on Tuesday raised its full-year revenue growth forecast, to reflect its acquisition of Leap wireless in March, and separate charge to the customer equipment from their wireless plans to the popularization of the new pricing model. Like other carriers, AT&T (TN) is seeking growth in nearly saturated environment, make strategies such as standby pricing plan is more important, in order to attract customers. The company raised its forecast revenue growth At least 4% from 3%. Wireless users more than expected 35% of transfer to the next, its new pricing plan, quarterly revenue 3.6%, a quarter from the same period last year. "We are delighted to take rate," John Stevens, AT&T's chief financial officer, said in a conference call after issuing p/e ratio, the NEXT. "I believe that 35% will become a new standard." AT&T paid after 625000 new wireless net users in the current quarter, the company paid after five years in the first quarter growth, blowing past 173000 jefferies securities research expectations. In the user's growth, however, some offset by weak service revenue growth as customers who moved the traditional equipment subsidies mode are eligible for mobile shares, including unlimited calls and text, and allow up to 10 equipment share data plan. Mobile phone stock accounts has tripled during the same period last year, compared to 11.3 million users, each account three equipments, both lower income per user. Despite the increase of users, with the same period last year quarter compared with the phone only average revenue per user growth of only 0.4% a year. "They didn't expect this," Kevin Smithen, group managing director at Macquarie securities in New York. "While they save a lot of money by reducing the cost of subsidies under a plan, in view of service income because they are in a low average revenue per user repricing of 11 million users." In response to come from smaller rivals, such as the United States, the fourth t-mobile company (TMUS. N) increasingly fierce competition, AT&T unveiled its pricing plan in July 2013, eliminates the down payment of equipment, but allows clients to pay by installments. The company to provide clients with equipment before discount and cooperate they entered into a two-year contract, paid a heavy subsidies upfront handset maker. Then, it withdrew phone through its service span of the contract costs. Down, AT&T's unpack from the customer's wireless plan of the cost of the equipment. Then, it can be implemented in the limited short-term boost revenue booking purchase equipment advance payment for the immediate benefits, while customers continue to in the duration of the contract payment by installments. To maintain the company's free cash flow for the estimation of the 2014 in 11 $billion range and capital expenditure to $21 billion range, ease the fears of analysts, next year may be in financing instalment plans to tie up funds. "The next programme of intake should be a positive impact on the profitability of the company, they came in fine cash flow this quarter, with something of swing of working capital, but they maintain their guidance throughout the year, I think it is quite constructive," said Michael McCormack, an analyst at Jefferies. Earnings per share are also benefiting from AT&T's acquisition of cricket communications company LEAPC. UL LEAP wireless, bring 3 billions of dollars in new spectrum, the key of the growing demand for the wireless data services, "she said. AT&T expects about 12 billion integration costs $0.05 diluted earnings per share for the next two years in 2014. AT&T, America's second largest mobile operator, has won $3.65 billion, or 70 cents a share, in the first quarter, with $3.70 billion, or 67 cents, but compared to the same period last year. Excluding special items, profit of 71 cents per share, higher than Wall Street expected 1 cents, according to Thomson Reuters I/B/E/S. Revenue rose to $32.48 billion compared to 32.47 billion Wall Street view, according to Thomson Reuters I/B/E/S.