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AT&T Wireless reworks 2002 forecast

The wireless carrier makes adjustments to include an acquisition and says it expects more growth in sales but less growth in operating cash flow.

AT&T Wireless on Friday revised its 2002 outlook to include its acquisition of TeleCorp and said it now expects more revenue growth but less operating cash flow growth.

The Redmond, Wash.-based wireless carrier said it now expects percentage growth of its service revenue in 2002 to be in the midteen range, compared with its previous forecast of low double-digit growth.

It expects percentage growth for operating cash flow, or earnings before interest, taxes, depreciation and amortization, to be in the low- to mid-20s because of the early closing of the TeleCorp acquisition, the impact of competitive pricing and the economy.

AT&T Wireless said it also expects to grow its 2001 year-end subscriber base of 18 million by about 20 percent.

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