(Telecompaper) AT&T has again raised its full-year revenue growth forecast, driven by strong demand for its new installment pricing for mobile devices. After forecasting at least 4 percent annual revenue growth at its Q1 report in April, the company now expects around 5 percent growth for the full year. The AT&T Next offer allows customrs to buy a new device on interest-free installments, with no upfront fee or contract tie-in. The operator said this is driving equipment revenues, but means it expects zero service revenue or ARPU growth in mobile in the second quarter. The lower device subsidies means it still expects stable margins for the year, while adjusted earnings per share will grow in the mid-single digit range. AT&T also maintained its outlook for capital expenditures of around USD 21 billion and free cash flow of USD 11 billion in 2014. The operator said its Project VIP network transformation plan, announced in 2012, is ahead of schedule. The LTE network now covers nearly 290 million people, and fibre services will be available to more than 400,000 new business customer locations by the end of the second quarter.