U.S. Cellular reported service revenues of $962.1 million for Q1 2008, up from $860.6 million for the same period last year. The company recorded operating income of $119 million, an increase of 9.6% year over year; net income and diluted earnings per share were $70.6 million and $0.80, compared to $74.4 million and $0.84 for the same period last year.

“U.S. Cellular experienced strong growth in data revenues this quarter,” said John Rooney, U.S. Cellular president and CEO, in a statement, “driven in part by new smartphones like the BlackBerry Pearl and their related data plans, and by customers' increased use of messaging services.”

The company posted data revenues of $115.7 million, up 49% year over year, and a 6.9% increase in ARPU, reaching $52.06 for the quarter.

Going forward, the company expects to add 200,000 to 275,000 net retail customers for the year, reach service revenues between  $3.9 and $4 billion and operating income of $435 million to $510 million.