U.S. Cellular earned $89.9 million with revenue of more than $1 billion for the third quarter of 2008, an increase on both fronts from $63.6 million and $954 million last year.

The company also saw a slight increase in ARPU to $54.59 and just 1.6% churn from postpaid customers, who are almost 95% of the total retail customers, officials noted.

Net income and diluted earnings per share were $89.9 million and $1.02, respectively, for the third quarter of 2008, compared to $63.6 million and $0.72, respectively, in the comparable period one year ago.

Other than a slight dip in new customers, "We had solid performance this quarter, with increased revenues and a slight expansion in our margins," CEO John Rooney said.  "Going forward, we plan to continue to introduce high-value, high-demand products and services.”

U.S. Cellular’s current services include contacts backup, free inbound calling, no charges for changing service plans and a search tool for locating content such as games, ring tones and wallpapers.