Our goal at U.S. Cellular is to grow profitably through our customer-satisfaction strategy—and we made impressive progress in 2003. In addition to our many achievements for the year, we posted operating revenues of $2.6 billion, 18 percent higher than 2002, which was helped by a 7 percent growth in our customer base. Our operating expenses totaled $2.5 billion, up 29 percent, reflecting not only the integration and promotion of our new Chicago market but also higher depreciation, amortization and accretion costs.
     Everything we do at U.S. Cellular works toward the goal of satisfied customers: delivering excellent customer service, strengthening our presence, launching new products and services, improving the quality of our already superb network, and driving standards of excellence. At the same time, we are financially disciplined and responsible. We aim to grow profitably and keep the company strong. Just as our customers expect excellent service, our shareholders expect sound financial results, and we aim to deliver on both.

Delivering excellent customer service. Pleasing each customer is important to us for two reasons—satisfied customers tend to remain our customers, and they become our sales advocates, generating a constant stream of referrals. That’s why we place so much emphasis on the broad coverage and reliable wireless service our network technology offers. And why we thoroughly test our products and services before launching them. It’s also why our associates are dedicated to providing the best in customer service—whether through our customer service centers or our distribution network of 2,250 outlets with almost 450 retail stores and 1,800 authorized agents. This focus is what sets us apart from our competitors and keeps our customers loyal.
     We made our service even better in 2003. We converted the third-party billing and customer-service system in Chicago to our own platform, Customer Acquisition and Retention System (CARES), meaning that our customers now experience shorter activation times and better service overall. We also implemented our data-billing system, critical to supporting our data-services products and responding to customer inquiries.
     That our strategy is successful is evident by our churn rate, one of the best in the industry. Our postpay churn rate—the rate that applies to 97 percent of our customer base—was 1.5 percent in 2003, a good indication that our customers are satisfied—and loyal.