Management’s Discussion and Analysis of Results of Oper ations and Financial Condition years primarily resulted from a decrease in revenue per roaming minute of use, partially offset by an increase in roaming minutes used. Also contributing to the decrease in 2003 was the transfer of the Florida and Georgia markets to AT&T Wireless in August 2003; these markets had historically provided substantial amounts of inbound roaming revenue. The increases in inbound roaming minutes of use in both years were primarily driven by the overall growth in the number of customers throughout the wireless industry. The declines in revenue per minute  of use in both years were primarily due to the general downward trend in negotiated rates. Service revenues increased $324.9 million, or 15%, to $2,423.8 million  in 2003 from $2,098.9 million in 2002 and increased $272.5 million, or 15%, in 2002 from $1,826.4 million in 2001. Service revenues primarily consist of: (i) charges for access, airtime, roaming and value-added services provided to U.S. Cellular’s retail customers (“retail service”); (ii) charges to other wireless carriers whose customers use U.S. Cellular’s wireless systems when roaming (“inbound roaming”); and (iii) charges for long-distance calls made on U.S. Cellular’s systems. The increases in both years were primarily due to the growth in the number of retail customers in each year. Monthly service revenue per customer averaged $47.38 in 2003, $47.25 in 2002 and $46.28 in 2001. Management anticipates that the future rate of growth in inbound roaming minutes of use will be reduced due to three factors: Retail service revenues increased $302.7 million, or 18%, to  $1,984.7 million in 2003 from $1,682.0 million in 2002 and increased $273.7 million, or 19%, in 2002 from $1,408.3 million in 2001. Growth in U.S. Cellular’s average customer base of 15% and 13% in 2003 and 2002, respectively, and an increase in average monthly retail service revenue per customer were the primary reasons for the increases in retail service revenue in both years. The average number of customers  is affected by the timing of acquisitions and divestitures in both years, including the acquisition of the Chicago market in August 2002 and  the disposition of markets to AT&T Wireless in August 2003. Management also anticipates that average inbound roaming revenue per minute of use will continue to decline, reflecting the continued general downward trend in negotiated rates. Management anticipates that growth in the customer base in U.S. Cellular’s wireless markets will be slower in the future, primarily as  a result of the increased competition in its markets and continued penetration of the consumer market. However, as U.S. Cellular expands  its operations in Chicago and into its other recently acquired markets  in future years, it anticipates adding customers and revenues in those markets, increasing its overall customer and revenue growth rates. Long-distance and other revenue increased $55.9 million, or 35%, to $217.4 million in 2003 from $161.5 million in 2002 and increased $15.7 million, or 11%, in 2002 from $145.8 million in 2001. The increase in 2003 is primarily related to the $47.2 million increase in amounts billed to U.S. Cellular’s customers to offset costs related to certain regulatory mandates, such as universal service funding, wireless number portability and E-911 infrastructure. In particular, the amounts U.S. Cellular charges to its customers to offset universal service funding costs increased significantly due to changes in FCC regulations begin- ning April 1, 2003. Average monthly retail service revenue per customer increased 2%  to $38.80 in 2003 from $37.86 in 2002 and increased 6% in 2002 from $35.68 in 2001. These increases were driven by an increase in average minutes of use per customer, the effect of which was partially offset by a decline in average revenue per minute of use. The remainder of the increases in long-distance and other revenue  in both years were driven by an increase in the volume of long-distance calls billed by U.S. Cellular to other wireless carriers whose customers used U.S. Cellular’s systems to make long-distance calls. This effect  was partially offset in both years by price reductions primarily related  to long-distance charges on roaming minutes of use as well as  U.S. Cellular’s increasing use of pricing plans for its customers which include long-distance calling at no additional charge. Monthly local retail minutes of use per customer averaged 422 in  2003, 304 in 2002 and 216 in 2001. The increases in monthly local  retail minutes of use in both years were driven by U.S. Cellular’s focus on designing sales incentive programs and customer billing rate plans to stimulate overall usage, as well as the acquisition of the Chicago market in 2002, whose customers used more minutes per month than the U.S. Cellular average. The impact on retail service revenue of the increased minutes of use in both years was partially offset by a decrease in average revenue per minute of use. The decrease in average revenue per minute of use reflects the effects of increasing competition, which has led to the inclusion of an increasing number of minutes in package pricing plans. Management anticipates that U.S. Cellular’s average revenue per minute of use will continue to decline in the future, reflecting increased competition and continued penetration of the consumer market. Inbound roaming revenue decreased $33.7 million, or 13%, to  $221.7 million in 2003 from $255.4 million in 2002 and decreased $16.9 million, or 6%, from $272.3 million in 2001. The decreases in revenue related to inbound roaming on U.S. Cellular’s systems in both Equipment sales revenues increased $60.3 million, or 61%, to  $159.0 million in 2003 from $98.7 million in 2002 and increased  $30.3 million, or 44%, in 2002 from $68.4 million in 2001. The increases in equipment sales revenues in both years primarily reflect a change  in U.S. Cellular’s method of distributing handsets to its agent channel. Beginning in the second quarter of 2002, U.S. Cellular began selling handsets to its agents at a price approximately equal to U.S. Cellular’s cost before applying any rebates. Previously, U.S. Cellular’s agents purchased handsets from third parties. Selling handsets to agents enables U.S. Cellular to provide better control over handset quality, set roaming preferences and pass along quantity discounts. Management antici- pates that U.S. Cellular will continue to sell handsets to agents in the 23 •U .S. Cellular’s roaming partners may switch their business from  U.S. Cellular to other operators or to their own systems. • the divestiture of U.S. Cellular’s markets in Florida and Georgia in August 2003 and in southern Texas in February 2004, which have historically provided substantial inbound roaming minutes of use; and • newer customers may roam less than existing customers, reflecting further penetration of the consumer market;