Telecom Argentina say profits rose 21 percent in the first quarter as mobile phone and broadband service surged in South America's second-largest economy. Net income for the quarter ending on March 31 rose to 329 million pesos, or 33 cents per share ($88.2 million), from 272 million pesos, or 28 cents per share, in the same 2008 period. Net sales grew 14 percent to 2.8 billion pesos ($758 million) from 2.4 billion pesos ($665 million) during the same 2008 period. In a statement released on Friday, the company said growth was propelled by mobile phone service and broadband Internet service. Telecom Italia and an Argentine investor group are majority shareholders in the company.