**U.      S. Securities and Exchange Commission**

**FORM      10-QSB**

**[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**September      30, 2006**

**[      ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE      ACT**

*Commission      File No.*
***000-26913***

**CYBERTEL      CAPITAL CORP.**

| **NEVADA**                                     | **86-0862532**                     |
|------------------------------------------------|------------------------------------|
| (State                or Other Jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

**5520      Wellesley Street, Suite 109**

**La      Mesa, CA 91942**

**597,302,290      shares at November 10, 2006**

----

|                                                       | **TABLE                OF CONTENTS**                                                          |   **Page** |
|------------------------------------------------------------|-----------------------------------------------------------------------------------------------|----------------------|
| **PART                I - FINANCIAL INFORMATION**     |
| Item                1.                                     | Consolidated                Financial Statements                                              | 3               |
| Item                2.                                     | Management’s                Discussion and Analysis or Plan of                Operation | 10              |
| Item                3.                                     | Controls                and Procedures                                                        | 12              |
|  **PART                II - OTHER INFORMATION**  |
| Item                1.                                     | Legal                Proceedings                                                              | 13              |
| Item                2.                                     | Unregistered                Sales of Equity Securities and Use of                Proceeds     | 13              |
| Item                3.                                     | Defaults                Upon Senior Securities                                                | 13              |
| Item                4.                                     | Submission                of Matters to a Vote of Security                Holders             | 13              |
| Item                5.                                     | Other                Information                                                              | 13              |
| Item                6.                                     | Exhibits                                                                                      | 13              |

----

**Item      1. Financial Statements.**

| CYBERTEL                CAPITAL CORPORATION |
|---------------------------------------------|
| CONSOLIDATED                BALANCE SHEETS  |

|                                                                                                                         |       | **(unaudited)**                         | ** **  | ** **                             | ** ** |
|------------------------------------------------------------------------------------------------------------------------------|------------|-----------------------------------------|-------------|----------------------------------------|------------|
| ** **                                                                                                                   | ** ** | **September                  30, 2006** | ** **  | **December                  31, 2005** |       |
|                                                                                                                         |       |                                    |        |                                   |       |
| Assets                                                                                                                       |       |                                    |        |                                   |       |
| CURRENT                  ASSETS                                                                                              |       |                                    |        |                                   |       |   |   |
| Cash                                                                                                                         |       | $                                       | 32,526      |                                   | $          | 1,186 |   |
| Accounts                  Receivable, net of allowance for doubtful accts of $3,400 and $1,000                  respectively |       |                                    | 9,909       |                                   |       | 8,996 |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| Prepaid                  expenses and Other Current Assets                                                                   |       |                                    | 9,149       |                                   |       | - |   |
| TOTAL                  CURRENT ASSETS                                                                                        |       |                                    | 51,584      |                                   |       | 10,182 |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| Gross                  Fixed Assets                                                                                          |       |                                    | 106,507     |                                   |       | 58,724 |   |
| Accumulated                  Depreciation                                                                                    |       |                                    | (79,720     | )                                      |       | (58,724 | ) |
| NET                  FIXED ASSETS                                                                                            |       |                                    | 26,787      |                                   |       | - |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| Goodwill                                                                                                                     |       |                                    | 375,081     |                                   |       | - |   |
| Customer                  List, net of amortization of $9,720                                                                |       |                                    | 184,679     |                                   |       | - |   |
| Other                  Assets                                                                                                |       |                                    | 5,087       |                                   |       | 5,087 |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| TOTAL                  ASSETS                                                                                                |       | $                                       | 643,218     |                                   | $          | 15,269 |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| Liabilities                  and Stockholders' Deficit                                                                       |       |                                    |        |                                   |       |   |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| CURRENT                  LABILITIES                                                                                          |       |                                    |        |                                   |       |   |   |
| Accounts                  Payable                                                                                            |       | $                                       | 431,986     |                                   | $          | 384,038 |   |
| Accrued                  Liabilities                                                                                         |       |                                    | 753,592     |                                   |       | 611,949 |   |
| Notes                  Payable to Related Parties, Current Portion                                                           |       |                                    | 5,766       |                                   |       | 170,428 |   |
| TOTAL                  CURRENT LIABILITIES                                                                                   |       |                                    | 1,191,344   |                                   |       | 1,166,415 |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| Notes                  Payable to Related Parties                                                                            |       |                                    | 351,396     |                                   |       | - |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| TOTAL                  LIABILITIES                                                                                           |       |                                    | 1,542,740   |                                   |       | 1,166,415 |   |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| STOCKHOLDERS'                  DEFICIT:                                                                                      |       |                                    |        |                                   |       |   |   |
| Series                  A Convertible Preferred Stock, $.001 par;                                                            |       |                                    |        |                                   |       |   |   |
| 5,000                  shares authorized; 211 and 429 shares                                                                 |       |                                    |        |                                   |       |   |   |
| issued                  and outstanding                                                                                      |       |                                    | -           |                                   |       | - |   |
| Series                  B Voting Preferred Stock, $.001 par;                                                                 |       |                                    |        |                                   |       |   |   |
| 50,000,000                  shares authorized; 50,000,000                                                                    |       |                                    |        |                                   |       |   |   |
| shares                  issued and outstanding                                                                               |       |                                    | 50,000      |                                   |       | 50,000 |   |
| Series                  C Preferred Stock $2.00 par value,                                                                   |       |                                    |        |                                   |       |   |   |
| 500,000                  shares issued                                                                                       |       |                                    | 1,000,000   |                                   |       | - |   |
| Common                  Stock, $.001 par value, 10,000,000,000                                                               |       |                                    |        |                                   |       |   |   |
| shares                  authorized, 397,907,290 and 6,205,184                                                                |       |                                    |        |                                   |       |   |   |
| issued                  and outstanding                                                                                      |       |                                    | 397,907     |                                   |       | 6,205 |   |
| Additional                  Paid In Capital                                                                                  |       |                                    | 21,375,248  |                                   |       | 20,758,362 |   |
| Stock                  Subscription Receivable                                                                               |       |                                    | (44,473     | )                                      |       |   |   |
| Retained                  Deficit                                                                                            |       |                                    | (23,678,204 | )                                      |       | (21,965,713 | ) |
| TOTAL                  STOCKHOLDERS' DEFICIT                                                                                 |       |                                    | (899,522    | )                                      |       | (1,151,146 | ) |
|                                                                                                                         |       |                                    |        |                                   |       |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                 |       | $                                       | 643,218     |                                   | $          | 15,269 |   |

----

| CYBERTEL                CAPITAL CORPORATION         |
|-----------------------------------------------------|
| CONSOLIDATED                STATEMENT OF OPERATIONS |
| (Unaudited)                                         |

|                                                                               |   | **For                  the three months** |        | **For                  the nine months** |   |
|------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|------------------------------------------|--------|
|                                                                               |   | **ended                  September 30,**  |        | **ended                  September 30,** |   |
|                                                                               |   | **2006**                                  |        | **2005**                                 |   | **2006** |   | **2005** |   |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |
| REVENUES                                                                           |   | $                                         | 21,981      |                                     | $      | 12,445 |   | $ | 40,467 |   | $ | 48,193 |   |
| COST                  OF GOODS SOLD                                                |   |                                      | 19,558      |                                     |   | - |   |   | 19,558 |   |   | 27,876 |   |
|  Gross                  Profit                                                |   |                                      | 2,423       |                                     |   | 12,445 |   |   | 20,909 |   |   | 20,317 |   |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                           |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Selling,                  General and Administrative                          |   |                                      | 877,130     |                                     |   | 127,456 |   |   | 1,729,161 |   |   | 1,214,466 |   |
|  TOTAL                  OPERATING EXPENSES                                    |   |                                      | 877,130     |                                     |   | 127,456 |   |   | 1,729,161 |   |   | 1,214,466 |   |
| OPERATING                  LOSS                                                    |   |                                      | (874,707    | )                                        |   | (115,011 | ) |   | (1,708,252 | ) |   | (1,194,149 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| OTHER                  INCOME (EXPENSE)                                            |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Other                  Income                                                 |   |                                      | 1,250       |                                     |   | 2,851 |   |   | 6,000 |   |   | 3,382 |   |
| Interest                  Expense, net                                        |   |                                      | (1,542      | )                                        |   | - |   |   | (10,238 | ) |   | (22,598 | ) |
| Forgiveness                  of Debt                                          |   |                                      | -           |                                     |   | - |   |   | - |   |   | 330,686 |   |
|  TOTAL                  OTHER INCOME/(EXPENSE)                                |   |                                      | (292        | )                                        |   | 2,851 |   |   | (4,238 | ) |   | 311,470 |   |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| NET                  LOSS FROM CONTINUED OPERATIONS                                |   |                                      | (874,999    | )                                        |   | (112,160 | ) |   | (1,712,490 | ) |   | (882,679 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Loss                  from discontinued operation                             |   |                                      | -           |                                     |   | - |   |   | - |   |   | (129,111 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| NET                  LOSS                                                          |   |                                      | (874,999    | )                                        |   | (112,160 | ) |   | (1,712,490 | ) |   | (1,011,790 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Preferred                  Stock Dividends                                    |   |                                      | (3,822      | )                                        |   | (6,790 | ) |   | (15,652 | ) |   | (22,081 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| NET                  LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                      |   | $                                         | (878,821    | )                                        | $      | (118,950 | ) | $ | (1,728,142 | ) | $ | (1,033,871 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Basic                  and diluted net loss per share from continuing operations   |   | $                                         | (0.01       | )                                        | $      | (0.02 | ) | $ | (0.02 | ) | $ | (0.20 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Basic                  and diluted net loss per share from discontinued operations |   |                                      | 0.00        |                                     |   | 0.00 |   |   | 0.00 |   |   | (0.03 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Earnings                  (loss) per share, basic and diluted                      |   | $                                         | (0.01       | )                                        | $      | (0.02 | ) | $ | (0.02 | ) | $ | (0.23 | ) |
|                                                                               |   |                                      |        |                                     |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of shares outstanding basic and diluted   |   |                                      | 129,434,422 |                                     |   | 5,659,977 |   |   | 84,120,939 |   |   | 4,411,220 |   |

----

| CYBERTEL                CAPITAL CORPORATION          |
|------------------------------------------------------|
| CONSOLIDATED                STATEMENTS OF CASH FLOWS |
| (unaudited)                                          |

|                                                                  |   | **For                  the nine months** |       |
|-----------------------------------------------------------------------|--------|------------------------------------------|------------|
|                                                                  |   | **ended                  September 30,** |       |
|                                                                  |   | **2006**                                 |       | **2005** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**             |   |                                     |       |   |   |   |   |
| Net                  loss                                        |   | $                                        | (1,712,490 | ) | $ | (1,011,790 | ) |
| Less:                  Net loss from discontinued operations     |   |                                     | -          |   |   | (129,111 | ) |
|  Net                  loss from continuing operations            |   |                                     | (1,712,490 | ) |   | (882,679 | ) |
|                                                                  |   |                                     |       |   |   |   |   |
| Adjustments                  to reconcile net loss to net cash   |   |                                     |       |   |   |   |   |
|  used                  in operating activities:                  |   |                                     |       |   |   |   |   |
|  Depreciation                  and amortization                  |   |                                     | 16,426     |   |   | 2,309 |   |
|  Stock                  issued for services                      |   |                                     | 1,229,779  |   |   | 3,000 |   |
|  Stock                  option expense                           |   |                                     | 33,216     |   |   | 290,572 |   |
|  Bad                  debt expense                               |   |                                     | -          |   |   | 9,999 |   |
|  Amortization                  of discount on note               |   |                                     | -          |   |   | 15,411 |   |
|  Forgiveness                  of debt                            |   |                                     | -          |   |   | (330,686 | ) |
| Changes                  in assets and liabilities:              |   |                                     |       |   |   |   |   |
|  Accounts                  receivable                            |   |                                     | 15,616     |   |   | (9,301 | ) |
|  Prepaid                  expenses                               |   |                                     | (2,976     | ) |   | (12,187 | ) |
|  Accounts                  payable and accrued expenses          |   |                                     | 236,650    |   |   | 88,277 |   |
|                                                                  |   |                                     |       |   |   |   |   |
| Net                  cash used in continuing operations               |   |                                     | (183,779   | ) |   | (825,285 | ) |
| Net                  cash used in discontinued operations             |   |                                     | -          |   |   | (35,000 | ) |
|                                                                  |   |                                     |       |   |   |   |   |
| Net                  cash used in operating activities                |   |                                     | (183,779   | ) |   | (860,285 | ) |
|                                                                  |   |                                     |       |   |   |   |   |
| **CASH                  FLOW FROM INVESTING ACTIVITIES**              |   |                                     |       |   |   |   |   |
| Loan                  to third party                                  |   |                                     | -          |   |   | (75,000 | ) |
| Cash                  paid for purchase of fixed assets               |   |                                     | (32,722    | ) |   | - |   |
| Net                  cash used in investing activities                |   |                                     | (32,722    | ) |   | (75,000 | ) |
|                                                                  |   |                                     |       |   |   |   |   |
| **CASH                  FLOW FROM FINANCING ACTIVITIES**              |   |                                     |       |   |   |   |   |
| Proceeds                  from note payable to related party          |   |                                     | 172,528    |   |   | 86,000 |   |
| Repayment                  of loan                                    |   |                                     | (3,587     | ) |   | - |   |
| Proceeds                  from exercise of common stock options       |   |                                     | -          |   |   | 676,794 |   |
| Proceeds                  from ESOP shares                            |   |                                     | 78,900     |   |   | - |   |
| Net                  cash provided by continuing operations           |   |                                     | 247,841    |   |   | 762,794 |   |
| Net                  cash provided by discontinued operations         |   |                                     | -          |   |   | 35,000 |   |
| Net                  cash provided by financing activities            |   |                                     | 247,841    |   |   | 797,794 |   |
|                                                                  |   |                                     |       |   |   |   |   |
| NET                  CHANGE IN CASH                                   |   |                                     | 31,340     |   |   | (137,491 | ) |
|                                                                  |   |                                     |       |   |   |   |   |
| Cash,                  beginning of period                            |   |                                     | 1,186      |   |   | 140,304 |   |
|                                                                  |   |                                     |       |   |   |   |   |
| Cash,                  end of period                                  |   | $                                        | 32,526     |   | $ | 2,813 |   |
|                                                                  |   |                                     |       |   |   |   |   |
| Supplemental                  disclosures of cash flows information   |   |                                     |       |   |   |   |   |
| Cash                  paid for income taxes                           |   | $                                        | -          |   | $ | - |   |
| Cash                  paid for interest                               |   | $                                        | 22         |   | $ | 22,598 |   |
|                                                                  |   |                                     |       |   |   |   |   |
| **NON-CASH                  INVESTING & FINANCING ACTIVITIES**    |   |                                     |       |   |   |   |   |
| Conversion                  of Preferred Stock                        |   |                                     | 89,135     |   |   | - |   |
| Dividend                  Declared                                    |   |                                     | 15,656     |   |   | - |   |
| Conversion                  of Accrued Dividend                       |   |                                     | 65,164     |   |   | - |   |
| Net                  non-cash & financing activities              |   | $                                        | 169,955    |   | $ | - |   |

----

**CYBERTEL      CAPITAL CORPORATION **

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS **

**NOTE      1 - BASIS OF PRESENTATION **

**NOTE      2 - ACQUISITION OF HBLN**

| Current                  assets         |   | $      | 25,262  |   |
|-----------------------------------------|--------|--------|---------|--------|
| Property                  and equipment |   |   | 25,834  |   |
| Customer                  list          |   |   | 194,399 |   |
| Goodwill                                |   |   | 375,081 |   |
| Total                  assets           |   |   | 620,576 |   |
|                                    |   |   |    |   |
| Less:                                   |   |   |    |   |
| Total                  liabilities      |   |   | 47,865  |   |
| Total                  purchase price   |   | $      | 572,711 |   |

----

| CYBERTEL                CAPITAL CORPORATION          |
|------------------------------------------------------|
| CONSOLIDATED                STATEMENTS OF OPERATIONS |
| (Unaudited)                                          |

| ** **                                                           | ** ** | **Three                months ended,** | ** **   |
|----------------------------------------------------------------------|------------|----------------------------------------|--------------|
| ** **                                                           | ** ** | **September                30, 2006**  | ** **   | **September                30, 2005** | ** ** |
| ** **                                                           | ** ** | **Cybertel**                           | ** **   | **AireWire** | ** ** | **Consol** | ** ** | **Cybertel** | ** ** | **AireWire** | ** ** | **Consol** |   |
| **REVENUES**                                                         |       |                                   | 43           |   |   | 21,938 |   |   | 21,981 |   |   | 12,445 |   |   | 100,768 |   |   | 113,213 |   |
| **COST                OF GOODS SOLD**                                |       |                                   | -            |   |   | 19,558 |   |   | 19,558 |   |   | - |   |   | 49,021 |   |   | 49,021 |   |
| **Gross                Profit**                                      |       |                                   | 43           |   |   | 2,380 |   |   | 2,423 |   |   | 12,445 |   |   | 51,747 |   |   | 64,192 |   |
|                                                                 |       |                                   |              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **EXPENSES**                                                         |       |                                   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Selling,                General and Administrative**               |       |                                   | 817,356      |   |   | 59,774 |   |   | 877,130 |   |   | 127,456 |   |   | 17,593 |   |   | 145,049 |   |
| **TOTAL                OPERATING EXPENSES**                          |       |                                   | 817,356      |   |   | 59,774 |   |   | 877,130 |   |   | 127,456 |   |   | 17,593 |   |   | 145,049 |   |
| **OPERATING                INCOME/(LOSS)**                           |       |                                   | (817,313     | ) |   | (57,394 | ) |   | (874,707 | ) |   | (115,011 | ) |   | 34,154 |   |   | (80,857 | ) |
|                                                                 |       |                                   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSE)**                            |       |                                   |              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Other                Income**                                      |       |                                   | 1,250        |   |   | - |   |   | 1,250 |   |   | 2,851 |   |   | - |   |   | 2,851 |   |
| **Interest                Expense**                                  |       |                                   | (886         | ) |   | (656 | ) |   | (1,542 | ) |   | - |   |   | (612 | ) |   | (612 | ) |
| **TOTAL                OTHER EXPENSE**                               |       |                                   | 364          |   |   | (656 | ) |   | (292 | ) |   | 2,851 |   |   | (612 | ) |   | 2,239 |   |
|                                                                 |       |                                   |    |   |   |     |   |   |     |   |   |     |   |   |     |   |   |     |   |
| **NET                INCOME (LOSS)**                                 |       |                                   | (816,949     | ) |   | (58,050 | ) |   | (874,999 | ) |   | (112,160 | ) |   | 33,542 |   |   | (78,618 | ) |
|                                                                 |       |                                   |              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Preferred                Stock Dividends**                         |       |                                   | (3,822       | ) |   | - |   |   | (3,822 | ) |   | (6,790 | ) |   |  |   |   | (6,790 | ) |
|                                                                 |       |                                   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME (LOSS) ATTRIBUTABLE**                    |       |                                        |         |   |  |   |   |  |   |
|  **TO              COMMON              SHAREHOLDERS**           |       | $                                      | (820,771     | ) | $ | (58,050 | ) |   | (878,821 | ) | $ | (118,950 | ) | $ | 33,542 |   | $ | (85,408 | ) |
|                                                                 |       |                                   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |       |                                   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net loss per share                  |       | $                                      | (0.01        | ) |   |  |   |   |  |   | $ | (0.02 | ) |
| Basic                and diluted weighted average shares Outstanding |       |                                   | 129,434,422  |   |   |   |   |   |   |   |   | 5,659,977 |   |

----

| CYBERTEL                CAPITAL CORPORATION          |
|------------------------------------------------------|
| CONSOLIDATED                STATEMENTS OF OPERATIONS |
| (Unaudited)                                          |

|                                                                 |       | **Nine                months ended,** | ** ** |
|----------------------------------------------------------------------|------------|---------------------------------------|------------|
| ** **                                                           | ** ** | **September                30, 2006** | ** ** | **September                30, 2005** | ** ** |
| ** **                                                           | ** ** | **Cybertel**                          | ** ** | **AireWire** | ** ** | **Consol** | ** ** | **Cybertel** | ** ** | **AireWire** | ** ** | **Consol** |   |
| **REVENUES**                                                         |       |                                  | 18,529     |   |   | 136,877 |   |   | 155,406 |   |   | 48,193 |   |   | 309,257 |   |   | 357,450 |   |
| **COST                OF GOODS SOLD**                                |       |                                  | -          |   |   | 59,131 |   |   | 59,131 |   |   | 27,876 |   |   | 171,151 |   |   | 199,027 |   |
| **Gross                Profit**                                      |       |                                  | 18,529     |   |   | 77,746 |   |   | 96,275 |   |   | 20,317 |   |   | 138,106 |   |   | 158,423 |   |
|                                                                 |       |                                  |            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **EXPENSES**                                                         |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Selling,                General and Administrative**               |       |                                  | 1,669,386  |   |   | 151,889 |   |   | 1,821,275 |   |   | 1,214,466 |   |   | 39,811 |   |   | 1,254,277 |   |
| **TOTAL                OPERATING EXPENSES**                          |       |                                  | 1,669,386  |   |   | 151,889 |   |   | 1,821,275 |   |   | 1,214,466 |   |   | 39,811 |   |   | 1,254,277 |   |
| **OPERATING                INCOME (LOSS)**                           |       |                                  | (1,650,857 | ) |   | (74,143 | ) |   | (1,725,000 | ) |   | (1,194,149 | ) |   | 98,295 |   |   | (1,095,854 | ) |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSE)**                            |       |                                  |            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Other                Income**                                      |       |                                  | 6,000      |   |   | - |   |   | 6,000 |   |   | 3,382 |   |   | - |   |   | 3,382 |   |
| **Interest                Expense**                                  |       |                                  | (9,582     | ) |   | (1,270 | ) |   | (10,852 | ) |   | (22,598 | ) |   | (919 | ) |   | (23,517 | ) |
| **Forgiveness                of Debt**                               |       |                                  | -          |   |   | - |   |   | - |   |   | 330,686 |   |   |           |   |   | 330,686 |   |
| **TOTAL                OTHER EXPENSE**                               |       |                                  | (3,582     | ) |   | (1,270 | ) |   | (4,852 | ) |   | 311,470 |   |   | (919 | ) |   | 310,551 |   |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME (LOSS) FROM**                            |       |                                       |       |   |  |   |   |  |   |
| **CONTINUED                OPERATIONS**                              |       |                                  | (1,654,439 | ) |   | (75,413 | ) |   | (1,729,852 | ) |   | (882,679 | ) |   | 97,376 |   |   | (785,303 | ) |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                from discontinued operations**                 |       |                                  | -          |   |   | - |   |   | - |   |   | (129,111 | ) |   |  |   |   | (129,111 | ) |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME (LOSS)**                                 |       |                                  | (1,654,439 | ) |   | (75,413 | ) |   | (1,729,852 | ) |   | (1,011,790 | ) |   | 97,376 |   |   | (914,414 | ) |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                Stock Dividends**                         |       |                                  | (15,652    | ) |   | - |   |   | (15,652 | ) |   | (22,081 | ) |   |  |   |   | (22,081 | ) |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME (LOSS) ATTRIBUTABLE**                    |       |                                       |       |   |  |   |   |  |   |
|  **TO              COMMON              SHAREHOLDERS**           |       |                                  | (1,670,091 | ) |   | (75,413 | ) |   | (1,745,504 | ) |   | (1,033,871 | ) |   | 97,376 |   |   | (936,495 | ) |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |       |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net loss per share                  |       |                                  |            |   |   |  |   | $ | (0.02 | ) |   |  |   |   |  |   | $ | (0.21 | ) |
| Basic                and diluted weighted average shares Outstanding |       |                                  |       |   | 84,120,939 |   |   |   |   |   |   |   |   | 4,411,220 |   |

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**NOTE      3 - STOCK BASED COMPENSATION **

*Share-Based      Payment, *
*Accounting      for Stock Issued to Employees, *

|                                                                            |   | **Three                months ended** |     | **Nine                months ended**  |   |
|---------------------------------------------------------------------------------|--------|---------------------------------------|----------|---------------------------------------|--------|
|                                                                            |   | **September                30, 2005** |     | **September                30, 2005** |   |
| Net                loss attributable to common stockholders, as reported        |   | $                                     | (118,950 | )                                     | $      | (1,033,871 | ) |
| Add:                                                                            |   |                                  |          |                                  |   |  |   |
|                  stock based compensation determined under intrinsic value |   |                                  | 3,216    |                                  |   | 290,572 |   |
|                                                                            |   |                                  |          |                                  |   |  |   |
|  Based                method                                               |   |                                  |          |                                  |   |  |   |
| Less:                                                                           |   |                                  |     |                                  |   |   |   |
|  stock                based compensation determined under fair value       |   |                                  | (3,244   | )                                     |   | (910,560 | ) |
| Pro                forma net loss available to common shareholders              |   | $                                     | (118,978 | )                                     | $      | (1,653,859 | ) |
|                                                                            |   |                                  |          |                                  |   |  |   |
| Basic                and diluted net loss per share as reported                 |   | $                                     | (0.02    | )                                     | $      | (0.23 | ) |
| Pro                forma                                                        |   | $                                     | (0.02    | )                                     | $      | (0.37 | ) |

**NOTE      4 - NOTES PAYABLE - RELATED PARTIES**

**NOTE      5 - COMMON STOCK**

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**NOTE      6 - SUBSEQUENT EVENTS **

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**ITEM      2. MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

**Overview**

**General      **

**Recent      Developments**

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**Results      of Operations**

**Liquidity**

**ITEM      3. CONTROLS AND PROCEDURES.**

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**PART      II - OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS.**

**ITEM2.      UNREGISTERED SALE OF SECURITIES**

**ITEM      3. DEFAULT OF SENIOR SECURITIES**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS**

**ITEM      5. OTHER INFORMATIONS**

**ITEM      6. EXHIBITS**

| **Exhibit              No.** | **Description**                                                                                                 |
|------------------------------|-----------------------------------------------------------------------------------------------------------------|
| 31.1                         | Certification                Pursuant to Section 301 of the Sarbanes                Oxley Act                   |
| 32.1                         | Certification                Pursuant to Section 906 of the                Sarbanes-Oxley Act    |

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SIGNATURES

|                                     |                                     |                                                |
|------------------------------------------|------------------------------------------|-----------------------------------------------------|
|                                     | CYBERTEL                CAPITAL CORP.    |
|                                |                                |                                           |
| Dated:                November 17, 20067 | By:                            | /s/ James              A.              Wheeler |
|                                     | James              A. Wheeler            |
|                                     | CEO,              President and Director |

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