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


Washington,
      D. C. 20549





**FORM
      10-QSB**





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


For
      the
      quarterly period ended **March 31, 2006**




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


For
      the
      transition period from to




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




**CYBERTEL
      CAPITAL CORP.**


(Exact
      name of Small Business Issuer as specified in its Charter)





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








**9444
      Waples St., Ste 290**


**San
      Diego, California 92121**


(Address
      of Principal Executive Offices)










Issuer's
      Telephone Number: (858) 646-7410




Check
      whether the Registrant (1) filed all reports required to be filed by Section
      13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
      Period that the issuer was required to file such reports), and (2) has been
      subject to such filing requirements for the past 90 days. Yes [X] No [
      ]


Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act). Yes [ ] No [X]*
  *
        See the
        disclosure under the heading “Management’s Discussion and Analysis or Plan of
        Operation,” Part I, Item 2 of this Report.


**APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**


**PROCEEDINGS
      DURING THE PRECEDING FIVE YEARS**




Check
      whether the Registrant filed all documents and reports required to be filed
      by
      Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
      under a plan confirmed by a court.


Not
        applicable.




The
      Registrant has not been involved in any bankruptcy proceedings; however, see
      Item 3, Part I, for information regarding a pending legal proceeding pursuant
      to
      which additional documentation may be required to be filed by the Registrant
      in
      connection with the distribution of securities of the Registrant.


**APPLICABLE
        ONLY TO CORPORATE ISSUERS**
  State
        the
        number of shares outstanding of each of the Registrant's classes of common
        stock, as of the latest practicable date:
  **24,026,140
        shares at May 15, 2006**
  Transitional
        Small Business Disclosure Format (check one): Yes [ ] No [X]


PART
      I -
      FINANCIAL INFORMATION




**Item
      1. Financial Statements.**




The
      Financial Statements of the Registrant required to be filed with this 10- QSB
      Quarterly Report were prepared by management, and commence on the following
      page, together with Related Notes. In the opinion of management, the Financial
      Statements fairly present the financial condition of the Registrant for the
      periods then ended.


-1-


**CYBERTEL
      CAPITAL CORPORATION**


**CONSOLIDATED
      BALANCE SHEETS**


**March
                  31, 2006**
              ****
              ****
              **December
                  31, 2005**ASSETSCurrent
                  assets
              
              $
              5,331
              
              $
              1,186CashAccounts
                  receivable, net of allowance for doubtful
                accounts
                  of
                  $1,000 for both periods
              
              
              5,170
              
              
              8,996Total
                  current assets
              
              
              10,501
              
              
              10,182Deposits
              
              
              5,087
              
              
              5,087Total
                  assets
              
              $
              15,588
              
              $
              15,269LIABILITIES
                  AND
                  STOCKHOLDERS' DEFICITCurrent
                liabilitiesAccounts
                payable
              
              $
              387,484
              
              $
              384,038Accrued
                  liabilities
              
              
              671,898
              
              
              611,949Notes
                  payable to related parties
              
              
              219,846
              
              
              170,428Total
                  current liabilities
              
              
              1,279,228
              
              
              1,166,415Commitments
                  and contingencies
              
              
              -
              
              
              -Stockholders'
                  deficit:Series
                    A
                    convertible preferred stock, $.001 par;
              
              
              -
              
              
              -5,000
                  shares authorized; 410 and 429 sharesissued
                and outstandingSeries
                B voting preferred
                stock, $.001 par;50,000,000
                shares authorized; 50,000,000shares
                  issued and outstanding
              
              
              50,000
              
              
              50,000Common
                  stock, $.001
                  par value, 10,000,000,000shares
                  authorized, 10,705,184 and 6,205,184shares
                  issued and outstanding
              
              
              10,705
              
              
              6,205Additional
                  paid in
                  capital
              
              
              20,843,947
              
              
              20,758,362Accumulated
                  deficit
              
              
              (22,168,292
              )
              
              (21,965,713
              )Total
                  stockholders' deficit
              
              
              (1,263,640
              )
              
              (1,151,146
              )Total
                  liabilities and stockholders' deficit
              
              $
              15,588
              
              $
              15,269





-2-


**CYBERTEL
      CAPITAL CORPORATION**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**2006**
              
              
              **2005**REVENUES
              
              $
              7,863
              
              $
              18,220COST
                  OF GOODS SOLD
              
              
              -
              
              
              27,626Gross
                  profit (loss)
              
              
              7,863
              
              
              (9,406
              )EXPENSESGeneral,
                    administrative and selling
              
              
              113,315
              
              
              456,877Stock-based
                  compensation expense
              
              
              96,283
              
              
              84,937Bad
                  debt expense
              
              
              -
              
              
              10,000Bad
                  debt recovery
              
              
              (19
              )
              
              -Total
                  expenses
              
              
              209,579
              
              
              551,814Operating
                  loss
              
              
              (201,716
              )
              
              (561,220
              )OTHER
                  INCOME (EXPENSE)Other
                    income
              
              
              2,850
              
              
              5,992Interest
                  expense
              
              
              (
                  3,712
              )
              
              (12,018
              )Total
                  other expense
              
              
              (862
              )
              
              (6,026
              )Net
                  loss from continuing operations
              
              
              (202,578
              )
              
              (567,246
              )Discontinued
                  operations:Loss
                  from
                  discontinued operations
              
              
              -
              
              
              (112,617
              )Loss
                  on
                  discontinued operations
              
              
              -
              
              
              (16,494
              )NET
                  LOSS
              
              
              (202,578
              )
              
              (696,357
              )Preferred
                  stock
                  dividends
              
              
              (6,198
              )
              
              (8,409
              )Net
                  loss attributable to common shareholders
              
              $
              (208,776
              )
              $
              (704,766
              )Basic
                  and diluted net loss per sharefrom
                  continuing
                  operations
              
              $
              (0.03
              )
              $
              (0.21
              )Basic
                  and diluted net loss per sharefrom
                  discontinued
                  operations
              
              $
              -
              
              $
              (0.05
              )Basic
                  and diluted net loss per share
              
              $
              (0.03
              )
              $
              (0.26
              )Basic
                  and diluted weighted average sharesOutstanding
              
              
              7,328,517
              
              
              2,666,382





-3-


**CYBERTEL
      CAPITAL CORPORATION**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**Three
      Months Ended March 31, 2006 and 2005**


**2006**
            
            
            **2005**Net
                loss
            
            $
            (202,578
            )
            $
            (696,357
            )Add:
                Net loss from discontinued operations
            
            
            -
            
            
            (129,111
            )(202,578)
            
            
            (567,246
            )Adjustments
                to reconcile net loss to net cashused
              in operating
              activities:Depreciation
            
            
            -
            
            
            1,339Stock
                issued for
                services
            
            
            93,000
            
            
            3,000Stock
                option
                expense
            
            
            3,283
            
            
            81,937Bad
                debt expense
            
            
            -
            
            
            10,000Bad
                debt recovery
            
            
            (19
            )
            
            -Amortization
                of
                discount on note
            
            
            -
            
            
            6,164Changes
                in assets and liabilities:Accounts
              receivable
            
            
            3,845
            
            
            (10,189)Prepaid
                expenses
            
            
            -
            
            
            (11,072
            )Accounts
                payable
                and accrued expenses
            
            
            57,196
            
            
            5,058Net
                cash used in continuing operations
            
            
            (45,273
            )
            
            (481,009
            )Net
                cash used in discontinued operations
            
            
            -
            
            
            (35,000
            )Net
                cash used in operating activities
            
            
            (45,273
            )
            
            (516,009
            )CASH
                FLOWS FROM FINANCING ACTIVITIESProceeds
                  from
                  exercise of options
            
            
            -
            
            
            532,515Advances
                from
                related party
            
            
            1,418
            
            
            -Proceeds
                from notes
                payable - related parties
            
            
            48,000
            
            
            -Net
                cash provided by continuing operations
            
            
            49,418
            
            
            532,515Net
                cash used in discontinued operations
            
            
            -
            
            
            (40,000
            )Net
                cash provided by financing activities
            
            
            49,418
            
            
            492,515NET
                CHANGE IN CASH
            
            
            4,145
            
            
            (23,494
            )Cash,
                beginning of period
            
            
            1,186
            
            
            140,304Cash,
                end of period
            
            $
            5,331
            
            $
            116,810Cash
                paid for interest and taxes
            
            $
            -
            
            $
            3,101SUPPLEMENTAL
                DISCLOSURES:Conversion
                  of
                  preferred stock to common stock
            
            
            1,200
            
            
            -





-4-




**CYBERTEL
      CAPITAL CORPORATION**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**NOTE
      1 - BASIS OF PRESENTATION**





The
      accompanying unaudited interim financial statements of Cybertel Capital
      Corporation ("Cybertel") have been prepared in accordance with accounting
      principles generally accepted in the United States of America and the rules
      of
      the Securities and Exchange Commission ("SEC"), and should be read in
      conjunction with the audited consolidated financial statements and notes thereto
      contained in the Company's Annual Report filed with the SEC on Form 10-KSB.
      In
      the opinion of management, all adjustments, consisting of normal recurring
      adjustments, necessary for a fair presentation of financial position and the
      results of operations for the interim periods presented have been reflected
      herein. The results of operations for interim are not necessarily indicative
      of
      the results to be expected for the full year. Notes to the consolidated
      financial statements which would substantially duplicate the disclosure
      contained in the audited financial statements for 2005 as reported in the 10-KSB
      have been omitted.





**NOTE
      2 - STOCK BASED COMPENSATION**





Effective
      January 1, 2006, Cybertel began recording compensation expense associated with
      stock options and other forms of equity compensation in accordance with
      Statement of Financial Accounting Standards (“SFAS”) No. 123R, *Share-Based Payment,* as
      interpreted by SEC Staff Accounting Bulletin No. 107. Prior to
      January 1, 2006, Cybertel had accounted for stock options according to
      the provisions of Accounting Principles Board (“APB”) Opinion No.
      25, *Accounting for Stock Issued to Employees,* and
      related interpretations, and therefore no related compensation expense was
      recorded for awards granted with no intrinsic value. Cybertel adopted the
      modified prospective transition method provided for under SFAS No. 123R, and,
      consequently, has not retroactively adjusted results from prior periods. Under
      this transition method, compensation cost associated with stock options
      recognized in the first quarter of 2006 includes the quarterly amortization
      related to the remaining unvested portion of all stock option awards granted
      prior to January 1, 2006, based on the grant date fair value estimated in
      accordance with the original provisions of SFAS No. 123.





The
      following table illustrates the effect on net loss and net loss per share if
      Cybertel had applied the fair value provisions of FASB Statement No. 123R,
      to
      stock-based employee compensation for
      the
      three months ended March 31, 2005:


Net
                  loss available to commonstockholders,
                    as reported
              
              $
              (704,776
              )Add: 
                  stock based compensationdetermined
                under intrinsic valueBased
                  method
              
              
              81,937Less:
                  stock based compensationdetermined
                    under fair value
              
              
              (546,247
              )Pro
                  forma net loss availableto
                    common shareholders
              
              $
              (1,169,086
              )Basic
                  and diluted net loss per shareAs
                    reported
              
              $
              (0.26
              )Pro
                  forma
              
              $
              (0.44
              )




-5-


**NOTE
      3 - NOTES PAYABLE**





During
      the quarter ended March 31, 2006:





Cybertel
      borrowed $37,000 from a related party under a verbal agreement. This loan is
      due
      on demand and carries an interest rate of 5%.





Cybertel
      borrowed $11,000 from a related party on a demand promissory note. The note
      carries an interest rate of 10%.




**NOTE
      4 - COMMON STOCK**





During
      the quarter ended March 31, 2006:





Holders
      of Series A preferred stock converted 19 shares of Series A Convertible
      Preferred Stock into 1,200,000 shares of common stock, using the market price
      on
      the date of conversion.





Cybertel
      issued 3,300,000 shares of common stock for services valued at
      $93,000.





**NOTE
      5 - SUBSEQUENT EVENTS**


During
        April and May 2006, Cybertel issued 11,300,000 shares of common stock to
        consultants for services with an approximate value of $248,600. Also during
        April and May 2006, 25 shares of Series A preferred stock were converted
        into
        2,000,000 common shares at a conversion price of $0.0125.




Item
        2.
        Management's Discussion and Analysis or Plan of Operation.
  Plan
        of
        Operation.
 
 On
        March
        17, 2006, Albert A. Gomez, M.D. and James A. Wheeler entered into a Stock
        Sale
        and Purchase Agreement, pursuant to which Dr. Gomez sold 50,000,000 shares
        of
        Cybertel's Series B Preferred Stock to Mr. Wheeler at a purchase price of
        $20,000.
  -6-
 Each
        share of Series B Preferred Stock has 100 votes per share. Accordingly, the
        sale
        and transfer of the 50,000,000 shares of the Series B Preferred Stock to
        Mr.
        Wheeler effectively transferred control of Cybertel to Mr. Wheeler.
 
 In
        connection with this change in control, Dr. Gomez resigned as President and
        Chief Executive Officer of Cybertel. The Board of Directors appointed Mr.
        Wheeler as the new President and Chief Executive Officer, replacing Dr. Gomez.
        The Board of Directors also appointed Mr. Wheeler to fill one of the vacancies
        on the board of directors. Andrew Mercer and Reuben Gomez resigned as directors.
 
 Thereafter,
        the board agreed to reduce the number of authorized directors, and concurrently
        therewith, Dr. Gomez and Richard D. Mangiarelli agreed to resign from the
        Board
        of Directors. The reduction in the number of authorized directors and the
        concurrent resignations of Dr. Gomez and Mr. Mangiarelli will become effective
        11 days after the transmittal of an information statement pursuant to Rule
        14(f)1 of the Securities Exchange Act of 1934, as amended. The sale of the
        shares of Series B Preferred Stock was exempt from registration under the
        Securities Act of 1933, as amended, pursuant to Section 4(1) of the Securities
        Act (under the so-called "4(1 1/2) exemption" of the Securities Act).
 
 On
        March
        31, 2006, the Company entered into an agreement to merge with HBLN Services,
        Inc., an established provider of consulting services to government and
        commercial telecommunications providers. The agreement is subject to completion
        of financial and legal due diligence. The agreement states that HBLN will
        exchange 100% of its common stock for 500,000 shares of CBCL Preferred Series
        C
        stock, each share of which will convert in two years into $2.00 of CBCL common
        stock.
 
 On
        April
        7, 2006, which is subsequent to the period covered by this Report, the Company
        entered into an agreement to acquire The Swiftsure Group, Inc., Virginia-based
        company that was established in 2002. The Swiftsure Group is a systems
        integrator that specializes in fixed and mobile wireless interoperability
        for
        public safety, homeland security and emergency first responder operations.
        The
        agreement states that Swiftsure will exchange 100% of its common stock for
        500,000 shares of CBCL Preferred Series C stock, each share of which will
        convert in two years into $2.00 of CBCL common stock.
 
 Our
        management does not consider the Company to have been a “shell” company as of
        March 31, 2006, and the cover pages of our periodic reports as filed with
        the
        Securities and Exchange Commission have not indicated any such shell company
        status. However, in a recent discussion with our securities counsel, we were
        advised that the Company may be deemed to be a shell company under Rule 12b-2
        of
        the Securities and Exchange Commission. As a result, we are proceeding as
        expeditiously as possible to comply with the disclosure requirements of Item
        2.01(f) and Item 5.01(a)(8) of Form 8-K with respect to our recent acquisitions.
 
 The
        Company is positioning itself as a systems integrator that specializes in
        providing fixed and mobile wireless solutions for public safety, homeland
        security and emergency first responder operations. The Company will provide
        services that design and deploy interoperable data, voice and video systems
        for
        emergency preparedness, disaster response, risk mitigation and security
        services.
 
 The
        Company relies heavily on technology and service partners to provide the
        equipment, service management and expertise to deploy these communication
        solutions, some of which it has not established contractual relations as
        of this
        date. The Company will market its services to a wide variety of agencies,
        companies and institutions including the Department of Homeland security,
        Department of Defense, FEMA, public safety agencies such as police and fire
        departments, municipalities and government agencies.
 
 -7-
 We
        currently have insufficient funds to operate our business according to our
        proposed business plan. In addition, if unanticipated expenses, problems,
        and
        difficulties occur which result in material delays in the development of
        our
        products, we will not be able to operate within our budget. If we do not
        operate
        within our budget, we will require additional funds to continue our business.
        We
        may not be able to obtain additional financing as needed, on acceptable terms,
        or at all, which would force us to delay our plans for growth and implementation
        of our strategy which could seriously harm our business, financial condition,
        and results of operations. If we need additional funds, we may seek to obtain
        them primarily through stock or debt financings. Those additional financings
        could result in dilution to our stockholders.
 
 Results
        of Operations.
 
 The
        Company generated a net loss of $202,578 for the quarter ended March 31,
        2006,
        and had net loss of $696,257 for the quarter ended March 31, 2005. After
        the
        Preferred stock dividend the net loss attributable to common shareholders
        was
        $208,776 for the quarter ended March 31, 2006 and was $704,766 for the quarter
        ended March 31, 2005.
 
 Revenues
        for the three-month period ended March 31, 2006 decreased to $7,863, from
        $18,220 for the three months ended March 31, 2005.
  General,
        administrative and selling costs were $209,598 during the three months ended
        March 31, 2006, as compared to $541,814 for the three-month period ended
        March
        31, 2005.
 
 Liquidity.
 
 The
        Company incurred net losses from operation of $202,578 and $696,257 for the
        three months ended March 2006 and 2005, respectively, and had a stockholders'
        deficit of $1,263,640 as of March 31, 2006. Our management is attempting
        to
        raise sufficient additional capital through sales of stock.
 
 Item
        3.
        Controls and Procedures.
 
 As
        of the
        end of the period covered by this Quarterly Report, we carried out an
        evaluation, under the supervision and with the participation of our CEO and
        CFO,
        of the effectiveness of our disclosure controls and procedures. Based on
        this
        evaluation, our CEO and CFO concluded that our disclosure controls and
        procedures are effective in timely alerting them to material information
        required to be included in our periodic Securities and Exchange Commission
        reports. It should be noted that the design of any system of controls is
        based
        in part upon certain assumptions about the likelihood of future events, and
        there can be no assurance that any design will succeed in achieving its stated
        goals under all potential future conditions, regardless of how remote. In
        addition, we reviewed our internal controls over financial reporting, and
        there
        have been no changes in our internal controls or in other factors in the
        last
        fiscal quarter that has materially affected or is reasonably likely to
        materially affect our internal control over financial reporting.


-8-
 PART
          II -
          OTHER INFORMATION
 
 
 Item
          1.
          Legal Proceedings.
 
 Except
          as
          indicated below, we are not a party to any pending legal proceeding. To
          the
          knowledge of management, no federal, state or local governmental agency
          is
          presently contemplating any proceeding against us. No director, executive
          officer or other person who may be deemed to be an "affiliate" of Cybertel
          or
          owner of record or beneficially of more than five percent of its common
          stock is
          a party adverse to Cybertel or has a material interest adverse to us in
          any
          proceeding.
 
 (1)
          On or
          about January 25, 2002, Prudential Home Building Investors, Inc., a New
          Jersey
          corporation ("Prudential"), filed a complaint against our Company in the
          Superior Court of California, County of San Diego, Central Division. The
          case
          was designated Case No. GIC 782069, and sought damages in the amount of
          $32,000
          for unpaid rent on our former La Jolla facility from September, 2001, through
          December, 2001, when the lease terminated. Our Company has accrued this
          expense.
 
 (2)
          On
          March 2, 2006, Epstein, Fitzsimmons, Brown, Gioia, Jacobs & Sprouls, P.C.,
          obtained a $15,000 default judgment against us in the Superior Court of
          New
          Jersey for Morris County.
 
 Item
          2.
          Unregistered Sales of Equity Securities and Use of Proceeds.
 
 The
          following table indicates all sales of unregistered securities by Cybertel
          during the quarterly period ended March 31, 2006:
 
 Name
          Date
          No. of Shares Aggregate Consideration
 Majestic
                    Safe-T-Prod
                1/25/06
                300,000
                Preferred
                    conversionEdify
                    Capital Corp
                1/25/06
                300,000
                Preferred
                    conversionMajestic
                    Safe-T-Prod
                2/27/06
                300,000
                Preferred
                    conversionEdify
                    Capital Corp
                2/27/06
                300,000
                Preferred
                    conversion
 
 Management
          believes each of the foregoing persons or entities was either an "accredited
          investor," or "sophisticated investor" as defined in Rule 506 of Regulation
          D of
          the Securities and Exchange Commission. Each had access to all material
          information about Cybertel prior to the offer, sale or issuance of these
          "restricted securities." We believe these shares were exempt
          from the registration requirements of the Securities Act of 1933, as amended
          (the "Securities Act"), pursuant to Section 4(2) thereof.
  -9-
 Item
          3.
          Defaults Upon Senior Securities.
 
 None;
          not
          applicable.
 
 Item
          4.
          Submission of Matters to a Vote of Security Holders.
 
 During
          the quarterly period ended March 31, 2006, no matter was submitted to a
          vote of
          our security holders.
 
 Item
          5.
          Other Information.
 
 None;
          not
          applicable.
 
 Item
          6.
          Exhibits.
 
 Exhibit
          No. Description.
 
 31
              302
                  Certification of James A. Wheeler 32
              906
                  Certification of James A. Wheeler 
 -10-
 SIGNATURES
 
 In
          accordance with the requirements of the Exchange Act, the registrant caused
          this
          report to be signed on its behalf by the undersigned, thereunto duly
          authorized.
  CYBERTEL
          CAPITAL CORP.
 
 
 Date:
          By:
          _James A. Wheeler James
          A.
          Wheeler, CEO, President and DirectorMay 22, 2006
 -11-