<PAGE>
                                  FORM 10-Q  

                      SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C.  20549
                   ----------------------------------------

     X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF            
    ---              THE SECURITIES EXCHANGE ACT OF 1934

             For the Quarterly Period Ended September 30, 1996

                                   OR

           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) of
    ---           THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to ____________________

                       Commission File No.   0-10516
                   ---------------------------------------
                         Aliant Communications Inc.
           (Exact name of registrant as specified in its charter)

              Nebraska                                47-0632436
    (State or other jurisdiction of                (I.R.S. Employer
     incorporation or organization)               Identification No.)

    1440 M Street, Lincoln, Nebraska                      68508

(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code:  402-436-5289

Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.  

                           Yes    X        No      
                                -----           -----

Indicate the number of shares outstanding of each of the Registrant's 
classes of Common Stock as of the latest practicable date.  


       Class of Common Stock            Outstanding at September 30, 1996
           $.25 par Value                           36,543,820

<PAGE>
                     PART I - FINANCIAL INFORMATION
               ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES

The following consolidated financial statements of Aliant Communications 
Inc. and its wholly owned subsidiaries have been prepared pursuant to the 
rules and regulations of the Securities and Exchange Commission (SEC) and, 
in the opinion of management, include all adjustments necessary for a fair 
statement of income for each period shown. All such adjustments made are of 
a normal recurring nature except when noted as extraordinary or 
nonrecurring.  Certain information and footnote disclosures normally 
included in consolidated financial statements prepared in accordance with 
generally accepted accounting principles have been condensed or omitted 
pursuant to such SEC rules and regulations.  Management believes that the 
disclosures made are adequate and that the information is fairly presented. 
The results for the interim periods are not necessarily indicative of the 
results for the full year.  These consolidated financial statements should 
be read in conjunction with the consolidated financial statements and notes 
thereto in the 1995 Annual Report on Form 10-K and in this year's prior 
Quarterly Reports on Form 10-Q, which are incorporated by reference.  These 
prior reports are filed under the former corporate name:  Lincoln 
Telecommunications Company.  

                                    -1-
<PAGE>
Item 1 - Financial Statements
<TABLE>
                  ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS


                                                Sept. 30, 1996   Dec. 31, 1995
                                                  (Unaudited)      (Audited)
                                                    (Dollars in Thousands)
<CAPTION>
ASSETS
<S>                                                <C>            <C>
Current assets                                     $  84,967      $  84,102

Property and equipment less accumulated
 depreciation and amortization                       248,903        255,262

Other investments                                     50,259         47,078

Goodwill                                             122,416        124,022

Deferred charges                                      12,466          9,857
                                                   ---------      ---------
     Total assets                                  $ 519,011      $ 520,321
                                                   =========      =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

   Notes payable to banks                          $       0     $  10,000

   Accounts payable and accrued liabilities           65,715        64,764
                                                   ---------     ---------
     Total current liabilities                        65,715        74,764

Deferred credits and other long-term liabilities      65,854        63,805

Long-term debt                                       107,810       117,708

Preferred stock, 5%, redeemable                        4,499         4,499

Stockholders' equity                                 275,133       259,545
                                                   ---------     ---------
     Total liabilities and stockholders' equity    $ 519,011     $ 520,321
                                                   =========     =========

</TABLE>
                                      -2-
<PAGE>
<TABLE>
                  ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF EARNINGS
                                   (UNAUDITED)

                                      Three Months Ended     Nine Months Ended
                                     Sept. 30,  Sept. 30,   Sept. 30,  Sept. 30,
                                       1996       1995        1996       1995  
                                    (Dollars in Thousands Except Per Share Data)
<CAPTION>
<S>                                   <C>        <C>         <C>        <C>
Operating revenues:*
  Telephone revenues:
    Local network services            $18,759    $18,026     $55,823    $53,222
    Access services                    13,857     14,073      42,302     40,136
    Long distance services              7,829      7,504      23,963     23,328
    Other wireline communications
     services                           6,231      6,088      19,091     18,046
                                      -------    -------     -------    -------
      Total telephone operating
       revenues                        46,676     45,691     141,179    134,732

Wireless communications revenues       17,387     13,426      46,395     20,087
Telephone equipment sales and
 services                               4,426      4,794      13,920     14,392
Intercompany revenues                  (1,914)    (1,730)     (6,042)    (5,256)
                                      -------    -------     -------    -------
      Total operating revenues         66,575     62,181     195,452    163,955
                                      -------    -------     -------    -------
Operating expenses:*
   Depreciation and amortization       11,513     10,442      34,273     26,881
   Other operating expenses            34,706     31,532     105,543     87,212
   Restructing charge                      --      1,552          --      1,552
   Taxes, other than payroll
    and income                          1,082        932       3,023      2,638
   Intercompany expenses               (1,914)    (1,730)     (6,042)    (5,256)
                                      -------    -------     -------    -------
      Total operating expenses         45,387     42,728     136,797    113,027
                                      -------    -------     -------    -------
      Operating income                 21,188     19,453      58,655     50,928
                                      -------    -------     -------    -------
Non-operating income and expense:
   Income from interest and other
    investments                         1,565      1,819       5,132      4,991
   Interest expense and other
    deductions                          2,365      2,698       7,452      5,981
                                      -------    -------     -------    -------

(Continued on following page)

                                     -3-
<PAGE>
                  ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF EARNINGS (Cont'd)
                                  (UNAUDITED)


                                      Three Months Ended     Nine Months Ended
                                     Sept. 30,  Sept. 30,   Sept. 30,  Sept. 30,
                                       1996       1995        1996       1995  
                                    (Dollars in Thousands Except Per Share Data)

      Net non-operating expense           800        879       2,320        990
                                      -------    -------     -------    -------
      Income before income taxes       20,388     18,574      56,335     49,938
Income taxes                            8,223      7,344      22,735     19,493
                                      -------    -------     -------    -------
      Net income                       12,165     11,230      33,600     30,445
Preferred dividends                        57         57         169        169
                                      -------    -------     -------    -------
      Earnings available
       for common shares               12,108     11,173      33,431     30,276
                                      =======    =======     =======    =======
      Earnings per common share           .33        .31         .91        .90
                                      =======    =======     =======    =======

Weighted average common shares
 outstanding (in thousands)            36,623     36,045      36,649     33,598
                                      =======    =======     =======    =======

Dividends declared per common share       .15        .14         .45        .42
                                      =======    =======     =======    =======


*Certain reclassifications have been made to the historical consolidated
 statements of earnings to conform to the current presentation.

</TABLE>
                                    -4-
<PAGE>
<TABLE>
                ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS*
                                 (UNAUDITED)

                                                        Nine Months Ended
                                                 Sept. 30, 1996  Sept. 30, 1995
                                                      (Dollars in Thousands)
<CAPTION>
<S>                                                  <C>            <C>
Cash flows from operating activities:
   Net income                                        $ 33,600       $ 30,445
                                                     --------       --------
   Adjustments to reconcile net income  
    to net cash provided by operating activities:
      Depreciation and amortization                    34,296         26,905
      Restructuring charge                                 --          1,552
      Net change in investments and other assets       (2,810)        (2,336)
      Deferred income taxes                             2,457            432 
      Changes in assets and liabilities resulting
       from operating activities:
         Receivables                                   (5,832)        (3,683)
         Other assets                                    (263)          (860)
         Accounts payable and accrued expenses         (2,443)        (6,890)
         Other liabilities                              1,196         (1,107)
                                                      --------       --------
               Total adjustments                       26,601         14,013
                                                     --------       --------
               Net cash provided by operating
                activities                             60,201         44,458
                                                     --------       --------
Cash flows from investing activities:
   Expenditures for property and equipment            (25,269)       (31,572)
   Net salvage on retirements                             (48)         2,006 
                                                     --------       --------
               Net capital additions                  (25,317)       (29,566)

   Proceeds from sale of investments and other
    assets                                                 35            -- 
   Purchases of investments and other assets           (1,288)        (2,711)
   Acquisition, net of cash acquired                       --           (297)
   Purchases of temporary investments                 (10,392)        (1,811)
   Maturities and sales of temporary investments       16,208         13,779
                                                     --------       --------
               Net cash used for investing
                activities                            (20,754)       (20,606) 
                                                     --------       --------
Cash flows from financing activities:
   Dividends to stockholders                          (16,661)       (13,756) 

(Continued on following page)
                                       -5-
<PAGE>
                ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont'd)
                                 (UNAUDITED)

                                                      Nine Months Ended
                                               Sept. 30, 1996  Sept. 30, 1995
                                                    (Dollars in Thousands)

   Proceeds from issuance of notes payable              --           3,350
   Retirement of notes payable                      (10,000)       (12,950)
   Retirement of long term debt                      (8,111)          (665)
   Net purchases and sales of treasury stock         (1,349)          (127)
                                                   --------       --------
               Net cash used in
                financing activities                (36,121)       (24,148)
                                                   --------       --------
Net increase (decrease) in cash and cash
 equivalents                                          3,326           (296)
Cash and cash equivalents at beginning of year       21,151         22,038
                                                   --------       --------

Cash and cash equivalents at end
 of quarter                                        $ 24,477       $ 21,742
                                                   ========       ========

Supplemental disclosures of cash flow information:
      Interest paid                                $  6,382       $  4,524
                                                   ========       ========
      Taxes paid                                   $ 19,899       $ 20,540
                                                   ========       ========


* Certain reclassifications have been made to the historical consolidated
  statements of cash flows to conform to the current presentation.

</TABLE>

                                     -6-
<PAGE>
              ALIANT COMMUNICATIONS INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(1) Business 

The consolidated Form 10-Q reflects the operations of Aliant Communications 
Inc. (the "Company") and its wholly owned subsidiaries.  The primary 
subsidiary is Aliant Communications Co. (the "Telco") which provides local 
and long distance telephone service in 22 southeastern counties of 
Nebraska.  It also provides cellular telecommunications services in the 
Lincoln, Nebraska Metropolitan Statistical Area (MSA) (which includes all 
of Lancaster County in Nebraska) under the trade name of Aliant Cellular-
Lincoln ("Lincoln MSA").  Aliant Cellular Inc., formerly Nebraska Cellular 
Telephone Corporation, provides cellular service outside the Lincoln and 
Omaha metropolitan areas in Nebraska.  Nebraska Cellular Telephone 
Corporation was acquired July 13, 1995, and this acquisition was accounted 
for as a purchase.  Aliant Systems Inc. ("Systems"), formerly LinTel 
Systems Inc., provides toll services beyond the Telco's local service 
territory, sells non-regulated telecommunications products and services and 
provides telephone answering services.  Prairie Communications, Inc. 
("Prairie") has a 50% investment in, and is the operating partner of, a 
general partnership with Centel Nebraska, Inc. ("Centel") which manages a 
limited partnership providing cellular telecommunications services in the 
Omaha MSA (which includes Douglas and Sarpy Counties in Nebraska and 
Pottawatomie County in Iowa).  The limited partnership is doing business as 
Aliant Cellular-Omaha ("Omaha MSA").  A joint venture with Anixter Bros., 
Inc., doing business as Anixter-Lincoln, warehouses and distributes 
electrical wire, cable, and communications products in a six-state area 
which includes Nebraska, North and South Dakota, Wyoming, Montana and 
Idaho.  Effective October 1, 1995, the Company sold 30% of its interest in 
Anixter-Lincoln, reducing its ownership to 20%. 

The Telecommunications Act of 1996 (the "Act") was signed into effect in 
February 1996.  The bill facilitates the entry of new competitors into the 
local exchange market by allowing companies to purchase and resell Local 
Exchange Carrier (LEC) services, by requiring companies to unbundle their 
networks, and by requiring LECs to negotiate interconnection agreements 
with companies who want connection to LEC networks.  The Federal 
Communications Commission (FCC) released an Order to implement the 
interconnection portion of the Act on August 8, 1996 (the "Interconnection 
Order").  The Interconnection Order contains pricing proxies which are 
unfavorable to LECs.  Several LECs filed petitions to review the 
Interconnection Order with the Federal Courts and requested that the 
pricing provisions of the Interconnection Order be stayed.  On October 15, 

                                    -7-
<PAGE>
1996, the Eighth Circuit Court of Appeals entered an Order Granting Stay 
Pending Judicial Review which did stay the effectiveness of the pricing and 
the so-called "pick and choose" provisions of the Interconnection Order. 
The FCC and certain telecommunications companies requested review of the 
Eighth Circuit's Stay Order by the United States Supreme Court; however, 
the Supreme Court declined to make such a review.  The Telco has also filed 
a Petition for Review of the Interconnection Order, and such Petition has 
been consolidated with the other cases relating to the Interconnection 
Order which are pending before the Eighth Circuit.  

The Telco has not received a bona fide request to negotiate an agreement 
for resale, unbundled network elements or interconnection at this time.  In 
addition, the Telco may apply to the Nebraska Public Service Commission 
(NPSC) for a waiver or modification of such requirements pursuant to 
Section 251(f)2 of the Act.  The Telco is currently examining such a 
request.  The Act also provides new business opportunities for the Company, 
such as entry into the cable television market, and entry into additional 
geographic markets with either a full range of services or selected 
services to niche markets.  

On November 8, 1996, the Telco announced a 10% increase to residential 
basic local service rates which will become effective March 23, 1997, 
unless an adequate number of subscribers petition the NPSC to conduct a 
hearing to review such increase.  The Telco has not increased such rates 
since 1991.  The residential basic local exchange service increase will be 
offset by an 8% to 10% reduction in the Telco's long distance rates within 
its 22 county service area in southeast Nebraska, and by a reduction to 
intrastate access service rates of approximately 16%.  The passage of the 
Act, which encourages local exchange competition, requires rate adjustments 
by the Telco to bring prices for residential basic local exchange service 
closer to actual costs.  Because the Telco's rates for residential basic 
local exchange service have historically been priced below costs, rate 
adjustments are needed to more accurately reflect costs.  Taken as a whole, 
the projected annual revenue impact to the Company is expected to be a 
reduction of approximately $1.1 million in operating revenues.

(2) Prior Year Accounting Changes

Financial Accounting Standard (FAS) 71, "Accounting for the Effects of 
Certain Types of Regulation," generally applies to regulated companies that 
meet certain requirements, including a requirement that a company be able 
to recover its costs by charging its customers rates prescribed by regu-
lators and that competition will not threaten the recovery of those costs. 
Having achieved price regulation and recognizing potential increased 
competition, the Company concluded, in the fourth quarter of 1995, that the 
principles prescribed by FAS 71 were no longer appropriate. As a result, a 

                                    -8-
<PAGE>
non-cash, extraordinary charge of $16,516,000, net of an income tax benefit 
of $9,352,000, was incurred by the Telco in December 1995.

On adoption of FAS 109, "Accounting for Income Taxes," in 1993, adjustments 
were required to adjust excess deferred tax levels to the currently enacted 
statutory rates as regulatory liabilities and regulatory assets were 
recognized on the cumulative amount of tax benefits previously flowed 
through to ratepayers.  These tax-related regulatory assets and liabilities 
were grossed up for the tax effect anticipated when collected at future 
rates.  At the time the application of FAS 71 was discontinued, the tax-
related regulatory assets and regulatory liabilities were eliminated and 
the related deferred taxes were adjusted to reflect application of FAS 109 
consistent with unregulated entities. 

(3) Managed Cellular Markets

The Company manages all four cellular entities in which it has an ownership 
interest.  The Lincoln MSA and Aliant Cellular Inc. are wholly-owned 
markets containing approximately 221,000 and 833,000 POPs (potential 
customers), respectively. Through its general partnership with Centel, the 
Company holds a 27.6% interest in the limited partnership, which operates 
the Omaha MSA market, containing approximately 627,000 POPs. The Company 
also holds an option to purchase an additional 27.6% interest in the 
partnership commencing on December 31, 1996, and continuing for the two-
year period thereafter.  

In addition, the Company has an 11.8% interest in Iowa Rural Service Area 1 
(RSA 1) which is contiguous to the Company's telephone operating area in 
Nebraska and to Omaha, and contains approximately 61,000 POPs.  By the end 
of third quarter 1996, penetration (subscribers compared to POPs) rates 
achieved in these markets by the entities in which the Company holds 
interests were 16.6% in the Lincoln MSA, 11.6% in Aliant Cellular Inc., 
9.3% in the Omaha MSA, and 5.8% in RSA 1.  

The Company believes the use of proportionate operating data for these 
managed cellular markets facilitates the understanding and assessment of 
its consolidated financial statements.  Reporting proportionate data for 
the cellular markets is not in accordance with generally accepted 
accounting principles.  The proportionate data summarized below reflects 
the Company's relative ownership interests in its managed markets.  

                                    -9-
<PAGE>
   Supplemental Proportionate Data For Managed Cellular Markets (1)
                             Third Quarter
                        (dollars in thousands)
                               Unaudited

                                                                  Total
                                  Total          Total Not    Proportionate
                              Consolidated(2) Consolidated(3)      Data

Customer Lines           1996    133,194         16,571          149,765
                         1995     95,720         11,337          107,057
                         1994     17,825          8,096           25,921

Service Revenues         1996   $ 17,204        $ 2,147         $ 19,351
                         1995     13,270          1,580           14,850
                         1994      2,706          1,242            3,948

Operating Expenses       1996   $  9,023        $ 1,082         $ 10,105
 (before depreciation)   1995      6,569            963            7,532
                         1994      1,489            733            2,222

Net Operating Income     1996   $  6,490        $   780         $  7,270
                         1995      5,217            396            5,613
                         1994        987            341            1,328

EBITDA (4)               1996   $  8,181        $ 1,065         $  9,246
                         1995      6,701            617            7,318
                         1994      1,217            509            1,726

     (1) The Company's interest in Aliant Cellular Inc. is not included in 
         the proportionate data prior to acquisition in July 1995.

     (2) Financial activities of the Lincoln MSA and Aliant Cellular Inc.  
         (since acquisition) are included in respective operating portions 
         of the Company's Consolidated Statements of Earnings.

     (3) The Company's share of the financial activities of the Omaha      
         MSA (27.6%) and the Iowa RSA 1 (11.8%) are not included in        
         the operating portions of the Company's Consolidated              
         Statements of Earnings.

                                   -10-
<PAGE>
     (4) Earnings before interest, income taxes, depreciation and          
         amortization (EBITDA) is commonly used in the cellular            
         communications industry to analyze cellular providers on the bases 
         of operating performance, and liquidity.  EBITDA should not be    
         considered an alternate to (i) operating income (as determined in 
         accordance with generally accepted accounting principles) as an   
         indicator of the Company's operating performance or (ii) cash     
         flows from operating activities (as determined in accordance with 
         generally accepted accounting principles) as a measure of         
         liquidity.

(4) Restructuring Charges and Work Force Reduction

In 1995, the Telco, the local operating company, reduced its operator 
services work force from 140 to approximately 50 employees.  The current 
work force handles the Company's long distance operator service needs.  The 
Company offered retirement and separation incentives along with out-
placement services to those employees affected by the work force adjustment. 
These actions resulted in a pre-tax non-recurring charge of $1,555,000 or 
$937,000 after the income tax effect.  Savings resulting from new procedures 
are expected to offset this non-recurring charge within two years.

In addition, in November 1995, the Company announced its plans to reduce 
its existing work force by offering a voluntary early retirement program to 
eligible employees.  The eligible employees are both management and non-
management employees who are employed by the Company, the Telco and 
Systems.  The Company implemented an enhancement to the Company's pension 
plan by adding five years to both the age and net credited service for 
eligible employees. The program also provides for the employees to receive 
a lump-sum payment and a supplemental monthly income payment in addition to 
their normal pension. As a result of 330 employees accepting this voluntary 
early retirement offer, the Company recorded a reduction to the Company's 
pension assets and recognized a restructuring charge of $20.1 million at 
December 31, 1995.  The charge reflected pension enhancements of $23.4 
million less curtailment gains of $3.3 million.  Retirements under the 
program are being phased in and will become fully effective by December 31, 
1997.

(5) Income Taxes

Total income tax expense for the three- and nine-month periods ended 
September 30, 1996 and 1995 was $8,223,000 and $7,344,000; and $22,735,000 
and $19,493,000, respectively, and was comprised solely of income taxes on 
income from continuing operations.  Income tax expense attributable to 
income from continuing operations for the nine-month periods ended 
September 30, 1996 and 1995 consists of the following:

                                   -11-
<PAGE>
                                   Nine Months Ended September 30,
  (Dollars in thousands)                1996             1995
------------------------------------------------------------------
  Current:
    U.S. Federal                      $17,076          $16,364
    State and local                     3,777            3,465
                                     ---------        ---------
  Total current tax expense            20,853           19,829
  Deferred:
    U.S. Federal                        2,007              293
    State and local                       450              222
                                     ---------        ---------
  Total deferred tax expense            2,457              515
  Investment tax credits                 (575)            (851)
                                     ---------        ---------
  Total income tax expense            $22,735          $19,493
                                     =========        =========

Income tax expense differed from the amounts computed by applying the U. S. 
Federal income tax rate of 35 percent to pretax income from continuing 
operations as stated in the following:

                                   Nine Months Ended September 30,
  (Dollars in thousands)                1996             1995
------------------------------------------------------------------
  Computed "expected" tax expense    $19,717          $17,478
  Increase (reduction) in 
    income taxes resulting from:
    State and local taxes, net   
       of Federal tax benefit          2,748            2,397
    Amortization of goodwill             833              279
    Non-taxable interest income          (58)             (51)
    Amortization of regulatory 
      deferred charges                     0            1,436
    Amortization of regulatory 
      deferred liabilities                 0           (1,343)
    Amortization of investment 
      tax credits                       (575)            (851)
    Other, net                            70              148 
                                    ---------        ---------
    Total income tax expense         $22,735          $19,493
                                    =========        =========

The significant components of deferred income tax expense attributable to 
income from continuing operations for the nine-month periods ended 
September 30, 1996 and 1995 were the following:   

                                   -12-
<PAGE>
                                   Nine Months Ended September 30,
  (Dollars in thousands)                1996             1995
------------------------------------------------------------------
  Deferred tax expense                $ 2,457        $    422
  Amortization of regulatory 
    deferred charges                        0           1,436
  Amortization of regulatory 
    deferred liabilities                    0          (1,343)
                                     ---------       ---------
  Total deferred tax expense          $ 2,457         $   515
                                     =========       =========

The tax effects of temporary differences that give rise to significant 
portions of the deferred tax assets and deferred tax liabilities at 
September 30, 1996 and December 31, 1995 are presented below:  

  (Dollars in thousands)       September 30, 1996  December 31, 1995
---------------------------------------------------------------------
Deferred tax assets:
    Accumulated post-retirement 
      benefit cost                   $18,117            $17,493
    Voluntary Early Retirement
      Program                          6,202              7,697
    Other                              2,910              3,091 
                                    ---------          ---------
       Total gross deferred 
        tax assets                    27,229             28,281 
       Less valuation allowance           --                 --
                                    ---------          ---------
       Net deferred tax assets       $27,229            $28,281
                                    =========          =========
Deferred tax liabilities:  
    Plant and equipment,
       principally due to
       depreciation differences      $33,812            $33,011
    Other                              3,986              3,382
                                    ---------          ---------
       Total gross deferred tax 
         liabilities                  37,798             36,393 
                                    ---------          ---------
       Net deferred tax
         liabilities                 $10,569            $ 8,112
                                    =========          =========

As a result of the nature and amount of the temporary differences which 
give rise to the gross deferred tax liabilities and the Company's expected 
taxable income in future years, no valuation allowance for deferred tax 
assets is deemed necessary for 1996.

                                   -13-
<PAGE>
(6) Postretirement Benefits

In addition to the Company's defined benefit pension plan, the Company 
sponsors a health care plan (Plan) that provides postretirement medical  
and other benefits to employees who meet minimum age and service 
requirements upon retirement.  

The following table presents the Plan's status reconciled with amounts 
recognized in the Company's consolidated balance sheet at December 31, 
1995:  

  Accumulated Postretirement Benefit Obligation:  (Dollars in thousands)

    Retirees                                           $29,520
    Active plan participants - fully eligible           12,012
    Active plan participants - other                    10,161
                                                      ---------
                                                        51,693
                                                   
    Unrecognized prior service cost                     (1,710)
    Unrecognized net loss                               (5,660)
                                                      ---------
    Accrued postretirement benefit costs               $44,323
                                                      =========

For purposes of measuring the benefit obligation, a discount rate of 8.0% 
and an 11.3% annual rate of increase in the per capita cost of covered 
benefits (i.e., health care cost trend rate) was assumed for 1995.  The 
projected rates for 1996 are 8.0% and 11.3%, respectively.  The health care 
cost trend rate of increase was assumed to decrease gradually to 5.5% by 
the year 2004.  

The Company has not designated any assets to fund Plan obligations.  Net 
periodic postretirement benefit costs for the nine-month periods ended 
September 30, 1996 and 1995 include the following components:  

                                   Nine Months Ended September 30,
  (Dollars in thousands)                1996             1995
------------------------------------------------------------------
  Service cost                        $   373         $   289
  Interest cost                         3,028           2,946
  Unrecognized prior service cost          85               8
  Amortization of 
    unrecognized loss                      24             146
                                     ---------       ---------
  Net periodic postretirement  
   benefit costs                      $ 3,510         $ 3,389
                                     =========       =========  

                                   -14-
<PAGE>
For purposes of measuring the benefit cost, a discount rate of 8.0% and an 
11.7% annual rate of increase in the health care cost trend rate were 
assumed for 1996 and 1995.  The rate of increase was assumed to decrease 
gradually to 5.5% by the year 2004.  The health care cost trend rate 
assumptions have a significant effect on the amounts reported.  

(7) Temporary Investments

The Company applies the provisions of FAS 115, Accounting for Certain 
Investments in Debt and Equity Securities.  

FAS 115 requires fair value reporting for certain investments in debt and 
equity securities.  Pursuant to FAS 115, the Company has classified all of 
its investments as "available for sale" at September 30, 1996 and December 
31, 1995. This information is summarized as follows:  

                                         September 30, 1996
---------------------------------------------------------------------------
                                                                 Estimated
                              Amortized      Gross Unrealized      Market
   (Dollars in thousands)       Cost         Gains     Losses      Value  
---------------------------------------------------------------------------

U.S. Government obligations   $ 2,424           1       (41)       2,384
U.S. Government agency
  obligations                   4,061          27       (91)       3,997
Corporate debt securities         620          10       (39)         591
                             ---------      ------   --------   ---------
                              $ 7,105          38      (171)       6,972
                             =========      ======   ========   =========

                                             December 31, 1995
---------------------------------------------------------------------------
                                                                 Estimated
                              Amortized      Gross Unrealized      Market
   (Dollars in thousands)       Cost         Gains     Losses      Value  
---------------------------------------------------------------------------

Equity Securities             $ 1,223          36       (44)       1,215
U.S. Government obligations       787           0       (11)         776
U.S. Government agency
  obligations                   7,523         127       (52)       7,598
Corporate debt securities       3,548          99       (72)       3,575
                             ---------      ------   --------   ---------
                              $13,081         262      (179)      13,164
                             =========      ======   ========   =========

                                   -15-
<PAGE>
The net unrealized gain/(loss) on investments available for sale is not 
reported separately as a component of stockholders' equity due to its 
insignificance to the consolidated balance sheet at September 30, 1996 and 
December 31, 1995.  

The amortized cost and estimated market value of debt securities at 
September 30, 1996 and December 31, 1995, by contractual maturity, are 
shown in the following tables.  Equity securities are excluded from these 
tables.  Expected maturities will differ from the contractual maturities 
because borrowers may have the right to call or prepay obligations with or 
without call or prepayment penalties.  

                                                 September 30, 1996
-------------------------------------------------------------------------
                                                                Estimated
                                                 Amortized        Market
  (Dollars in thousands)                           Cost           Value  
-------------------------------------------------------------------------

Due after three months through five years         $ 1,638        $ 1,643
Due after five years through ten years              5,467          5,329
                                                 ---------      ---------
                                                  $ 7,105        $ 6,972
                                                 =========      =========

                                                     December 31, 1995
-------------------------------------------------------------------------
                                                                Estimated
                                                 Amortized        Market
  (Dollars in thousands)                           Cost           Value  
-------------------------------------------------------------------------
Due after three months through five years         $ 8,242        $ 8,399
Due after five years through ten years              3,616          3,550
                                                 ---------      ---------
                                                  $11,858        $11,949
                                                 =========      =========

The gross realized gains and losses on the sale of securities were 
insignificant to the consolidated financial statements at September 30, 
1996 and December 31, 1995. The Company does not invest in securities 
classified as held to maturity or traded securities.  

                                   -16-
<PAGE>
Item 2 - Management's Discussion and Analysis of Financial 
         Condition and Results of Operations

Liquidity and Capital Resources

Total capital additions to communications facilities for 1996 are projected 
to be $51,498,000.  During the nine-month period ended September 30, 1996, 
cash provided by operating activities, less dividends paid, exceeded 
capital expenditures.

The Company consummated the acquisition of the Nebraska Cellular Telephone 
Corporation on July 13, 1995.  In connection with this acquisition, the 
following assets were acquired, liabilities assumed/incurred and common 
stock issued (in thousands):

Property, plant and equipment                  $ 28,101
Excess cost of net assets acquired              124,609
Notes payable assumed                           (17,890)
Other assets and liabilities,
  excluding cash and cash equivalents             2,167
Prior investment in Nebraska Cellular
  Telephone Corporation                          (6,282)
Common stock issued                             (70,408)
Issuance of long-term debt                      (60,000)
                                              ---------
Decrease in cash                              $     297
                                              =========

This acquisition is reflected in the investing activities of the Company's 
consolidated statement of cash flows.  

As of September 30, 1996, the Company had $107,810,000 of long-term debt, 
consisting of the following:

   -  $44,000,000 of First Mortgage Bonds due June 1, 2000.
   -  A $30,000,000 variable rate term loan due in 13 consecutive quarterly 
      installments commencing on September 15, 1997.
   -  A $24,000,000 variable rate revolving loan with principal due July 6, 
      1998, and interest currently due monthly.
   -  $14,438,000 of various variable rate Rural Telephone Finance         
      Cooperative (RTFC) loan agreements maturing through 2002.
   -  Less current installments of long-term debt of $4,628,000.

                                   -17-
<PAGE>
Results of Operations

Revenues
                                   Third Quarter 1996    Nine Months 1996
                                  Increase (Decrease)   Increase (Decrease)
                                       Over Third            Over Nine
                                      Quarter 1995          Months 1995
                                  -------------------   -------------------
Operating revenues:
  Telephone revenues:
    Local network services               4.1%                 4.9%
    Access services                     (1.5%)                5.4%
    Long distance services               4.3%                 2.7%
    Other wireline communications        2.3%                 5.8%
     services
        Total telephone revenues         2.2%                 4.8%

  Wireless communications services      29.5%               131.0%
  Telephone equipment sales and         (7.7%)               (3.3%)
   services
  Intercompany revenues                (10.6%)              (15.0%)
        Total operating revenues         7.1%                19.2%

All comparisons hereinafter made are of the third quarter and nine-month 
periods for 1996 with the same periods in 1995.  The adjustments included 
are all of a normal recurring nature except when noted as extraordinary or 
nonrecurring.  

Local network services revenue increased $733,000 (4.1%) and $2,601,000 
(4.9%), respectively.  Basic local services revenue increased $602,000 
(4.6%) and $1,862,000 (4.8%) led by growth in revenue from business and 
Centrex services for the three- and nine-month periods.  Residential and 
business telephone access lines in service grew by 8,400 (3.3%) from 
September 30, 1995.  Expanded area services revenue increased $16,000 (.8%) 
and $411,000 (7.4%) due to increased usage.

Access services revenue decreased $216,000 (1.5%) and increased $2,166,000 
(5.4%), respectively.  In 1995, these revenues had benefited from an out-
of-period adjustment of $624,000 related to prior years.  Overall minutes 
of access use increased by 6.5% and 7.7%, respectively.

Other wireline communications services revenues, consisting of directory 
advertising and sales, carrier billing and collections, data 
communications, and miscellaneous items, increased $143,000 (2.3%) and 
$1,045,000 (5.8%), respectively.  Data communications growth has been 
strong, mainly due to the introduction in 1995 of NAVIX, the Company's 
Internet access service.

                                   -18-
<PAGE>
Wireless communications services revenues increased $3,961,000 (29.5%) and 
$26,308,000 (131.0%), respectively, for the three- and nine-month periods, 
due to an increased customer base.  For the nine-month period, $23,013,000 
of the increase was due to the acquisition of Nebraska Cellular Telephone 
Corporation in July 1995.  Lincoln MSA revenues increased $1,243,000 
(35.8%) and $3,224,000 (32.8%) for the three- and nine-month periods, and 
10,533 customer lines were added between September 30, 1995, and September 
30, 1996.  Aliant Cellular Inc.'s revenues increased $2,691,000 (27.5%) for 
the three-month period, and 26,941 customer lines were added between 
September 30, 1995, and September 30, 1996.  Customer penetration rates 
reached 16.6% for the Lincoln MSA and 11.6% for Aliant Cellular Inc. at the 
end of September 1996.

Telephone equipment sales and services revenues decreased $368,000 (7.7%) 
and $472,000 (3.3%) for the three- and nine-month periods.  The third 
quarter decrease was offset by record first quarter sales revenues, 
resulting in a smaller decrease for the first nine months of 1996.

Overall, total operating revenues increased $4,394,000 (7.1%) and 
$31,497,000 (19.2%) for the three- and nine-month periods ended September 
30, 1996, compared to the same periods in 1995.  

Operating Expenses
                                   Third Quarter 1996    Nine Months 1996
                                  Increase (Decrease)   Increase (Decrease)
                                       Over Third            Over Nine
                                      Quarter 1995          Months 1995
                                  -------------------   -------------------


Depreciation and amortization           10.3%                27.5%
Other operating expenses                10.1%                21.0%
Restructuring charge                  (100.0%)             (100.0%)
Taxes, other than payroll
  and income                            16.1%                14.6%
Intercompany expenses                  (10.6%)              (15.0%)
    Total operating expenses             6.2%                21.0%

All comparisons hereinafter made are of the third quarter and nine-month 
periods for 1996 with the same periods in 1995.  The adjustments included 
are all of a normal recurring nature except when noted as extraordinary or 
nonrecurring.  

Depreciation and amortization increased $1,071,000 (10.3%) and $7,392,000 
(27.5%).  This is partly a result of discontinuance of FAS 71, as 
depreciation expense for the Telco is now based on estimated economic 
useful lives rather than those prescribed by regulatory commissions, 

                                   -19-
<PAGE>
causing an increase in depreciation of $678,000 and $2,019,000.  
Depreciation increased $2,689,000 for the nine-month period due to the 
acquisition of Nebraska Cellular Telephone Corporation, while amortization 
associated with the acquisition increased by $1,581,000 for the nine-month 
period.  

Other operating expenses increased by $3,174,000 (10.1%) and $18,331,000 
(21.0%) for the three- and nine-month periods, as a result of the 
acquisition and the cost of increased cellular equipment sales.  The 
inclusion of Nebraska Cellular Telephone Corporation operating expenses 
after acquisition led to an increase of $12,960,000 for the nine-month 
period.  

Overall, total operating expenses increased $2,659,000 (6.2%) and 
$23,770,000 (21.0%) for the three- and nine-month periods ended September 
30, 1996, compared to the same periods in 1995.

Non-Operating Income (Expense)
                                   Third Quarter 1996    Nine Months 1996
                                  Increase (Decrease)   Increase (Decrease)
                                       Over Third            Over Nine
                                      Quarter 1995          Months 1995
                                  -------------------   -------------------
Income from interest and 
  other investments                    (14.0%)                2.8%
Interest expense and other 
  deductions                           (12.3%)               24.6%
    Net non-operating expense           (9.0%)              134.3%

Income from interest and other investments decreased $254,000 (14.0%) for 
the three-month period ended September 30, 1996, over the same period in 
1995, and increased $141,000 (2.8%) for the nine-month period.  The 
decrease for the three-month period is the result of using short-term 
investments to reduce long-term debt.

Interest expense and other deductions decreased $333,000 (12.3%) and 
increased $1,471,000 (24.6%), respectively.  The increase results from the 
acquisition in July 1995.

Income Taxes

Income taxes increased $879,000 (12.0%) and $3,242,000 (16.6%) for the 
three- and nine-month periods.  The increase is attributable to increased 
taxable income compared to the third quarter and first nine months of 1995.

                                   -20-
<PAGE>
PART II -    OTHER INFORMATION

Item 1-3  -  Not applicable

Item 4    -  Name Change

             Stockholders approved the amendment to the articles of        
             incorporation changing the name of the Company from Lincoln   
             Telecommunications Company to Aliant Communications Inc. at   
             the annual stockholders' meeting April 24, 1996.  The name    
             change was approved by a vote of 27,444,469 for the name      
             change, and 2,048,846 against, for a total of 29,493,315      
             votes.  The name change became effective on September 3, 1996.

Item 5    -  Purchase of Common Stock

             On April 24, 1991, the Board of Directors of the Company      
             authorized the Company to purchase up to 600,000 shares of its 
             common stock from time to time as market conditions warrant.  
             As of September 30, 1996, 380,926 shares had been purchased.  
             As of November 12, 1996, an additional 122,500 shares have    
             been purchased, thereby bringing to 503,426 the total number  
             of shares purchased.  These purchases are in addition to the  
             purchases which the Company has been making for purposes of   
             satisfying participant requirements under the Employee and    
             Stockholder Dividend Reinvestment and Stock Purchase Plan,    
             satisfying Employer Matching and Stock Bonus Contributions    
             under the Company's 401(k) Savings and Stock Ownership Plan   
             and satisfying participant requirements under the Company's   
             1989 Stock and Incentive Plan.  

Item 6    -  a)  See Exhibit Index.  
             b)  On August 1, 1996, Registrant filed a Form 8-K to report  
                 the Registrant's corporate name change from Lincoln       
                 Telecommunications Company to Aliant Communications Inc.  
                 and certain related subsidiary name changes.  

                                   -21-
<PAGE>
                            SIGNATURES



     Pursuant to the requirements of the Securities Exchange Act of 1934, 
the registrant has duly caused this report to be signed on its behalf by 
the undersigned thereunto duly authorized.  


                                 Aliant Communications Inc.
                               ------------------------------
                                       (Registrant)





      November 14, 1996             /s/ Robert L. Tyler
Date.....................   ......................................
                                         (Signature)
                            Robert L. Tyler, Senior Vice President-
                               Chief Financial Officer





      November 14, 1996            /s/ Michael J. Tavlin
Date.....................   ......................................
                                         (Signature)
                            Michael J. Tavlin, Vice President-
                               Treasurer






____________________________
 *See General Instruction G
**Print name and title of the signing officer under his signature.  

                                   -22-
<PAGE>
                                                                Form 10-Q
                            Exhibit Index


Exhibit                 Title                                     Page No.

27     Financial Data Schedule

                                   -23-
<PAGE>