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| UNITED      STATES                                                                           |
|----------------------------------------------------------------------------------------------|
| SECURITIES      AND EXCHANGE COMMISSION                                                      |
| WASHINGTON,      D. C.   20549                                                |
|                                                                                         |
| FORM      10-Q                                                                               |
|                                                                                         |
| [x]  QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  |
| SECURITIES      EXCHANGE ACT OF 1934                                                         |
| For      the quarterly period ended September 30,      2008                                  |
| OR                                                                                           |
| [      ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF      THE            |
| SECURITIES      EXCHANGE ACT OF 1934                                                         |
|                                                                                         |
| Commission      file number 1-4996                                                           |
|                                                                                              |
| Alltel      Corporation                                                                      |
| (Exact      name of registrant as specified in its charter)                                  |
|                                                                                         |   |
| Delaware                                                                                     | 34-0868285 |
| (State      or other jurisdiction of                                                         | (I.R.S.      Employer |
| incorporation      or organization)                                                          | Identification      No.) |
|                                                                                         |   |
| One      Allied Drive, Little Rock, Arkansas                                                 | 72202 |
| (Address      of principal executive offices)                                                | (Zip      Code) |
|                                                                                         |   |
| Registrant’s      telephone number, including area code                                | (501)      905-8000 |
|                                                                                         |   |
|                                                                                         |
| (Former      name, former address and former fiscal year, if changed since last      report) |

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| ALLTEL      CORPORATION |
|-------------------------|
| FORM      10-Q          |
| TABLE OF CONTENTS       |
|                    | Page      No. |

|   | Forward      Looking Statements |   1 |
|--------|---------------------------------|---------------|

| PART      I – FINANCIAL INFORMATION |
|-------------------------------------------|
|                                      |   |   |
| Item 1.                                   | Financial Statements |   2 |
| Item 2.                                   | Management’s Discussion and Analysis of Financial      Condition |   |
|                                      | and Results of Operations | 16 |
| Item 3.                                   | Quantitative and Qualitative Disclosures About Market      Risk | 35 |
| Item 4.                                   | Controls and Procedures | 36 |
|                                      |   |   |
| PART      II – OTHER INFORMATION    |
|                                      |   |   |
| Item 1.                                   | Legal Proceedings | 36 |
| Item 1A.                                  | Risk Factors | 37 |
| Item      2.                              | Unregistered      Sales of Equity Securities and Use of Proceeds |   * |
| Item      3.                              | Defaults      Upon Senior Securities |   * |
| Item      4.                              | Submission      of Matters to a Vote of Security Holders |   * |
| Item      5.                              | Other      Information |   * |
| Item 6.                                   | Exhibits | 37 |

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Table of Contents

| ALLTEL      CORPORATION |
|-------------------------|
| FORM      10-Q          |

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Table of Contents

Item1.       FinancialStatements

| CONSOLIDATED BALANCE SHEETS      (UNAUDITED)                                       |   |
|------------------------------------------------------------------------------------|--------|
| (Dollars      in millions, except per share amounts)                               |   | September      30, |   |   | December      31, |   |
| Assets                                                                             |   | 2008 |   |   | 2007 |   |
| Current      Assets:                                                               |   |   |   |   |   |   |
| Cash      and short-term investments                                               |   | $ | 1,297.6 |   |   | $ | 833.3 |   |
| Accounts      receivable (less allowance for doubtful                              |   |   |   |   |   |   |   |   |
| accounts      of $52.6 and $32.6, respectively)                                    |   |   | 852.8 |   |   |   | 831.1 |   |
| Inventories                                                                        |   |   | 206.8 |   |   |   | 196.0 |   |
| Prepaid      expenses and other                                                    |   |   | 86.1 |   |   |   | 142.8 |   |
| Assets      related to discontinued operations                                     |   |   | - |   |   |   | 0.3 |   |
| Total      current assets                                                          |   |   | 2,443.3 |   |   |   | 2,003.5 |   |
| Investments                                                                        |   |   | 540.0 |   |   |   | 536.1 |   |
| Goodwill                                                                           |   |   | 16,941.2 |   |   |   | 16,917.4 |   |
| Other      intangibles                                                             |   |   | 6,227.3 |   |   |   | 6,784.6 |   |
| Property,      Plant and Equipment:                                                |   |   |   |   |   |   |   |   |
| Land      and improvements                                                         |   |   | 264.7 |   |   |   | 251.1 |   |
| Buildings      and improvements                                                    |   |   | 895.0 |   |   |   | 836.4 |   |
| Operating      plant and equipment                                                 |   |   | 4,158.6 |   |   |   | 3,650.3 |   |
| Information      processing                                                        |   |   | 456.7 |   |   |   | 368.8 |   |
| Furniture      and fixtures                                                        |   |   | 110.5 |   |   |   | 99.8 |   |
| Under      construction                                                            |   |   | 316.0 |   |   |   | 360.1 |   |
| Total      property, plant and equipment                                           |   |   | 6,201.5 |   |   |   | 5,566.5 |   |
| Less      accumulated depreciation                                                 |   |   | 1,211.5 |   |   |   | 164.9 |   |
| Net      property, plant and equipment                                             |   |   | 4,990.0 |   |   |   | 5,401.6 |   |
| Other      assets                                                                  |   |   | 410.4 |   |   |   | 485.3 |   |
| Assets      related to discontinued operations                                     |   |   | - |   |   |   | 7.0 |   |
| Total      Assets                                                                  |   | $ | 31,552.2 |   |   | $ | 32,135.5 |   |
|                                                                               |   |   |   |   |   |   |   |   |
| Liabilities      and Shareholders’ Equity                                    |   |   |   |   |   |   |   |   |
| Current      Liabilities:                                                          |   |   |   |   |   |   |   |   |
| Current      maturities of long-term debt                                          |   | $ | 140.1 |   |   | $ | 140.1 |   |
| Accounts      payable                                                              |   |   | 544.7 |   |   |   | 603.6 |   |
| Advance      payments and customer deposits                                        |   |   | 226.9 |   |   |   | 195.9 |   |
| Accrued      taxes                                                                 |   |   | 157.4 |   |   |   | 120.4 |   |
| Accrued      interest                                                              |   |   | 168.8 |   |   |   | 187.1 |   |
| Other      current liabilities                                                     |   |   | 275.6 |   |   |   | 271.9 |   |
| Liabilities      related to discontinued operations                                |   |   | - |   |   |   | 0.2 |   |
| Total      current liabilities                                                     |   |   | 1,513.5 |   |   |   | 1,519.2 |   |
| Long-term      debt                                                                |   |   | 23,292.2 |   |   |   | 23,374.7 |   |
| Deferred      income taxes                                                         |   |   | 2,286.0 |   |   |   | 2,542.7 |   |
| Other      liabilities                                                             |   |   | 277.2 |   |   |   | 266.4 |   |
| Total      liabilities                                                             |   |   | 27,368.9 |   |   |   | 27,703.0 |   |
| Shareholders’      Equity:                                                   |   |   |   |   |   |   |   |   |
| Common      stock, par value $.01 per share, 550.0 million shares      authorized, |   |   |   |   |   |   |   |   |
| 454,000,122      shares issued and outstanding                                     |   |   | 4.5 |   |   |   | 4.5 |   |
| Additional      paid-in capital                                                    |   |   | 4,543.8 |   |   |   | 4,536.7 |   |
| Accumulated      other comprehensive loss                                          |   |   |  (11.6 | ) |   |   |  (5.3 | ) |
| Retained      deficit                                                              |   |   |   (353.4 | ) |   |   |   (103.4 | ) |
| Total      shareholders’ equity                                              |   |   | 4,183.3 |   |   |   | 4,432.5 |   |
| Total      Liabilities and Shareholders’ Equity                              |   | $ | 31,552.2 |   |   | $ | 32,135.5 |   |

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Table of Contents

| CONSOLIDATED      STATEMENTS OF OPERATIONS (UNAUDITED)            |   |
|-------------------------------------------------------------------|--------|
|                                                              |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                              |   | September      30, |   |   | September      30, |   |
| (Millions)                                                        |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                              |   | Successor |   |   | Predecessor |   |   | Successor |   |   | Predecessor |   |
| Revenues      and sales:                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      revenues                                             |   | $ | 2,279.9 |   |   | $ | 2,071.5 |   |   | $ | 6,543.7 |   |   | $ | 5,923.2 |   |
| Product      sales                                                |   |   | 227.6 |   |   |   | 210.0 |   |   |   | 672.8 |   |   |   | 611.9 |   |
| Total      revenues and sales                                     |   |   | 2,507.5 |   |   |   | 2,281.5 |   |   |   | 7,216.5 |   |   |   | 6,535.1 |   |
| Costs      and expenses:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of services (excluding depreciation of $234.2, $225.7,  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $718.0      and $680.8, respectively, included below)             |   |   | 715.9 |   |   |   | 682.2 |   |   |   | 2,052.0 |   |   |   | 1,933.4 |   |
| Cost      of products sold                                        |   |   | 343.4 |   |   |   | 300.0 |   |   |   | 1,006.7 |   |   |   | 876.1 |   |
| Selling,      general, administrative and other                   |   |   | 557.6 |   |   |   | 496.1 |   |   |   | 1,573.5 |   |   |   | 1,445.5 |   |
| Depreciation      and amortization                                |   |   | 535.4 |   |   |   | 358.2 |   |   |   | 1,594.5 |   |   |   | 1,060.0 |   |
| Integration      expenses, restructuring and other charges        |   |   | 2.1 |   |   |   | 11.0 |   |   |   | 24.7 |   |   |   | 53.3 |   |
| Total      costs and expenses                                     |   |   | 2,154.4 |   |   |   | 1,847.5 |   |   |   | 6,251.4 |   |   |   | 5,368.3 |   |
| Operating      income                                             |   |   | 353.1 |   |   |   | 434.0 |   |   |   | 965.1 |   |   |   | 1,166.8 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      earnings in unconsolidated partnerships               |   |   | 19.6 |   |   |   | 17.1 |   |   |   | 53.9 |   |   |   | 48.5 |   |
| Minority      interest in consolidated partnerships               |   |   | (14.5 | ) |   |   | (8.8 | ) |   |   | (37.5 | ) |   |   | (27.4 | ) |
| Other      income, net                                            |   |   | 7.2 |   |   |   | 5.9 |   |   |   | 29.3 |   |   |   | 19.2 |   |
| Interest      expense                                             |   |   | (449.1 | ) |   |   | (46.2 | ) |   |   | (1,399.1 | ) |   |   | (140.3 | ) |
| Gain      on disposal of assets                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56.5 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations before income taxes |   |   | (83.7 | ) |   |   | 402.0 |   |   |   | (388.3 | ) |   |   | 1,123.3 |   |
| Income      tax expense (benefit)                                 |   |   | (28.5 | ) |   |   | 123.3 |   |   |   | (138.7 | ) |   |   | 415.8 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations                     |   |   | (55.2 | ) |   |   | 278.7 |   |   |   | (249.6 | ) |   |   | 707.5 |   |
| Income      (loss) from discontinued operations                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (net      of income tax benefit of $(4.2),                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $(0.2)      and $(2.5), respectively)                             |   |   | - |   |   |   | 3.9 |   |   |   | (0.4 | ) |   |   | 0.9 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                            |   | $ | (55.2 | ) |   | $ | 282.6 |   |   | $ | (250.0 | ) |   | $ | 708.4 |   |

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| CONSOLIDATED      STATEMENTS OF CASH FLOWS (UNAUDITED)                                                  |   |
|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                    |   | Nine      Months Ended |   |
|                                                                                                    |   | September      30, |   |
| (Millions)                                                                                              |   | 2008 |   |   | 2007 |   |
|                                                                                                    |   | Successor |   |   | Predecessor |   |
| Cash      Flows from Operating Activities:                                                              |   |   |   |   |   |   |
| Net      income (loss)                                                                                  |   | $ | (250.0 | ) |   | $ | 708.4 |   |
| Adjustments      to reconcile net income (loss) to net cash provided from operating      activities:    |   |   |   |   |   |   |   |   |
| Loss      (income) from discontinued operations                                                         |   |   | 0.4 |   |   |   | (0.9 | ) |
| Depreciation      and amortization                                                                      |   |   | 1,594.5 |   |   |   | 1,060.0 |   |
| Provision      for doubtful accounts                                                                    |   |   | 93.0 |   |   |   | 140.9 |   |
| Amortization      of deferred financing costs                                                           |   |   | 136.6 |   |   |   | 2.1 |   |
| Non-cash      portion of gain on disposal of assets                                                     |   |   | - |   |   |   | (56.5 | ) |
| Adjustment      to income tax liabilities, including contingency reserves                               |   |   | - |   |   |   | (33.8 | ) |
| Change      in deferred income taxes                                                                    |   |   | (186.6 | ) |   |   | 30.4 |   |
| Other,      net                                                                                         |   |   | 1.7 |   |   |   | (26.8 | ) |
| Changes      in operating assets and liabilities, net of effects of acquisitions and      dispositions: |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                |   |   | (112.9 | ) |   |   | (207.5 | ) |
| Inventories                                                                                             |   |   | (10.9 | ) |   |   | 51.8 |   |
| Accounts      payable                                                                                   |   |   | (58.9 | ) |   |   | (54.4 | ) |
| Other      current liabilities                                                                          |   |   | (30.1 | ) |   |   | 235.6 |   |
| Other,      net                                                                                         |   |   | (2.9 | ) |   |   | (10.5 | ) |
| Net      cash provided from operating activities                                                        |   |   | 1,173.9 |   |   |   | 1,838.8 |   |
| Cash      Flows from Investing Activities:                                                              |   |   |   |   |   |   |   |   |
| Additions      to property, plant and equipment                                                         |   |   | (629.6 | ) |   |   | (720.3 | ) |
| Additions      to capitalized software development costs                                                |   |   | (23.8 | ) |   |   | (24.3 | ) |
| Purchases      of property, net of cash acquired                                                        |   |   | - |   |   |   | (6.2 | ) |
| Proceeds      from the sale of assets                                                                   |   |   | 18.0 |   |   |   | - |   |
| Proceeds      from the sale of investments                                                              |   |   | - |   |   |   | 188.7 |   |
| Proceeds      from the return on investments                                                            |   |   | 49.2 |   |   |   | 40.2 |   |
| Other,      net                                                                                         |   |   | 12.3 |   |   |   | 0.9 |   |
| Net      cash used in investing activities                                                              |   |   | (573.9 | ) |   |   | (521.0 | ) |
| Cash      Flows from Financing Activities:                                                              |   |   |   |   |   |   |   |   |
| Dividends      paid on common and preferred stock                                                       |   |   | - |   |   |   | (133.5 | ) |
| Repayments      of long-term debt                                                                       |   |   | (255.0 | ) |   |   | (36.9 | ) |
| Repurchases      of common stock                                                                        |   |   | - |   |   |   | (1,360.3 | ) |
| Distributions      to minority investors                                                                |   |   | (37.4 | ) |   |   | (31.8 | ) |
| Long-term      debt issued                                                                              |   |   | 150.0 |   |   |   | - |   |
| Excess      tax benefits from stock option exercises                                                    |   |   | - |   |   |   | 25.7 |   |
| Common      stock issued                                                                                |   |   | - |   |   |   | 59.0 |   |
| Net      cash used in financing activities                                                              |   |   | (142.4 | ) |   |   | (1,477.8 | ) |
| Cash      Flows from Discontinued Operations:                                                           |   |   |   |   |   |   |   |   |
| Cash      provided from (used in) operating activities                                                  |   |   | (0.2 | ) |   |   | 2.8 |   |
| Cash      provided from investing activities                                                            |   |   | 6.9 |   |   |   | 47.6 |   |
| Cash      provided from financing activities                                                            |   |   | - |   |   |   | - |   |
| Net      cash provided from discontinued operations                                                     |   |   | 6.7 |   |   |   | 50.4 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Increase      (decrease) in cash and short-term investments                                             |   |   | 464.3 |   |   |   | (109.6 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Cash      and Short-term Investments:                                                                   |   |   |   |   |   |   |   |   |
| Beginning      of the period                                                                            |   |   | 833.3 |   |   |   | 934.2 |   |
| End      of the period                                                                                  |   | $ | 1,297.6 |   |   | $ | 824.6 |   |

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Table of Contents

|                                 |   |                    |                      |   |                   |   |
|--------------------------------------|--------|-------------------------|---------------------------|--------|------------------------|--------|
|                                 |   | Three      Months Ended |                      |   | Nine      Months Ended |   |
| (Millions)                           |   | 2007                    |                      |   | 2007                   |   |
| Revenues      and sales              |   | $                       | 2,272.7                   |   |                   | $      | 6,508.5 |   |
| Operating      income                |   | $                       |         266.2   |   |                   | $      |         701.1 |   |
| Loss      from continuing operations |   | $                       |         (120.5) |   |                   | $      |         (456.0) |   |
| Net      loss                        |   | $                       |         (116.6) |   |                   | $      |         (455.1) |   |

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| (Millions)                         |   |
|------------------------------------|--------|
| Balance      at December 31, 2007  |   | $ | 16,917.4 |   |
| Adjustments                        |   |   | 23.8 |   |
| Balance      at September 30, 2008 |   | $ | 16,941.2 |   |

|                           |   |   |               |   |   |                    |
|--------------------------------|--------|--------|--------------------|--------|--------|-------------------------|
|                           |   |   | September      30, |   |   |  December      31, |   |
| (Millions)                     |   |   | 2008               |   |   |                    | 2008 |   |
| Cellular      and PCS licenses |   | $      | 3,224.5            |   |   | $                       | 3,224.5 |   |

|                           |   |                    |    |
|--------------------------------|--------|-------------------------|---------|
|                           |   | September      30, 2008 |    |
|                           |   |                    |    |   |   |   |   | Net |   |
|                           |   | Gross                   |    |   | Accumulated |   |   | Carrying |   |
|  (Millions)               |   | Cost                    |    |   | Amortization |   |   | Value |   |
| Customer      list             |   | $                       | 2,819.6 |   |   | $ | (549.3 | ) |   | $ | 2,270.3 |   |
| Trademarks      and tradenames |   |                    | 800.0   |   |   |   | (87.5 | ) |   |   | 712.5 |   |
| Non-compete      agreement     |   |                    | 30.0    |   |   |   | (13.1 | ) |   |   | 16.9 |   |
| Roaming      agreement         |   |                    | 4.0     |   |   |   | (0.9 | ) |   |   | 3.1 |   |
|                           |   | $                       | 3,653.6 |   |   | $ | (650.8 | ) |   | $ | 3,002.8 |   |
|                           |   |                    |    |
|                           |   | December      31, 2007  |    |
|                           |   |                    |    |   |   |   |   |   |   | Net |   |
|                           |   | Gross                   |    |   | Accumulated |   |   | Carrying |   |
|  (Millions)               |   | Cost                    |    |   | Amortization |   |   | Value |   |
| Customer      list             |   | $                       | 2,819.6 |   |   | $ | (79.0 | ) |   | $ | 2,740.6 |   |
| Trademarks      and tradenames |   |                    | 800.0   |   |   |   | (12.5 | ) |   |   | 787.5 |   |
| Non-compete      agreement     |   |                    | 30.0    |   |   |   | (1.9 | ) |   |   | 28.1 |   |
| Roaming      agreement         |   |                    | 4.0     |   |   |   | (0.1 | ) |   |   | 3.9 |   |
|                           |   | $                       | 3,653.6 |   |   | $ | (93.5 | ) |   | $ | 3,560.1 |   |

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|                                                                                                                      |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                                                                                                |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                      |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Compensation      expense related to stock options issued by Alltel                                                       |   | $                       | 2.4    |   |                   | $      | 4.9 |   |   | $ | 7.1 |   |   | $ | 13.7 |   |
| Compensation      expense related to stock options converted to Alltel stock options in      connection with acquisitions |   |                    | -      |   |                   |   | 0.5 |   |   |   | - |   |   |   | 1.0 |   |
| Compensation      expense related to restricted stock awards                                                              |   |                    | -      |   |                   |   | 3.7 |   |   |   | - |   |   |   | 9.8 |   |
| Compensation      expense before income taxes                                                                             |   |                    | 2.4    |   |                   |   | 9.1 |   |   |   | 7.1 |   |   |   | 24.5 |   |
| Income      tax benefit                                                                                                   |   |                    | (0.9   | )      |                   |   | (3.0 | ) |   |   | (2.7 | ) |   |   | (7.9 | ) |
| Compensation      expense, net of tax                                                                                     |   | $                       | 1.5    |   |                   | $      | 6.1 |   |   | $ | 4.4 |   |   | $ | 16.6 |   |

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|                                   |                                             |   |                |   | Weighted       |   |
|----------------------------------------|--------------------------------------------------|--------|---------------------|--------|----------------|--------|
|                                   |                                             |   | Weighted            |   | Average        |   |
|                                   | (Thousands)                                      |   | Average             |   | Remaining      |   |
|                                   | Number      of                                   |   | Exercise      Price |   | Contractual    |   |
|                                   | Shares                                           |   | Per      Share      |   | Life           |   |
| Outstanding      at December 31, 2007  | 33,590.0                                         |   | $  8.21   |   | 9.2      years |   |
| Granted                                |      411.0              |   |   10.00   |   | 9.6      years |   |
| Forfeited                              |        (90.0) |   |   10.00   |   | 9.2      years |   |
| Outstanding      at September 30, 2008 | 33,911.0                                         |   | $  8.23   |   | 8.4      years |   |
| Exercisable      at September 30, 2008 |   8,000.0                              |   | $  2.50   |   | 6.2      years |   |

|                                  | (Thousands)                                      |   |   | Weighted           |   |
|---------------------------------------|--------------------------------------------------|--------|--------|--------------------|--------|
|                                  | Number      of                                   |   |   | Average      Price |   |
|                                  | Shares                                           |   |   | Per      Share     |   |
| Non-vested      at December 31, 2007  | 25,590.0                                         |   |   | $10.00             |   |
| Granted                               |      411.0              |   |   |   10.00  |   |
| Forfeited                             |        (90.0) |   |   |   10.00  |   |
| Non-vested      at September 30, 2008 | 25,911.0                                         |   |   | $10.00             |   |

| Expected      life           | 5.0      years |   |
|------------------------------|----------------|--------|
| Expected      volatility     | 23.5%          |   |
| Dividend      yield          | 0.0%           |   |
| Risk-free      interest rate | 3.1%           |   |

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Table of Contents

|                                     |   |  Three      Months Ended |   |    | Nine      Months Ended |   |
|------------------------------------------|--------|-------------------------------|--------|---------|------------------------|--------|
| (Millions)                               |   | 2008                          |   |    | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                     |   | Successor                     |   |    | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Benefits      earned during the year     |   | $                             | 1.8    |    |                   | $      | 2.7 |   |   | $ | 5.3 |   |   | $ | 8.2 |   |
| Interest      cost on benefit obligation |   |                          | 2.5    |    |                   |   | 3.2 |   |   |   | 7.7 |   |   |   | 9.6 |   |
| Amortization      of prior service cost  |   |                          | -      |    |                   |   | 0.3 |   |   |   | - |   |   |   | 0.8 |   |
| Amortization      of net actuarial loss  |   |                          | -      |    |                   |   | 1.2 |   |   |   | - |   |   |   | 3.6 |   |
| Expected      return on plan assets      |   |                          | (3.7   | )  |                   |   | (3.6 | ) |   |   | (11.3 | ) |   |   | (10.8 | ) |
| Net      periodic benefit expense        |   | $                             | 0.6    |    |                   | $      | 3.8 |   |   | $ | 1.7 |   |   | $ | 11.4 |   |

|                                                             |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                                       |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                             |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| FCC      spectrum auction-related costs                          |   | $                       | (0.1   | )      |                   | $      | - |   |   | $ | 12.9 |   |   | $ | - |   |
| Merger-related      expenses                                     |   |                    | 0.5    |   |                   |   | 2.5 |   |   |   | 6.6 |   |   |   | 35.6 |   |
| Computer      system conversion and other integration expenses   |   |                    | -      |   |                   |   | 1.7 |   |   |   | - |   |   |   | 6.1 |   |
| Severance      and employee benefit costs                        |   |                    | -      |   |                   |   | 0.3 |   |   |   | 2.1 |   |   |   | 4.7 |   |
| Lease      termination costs                                     |   |                    | -      |   |                   |   | 2.6 |   |   |   | - |   |   |   | 2.6 |   |
| Rebranding      and signage costs                                |   |                    | -      |   |                   |   | 3.9 |   |   |   | - |   |   |   | 4.3 |   |
| Costs      associated with pending acquisition of Alltel         |   |                    | 1.7    |   |                   |   | - |   |   |   | 3.1 |   |   |   | - |   |
| Total      integration expenses, restructuring and other charges |   | $                       | 2.1    |   |                   | $      | 11.0 |   |   | $ | 24.7 |   |   | $ | 53.3 |   |

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|                                                                                       |   |   |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|
| (Millions)                                                                                 |   |   |   |
| Balance,      beginning of period                                                          |   | $      | 182.3  |   |
| Integration      expenses, restructuring and other charges recorded during the      period |   |   | 24.7   |   |
| Cash      outlays during the period                                                        |   |   | (183.8 | )  |
| Balance,      end of period                                                                |   | $      | 23.2   |   |

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|                                             |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|--------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (Millions)                                       |   | 2008                    |    |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                             |   | Successor               |    |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Revenues      and sales                          |   | $                       |  - |   |                   | $      | - |   |   | $ | 1.2 |   |   | $ | 7.8 |   |
| Operating      expenses (a)                      |   |                    | -       |   |                   |   | - |   |   |   | 1.8 |   |   |   | 10.6 |   |
| Operating      loss                              |   |                    | -       |   |                   |   | - |   |   |   | (0.6 | ) |   |   | (2.8 | ) |
| Loss      on disposal of discontinued operations |   |                    | -       |   |                   |   | (0.3 | ) |   |   | - |   |   |   | (0.1 | ) |
| Other      income, net                           |   |                    | -       |   |                   |   | - |   |   |   | - |   |   |   | 1.3 |   |
| Interest      expense (b)                        |   |                    | -       |   |                   |   | - |   |   |   | - |   |   |   | - |   |
| Pretax      loss from discontinued operations    |   |                    | -       |   |                   |   | (0.3 | ) |   |   | (0.6 | ) |   |   | (1.6 | ) |
| Income      tax benefit (c)                      |   |                    | -       |   |                   |   | (4.2 | ) |   |   | (0.2 | ) |   |   | (2.5 | ) |
| Income      (loss) from discontinued operations  |   | $                       |  - |   |                   | $      | 3.9 |   |   | $ | (0.4 | ) |   | $ | 0.9 |   |

| (a)    | Operating      expenses for 2007 included an impairment charge of $1.7 million to reflect      the fair value less cost to sell of the four rural markets in Minnesota      required to be divested, and resulted in the write-down in the carrying      values of goodwill ($1.4 million) and customer list ($0.3 million)      allocated to these markets.                                    |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (b)    | Alltel      had no outstanding indebtedness directly related to the domestic markets      to be divested, and accordingly, no additional interest expense was      allocated to discontinued operations for the periods      presented.                                                                                                                                                         |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (c)    | Income      taxes in both periods of 2007 reflected a change in the estimate of tax      benefits associated with transaction costs incurred in connection with the      wireline spin-off completed in 2006 and the reversal of income tax      contingency reserves applicable to the sold financial services division      due to the expiration of certain state statutes of    limitation. |   |

| (Millions)                                                |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|
| Current      assets                                       |   | $      | 0.3    |   |
| Property,      plant and equipment, net                   |   |   | 2.9    |   |
| Goodwill      and other intangible assets (a)             |   |   | 4.1    |   |
| Non-current      assets                                   |   |   | 7.0    |   |
| Total      assets related to discontinued operations      |   | $      | 7.3    |   |
| Current      liabilities                                  |   | $      | 0.2    |   |
| Total      liabilities related to discontinued operations |   | $      | 0.2    |   |

| (a) | Amount      consisted of cellular licenses ($3.0 million) and customer list ($1.1      million). |
|-----|--------------------------------------------------------------------------------------------------|

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|                                                               |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                                         |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                               |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Net      income (loss)                                             |   | $                       | (55.2  | )      |                   | $      | 282.6 |   |   | $ | (250.0 | ) |   | $ | 708.4 |   |
| Other      comprehensive income (loss):                            |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      losses on hedging activities:                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      losses arising in the period                       |   |                    | (63.3  | )      |                   |   | - |   |   |   | (10.4 | ) |   |   | - |   |
| Income      tax benefit                                            |   |                    | (24.6  | )      |                   |   | - |   |   |   | (4.1 | ) |   |   | - |   |
|                                                               |   |                    | (38.7  | )      |                   |   | - |   |   |   | (6.3 | ) |   |   | - |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding losses on investments:                     |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding losses arising in the period               |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (1.1 | ) |
| Income      tax benefit                                            |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (0.4 | ) |
|                                                               |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (0.7 | ) |
| Less      reclassification adjustments for gains included          |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| in      net income for the period                                  |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (56.5 | ) |
| Income      tax expense                                            |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | 19.7 |   |
|                                                               |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (36.8 | ) |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      unrealized losses in the period                           |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (57.6 | ) |
| Income      tax benefit                                            |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (20.1 | ) |
|                                                               |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (37.5 | ) |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Defined      benefit pension plans:                                |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts      included in net periodic benefit cost for the period: |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of prior service cost                            |   |                    | -      |   |                   |   | 0.3 |   |   |   | - |   |   |   | 0.8 |   |
| Amortization      of net actuarial loss                            |   |                    | -      |   |                   |   | 1.2 |   |   |   | - |   |   |   | 3.6 |   |
|                                                               |   |                    | -      |   |                   |   | 1.5 |   |   |   | - |   |   |   | 4.4 |   |
| Income      tax expense                                            |   |                    | -      |   |                   |   | 0.6 |   |   |   | - |   |   |   | 1.7 |   |
|                                                               |   |                    | -      |   |                   |   | 0.9 |   |   |   | - |   |   |   | 2.7 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other      postretirement benefit plan:                            |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts      included in net periodic benefit cost for the period: |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of net actuarial loss                            |   |                    | -      |   |                   |   | 0.1 |   |   |   | - |   |   |   | 0.3 |   |
| Income      tax expense                                            |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | 0.1 |   |
|                                                               |   |                    | -      |   |                   |   | 0.1 |   |   |   | - |   |   |   | 0.2 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss) before tax                  |   |                    | (63.3  | )      |                   |   | 1.6 |   |   |   | (10.4 | ) |   |   | (52.9 | ) |
| Income      tax expense (benefit)                                  |   |                    | (24.6  | )      |                   |   | 0.6 |   |   |   | (4.1 | ) |   |   | (18.3 | ) |
| Other      comprehensive income (loss)                             |   |                    | (38.7  | )      |                   |   | 1.0 |   |   |   | (6.3 | ) |   |   | (34.6 | ) |
| Comprehensive      income (loss)                                   |   | $                       | (93.9  | )      |                   | $      | 283.6 |   |   | $ | (256.3 | ) |   | $ | 673.8 |   |

|  (Millions)                             |   | September      30, 2008 |   |   | December      31, 2007 |   |
|----------------------------------------------|--------|------------------------------|--------|--------|------------------------|--------|
| Unrealized      losses on hedging activities |   | $                            | (12.0  | )      |                   | $      | (5.7 | ) |
| Defined      benefit pension plans           |   |                         | 0.5    |   |                   |   | 0.5 |   |
| Other      postretirement benefit plan       |   |                         | (0.1   | )      |                   |   | (0.1 | ) |
| Accumulated      other comprehensive loss    |   | $                            | (11.6  | )      |                   | $      | (5.3 | ) |

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| ·   | Level      1 — Quoted prices in active markets for identical assets or      liabilities. |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Level      2 — Observable inputs other than quoted prices included in Level 1, such      as quoted prices for similar assets and liabilities in active markets;      quoted prices for identical or similar assets and liabilities in markets      that are not active; or other inputs that are observable or can be      corroborated by observable marketdata. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      3 — Unobservable inputs that are supported by little or no market activity      and that are significant to the fair value of the assets or liabilities.      This includes certain pricing models, discounted cash flow methodologies      and similar techniques that use significant unobservable      inputs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item2.       Management’s Discussion andAnalysis of Financial Condition and Results ofOperations

| ·   | Revenues      and sales increased 10 percent from the third quarter of 2007 driven by      Alltel’s continued focus on quality customer growth and improvements in      data revenues.  Retail revenue per customer and average revenue      per customer were relatively flat when compared to the same period a year      ago.  Growth rates in both revenue per customer metrics were      impacted by the continuing decline in voice revenue per customer,      partially offset by sustained growth in data  revenues. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross      customer additions were 1.2 million in the quarter, a 28 percent increase      from the same period a year ago. Driven by strong growth in both postpay      and prepay service offerings, net customer additions were 335,200 in the      quarter, a 63 percent increase from the third quarter of    2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Consolidated      earnings before interest, taxes and depreciation and amortization      (“Consolidated EBITDA”) increased $109.6 million in the quarter, a 13      percent increase from the same period a year ago, primarily driven by the      growth in access and data revenues discussed above.  (See      “Covenant Compliance” below for the calculation of Consolidated      EBITDA).  The Company reported a net loss of $55.2 million in      the third quarter of 2008 primarily due to the significant increases in      interest costs and depreciation and amortization expense following the      completion of the Merger, as further discussed below under “Consolidated      Results of Operations”. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                        | Three      Months Ended |   | Nine      Months Ended |
|-------------------------------------------------------------|-------------------------|--------|------------------------|
|                                                        | September      30,      |   | September      30,     |
| (Thousands,      except per customer amounts)               | 2008                    |   | 2007                   |   | 2008 |   | 2007 |
| Customers                                                   | 13,825.0                |   | 12,447.1               |   | - |   | - |
| Average      customers                                      | 13,663.1                |   | 12,338.4               |   | 13,319.6 |   | 12,140.3 |
| Average      retail customers (excludes reseller customers) | 12,846.8                |   | 11,576.1               |   | 12,519.5 |   | 11,378.0 |
| Gross      customer additions (a)                           | 1,161.5                 |   | 904.8                  |   | 3,337.1 |   | 2,562.2 |
| Net      customer additions (b)                             | 335.2                   |   | 205.0                  |   | 1,039.8 |   | 623.1 |
| Market      penetration                                     | 17.4%                   |   | 15.6%                  |   | - |   | - |
| Postpay      customer churn                                 | 1.33%                   |   | 1.31%                  |   | 1.29% |   | 1.27% |
| Total      churn                                            | 2.02%                   |   | 1.90%                  |   | 1.92% |   | 1.78% |
| Retail      minutes of use per customer per month (c)       | 804                     |   | 746                    |   | 792 |   | 708 |
| Retail      revenue per customer per month (d)              | $52.88                  |   | $52.66                 |   | $51.84 |   | $51.30 |
| Average      revenue per customer per month (e)             | $55.62                  |   | $55.96                 |   | $54.59 |   | $54.21 |

| (a) | A      summary of gross customer additions is as follows for the three and nine      months ended September 30: |
|-----|-----------------------------------------------------------------------------------------------------------------|

|                    | Three      Months Ended            |   | Nine      Months Ended                            |
|-------------------------|------------------------------------|--------|---------------------------------------------------|
| (Thousands)             | 2008                               |   | 2007                                              |   | 2008 |   | 2007 |
| Postpay      customers  | 694.3                              |   | 644.0                                             |   | 1,893.0 |   | 1,732.1 |
| Prepay      customers   | 367.5                              |   | 260.8                                             |   | 1,156.5 |   | 830.1 |
| Reseller      customers |      99.7 |   |         - |   |    287.6 |   |            - |
| Total                   | 1,161.5                            |   | 904.8                                             |   | 3,337.1 |   | 2,562.2 |

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| (b) | A      summary of net customer additions (losses) is as follows for the three and      nine months ended September 30: |
|-----|------------------------------------------------------------------------------------------------------------------------|

|                    | Three      Months Ended |   | Nine      Months Ended                            |
|-------------------------|-------------------------|--------|---------------------------------------------------|
| (Thousands)             | 2008                    |   | 2007                                              |   | 2008 |   | 2007 |
| Postpay      customers  | 255.4                   |   | 212.8                                             |   | 635.3 |   | 502.6 |
| Prepay      customers   | 52.7                    |   | (7.8                                              | ) | 335.0 |   | 120.5 |
| Reseller      customers |   27.1        |   |         - |   |      69.5 |   |         - |
| Total                   | 335.2                   |   | 205.0                                             |   | 1,039.8 |   | 623.1 |

| (c)    | Represents      the average monthly minutes that Alltel’s customers use on both the      Company’s network and while roaming on other carriers’      networks.                                                                                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                            |
| (d)    | Retail      revenue per customer per month is calculated by dividing retail revenues      by average retail customers for the period.  A reconciliation of      the revenues used in computing retail revenue per customer per month is as      follows for the three and nine month periods ended September      30: |

|                                   |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|----------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (Millions)                             |   | 2008                    |    |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
| Service      revenues                  |   | $                       | 2,279.9 |   |                   | $      | 2,071.5 |   |   | $ | 6,543.7 |   |   | $ | 5,923.2 |   |
| Less      wholesale roaming revenues   |   |                    | (204.0  | )      |                   |   | (196.5 | ) |   |   | (581.0 | ) |   |   | (520.8 | ) |
| Less      wholesale transport revenues |   |                    | (32.9   | )      |                   |   | (38.1 | ) |   |   | (107.4 | ) |   |   | (127.4 | ) |
| Less      reseller revenues            |   |                    | (4.8    | )      |                   |   | (8.1 | ) |   |   | (14.3 | ) |   |   | (21.8 | ) |
| Total      retail revenues             |   | $                       | 2,038.2 |   |                   | $      | 1,828.8 |   |   | $ | 5,841.0 |   |   | $ | 5,253.2 |   |

| (e) | Average      revenue per customer per month is calculated by dividing service revenues      by average customers for theperiod. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

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| CONSOLIDATED      RESULTS OF OPERATIONS                           |   |
|-------------------------------------------------------------------|--------|
|                                                              |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                              |   | September      30, |   |   | September      30, |   |
| (Millions)                                                        |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007  |   |
|                                                              |   | Successor |   |   | Predecessor |   |   | Successor |   |   | Predecessor |   |
| Revenues      and sales:                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      revenues                                             |   | $ | 2,279.9 |   |   | $ | 2,071.5 |   |   | $ | 6,543.7 |   |   | $ | 5,923.2 |   |
| Product      sales                                                |   |   | 227.6 |   |   |   | 210.0 |   |   |   | 672.8 |   |   |   | 611.9 |   |
| Total      revenues and sales                                     |   |   | 2,507.5 |   |   |   | 2,281.5 |   |   |   | 7,216.5 |   |   |   | 6,535.1 |   |
| Costs      and expenses:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of services                                             |   |   | 715.9 |   |   |   | 682.2 |   |   |   | 2,052.0 |   |   |   | 1,933.4 |   |
| Cost      of products sold                                        |   |   | 343.4 |   |   |   | 300.0 |   |   |   | 1,006.7 |   |   |   | 876.1 |   |
| Selling,      general, administrative and other                   |   |   | 557.6 |   |   |   | 496.1 |   |   |   | 1,573.5 |   |   |   | 1,445.5 |   |
| Depreciation      and amortization                                |   |   | 535.4 |   |   |   | 358.2 |   |   |   | 1,594.5 |   |   |   | 1,060.0 |   |
| Integration      expenses, restructuring and other charges        |   |   |  2.1 |   |   |   |  11.0 |   |   |   |  24.7 |   |   |   |  53.3 |   |
| Total      costs and expenses                                     |   |   | 2,154.4 |   |   |   | 1,847.5 |   |   |   | 6,251.4 |   |   |   | 5,368.3 |   |
| Operating      income                                             |   |   | 353.1 |   |   |   | 434.0 |   |   |   | 965.1 |   |   |   | 1,166.8 |   |
| Non-operating      income, net                                    |   |   | 12.3 |   |   |   | 14.2 |   |   |   | 45.7 |   |   |   | 40.3 |   |
| Interest      expense                                             |   |   | (449.1 | ) |   |   | (46.2 | ) |   |   | (1,399.1 | ) |   |   | (140.3 | )  |
| Gain      on disposal of assets                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56.5 |   |
| Income      (loss) from continuing operations before income taxes |   |   | (83.7 | ) |   |   | 402.0 |   |   |   | (388.3 | ) |   |   | 1,123.3 |   |
| Income      tax expense (benefit)                                 |   |   | (28.5 | ) |   |   | 123.3 |   |   |   | (138.7 | ) |   |   | 415.8 |   |
| Income      (loss) from continuing operations                     |   |   | (55.2 | ) |   |   | 278.7 |   |   |   | (249.6 | ) |   |   | 707.5 |   |
| Income      (loss) from discontinued operations                   |   |   | - |   |   |   | 3.9 |   |   |   | (0.4 | ) |   |   |  0.9 |   |
| Net      income (loss)                                            |   | $ | (55.2 | ) |   | $ | 282.6 |   |   | $ | (250.0 | ) |   | $ | 708.4 |   |

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|                                                             |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                                       |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                             |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| FCC      spectrum auction-related costs                          |   | $                       | (0.1   | )      |                   | $      | - |   |   | $ | 12.9 |   |   | $ | - |   |
| Merger-related      expenses                                     |   |                    | 0.5    |   |                   |   | 2.5 |   |   |   | 6.6 |   |   |   | 35.6 |   |
| Computer      system conversion and other integration expenses   |   |                    | -      |   |                   |   | 1.7 |   |   |   | - |   |   |   | 6.1 |   |
| Severance      and employee benefit costs                        |   |                    | -      |   |                   |   | 0.3 |   |   |   | 2.1 |   |   |   | 4.7 |   |
| Rebranding      and signage costs                                |   |                    | -      |   |                   |   | 3.9 |   |   |   | - |   |   |   | 4.3 |   |
| Lease      termination costs                                     |   |                    | -      |   |                   |   | 2.6 |   |   |   | - |   |   |   | 2.6 |   |
| Costs      associated with pending acquisition of Alltel         |   |                    | 1.7    |   |                   |   | - |   |   |   | 3.1 |   |   |   | - |   |
| Total      integration expenses, restructuring and other charges |   | $                       | 2.1    |   |                   | $      | 11.0 |   |   | $ | 24.7 |   |   | $ | 53.3 |   |

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|                                                |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-----------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                          |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Equity      earnings in unconsolidated partnerships |   | $                       | 19.6   |   |                   | $      | 17.1 |   |   | $ | 53.9 |   |   | $ | 48.5 |   |
| Minority      interest in consolidated partnerships |   |                    | (14.5  | )      |                   |   | (8.8 | ) |   |   | (37.5 | ) |   |   | (27.4 | ) |
| Other      income, net                              |   |                    | 7.2    |   |                   |   | 5.9 |   |   |   | 29.3 |   |   |   | 19.2 |   |
| Non-operating      income, net                      |   | $                       | 12.3   |   |                   | $      | 14.2 |   |   | $ | 45.7 |   |   | $ | 40.3 |   |

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|                                             |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|--------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                       |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                             |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Revenues      and sales                          |   | $                       | -      |   |                   | $      | - |   |   | $ | 1.2 |   |   | $ | 7.8 |   |
| Operating      expenses                          |   |                    | -      |   |                   |   | - |   |   |   | 1.8 |   |   |   | 10.6 |   |
| Operating      loss                              |   |                    | -      |   |                   |   | - |   |   |   | (0.6 | ) |   |   | (2.8 | ) |
| Loss      on disposal of discontinued operations |   |                    | -      |   |                   |   | (0.3 | ) |   |   | - |   |   |   | (0.1 | ) |
| Other      income, net                           |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | 1.3 |   |
| Interest      expense                            |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | - |   |
| Pretax      loss from discontinued operations    |   |                    | -      |   |                   |   | (0.3 | ) |   |   | (0.6 | ) |   |   | (1.6 | ) |
| Income      tax benefit                          |   |                    | -      |   |                   |   | (4.2 | ) |   |   | (0.2 | ) |   |   | (2.5 | ) |
| Income      (loss) from discontinued operations  |   | $                       | -      |   |                   | $      | 3.9 |   |   | $ | (0.4 | ) |   | $ |  0.9 |   |

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|                                                 |   | Nine      Months Ended |    |
|------------------------------------------------------|--------|------------------------|---------|
| (Millions)                                           |   | 2008                   |    |   | 2007 |   |
|                                                 |   | Successor              |    |   | Predecessor |   |
| Cash      flows from (used in):                      |   |                   |    |   |   |   |
| Operating      activities from continuing operations |   | $                      | 1,173.9 |   |   | $ | 1,838.8 |   |
| Investing      activities from continuing operations |   |                   | (573.9  | ) |   |   | (521.0 | ) |
| Financing      activities from continuing operations |   |                   | (142.4  | ) |   |   | (1,477.8 | ) |
| Discontinued      operations                         |   |                   | 6.7     |   |   |   | 50.4 |   |
| Change      in cash and short-term investments       |   | $                      | 464.3   |   |   | $ | (109.6 | ) |

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|                              |   |          |                            |
|-----------------------------------|--------|---------------|---------------------------------|
| Description                       |   | Moody’s | Standard&      Poor’s |
| Long-term      debt credit rating |   | B2            | B+                              |
| Credit      watch                 |   | Positive      | Positive                        |

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|                                                                                         |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|----------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| (Millions)                                                                                   |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                                                         |   | Successor               |   |   | Predecessor            |   |   | Successor |   |   | Predecessor |   |
| Net      income (loss)                                                                       |   | $                       | (55.2  | )      |                   | $      | 282.6 |   |   | $ | (250.0 | ) |   | $ | 708.4 |   |
| Loss      (income) from discontinued operations                                              |   |                    | -      |   |                   |   | (3.9 | ) |   |   | 0.4 |   |   |   | (0.9 | ) |
| Income      tax expense (benefit)                                                            |   |                    | (28.5  | )      |                   |   | 123.3 |   |   |   | (138.7 | ) |   |   | 415.8 |   |
| Interest      expense, net of interest income                                                |   |                    | 442.1  |   |                   |   | 40.2 |   |   |   | 1,372.5 |   |   |   | 122.6 |   |
| Depreciation      and amortization                                                           |   |                    | 535.4  |   |                   |   | 358.2 |   |   |   | 1,594.5 |   |   |   | 1,060.0 |   |
| EBITDA                                                                                       |   |                    | 893.8  |   |                   |   | 800.4 |   |   |   | 2,578.7 |   |   |   | 2,305.9 |   |
| Minority      interest in consolidated partnerships                                          |   |                    | 14.5   |   |                   |   | 8.8 |   |   |   | 37.5 |   |   |   | 27.4 |   |
| Equity      earnings in unconsolidated partnerships, net of cash distributions      received |   |                    | 2.3    |   |                   |   | (1.6 | ) |   |   | (5.1 | ) |   |   | (8.6 | ) |
| Stock-based      compensation expense, net of restricted shares surrendered for      tax     |   |                    | 2.4    |   |                   |   | 9.1 |   |   |   | 7.1 |   |   |   | 22.3 |   |
| Integration      expenses, restructuring and other charges (See Note 6)                      |   |                    | 2.1    |   |                   |   | 11.0 |   |   |   | 24.7 |   |   |   | 53.3 |   |
| Gain      on disposal of assets (See Note 7)                                                 |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | (56.5 | ) |
| Non-cash      rental income, net of amortization of deferred leasing costs      (a)          |   |                    | -      |   |                   |   | (8.4 | ) |   |   | - |   |   |   | (25.4 | ) |
| Management      fee payable to Sponsors (b)                                                  |   |                    | 9.1    |   |                   |   | - |   |   |   | 27.1 |   |   |   | - |   |
| Other      non-cash items                                                                    |   |                    | 5.6    |   |                   |   | 0.9 |   |   |   | 5.4 |   |   |   | 4.9 |   |
| Consolidated      EBITDA                                                                     |   | $                       | 929.8  |   |                   | $      | 820.2 |   |   | $ | 2,675.4 |   |   | $ | 2,323.3 |   |

| (a)    | Represents      non-cash rental income and amortization of deferred leasing costs related      to Alltel’s agreement to lease cell site towers to American      Tower.  The remaining deferred rental income and deferred      leasing costs were written-off in connection with the    Merger. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                            |
| (b)    | Represents      the annual management fee and out-of-pocket expenses payable in each case      to affiliates of the Sponsors in exchange for consulting and management      advisory services.  The annual management fee is equal to one      percent of Alltel’s ConsolidatedEBITDA.          |

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| ALLTEL      CORPORATION                   |
|-------------------------------------------|
| FORM      10-Q                            |
| PART      I – FINANCIAL INFORMATION |

Item3.       Quantitative and QualitativeDisclosures About Market Risk

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| ALLTEL      CORPORATION                   |
|-------------------------------------------|
| FORM      10-Q                            |
| PART      I – FINANCIAL INFORMATION |

Item4.       Controls andProcedures

| (a)    | Evaluation      of disclosure controls and procedures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The      term “disclosure controls and procedures” (defined in SEC Rule 13a-15(e))      refers to the controls and other procedures of a company that are designed      to ensure that information required to be disclosed by a company in the      reports that it files under the Securities Exchange Act of 1934 (the      “Exchange Act”) is recorded, processed, summarized and reported within      required time periods.  Disclosure controls and procedures (as      defined in SEC Rule 13a-15(e)) include, without limitation, controls and      procedures designed to ensure that information required to be disclosed by      a company in the reports that it files or submits under the Exchange Act      is accumulated and communicated to the company’s management, including the      company’s principal executive and financial officers, as appropriate to      allow timely decisions regarding required disclosure.  Alltel’s      management, with the participation of the Chief Executive Officer and      Chief Financial Officer, have evaluated the effectiveness of the Company’s      disclosure controls and procedures as of the end of the period covered by      this quarterly report (the “Evaluation Date”).  Based on that      evaluation, Alltel’s Chief Executive Officer and Chief Financial Officer      have concluded that, as of the Evaluation Date, such controls and      procedures were effective. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (b)    | Changes      in internal control over financial reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The      term “internal control over financial reporting” (defined in SEC Rule      13a-15(f)) refers to the process of a company that is designed to provide      reasonable assurance regarding the reliability of financial reporting and      the preparation of financial statements for external purposes in      accordance with generally accepted accounting      principles.  Alltel’s management, with the participation of the      Chief Executive Officer and Chief Financial Officer, have evaluated any      changes in the Company’s internal control over financial reporting that      occurred during the period covered by this quarterly report, and they have      concluded that there were no changes to Alltel’s internal control over      financial reporting that have materially affected, or are reasonably      likely to materially affect, Alltel’s internal control over financial      reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

| PART      II – OTHER INFORMATION |
|----------------------------------------|

Item1.       LegalProceedings

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| ALLTEL      CORPORATION                |
|----------------------------------------|
| FORM      10-Q                         |
| PART      II – OTHER INFORMATION |

Item1A.    RiskFactors

| ·   | the      effect of the announcement of the merger on our customer relationships,      regulatory relationships, operating results and business      generally; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | diversion      of management’s attention from ongoing business concerns, business      uncertainty and contractual restrictions on business operations imposed by      the merger agreement during the pendency of the  merger; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      occurrence of any event, change or other circumstances that could give      rise to the termination of the mergeragreement; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | regulatory      review, approvals and restrictions;and |
|--------------------|--------------------------------------------------------|

| ·   | the      inability to complete the merger due to the failure to satisfy conditions      to the completion of the merger, including the receipt of all regulatory      approvals related to the merger. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item6.       Exhibits

Page39

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| Alltel      Corporation                                 |
|---------------------------------------------------------|
| (Registrant)                                            |
|                                                    |
|                                                    |
| /s/      Sharilyn S. Gasaway                            |
| Sharilyn      S. Gasaway                                |
| Executive      Vice President - Chief Financial Officer |
| (Principal      Financial Officer)                      |
| November      4, 2008                                   |

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| ALLTEL      CORPORATION |
|-------------------------|
| FORM      10-Q          |
| EXHIBIT INDEX           |

| Form      10-Q   |                                                                                                                                                         |   |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit      No. | Description of      Exhibits                                                                                                                                 |   |
|             |                                                                                                                                                         |   |
| 12               | Statements      Re: Computation of Ratios                                                                                                                    | (a)    |
|             |                                                                                                                                                         |   |
| 31(a)            | Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                | (a)    |
|             |                                                                                                                                                         |   |
| 31(b)            | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                | (a)    |
|             |                                                                                                                                                         |   |
| 32(a)            | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | (a)    |
|             |                                                                                                                                                         |   |
| 32(b)            | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | (a)    |

| (a) | Filed      herewith. |
|-----|----------------------|