| 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, 2005                                                                                                                                                                                                                                                                                                                         |
| 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)                                                                                                                                                                                                                                                                                        |

Exhibit      Index

----

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

| **PART                I - FINANCIAL INFORMATION** |
|---------------------------------------------------|
|                                              |   |   |
|                                              |   |   |
| Item                1.                            | Financial                Statements |   2 |
| Item                2.                            | Management’s                Discussion and Analysis of Financial                Condition | - |
|                                              | and                Results of Operations | 19 |
| Item                3.                            | Quantitative                and Qualitative Disclosures About Market                Risk | 49 |
| Item                4.                            | Controls                and Procedures | 50 |
|                                              |   |   |

| **PART                II - OTHER INFORMATION** |
|------------------------------------------------|
|                                           |   |   |
|                                           |   |   |
| Item                1.                         | Legal                Proceedings |   * |
| Item                2.                         | Unregistered                Sales of Equity Securities and Use of Proceeds | 50 |
| Item                3.                         | Defaults                Upon Senior Securities |   * |
| Item                4.                         | Submission                of Matters to a Vote of Security Holders |   * |
| Item                5.                         | Other                Information |   * |
| Item                6.                         | Exhibits | 50 |

----

**ALLTEL      CORPORATION**

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

**Item      1.****     ****Financial      Statements**

| **CONSOLIDATED                BALANCE SHEETS (UNAUDITED)**                                            |   |
|-------------------------------------------------------------------------------------------------------|--------|
| (Dollars                in millions, except per share amounts)                                        |   |   |                          September 30, |   |   |                           December 31, |   |
| **Assets**                                                                                            |   |   |                                                                         2005 |   |   |                                                          2004 |   |
| **Current                Assets:**                                                                    |   |   |   |   |   |   |   |
| Cash                and short-term investments                                                        |   | $ | 69.4 |   | $ | 484.9 |   |
| Accounts                receivable (less allowance for doubtful                                       |   |   |   |   |   |   |   |
| accounts                of $76.4 and $53.6, respectively)                                             |   |   | 1,117.0 |   |   | 912.7 |   |
| Inventories                                                                                           |   |   | 177.0 |   |   | 156.8 |   |
| Prepaid                expenses and other                                                             |   |   | 131.2 |   |   | 62.4 |   |
| Assets                held for sale                                                                   |   |   | 2,739.6 |   |   | - |   |
| Total                current assets                                                                   |   |   | 4,234.2 |   |   | 1,616.8 |   |
| Investments                                                                                           |   |   | 359.3 |   |   | 804.9 |   |
| Goodwill                                                                                              |   |   | 8,827.9 |   |   | 4,875.7 |   |
| Other                intangibles                                                                      |   |   | 1,977.3 |   |   | 1,306.1 |   |
| **Property,                Plant and Equipment:**                                                     |   |   |   |   |   |   |   |
| Land                                                                                                  |   |   | 287.6 |   |   | 278.1 |   |
| Building                and improvements                                                              |   |   | 1,189.7 |   |   | 1,134.8 |   |
| Wireline                                                                                              |   |   | 6,886.8 |   |   | 6,735.8 |   |
| Wireless                                                                                              |   |   | 6,664.6 |   |   | 5,764.0 |   |
| Information                processing                                                                 |   |   | 1,150.2 |   |   | 1,048.4 |   |
| Other                                                                                                 |   |   | 494.3 |   |   | 489.9 |   |
| Under                construction                                                                     |   |   | 494.3 |   |   | 385.3 |   |
| Total                property, plant and equipment                                                    |   |   | 17,167.5 |   |   | 15,836.3 |   |
| Less                accumulated depreciation                                                          |   |   | 9,158.5 |   |   | 8,288.2 |   |
| Net                property, plant and equipment                                                      |   |   | 8,009.0 |   |   | 7,548.1 |   |
| Other                assets                                                                           |   |   | 389.0 |   |   | 452.1 |   |
| **Total                Assets**                                                                       |   | $ | 23,796.7 |   | $ | 16,603.7 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                         |   |   |   |   |   |   |   |
| **Current                Liabilities:**                                                               |   |   |   |   |   |   |   |
| Current                maturities of long-term debt                                                   |   | $ | 22.9 |   | $ | 225.0 |   |
| Accounts                payable                                                                       |   |   | 496.0 |   |   | 448.2 |   |
| Advance                payments and customer deposits                                                 |   |   | 224.2 |   |   | 219.3 |   |
| Accrued                taxes                                                                          |   |   | 224.1 |   |   | 158.2 |   |
| Accrued                dividends                                                                      |   |   | 145.5 |   |   | 105.9 |   |
| Accrued                interest                                                                       |   |   | 81.3 |   |   | 120.2 |   |
| Current                deferred income taxes                                                          |   |   | 490.5 |   |   | - |   |
| Other                current liabilities                                                              |   |   | 244.1 |   |   | 183.5 |   |
| Liabilities                related to assets held for sale                                            |   |   | 398.0 |   |   | - |   |
| Total                current liabilities                                                              |   |   | 2,326.6 |   |   | 1,460.3 |   |
| Long-term                debt                                                                         |   |   | 5,920.2 |   |   | 5,352.4 |   |
| Deferred                income taxes                                                                  |   |   | 1,681.9 |   |   | 1,715.1 |   |
| Other                liabilities                                                                      |   |   | 955.7 |   |   | 947.2 |   |
| Shareholders’                Equity:                                                            |   |   |   |   |   |   |   |
| Preferred                stock, Series C, $2.06, no par value, 11,492 and 12,288                      |   |   |   |   |   |   |   |
| shares                issued and outstanding, respectively                                            |   |   | 0.3 |   |   | 0.3 |   |
| Common                stock, par value $1 per share, 1.0 billion shares                authorized,    |   |   |   |   |   |   |   |
| 382,914,314                and 302,267,959 shares issued and outstanding,                respectively |   |   | 382.9 |   |   | 302.3 |   |
| Additional                paid-in capital                                                             |   |   | 5,313.4 |   |   | 197.9 |   |
| Unrealized                holding gain on investments                                                 |   |   | 23.5 |   |   | 153.9 |   |
| Foreign                currency translation adjustment                                                |   |   | 26.9 |   |   | 0.5 |   |
| Retained                earnings                                                                      |   |   | 7,165.3 |   |   | 6,473.8 |   |
| Total                shareholders’ equity                                                       |   |   | 12,912.3 |   |   | 7,128.7 |   |
| Total                Liabilities and Shareholders’ Equity                                       |   | $ | 23,796.7 |   | $ | 16,603.7 |   |

----

| **CONSOLIDATED                STATEMENTS OF INCOME (UNAUDITED)**                                                                                                             |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                         |   | Three                Months |   |  Nine                Months |   |
|                                                                                                                                                                         |   | Ended                September 30, |   |  Ended                September 30, |   |
| (Millions,                except per share amounts)                                                                                                                          |   |   | 2005 |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
| **Revenues                and sales:**                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                revenues                                                                                                                                              |   | $ | 2,229.4 |   | $ | 1,885.4 |   | $ | 6,116.9 |   | $ | 5,476.9 |   |
| Product                sales                                                                                                                                                 |   |   | 289.7 |   |   | 217.7 |   |   | 788.3 |   |   | 629.5 |   |
| Total                revenues and sales                                                                                                                                      |   |   | 2,519.1 |   |   | 2,103.1 |   |   | 6,905.2 |   |   | 6,106.4 |   |
| **Costs                and expenses:**                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of services (excluding depreciation of $256.2, $232.0,                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $742.3                and $695.6, respectively, included below)                                                                                                              |   |   | 719.7 |   |   | 624.4 |   |   | 2,006.9 |   |   | 1,769.4 |   |
| Cost                of products sold                                                                                                                                         |   |   | 343.7 |   |   | 262.6 |   |   | 933.6 |   |   | 775.9 |   |
| Selling,                general, administrative and other                                                                                                                    |   |   | 470.9 |   |   | 373.6 |   |   | 1,298.9 |   |   | 1,121.7 |   |
| Depreciation                and amortization                                                                                                                                 |   |   | 389.0 |   |   | 324.7 |   |   | 1,078.5 |   |   | 967.2 |   |
| Restructuring                and other charges                                                                                                                               |   |   | 18.9 |   |   | - |   |   | 18.9 |   |   | 51.8 |   |
| Total                costs and expense                                                                                                                                       |   |   | 1,942.2 |   |   | 1,585.3 |   |   | 5,336.8 |   |   | 4,686.0 |   |
| **Operating                income**                                                                                                                                          |   |   | 576.9 |   |   | 517.8 |   |   | 1,568.4 |   |   | 1,420.4 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                earnings in unconsolidated partnerships                                                                                                                |   |   | 10.5 |   |   | 24.3 |   |   | 36.4 |   |   | 53.5 |   |
| Minority                interest in consolidated partnerships                                                                                                                |   |   | (20.6 | ) |   | (23.7 | ) |   | (57.8 | ) |   | (60.9 | ) |
| Other                income, net                                                                                                                                             |   |   | 27.3 |   |   | 15.7 |   |   | 156.0 |   |   | 23.2 |   |
| Interest                expense                                                                                                                                              |   |   | (83.4 | ) |   | (86.7 | ) |   | (246.4 | ) |   | (265.0 | ) |
| Gain                on exchange or disposal of assets and other                                                                                                              |   |   | 30.5 |   |   | - |   |   | 218.8 |   |   | - |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations before income taxes                                                                                                         |   |   | 541.2 |   |   | 447.4 |   |   | 1,675.4 |   |   | 1,171.2 |   |
| Income                taxes                                                                                                                                                  |   |   | 206.1 |   |   | 143.7 |   |   | 625.2 |   |   | 415.1 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                             |   |   | 335.1 |   |   | 303.7 |   |   | 1,050.2 |   |   | 756.1 |   |
| Discontinued                operations (net of income taxes of $33.3 in 2005 and income tax                                    benefit of $19.5 in 2004) |   |   | 26.0 |   |   | 19.5 |   |   | 26.0 |   |   | 19.5 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                    |   |   | 361.1 |   |   | 323.2 |   |   | 1,076.2 |   |   | 775.6 |   |
| Preferred                dividends                                                                                                                                           |   |   | - |   |   | - |   |   | 0.1 |   |   | 0.1 |   |
| Net                income applicable to common shares                                                                                                                        |   | $ | 361.1 |   | $ | 323.2 |   | $ | 1,076.1 |   | $ | 775.5 |   |
| **Earnings                per share:**                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                             |   |   | $.92 |   |   | $.99 |   |   | $3.21 |   |   | $2.45 |   |
| Income                from discontinued operations                                                                                                                           |   |   | .07 |   |   | .06 |   |   | .08 |   |   | .06 |   |
| Net                income                                                                                                                                                    |   |   | $.99 |   |   | $1.05 |   |   | $3.29 |   |   | $2.51 |   |
| Diluted:                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                             |   |   | $.91 |   |   | $.99 |   |   | $3.19 |   |   | $2.44 |   |
| Income                from discontinued operations                                                                                                                           |   |   | .07 |   |   | .06 |   |   | .08 |   |   | .06 |   |
| Net                income                                                                                                                                                    |   |   | $.98 |   |   | $1.05 |   |   | $3.27 |   |   | $2.50 |   |

----

| **CONSOLIDATED                STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                       |   | Nine                Months |   |
|                                                                                                                                       |   | Ended                September 30, |   |
| (Millions)                                                                                                                                 |   |   | 2005 |   |   | 2004 |   |
| **Cash                Provided from Operations:**                                                                                          |   |   |   |   |   |   |   |
| Net                income                                                                                                                  |   | $ | 1,076.2 |   | $ | 775.6 |   |
| Adjustments                to reconcile net income to net cash provided from                operations:                                    |   |   |   |   |   |   |   |
| Income                from discontinued operations                                                                                         |   |   | (26.0 | ) |   | (19.5 | ) |
| Depreciation                and amortization                                                                                               |   |   | 1,078.5 |   |   | 967.2 |   |
| Provision                for doubtful accounts                                                                                             |   |   | 152.0 |   |   | 137.3 |   |
| Non-cash                portion of gain on exchange or disposal of assets and                other                                         |   |   | (232.7 | ) |   | - |   |
| Non-cash                portion of restructuring and other charges                                                                         |   |   | 10.0 |   |   | 25.6 |   |
| Increase                in deferred income taxes                                                                                           |   |   | 18.1 |   |   | 188.6 |   |
| Reversal                of income tax contingency reserves                                                                                 |   |   | - |   |   | (19.7 | ) |
| Other,                net                                                                                                                  |   |   | 12.1 |   |   | (8.5 | ) |
| Changes                in operating assets and liabilities, net of effects of acquisitions                and                dispositions: |   |   |   |   |   |   |   |
| Accounts                receivable                                                                                                         |   |   | (205.4 | ) |   | (164.3 | ) |
| Inventories                                                                                                                                |   |   | 16.2 |   |   | 10.9 |   |
| Accounts                payable                                                                                                            |   |   | (3.7 | ) |   | (93.0 | ) |
| Other                current liabilities                                                                                                   |   |   | 6.2 |   |   | 64.1 |   |
| Other,                net                                                                                                                  |   |   | 0.4 |   |   | (20.2 | ) |
| Net                cash provided from operations                                                                                           |   |   | 1,901.9 |   |   | 1,844.1 |   |
| **Cash                Flows from Investing Activities:**                                                                                   |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                                                                  |   |   | (915.5 | ) |   | (757.3 | ) |
| Additions                to capitalized software development costs                                                                         |   |   | (38.9 | ) |   | (23.6 | ) |
| Additions                to investments                                                                                                    |   |   | (1.0 | ) |   | (2.8 | ) |
| Purchases                of property, net of cash acquired                                                                                 |   |   | (1,135.8 | ) |   | - |   |
| Proceeds                from the sale of assets                                                                                            |   |   | 36.2 |   |   | - |   |
| Proceeds                from the sale of investments                                                                                       |   |   | 353.9 |   |   | - |   |
| Proceeds                from the return on investments                                                                                     |   |   | 30.9 |   |   | 67.1 |   |
| Other,                net                                                                                                                  |   |   | 7.9 |   |   | (0.6 | ) |
| Net                cash used in investing activities                                                                                       |   |   | (1,662.3 | ) |   | (717.2 | ) |
| **Cash                Flows from Financing Activities:**                                                                                   |   |   |   |   |   |   |   |
| Dividends                on common and preferred stock                                                                                     |   |   | (345.2 | ) |   | (345.3 | ) |
| Repayments                of long-term debt                                                                                                |   |   | (2,656.6 | ) |   | (255.0 | ) |
| Repurchases                of common stock                                                                                                 |   |   | - |   |   | (506.9 | ) |
| Distributions                to minority investors                                                                                         |   |   | (44.8 | ) |   | (49.7 | ) |
| Long-term                debt issued                                                                                                       |   |   | 927.7 |   |   | - |   |
| Common                stock issued                                                                                                         |   |   | 1,442.8 |   |   | 20.7 |   |
| Net                cash used in financing activities                                                                                       |   |   | (676.1 | ) |   | (1,136.2 | ) |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Net                cash provided from discontinued operations                                                                              |   |   | 36.2 |   |   | - |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash and short-term                investments                                           |   |   | (15.2 | ) |   | (0.1 | ) |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Decrease                in cash and short-term investments                                                                                 |   |   | (415.5 | ) |   | (9.4 | ) |
|                                                                                                                                       |   |   |   |   |   |   |   |
| **Cash                and Short-term Investments:**                                                                                        |   |   |   |   |   |   |   |
| Beginning                of the period                                                                                                     |   |   | 484.9 |   |   | 657.8 |   |
| End                of the period                                                                                                           |   | $ | 69.4 |   | $ | 648.4 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| **Non-Cash                Investing and Financing Activities:**                                                                            |   |   |   |   |   |   |   |
| Change                in fair value of investments in equity securities                                                                    |   | $ | (200.6 | ) | $ | 32.2 |   |
| Change                in fair value of foreign currency exchange contracts                                                                 |   | $ | 41.6 |   | $ | - |   |
| Change                in fair value of interest rate swap agreements                                                                       |   | $ | (27.0 | ) | $ | (2.0 | ) |

----

| **CONSOLIDATED                  STATEMENT OF SHAREHOLDERS’ EQUITY****(UNAUDITED)**                                                      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                          |   |   |   |   |   |   |   | Unrealized |   | Foreign |   |   |   |   |   |
|                                                                                                                                          |   |   |   |   |   | Additional |   | Holding |   | Currency |   |   |   |   |   |
|                                                                                                                                          |   | Preferred |   | Common |   | Paid-In |   | Gain                  On |   | Translation |   | Retained |   |   |   |
| (Millions)                                                                                                                                    |   | Stock |   | Stock |   | Capital |   | Investments |   | Adjustment |   | Earnings |   | Total |   |
| Balance                  at December 31, 2004                                                                                                 |   | $ | 0.3 |   | $ | 302.3 |   | $ | 197.9 |   | $ | 153.9 |   | $ | 0.5 |   | $ | 6,473.8 |   | $ | 7,128.7 |   |
| Net                  income                                                                                                                   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,076.2 |   |   | 1,076.2 |   |
| Other                  comprehensive income, net of tax: (see Note 12)                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                  holding losses on investments, net of reclassification                       adjustments |   |   | - |   |   | - |   |   | - |   |   |                       (130.4 | ) |   | - |   |   | - |   |   | (130.4 | ) |
| Foreign                  currency translation adjustment                                                                                      |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 26.4 |   |   | - |   |   | 26.4 |   |
| Comprehensive                  income                                                                                                         |   |   | - |   |   | - |   |   | - |   |   | (130.4 | ) |   | 26.4 |   |   | 1,076.2 |   |   | 972.2 |   |
| Acquisitions                (See Note 2)                                                                                                      |   |   |   - |   |   | 54.3 |   |   | 3,690.5 |   |   | -  |   |   | -  |   |   | -  |   |   | 3,744.8 |   |
| Settle                  purchase obligation related to equity units (See Note 4)                                                              |   |   | - |   |   | 24.5 |   |   | 1,360.5 |   |   | - |   |   | - |   |   | - |   |   | 1,385.0 |   |
| Employee                  plans, net                                                                                                          |   |   | - |   |   | 1.6 |   |   | 57.0 |   |   | - |   |   | - |   |   | - |   |   | 58.6 |   |
| Restricted                  stock, net of unearned compensation                                                                               |   |   | - |   |   | 0.2 |   |   | 3.9 |   |   | - |   |   | - |   |   | - |   |   | 4.1 |   |
| Tax                  benefit for non-qualified stock options                                                                                  |   |   | - |   |   | - |   |   | 3.5 |   |   | - |   |   | - |   |   | - |   |   | 3.5 |   |
| Conversion                  of preferred stock                                                                                                |   |   | - |   |   | - |   |   | 0.1 |   |   | - |   |   | - |   |   | - |   |   | 0.1 |   |
| Dividends:                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  - $1.14 per share                                                                                                     |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (384.6 | ) |   | (384.6 | ) |
| Preferred                                                                                                                                     |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (0.1 | ) |   | (0.1 | ) |
| Balance                  at September 30, 2005                                                                                           |   | $ | 0.3 |   | $ | 382.9 |   | $ | 5,313.4 |   | $ | 23.5 |   | $ | 26.9 |   | $ | 7,165.3 |   | $ | 12,912.3 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**1.        **
**General:**

**2.        **
**Acquisitions:**

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

** _____**

**2.        **
**Acquisitions,      Continued:**

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

** _____**

**2.        **
**Acquisitions,      Continued:**

|                                                    |   |   |                            |   |   |     |   |   |                                |
|-----------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|----------|--------|--------|-------------------------------------|
|  (Millions)                                                            |   |   | Western                Wireless |   |   | Cingular |   |   | PS                Cellular andOther |   |   | Combined                Totals |   |
| Fair                value of assets acquired:                               |   |   |                            |   |   |     |   |   |                                |   |   |   |   |
| Current                assets                                               |   | $      | 200.5                           |   | $      | 1.1      |   | $      | 4.3                                 |   | $ | 205.9 |   |
| Investments                                                                 |   |   | 132.2                           |   |   | -        |   |   | -                                   |   |   | 132.2 |   |
| Property,                plant and equipment                                |   |   | 515.8                           |   |   | 38.0     |   |   | 10.2                                |   |   | 564.0 |   |
| Other                assets                                                 |   |   | 7.1                             |   |   | -        |   |   | -                                   |   |   | 7.1 |   |
| Assets                held for sale                                         |   |   | 2,799.9                         |   |   | -        |   |   | -                                   |   |   | 2,799.9 |   |
| Goodwill                                                                    |   |   | 3,638.7                         |   |   | 269.0    |   |   | 39.7                                |   |   | 3,947.4 |   |
| Cellular                licenses                                            |   |   | 315.0                           |   |   | 91.0     |   |   | 3.4                                 |   |   | 409.4 |   |
| Customer                lists                                               |   |   | 316.0                           |   |   | 10.9     |   |   | 1.9                                 |   |   | 328.8 |   |
| Total                assets acquired                                        |   |   | 7,925.2                         |   |   | 410.0    |   |   | 59.5                                |   |   | 8,394.7 |   |
| Fair                value of liabilities assumed:                           |   |   |                            |   |   |     |   |   |                                |   |   |   |   |
| Current                liabilities                                          |   |   | (166.9                          | )      |   | (5.5     | )      |   | (2.4                                | ) |   | (174.8 | ) |
| Current                deferred income taxes established on acquired assets |   |   | (490.5                          | )      |   | -        |   |   | -                                   |   |   | (490.5 | ) |
| Long-term                debt                                               |   |   | (2,112.9                        | )      |   | -        |   |   | -                                   |   |   | (2,112.9 | ) |
| Other                liabilities                                            |   |   | (42.9                           | )      |   | -        |   |   | -                                   |   |   | (42.9 | ) |
| Liabilities                related to assets held for sale                  |   |   | (448.2                          | )      |   | -        |   |   | -                                   |   |   | (448.2 | ) |
| Less                minority interest liability acquired                    |   |   | -                               |   |   | 14.4     |   |   | 6.7                                 |   |   | 21.1 |   |
| Total                liabilities acquired (assumed)                         |   |   | (3,261.4                        | )      |   | 8.9      |   |   | 4.3                                 |   |   | (3,248.2 | ) |
| Common                stock issued                                          |   |   | (3,744.8                        | )      |   | -        |   |   | -                                   |   |   | (3,744.8 | ) |
| Fair                value of assets exchanged                               |   |   | -                               |   |   | (265.9   | )      |   | -                                   |   |   | (265.9 | ) |
| Cash                paid, net of cash acquired                              |   | $      | 919.0                           |   | $      | 153.0    |   | $      | 63.8                                |   | $ | 1,135.8 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

** _____**

| **2.** | **Acquisitions,                Continued:** |
|--------|---------------------------------------------|

|                                                                   |   |                              |    |                             |   |
|------------------------------------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                                                   |   | Three                Months Ended |    | Nine                Months Ended |   |
| (Millions,                except per share amounts)                    |   |  2005                        |    |  2004                       |   |  2005 |   |  2004 |   |
| Revenues                and sales                                      |   | $                                 | 2,612.5 |                             | $      | 2,352.8 |   | $ | 7,501.3 |   | $ | 6,816.0 |   |
| Income                from continuing operations                       |   | $                                 | 343.8   |                             | $      | 309.5 |   | $ | 1,079.9 |   | $ | 797.8 |   |
| Combined                earnings per share from continuing operations: |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                                |   |                              | $.90    |                             |   | $.80 |   |   | $2.83 |   |   | $2.06 |   |
| Diluted                earning per share                               |   |                              | $.89    |                             |   | $.79 |   |   | $2.79 |   |   | $2.02 |   |
| Net                income                                              |   | $                                 | 369.8   |                             | $      | 329.0 |   | $ | 1,105.9 |   | $ | 817.3 |   |
| Combined                earnings per share:                            |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                                |   |                              | $.97    |                             |   | $.85 |   |   | $2.90 |   |   | $2.11 |   |
| Diluted                earning per share                               |   |                              | $.96    |                             |   | $.84 |   |   | $2.85 |   |   | $2.07 |   |

**3.**
**Goodwill      and Other Intangible Assets:**

|                                         |   |   |     |   |   |     |   |   |                                |
|----------------------------------------------|--------|--------|----------|--------|--------|----------|--------|--------|-------------------------------------|
|                                         |   |   |     |   |   |     |   |   | Communications                 |   |   |   |   |
|                                              |   |   |     |   |   |     |   |   |                   Support |   |   |   |   |
| (Millions)                                   |   |   | Wireless |   |   | Wireline |   |   | Services                            |   |   | Total |   |
| Balance                at December 31, 2004  |   | $      | 3,625.8  |   | $      | 1,247.6  |   | $      | 2.3                                 |   | $ | 4,875.7 |   |
| Acquired                during the period    |   |   | 3,947.4  |   |   | -        |   |   | -                                   |   |   | 3,947.4 |   |
| Other                adjustments             |   |   | 4.8      |   |   | -        |   |   | -                                   |   |   | 4.8 |   |
| Balance                at September 30, 2005 |   | $      | 7,578.0  |   | $      | 1,247.6  |   | $      | 2.3                                 |   | $ | 8,827.9 |   |

|                                                     |   |                                                 |                                                                                                                                                                 |                                                                        |   |
|----------------------------------------------------------|--------|------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------|
|                                                     |   |     September                30, |                                                                                                                                                                 |         December                31, |   |
| (Millions)                                               |   |                                                 |                                         2005 |                                                                        |   |                                         2004 |   |
| Cellular                licenses                         |   | $                                                    | 1,185.0                                                                                                                                                              |                                                                        | $      | 775.6 |   |
| Personal                Communications Services licenses |   |                                                 | 79.1                                                                                                                                                                 |                                                                        |   | 79.1 |   |
| Franchise                rights - wireline               |   |                                                 | 265.0                                                                                                                                                                |                                                                        |   | 265.0 |   |
|                                                     |   | $                                                    | 1,529.1                                                                                                                                                              |                                                                        | $      | 1,119.7 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**_____**

**3.**
**Goodwill      and Other Intangible Assets, Continued:**

|                            |   |                                    |   |
|---------------------------------|--------|-----------------------------------------|--------|
|                            |   |  September                30, 2005 |   |
|                            |   |                                    | Gross  |   |   | Accumulated |   |   | Net                Carrying |   |
| (Millions)                      |   |                                    | Cost   |   |   | Amortization |   |   | Value |   |
| Customer                lists   |   | $                                       | 726.4  |   | $ | (284.7 | ) | $ | 441.7 |   |
| Franchise                rights |   |                                    | 22.5   |   |   | (16.0 | ) |   | 6.5 |   |
|                            |   | $                                       | 748.9  |   | $ | (300.7 | ) | $ | 448.2 |   |

|                            |   |                             |   |
|---------------------------------|--------|----------------------------------|--------|
|                            |   | December                31, 2004 |   |
|                                 |   |                             | Gross  |   |   | Accumulated |   |   | Net                Carrying |   |
| (Millions)                      |   |                             | Cost   |   |   | Amortization |   |   | Value |   |
| Customer                lists   |   | $                                | 397.6  |   | $ | (218.8 | ) | $ | 178.8 |   |
| Franchise                rights |   |                             | 22.5   |   |   | (14.9 | ) |   | 7.6 |   |
|                            |   | $                                | 420.1  |   | $ | (233.7 | ) | $ | 186.4 |   |

**4.             **
**Equity      Units:**

**5.**
**Stock-Based      Compensation:**

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

| **5.  ** | **                      Stock-Based Compensation,                Continued:** |
|--------------------|-------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                        |   |                           |                                    |    |       |                                   |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------------------------------------|---------|------------|----------------------------------------|---------|
|                                                                                                                                                                        |   |                           | Three                Months Ended  |    |       | Nine                Months Ended  |    |
| (Millions,              except per share amounts)                                                                                                                           |   |                           |  2005                         |    |       |  2004                        |    |   | 2005  |   |   | 2004  |   |
| Net              income as reported                                                                                                                                         |   |  $                        | 361.1                                   |    |  $    | 323.2                                  |         |  $ | 1,076.2 |   |  $ | 775.6 |   |
| Add                stock-based compensation expense included in net                income, net of related tax effects                                                       |   |                           | 1.1                                     |    |       | 0.5                                    |    |   | 3.1 |   |   | 1.4 |   |
| Deduct                stock-based employee compensation expense determined under fair value                method                for all awards, net of related tax effects |   |                           | (5.5                                    | )       |       | (7.0                                   | )       |   | (18.5 | ) |   | (19.9 | ) |
| Pro              forma net income                                                                                                                                           |   |                           |                                    |  $ | 356.7      |                                   |  $ | 316.7 |   |  $ | 1,060.8 |   |  $ | 757.1 |   |
| Basic              earnings per share:                                                                                                                  |        | As              reported       |                |    | $.99       |                                   |    | $1.05 |   |   | $3.29 |   |   | $2.51 |   |
|                                                                                                                                                                        |   | Pro              forma         |                                    |    |  $.98 |                                   |    | $1.03 |   |   | $3.25 |   |   | $2.45 |   |
| Diluted              earnings per share:                                                                                                                                    |   | As              reported  |                                    |    | $.98       |                                   |    | $1.05 |   |   | $3.27 |   |   | $2.50 |   |
|                                                                                                                                                                        |   | Pro              forma         |                                    |    | $.97       |                                   |    | $1.03 |   |   | $3.22 |   |   | $2.44 |   |

**6.              **
**Employee      Benefit Plans and Postretirement Benefits Other Than      Pensions:**

|                                               |   |                              |   |                             |   |
|----------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                               |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                         |   |  2005                        |   |  2004                       |   |  2005 |   |  2004 |   |
| Benefits                earned during the year     |   | $                                 | 8.7    |                             | $      | 7.7 |   | $ | 25.4 |   | $ | 23.1 |   |
| Interest                cost on benefit obligation |   |                              | 14.7   |                             |   | 13.0 |   |   | 43.9 |   |   | 38.9 |   |
| Amortization                of prior service cost  |   |                              | 0.1    |                             |   | - |   |   | 0.4 |   |   | 0.2 |   |
| Recognized                net actuarial loss       |   |                              | 7.7    |                             |   | 5.0 |   |   | 23.0 |   |   | 14.8 |   |
| Expected                return on plan assets      |   |                              | (20.8  | )                                |   | (17.6 | ) |   | (62.2 | ) |   | (52.8 | ) |
| Net                periodic benefit expense        |   | $                                 | 10.4   |                             | $      | 8.1 |   | $ | 30.5 |   | $ | 24.2 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**6.**
**Employee      Benefit Plans and Postretirement Benefits Other Than Pensions,      Continued:**

|                                                 |   |                              |   |                             |   |
|------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                 |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                           |   |  2005                        |   |  2004                       |   |  2005 |   |  2004 |   |
| Benefits                earned during the year       |   | $                                 | 0.1    |                             | $      | 0.1 |   | $ | 0.3 |   | $ | 0.5 |   |
| Interest                cost on benefit obligation   |   |                              | 3.5    |                             |   | 3.9 |   |   | 10.5 |   |   | 11.8 |   |
| Amortization                of transition obligation |   |                              | 0.2    |                             |   | 0.2 |   |   | 0.6 |   |   | 0.6 |   |
| Amortization                of prior service cost    |   |                              | 0.5    |                             |   | 0.4 |   |   | 1.5 |   |   | 1.2 |   |
| Recognized                net actuarial loss         |   |                              | 1.7    |                             |   | 2.3 |   |   | 5.1 |   |   | 6.7 |   |
| Expected                return on plan assets        |   |                              | -      |                             |   | - |   |   | - |   |   | - |   |
| Net                periodic benefit expense          |   | $                                 | 6.0    |                             | $      | 6.9 |   | $ | 18.0 |   | $ | 20.8 |   |

**7.              **
**Restructuring      and Other Charges:**

|                                                                     |   |
|--------------------------------------------------------------------------|--------|
| (Millions)                                                               |   |   | Wireless |   |   | Wireline |   |   | Total |   |
| Severance                and employee benefit costs                      |   | $ | - |   | $ | 4.6 |   | $ | 4.6 |   |
| Relocation                costs                                          |   |   | 0.3 |   |   | - |   |   | 0.3 |   |
| Computer                system conversion and other integration expenses |   |   | 14.0 |   |   | - |   |   | 14.0 |   |
| Total                restructuring and other charges                     |   | $ | 14.3 |   | $ | 4.6 |   | $ | 18.9 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**7.              **
**Restructuring      and Other Charges, Continued:**

|   | A                summary of the restructuring and other charges recorded during the                nine                months ended September 30, 2004 was as                follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                          Communications |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |                   Support |   |                  Corporate |   |   |   |
| (Millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | Wireless |   |   | Wireline |   |   | Services |   |   | Operations |   |   | Total |   |
| Severance                and employee benefit costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $ | 8.8 |   | $ | 11.2 |   | $ | 0.5 |   | $ | 2.1 |   | $ | 22.6 |   |
| Relocation                costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 3.2 |   |   | 1.4 |   |   | 0.1 |   |   | 0.1 |   |   | 4.8 |   |
| Lease                and contract termination costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 0.5 |   |   | (1.9 | ) |   | - |   |   | (0.1 | ) |   | (1.5 | ) |
| Write-down                in carrying value of certain facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 0.7 |   |   | - |   |   | - |   |   | 24.1 |   |   | 24.8 |   |
| Other                exit costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 0.4 |   |   | 0.7 |   |   | - |   |   | - |   |   | 1.1 |   |
| Total                restructuring and other charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 13.6 |   | $ | 11.4 |   | $ | 0.6 |   | $ | 26.2 |   | $ | 51.8 |   |

|                                                                          |   |
|-------------------------------------------------------------------------------|--------|
| (Millions)                                                                    |   |   |   |   |
| Balance,                beginning of period                                   |   | $ | 0.7 |   |
| Accrued                severance and employee benefit costs during the period |   |   | 4.6 |   |
| Reversal                of accrued liabilities                                |   |   | (0.3 | ) |
| Cash                outlays during the period                                 |   |   | (1.3 | ) |
| Balance,                end of period                                         |   | $ | 3.7 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**8.**
**Investments      - Special Cash Dividend:**

**9.**
**Gain      on Exchange or Disposal of Assets and Other:**

**10.            **
**Discontinued      Operations:**

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**10.      **
**Discontinued      Operations, Continued:**

|                                                      |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|
| (Millions)                                                |   |   |   |   |
| Revenues                and sales                         |   | $      | 194.1  |   |
| Operating                expenses                         |   |   | 132.6  |   |
| Operating                income                           |   |   | 61.5   |   |
| Other                expense, net                         |   |   | (2.2   | )      |
| Pretax                income from discontinued operations |   |   | 59.3   |   |
| Income                tax expense                         |   |   | 33.3   |   |
| Income                from discontinued operations        |   | $      | 26.0   |   |

|                                                         |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|
| (Millions)                                                   |   |   |   |   |
| Net                cash provided by operating activities     |   | $      | 100.2  |   |
| Net                cash provided by investing activities (a) |   |   | 21.9   |   |
| Net                cash used in financing activities (b)     |   |   | (85.9  | ) |
| Net                cash provided by discontinued operations  |   | $      | 36.2   |   |

| (a) | Includes                proceeds of $50.6 million from the sale of the international operations                in                Georgia and Ghana. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Includes                $67.1 million for the repayment of the Slovenian credit                facility.                                            |

|                                                       |   |    |        |
|------------------------------------------------------------|--------|--------------|-------------|
| (Millions)                                                 |   |         |        |   |
| Current                assets                              |   | $            |  228.1 |   |
| Property,                plant and equipment               |   |         | 535.3       |   |
| Goodwill                and other intangible assets (a)    |   |         | 1,934.8     |   |
| Other                assets                                |   |         | 41.4        |   |
| Assets                held for sale                        |   | $            | 2,739.6     |   |
| Current                liabilities                         |   |         | (283.5      | )  |
| Long-term                debt                              |   |         | (49.2       | )  |
| Other                liabilities                           |   |         | (65.3       | )  |
| Liabilities                related to assets held for sale |   | $       | (398.0      | )  |

| (a) | Includes                the fair value of licenses and customer lists. Because substantially                all                of the assets classified as held for sale will be disposed of                by March 31, 2006, the Company will not complete third party                valuations to assign specific fair values to the identifiable intangible                assets of                the international operations and the domestic markets to be                divested. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**11.           **
**Commitments      and Contingencies:**

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**11.           **
**Commitments      and Contingencies, Continued:**

**12.           **
**Comprehensive      Income:**

|                                                                   |   |                              |   |                             |   |
|------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                   |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                                             |   |  2005                        |   |  2004                       |   |  2005 |   |  2004 |   |
| Net                income                                              |   | $                                 | 361.1  |                             | $      | 323.2 |   | $ | 1,076.2 |   | $ | 775.6 |   |
| Other                comprehensive income (loss):                      |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains (losses) on investments:       |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains (losses) arising in the period |   |                              | 36.2   |                             |   | 8.5 |   |   | (124.8 | ) |   | 32.2 |   |
| Income                tax expense (benefit)                            |   |                              | 12.7   |                             |   | 3.0 |   |   | (43.7 | ) |   | 6.5 |   |
|                                                                   |   |                              | 23.5   |                             |   | 5.5 |   |   | (81.1 | ) |   | 25.7 |   |
|                                                                   |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Reclassification                adjustments for gains included in      |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| net                income for the period                               |   |                              | -      |                             |   | - |   |   | (75.8 | ) |   | - |   |
| Income                tax expense                                      |   |                              | -      |                             |   | - |   |   | 26.5 |   |   | - |   |
|                                                                   |   |                              | -      |                             |   | - |   |   | (49.3 | ) |   | - |   |
|                                                                   |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Net                unrealized gains (losses) in the period             |   |                              | 36.2   |                             |   | 8.5 |   |   | (200.6 | ) |   | 32.2 |   |
| Income                tax expense (benefit)                            |   |                              | 12.7   |                             |   | 3.0 |   |   | (70.2 | ) |   | 6.5 |   |
|                                                                   |   |                              | 23.5   |                             |   | 5.5 |   |   | (130.4 | ) |   | 25.7 |   |
|                                                                   |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment                 |   |                              | 26.4   |                             |   | - |   |   | 26.4 |   |   | (0.1 | ) |
|                                                                   |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss) before tax            |   |                              | 62.6   |                             |   | 8.5 |   |   | (174.2 | ) |   | 32.1 |   |
| Income                tax expense (benefit)                            |   |                              | 12.7   |                             |   | 3.0 |   |   | (70.2 | ) |   | 6.5 |   |
| Other                comprehensive income (loss)                       |   |                              | 49.9   |                             |   | 5.5 |   |   | (104.0 | ) |   | 25.6 |   |
| Comprehensive                income                                    |   | $                                 | 411.0  |                             | $      | 328.7 |   | $ | 972.2 |   | $ | 801.2 |   |

**13.      **
**Earnings      per Share:**

|                                                                     |   |                              |   |                             |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                     |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions,                except per share amounts)                      |   |                              | 2005   |                             |   | 2004 |   |   | 2005 |   |   | 2004 |   |
| **Basic                earnings per share:**                             |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                         |   | $                                 | 335.1  |                             | $      | 303.7 |   | $ | 1,050.2 |   | $ | 756.1 |   |
| Income                from discontinued operations                       |   |                              | 26.0   |                             |   | 19.5 |   |   | 26.0 |   |   | 19.5 |   |
| Less                preferred dividends                                  |   |                              | -      |                             |   | - |   |   | (0.1 | ) |   | (0.1 | ) |
| Net                income applicable to common shares                    |   | $                                 | 361.1  |                             | $      | 323.2 |   | $ | 1,076.1 |   | $ | 775.5 |   |
| Weighted                average common shares outstanding for the period |   |                              | 363.6  |                             |   | 306.8 |   |   | 326.7 |   |   | 308.8 |   |
| Basic                earnings per share:                                 |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| From                continuing operations                                |   |                              | $.92   |                             |   | $                 .99 |   |   | $3.21 |   |   | $2.45 |   |
| From                discontinued operations                              |   |                              | .07    |                             |   | .06 |   |   | .08 |   |   | .06 |   |
| Net                income                                                |   |                              | $.99   |                             |   | $1.05 |   |   | $3.29 |   |   | $2.51 |   |
|                                                                     |   |                              |   |                             |   |   |   |   |   |   |   |   |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**13.     **
**Earnings      per Share, Continued:**

|                                                                                                                                                                              |   |                              |   |                             |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                                                                                                                              |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions,                except per share amounts)                                                                                                                               |   | 2005                              |   | 2004                             |   | 2005 |   | 2004 |   |
| **Diluted                earnings per share:**                                                                                                                                    |   |                              |   |                             |   |   |   |   |   |
| Net                income applicable to common shares                                                                                                                             |   | $                                 | 361.1  |                             | $      | 323.2 |   | $ | 1,076.1 |   | $ | 775.5 |   |
| Adjustment                for interest expense on convertible notes, net of tax                                                                                                   |   |                              | 0.6    |                             |   | - |   |   | 0.6 |   |   | - |   |
| Adjustment                for convertible preferred stock dividends                                                                                                               |   |                              | -      |                             |   | - |   |   | 0.1 |   |   | 0.1 |   |
| Net                income applicable to common shares assuming conversion of         preferred                stock and convertible notes |   | $                                 | 361.7  |                             | $      | 323.2 |   | $ | 1,076.8 |   | $ | 775.6 |   |
| Weighted                average common shares outstanding for the period                                                                                                          |   |                              | 363.6  |                             |   | 306.8 |   |   | 326.7 |   |   | 308.8 |   |
| Increase                in shares resulting from:                                                                                                                                 |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Assumed                exercise of stock options                                                                                                                                  |   |                              | 1.8    |                             |   | 0.7 |   |   | 1.3 |   |   | 0.7 |   |
| Assumed                conversion of convertible notes                                                                                                                            |   |                              | 2.0    |                             |   | - |   |   | 0.8 |   |   | - |   |
| Assumed                conversion of preferred stock                                                                                                                              |   |                              | 0.3    |                             |   | 0.3 |   |   | 0.3 |   |   | 0.3 |   |
| Non-vested                restricted stock awards                                                                                                                                 |   |                              | 0.1    |                             |   | - |   |   | 0.1 |   |   | - |   |
| Weighted                average common shares assuming conversion                                                                                                                 |   |                              | 367.8  |                             |   | 307.8 |   |   | 329.2 |   |   | 309.8 |   |
| Diluted                earnings per share                                                                                                                                         |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| From                continuing operations                                                                                                                                         |   |                              | $.91   |                             |   | $.99 |   |   | $3.19 |   |   | $2.44 |   |
| From                discontinued operations                                                                                                                                       |   |                              | .07    |                             |   | .06 |   |   | .08 |   |   | .06 |   |
| Net                income                                                                                                                                                         |   |                              | $.98   |                             |   | $1.05 |   |   | $3.27 |   |   | $2.50 |   |

**14.      **
**Business      Segment Information:**

|                                                                   |   |                              |    |                             |   |
|------------------------------------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                                                   |   | Three                Months Ended |    | Nine                Months Ended |   |
| (Millions)                                                             |   | 2005                              |    | 2004                             |   | 2005 |   | 2004 |   |
| **Revenues                and Sales from External Customers:**         |   |                              |    |                             |   |   |   |   |   |
| Wireless                                                               |   | $                                 | 1,706.9 |                             | $      | 1,313.7 |   | $ | 4,511.1 |   | $ | 3,751.3 |   |
| Wireline                                                               |   |                              | 552.7   |                             |   | 562.6 |   |   | 1,664.6 |   |   | 1,688.7 |   |
| Communications                support services                         |   |                              | 203.0   |                             |   | 170.9 |   |   | 578.1 |   |   | 508.7 |   |
|                     Total business segments        |   | $                                 | 2,462.6 |                             | $      | 2,047.2 |   | $ | 6,753.8 |   | $ | 5,948.7 |   |
|                                                                   |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| **Intersegment                Revenues and Sales:**                    |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| Wireless                                                               |   | $                                 | 1.5     |                             | $      | - |   | $ | 4.6 |   | $ | - |   |
| Wireline                                                               |   |                              | 39.6    |                             |   | 40.3 |   |   | 116.4 |   |   | 123.3 |   |
| Communications                support services                         |   |                              | 60.2    |                             |   | 56.3 |   |   | 171.0 |   |   | 166.7 |   |
|                     Total business segments        |   | $                                 | 101.3   |                             | $      | 96.6 |   | $ | 292.0 |   | $ | 290.0 |   |
|                                                                   |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| **Total                Revenues and Sales:**                           |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| Wireless                                                               |   | $                                 | 1,708.4 |                             | $      | 1,313.7 |   | $ | 4,515.7 |   | $ | 3,751.3 |   |
| Wireline                                                               |   |                              | 592.3   |                             |   | 602.9 |   |   | 1,781.0 |   |   | 1,812.0 |   |
| Communications                support services                         |   |                              | 263.2   |                             |   | 227.2 |   |   | 749.1 |   |   | 675.4 |   |
|                     Total business segments        |   |                              | 2,563.9 |                             |   | 2,143.8 |   |   | 7,045.8 |   |   | 6,238.7 |   |
|                     Less intercompany eliminations |   |                              | (44.8   | )                                |   | (40.7 | ) |   | (140.6 | ) |   | (132.3 | ) |
| Total                revenues and sales                                |   | $                                 | 2,519.1 |                             | $      | 2,103.1 |   | $ | 6,905.2 |   | $ | 6,106.4 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL      STATEMENTS-(Continued)**

**14.            **
**Business      Segment Information, Continued:**

|                                                                                         |   |                              |   |                             |   |
|----------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                                         |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                                                                   |   | 2005                              |   | 2004                             |   | 2005 |   | 2004 |   |
| **Segment                Income:**                                                           |   |                              |   |                             |   |   |   |   |   |
| Wireless                                                                                     |   | $                                 | 376.0  |                             | $      | 287.6 |   | $ | 954.5 |   | $ | 760.1 |   |
| Wireline                                                                                     |   |                              | 218.4  |                             |   | 227.7 |   |   | 648.2 |   |   | 690.3 |   |
| Communications                support services                                               |   |                              | 20.3   |                             |   | 11.5 |   |   | 43.8 |   |   | 48.8 |   |
|                     Total segment income                                 |   |                              | 614.7  |                             |   | 526.8 |   |   | 1,646.5 |   |   | 1,499.2 |   |
| Corporate                expenses                                                            |   |                              | (18.9  | )                                |   | (9.0 | ) |   | (59.2 | ) |   | (27.0 | ) |
| Restructuring                and other charges                                               |   |                              | (18.9  | )                                |   | - |   |   | (18.9 | ) |   | (51.8 | ) |
| Equity                earnings in unconsolidated partnerships                                |   |                              | 10.5   |                             |   | 24.3 |   |   | 36.4 |   |   | 53.5 |   |
| Minority                interest in consolidated partnerships                                |   |                              | (20.6  | )                                |   | (23.7 | ) |   | (57.8 | ) |   | (60.9 | ) |
| Other                income, net                                                             |   |                              | 27.3   |                             |   | 15.7 |   |   | 156.0 |   |   | 23.2 |   |
| Interest                expense                                                              |   |                              | (83.4  | )                                |   | (86.7 | ) |   | (246.4 | ) |   | (265.0 | ) |
| Gain                on exchange or disposal of assets and other                              |   |                              | 30.5   |                             |   | - |   |   | 218.8 |   |   | - |   |
|     Income                from continuing operations before income taxes |   | $                                 | 541.2  |                             | $      | 447.4 |   | $ | 1,675.4 |   | $ | 1,171.2 |   |

|                                                                   |   |                                                                                                                                                     |     |                                                                                                                                                 |   |
|------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                   |   |                        September 30,                                                                                  |     |           December                31,                                                              |   |
| (Millions)                                                             |   |                                       2005 |     |                         2004 |   |
| Wireless                                                               |   | $                                                                                                                                                        | 15,469.1 |                                                                                                                                                 | $      | 9,881.5 |   |
| Wireline                                                               |   |                                                                                                                                                     | 4,887.6  |                                                                                                                                                 |   | 5,042.8 |   |
| Communications                support services                         |   |                                                                                                                                                     | 486.7    |                                                                                                                                                 |   | 495.8 |   |
| Total                business segments                                 |   |                                                                                                                                                     | 20,843.4 |                                                                                                                                                 |   | 15,420.1 |   |
| Corporate                headquarters assets not allocated to segments |   |                                                                                                                                                     | 235.4    |                                                                                                                                                 |   | 1,201.2 |   |
| Assets                held for sale                                    |   |                                                                                                                                                     | 2,739.6  |                                                                                                                                                 |   | - |   |
| Less                elimination of intersegment receivables            |   |                                                                                                                                                     | (21.7    | )                                                                                                                                                    |   | (17.6 | ) |
| Total                consolidated assets                               |   | $                                                                                                                                                        | 23,796.7 |                                                                                                                                                 | $      | 16,603.7 |   |

|                                                           |   |                              |   |                             |   |
|----------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                           |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                                     |   | 2005                              |   | 2004                             |   | 2005 |   | 2004 |   |
| **Revenues                and Sales from External Customers:** |   |                              |   |                             |   |   |   |   |   |
| Product                distribution                            |   | $                                 | 112.9  |                             | $      | 80.4 |   | $ | 309.9 |   | $ | 221.9 |   |
| Long-distance                and network management services   |   |                              | 53.6   |                             |   | 49.7 |   |   | 149.4 |   |   | 144.7 |   |
| Directory                publishing                            |   |                              | 32.4   |                             |   | 31.1 |   |   | 106.0 |   |   | 106.0 |   |
| Telecommunications                information services         |   |                              | 4.1    |                             |   | 9.7 |   |   | 12.8 |   |   | 36.1 |   |
|                    Total                        |   | $                                 | 203.0  |                             | $      | 170.9 |   | $ | 578.1 |   | $ | 508.7 |   |
|                                                           |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| **Intersegment                Revenues and Sales:**            |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Product                distribution                            |   | $                                 | 33.2   |                             | $      | 28.8 |   | $ | 92.9 |   | $ | 82.3 |   |
| Long-distance                and network management services   |   |                              | 27.0   |                             |   | 27.5 |   |   | 78.1 |   |   | 84.4 |   |
| Directory                publishing                            |   |                              | -      |                             |   | - |   |   | - |   |   | - |   |
| Telecommunications                information services         |   |                              | -      |                             |   | - |   |   | - |   |   | - |   |
|                    Total                        |   | $                                 | 60.2   |                             | $      | 56.3 |   | $ | 171.0 |   | $ | 166.7 |   |
|                                                           |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| **Total                Revenues and Sales:**                   |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Product                distribution                            |   | $                                 | 146.1  |                             | $      | 109.2 |   | $ | 402.8 |   | $ | 304.2 |   |
| Long-distance                and network management services   |   |                              | 80.6   |                             |   | 77.2 |   |   | 227.5 |   |   | 229.1 |   |
| Directory                publishing                            |   |                              | 32.4   |                             |   | 31.1 |   |   | 106.0 |   |   | 106.0 |   |
| Telecommunications                information services         |   |                              | 4.1    |                             |   | 9.7 |   |   | 12.8 |   |   | 36.1 |   |
|                    Total revenues and sales     |   | $                                 | 263.2  |                             | $      | 227.2 |   | $ | 749.1 |   | $ | 675.4 |   |

----

**ALLTEL      CORPORATION**

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

**Item      2****.****Management’s      Discussion and Analysis of Financial Condition and Results of      Operations**

**GENERAL**

**EXECUTIVE      SUMMARY**

| ·   | Wireless                revenues and sales increased 30 percent over 2004 reflecting the                effects                of Alltel’s August 1, 2005 acquisition of Western Wireless Corporation                (“Western Wireless”) and the exchange of wireless properties with Cingular                Wireless LLC (“Cingular”) completed during the second quarter of 2005.                Excluding the effects of acquisitions, wireless revenues and sales                increased 11 percent from a year ago driven by Alltel’s continued focus on                quality customer growth, improvements in data revenues, additional                Eligible Telecommunications Carrier (“ETC”) subsidies, and growth in                wholesale minutes. Average revenue per customer increased 9 percent                from a                year ago to $53.78, while retail revenue per customer increased to                $48.08,                a 6 percent increase from a year ago. Excluding the acquired markets,                both                average revenue per customer and retail revenue per customer increased                5                percent from the same period a year ago, reflecting Alltel’s continued                focus on quality customer growth, improvements in data revenues and                additional ETC subsidies. Retail minutes of use per wireless customer                per                month increased to 614 minutes, a 19 percent increase from the same                period                of 2004. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Wireless                gross customer additions were 730,000 in the quarter, and net customer                additions were 21,000. Within its non-acquired or heritage markets,                gross                customer additions increased 9 percent from the second quarter of                2005 and                were flat when compared to the same period a year ago. In its heritage                markets, Alltel added 77,000 net postpay wireless customers and lost                17,000 net prepaid customers during the third quarter of 2005. In                the                acquired markets excluding Western Wireless, Alltel incurred approximate                net losses of 67,000 customers, primarily driven by the conversion                from                GSM to CDMA technology in those markets. In the former Western Wireless                markets, net customer additions for the quarter were 28,000, which                includes the addition of 25,000 customers resulting from conforming                these                markets to Alltel’s disconnect policies. Wireless postpay churn was 1.92                percent and total churn, which includes prepay customer losses, was                2.37                percent. Comparatively, in Alltel’s heritage markets, postpay churn                declined 7 basis points year-over-year to 1.73                percent. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Wireless                segment income increased 31 percent from a year ago, primarily reflecting                the acquisition-related growth in revenues and sales noted above.                Excluding the effects of acquisitions, wireless segment income increased                9                percent from the same period a year ago driven by revenue growth                and solid                expense management. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                its wireline business, Alltel added 41,000 broadband customers, increasing                Alltel’s broadband customer base to 360,000. During the quarter, the                Company lost approximately 33,000 wireline access lines, a year-over-year                decline of 4 percent. Average revenue per wireline customer increased                2                percent from a year ago to $67.21 due primarily to growth in broadband                revenues and selling additional services and features to existing                wireline                customers. Wireline segment income decreased 4 percent from a year                ago,                reflecting a 2 percent decline in wireline revenues and sales attributable                to the loss of access lines and additional costs related to the growth                in                broadband customers. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ACQUISITIONS**

----

| **CONSOLIDATED                RESULTS OF OPERATIONS**                |   |
|----------------------------------------------------------------------|--------|
|                                                                 |   | Three                Months Ended |   | Nine                Months Ended |   |
|                                                                 |   | September                30, |   | September                30, |   |
| (Millions,                except per share amounts)                  |   | 2005 |   | 2004 |   | 2005 |   | 2004 |   |
| Revenues                and sales:                                   |   |   |   |   |   |   |   |   |   |
| Service                revenues                                      |   | $ | 2,229.4 |   | $ | 1,885.4 |   | $ | 6,116.9 |   | $ | 5,476.9 |   |
| Product                sales                                         |   |   | 289.7 |   |   | 217.7 |   |   | 788.3 |   |   | 629.5 |   |
| Total                revenues and sales                              |   |   | 2,519.1 |   |   | 2,103.1 |   |   | 6,905.2 |   |   | 6,106.4 |   |
| Costs                and expenses:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of services                                      |   |   | 719.7 |   |   | 624.4 |   |   | 2,006.9 |   |   | 1,769.4 |   |
| Cost                of products sold                                 |   |   | 343.7 |   |   | 262.6 |   |   | 933.6 |   |   | 775.9 |   |
| Selling,                general, administrative and other            |   |   | 470.9 |   |   | 373.6 |   |   | 1,298.9 |   |   | 1,121.7 |   |
| Depreciation                and amortization                         |   |   | 389.0 |   |   | 324.7 |   |   | 1,078.5 |   |   | 967.2 |   |
| Restructuring                and other charges                       |   |   | 18.9 |   |   | - |   |   | 18.9 |   |   | 51.8 |   |
| Total                costs and expenses                              |   |   | 1,942.2 |   |   | 1,585.3 |   |   | 5,336.8 |   |   | 4,686.0 |   |
| Operating                income                                      |   |   | 576.9 |   |   | 517.8 |   |   | 1,568.4 |   |   | 1,420.4 |   |
| Non-operating                income, net                             |   |   | 17.2 |   |   | 16.3 |   |   | 134.6 |   |   | 15.8 |   |
| Interest                expense                                      |   |   | (83.4 | ) |   | (86.7 | ) |   | (246.4 | ) |   | (265.0 | ) |
| Gain                on exchange or disposal of assets and other      |   |   | 30.5 |   |   | - |   |   | 218.8 |   |   | - |   |
| Income                from continuing operations before income taxes |   |   | 541.2 |   |   | 447.4 |   |   | 1,675.4 |   |   | 1,171.2 |   |
| Income                taxes                                          |   |   | 206.1 |   |   | 143.7 |   |   | 625.2 |   |   | 415.1 |   |
| Income                from continuing operations                     |   |   | 335.1 |   |   | 303.7 |   |   | 1,050.2 |   |   | 756.1 |   |
| Income                from discontinued operations, net of tax       |   |   | 26.0 |   |   | 19.5 |   |   | 26.0 |   |   | 19.5 |   |
| Net                income                                            |   | $ | 361.1 |   | $ | 323.2 |   | $ | 1,076.2 |   | $ | 775.6 |   |
| Basic                earnings per share:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                     |   |   | $.92 |   |   | $                 .99 |   |   | $3.21 |   |   | $2.45 |   |
| Income                from discontinued operations                   |   |   | .07 |   |   | .06 |   |   | .08 |   |   | .06 |   |
| Net                income                                            |   |   | $.99 |   |   | $1.05 |   |   | $3.29 |   |   | $2.51 |   |
| Diluted                earnings per share:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                     |   |   | $.91 |   |   | $                 .99 |   |   | $3.19 |   |   | $2.44 |   |
| Income                from discontinued operations                   |   |   | .07 |   |   | .06 |   |   | .08 |   |   | .06 |   |
| Net                income                                            |   |   | $.98 |   |   | $1.05 |   |   | $3.27 |   |   | $2.50 |   |

----

----

----

|                                                                     |   |   |     |   |   |     |   |   |   |   |
|--------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|--------|--------|--------|
| (Millions)                                                               |   |   | Wireless |   |   | Wireline |   |   | Total  |   |
| Severance                and employee benefit costs                      |   | $      | -        |   | $      | 4.6      |   | $      | 4.6    |   |
| Relocation                costs                                          |   |   | 0.3      |   |   | -        |   |   | 0.3    |   |
| Computer                system conversion and other integration expenses |   |   | 14.0     |   |   | -        |   |   | 14.0   |   |
| Total                restructuring and other charges                     |   | $      | 14.3     |   | $      | 4.6      |   | $      | 18.9   |   |

|                                                              |   |   |   |
|-------------------------------------------------------------------|--------|--------|--------|
| (Millions)                                                        |   | 2004   |   |
| Severance                and employee benefit costs               |   | $      | 22.6   |   |
| Relocation                costs                                   |   |   | 4.8    |   |
| Lease                and contract termination costs               |   |   | (1.5   | ) |
| Write-down                in carrying value of certain facilities |   |   | 24.8   |   |
| Other                exit costs                                   |   |   | 1.1    |   |
| Total                restructuring and other charges              |   | $      | 51.8   |   |

----

| Non-Operating                Income, Net                      |   |                              |   |                              |   |    |   |    |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------------|--------|--------------|--------|--------------|--------|
|                                                          |   | Three                Months Ended |   |  Nine                Months Ended |   |
|                                                          |   | September                30,      |   |  September                30,     |   |
| (Millions)                                                    |   | 2005                              |   |  2004                             |   |  2005   |   |  2004   |   |
| Equity                earnings in unconsolidated partnerships |   | $                                 | 10.5   |                                   | $      | 24.3         |   | $            | 36.4   |   | $ | 53.5 |   |
| Minority                interest in consolidated partnerships |   |                              | (20.6  | )                                      |   | (23.7        | )      |         | (57.8  | ) |   | (60.9 | ) |
| Other                income, net                              |   |                              | 27.3   |                                   |   | 15.7         |   |         | 156.0  |   |   | 23.2 |   |
| Non-operating                income, net                      |   | $                                 | 17.2   |                                   | $      | 16.3         |   | $            | 134.6  |   | $ | 15.8 |   |

----

----

|                                                      |   |                              |   |                             |   |
|-----------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                      |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                                |   | 2005                              |   | 2004                             |   | 2005 |   | 2004 |   |
| Revenues                and sales                         |   | $                                 | 194.1  |                             | $      | - |   | $ | 194.1 |   | $ | - |   |
| Operating                expenses                         |   |                              | 132.6  |                             |   | - |   |   | 132.6 |   |   | - |   |
| Operating                income                           |   |                              | 61.5   |                             |   | - |   |   | 61.5 |   |   | - |   |
| Other                expense, net                         |   |                              | (2.2   | )                                |   | - |   |   | (2.2 | ) |   | - |   |
| Pretax                income from discontinued operations |   |                              | 59.3   |                             |   | - |   |   | 59.3 |   |   | - |   |
| Income                tax expense (benefit)               |   |                              | 33.3   |                             |   | (19.5 | ) |   | 33.3 |   |   | (19.5 | ) |
| Income                from discontinued operations        |   | $                                 | 26.0   |                             | $      | 19.5 |   | $ | 26.0 |   | $ | 19.5 |   |

----

**RESULTS      OF OPERATIONS BY BUSINESS SEGMENT**

| Communications-Wireless                Operations               |   |                              |     |                             |   |
|-----------------------------------------------------------------|--------|-----------------------------------|----------|----------------------------------|--------|
|                                                            |   | Three                Months Ended |     | Nine                Months Ended |   |
|                                                            |   | September                30,      |     | September                30,     |   |
| (Millions,                customers in thousands)               |   |  2005                        |     |  2004                       |   |  2005 |   |  2004 |   |
| Revenues                and sales:                              |   |                         |     |                        |   |    |   |    |   |
| Service                revenues                                 |   | $                                 | 1,606.5  |                             | $      | 1,239.4 |   | $ | 4,252.0 |   | $ | 3,538.5 |   |
| Product                sales                                    |   |                              | 101.9    |                             |   | 74.3 |   |   | 263.7 |   |   | 212.8 |   |
| Total                revenues and sales                         |   |                              | 1,708.4  |                             |   | 1,313.7 |   |   | 4,515.7 |   |   | 3,751.3 |   |
| Costs                and expenses:                              |   |                              |     |                             |   |   |   |   |   |   |   |   |   |
| Cost                of services                                 |   |                              | 514.9    |                             |   | 406.6 |   |   | 1,374.4 |   |   | 1,144.4 |   |
| Cost                of products sold                            |   |                              | 179.8    |                             |   | 139.3 |   |   | 478.9 |   |   | 418.9 |   |
| Selling,                general, administrative and other       |   |                              | 379.8    |                             |   | 294.0 |   |   | 1,034.0 |   |   | 882.8 |   |
| Depreciation                and amortization                    |   |                              | 257.9    |                             |   | 186.2 |   |   | 673.9 |   |   | 545.1 |   |
| Total                costs and expenses                         |   |                              | 1,332.4  |                             |   | 1,026.1 |   |   | 3,561.2 |   |   | 2,991.2 |   |
| Segment                income                                   |   | $                                 | 376.0    |                             | $      | 287.6 |   | $ | 954.5 |   | $ | 760.1 |   |
| Customers                                                       |   |                              | 10,424.7 |                             |   | 8,394.7 |   |   | - |   |   | - |   |
| Average                customers                                |   |                              | 9,956.7  |                             |   | 8,369.8 |   |   | 9,229.6 |   |   | 8,234.5 |   |
| Gross                customer additions (a)                     |   |                              | 2,065.9  |                             |   | 642.0 |   |   | 3,595.2 |   |   | 2,029.5 |   |
| Net                customer additions (a)                       |   |                              | 1,357.2  |                             |   | 58.3 |   |   | 1,798.2 |   |   | 371.3 |   |
| Market                penetration                               |   |                              | 13.8     | %                                |   | 13.7 | % |   | - |   |   | - |   |
| Postpay                customer churn                           |   |                              | 1.92     | %                                |   | 1.80 | % |   | 1.75 | % |   | 1.77 | % |
| Total                churn                                      |   |                              | 2.37     | %                                |   | 2.33 | % |   | 2.17 | % |   | 2.24 | % |
| Retail                minutes of use per customer per month (b) |   |                              | 614      |                             |   | 516 |   |   | 586 |   |   | 480 |   |
| Retail                revenue per customer per month (c)        |   |                              | $48.08   |                             |   | $45.24 |   |   | $46.69 |   |   | $44.00 |   |
| Average                revenue per customer per month (d)       |   |                              | $53.78   |                             |   | $49.36 |   |   | $51.19 |   |   | $47.75 |   |
| Cost                to acquire a new customer (e)               |   |                              | $348     |                             |   | $318 |   |   | $336 |   |   | $310 |   |

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

|                                   |   |                              |    |                             |   |
|----------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                   |   | Three                Months Ended |    | Nine                Months Ended |   |
| (Millions)                             |   |  2005                        |    |  2004                       |   |  2005 |   |  2004 |   |
| Service                revenues        |   | $                                 | 1,606.5 |                             | $      | 1,239.4 |   | $ | 4,252.0 |   | $ | 3,538.5 |   |
| Less                wholesale revenues |   |                              | (170.2  | )                                |   | (103.4 | ) |   | (373.5 | ) |   | (277.8 | ) |
| Total                retail revenues   |   | $                                 | 1,436.3 |                             | $      | 1,136.0 |   | $ | 3,878.5 |   | $ | 3,260.7 |   |

| (d)    | Average                revenue per customer per month is calculated by dividing wireless                service                revenues by average customers for the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (e)    | Cost                to acquire a new customer is calculated by dividing the sum of product                sales, cost of products sold and sales and marketing expenses (included                within “Selling, general, administrative and other”), as reported above,                by the number of internal gross customer additions in the period.                Customer                acquisition costs exclude amounts related to the Company’s customer                retention efforts. A reconciliation of the revenues, expenses and                customer                additions used in computing cost to acquire a new customer was as                follows                for the three and nine month periods ended September                30: |

|                                                            |   |                              |   |                             |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                            |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions,                customers in thousands)               |   |  2005                        |   |  2004                       |   |  2005 |   |  2004 |   |
| Product                sales                                    |   | $                                 | (61.6  | )                                | $      | (55.2 | ) | $ | (162.5 | ) | $ | (159.3 | ) |
| Cost                of products sold                            |   |                              | 83.8   |                             |   | 78.0 |   |   | 216.0 |   |   | 242.2 |   |
| Sales                and marketing expense                      |   |                              | 231.9  |                             |   | 181.5 |   |   | 615.8 |   |   | 545.3 |   |
| Total                costs incurred to acquire new customers    |   | $                                 | 254.1  |                             | $      | 204.3 |   | $ | 669.3 |   | $ | 628.2 |   |
| Gross                customer additions, excluding acquisitions |   |                              | 729.6  |                             |   | 642.0 |   |   | 1,992.4 |   |   | 2,029.5 |   |
| Cost                to acquire a new customer                   |   |                              | $348   |                             |   | $318 |   |   | $336 |   |   | $310 |   |

----

----

----

----

|                                                                     |   |                                    |   |                                   |   |
|--------------------------------------------------------------------------|--------|-----------------------------------------|--------|----------------------------------------|--------|
|                                                                     |   | Three                Months Ended  |   | Nine                Months Ended  |   |
| (Millions)                                                               |   |  2005                              |   |  2004                             |   |  2005 |   | 2004 |   |
| Severance                and employee benefit costs                      |   | $                                       | -      |                                   | $      | - |   | $ | - |   | $                8.8 |
| Relocation                costs                                          |   |                                    | 0.3    |                                   |   | - |   |   | 0.3 |   | 3.2 |
| Lease                and contract termination costs                      |   |                                    | -      |                                   |   | - |   |   | - |   | 0.5 |
| Write-down                in carrying value of certain facilities        |   |                                    | -      |                                   |   | - |   |   | - |   | 0.7 |
| Computer                system conversion and other integration expenses |   |                                    | 14.0   |                                   |   | - |   |   | 14.0 |   | - |
| Other                exit costs                                          |   |                                    | -      |                                   |   | - |   |   | - |   | 0.4 |
| Total                restructuring and other charges                     |   | $                                       | 14.3   |                                   | $      | - |   | $ | 14.3 |   | $                13.6 |

----

----

----

----

----

|  Communications-Wireline              Operations             |   |   |                                         |   |   |                                        |
|-------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|---------------------------------------------|
|                                                              |   |   | Three Months                Ended  |   |   | Nine Months                Ended  |
|                                                              |   |   | September 30,                           |   |   | September 30,                          |
| (Millions,                access lines in thousands)              |   |   | 2005                                         |   |   | 2004                                        |   |   | 2005 |   | 2004 |
| Revenues                and sales:                                |   |   |                                         |   |   |                                        |   |   |   |   |   |
| Local                service                                      |   | $      | 271.8                                        |   | $      | 278.6                                       |   | $ | 817.3 |   | $                                   839.3 |
| Network                access and long-distance                   |   |   | 258.5                                        |   |   | 263.5                                       |   |   | 776.5 |  | 787.0 |
| Miscellaneous                                                     |   |   | 62.0                                         |   |   | 60.8                                        |   |   | 187.2 |   | 185.7 |
| Total                revenues and sales                           |   |   | 592.3                                        |   |   | 602.9                                       |   | $ | 1,781.0 |   | 1,812.0 |
| Costs                and expenses:                                |   |   |                                         |   |   |                                        |   |   |   |   |   |
| Cost                of services                                   |   |   | 176.7                                        |   |   | 179.7                                       |   |   | 540.4 |   | 531.2 |
| Cost                of products sold                              |   |   | 10.0                                         |   |   | 7.8                                         |   |   | 26.0 |   | 20.1 |
| Selling,                general, administrative and other         |   |   | 66.1                                         |   |   | 60.1                                        |   |   | 192.6 |   | 181.9 |
| Depreciation                and amortization                      |   |   | 121.1                                        |   |   | 127.6                                       |   |   | 373.8 |   | 388.5 |
| Total                costs and expenses                           |   |   | 373.9                                        |   |   | 375.2                                       |   |   | 1,132.8 |   | 1,121.7 |
| Segment                income                                     |   | $      | 218.4                                        |   | $      | 227.7                                       |   | $ | 648.2 |   | $                                   690.3 |
| Access                lines in service (excludes broadband lines) |   |   | 2,919.9                                      |   |   | 3,040.5                                     |   |   | - |   | - |
| Average                access lines in service                    |   |   | 2,937.6                                      |   |   | 3,052.5                                     |   |   | 2,966.5 |   | 3,074.2 |
| Average                revenue per customer per month (a)         |   |   | $67.21                                       |   |   | $65.84                                      |   |   | $66.71 |   | $65.49 |

| (a) | Average                revenue per customer per month is calculated by dividing total wireline                revenues by average access lines in service for the period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                 |   |                              |   |                             |   |
|------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                 |   | Three                Months Ended |   | Nine                Months Ended |   |
| (Millions)                                           |   |  2005                        |   |  2004                       |   |  2005 |   |  2004 |   |
| Severance                and employee benefit costs  |   | $                                 | 4.6    |                             | $      | - |   | $ | 4.6 |   | $ | 11.2 |   |
| Relocation                costs                      |   |                              | -      |                             |   | - |   |   | - |   |   | 1.4 |   |
| Lease                and contract termination costs  |   |                              | -      |                             |   | - |   |   | - |   |   | (1.9 | ) |
| Other                exit costs                      |   |                              | -      |                             |   | - |   |   | - |   |   | 0.7 |   |
| Total                restructuring and other charges |   | $                                 | 4.6    |                             | $      | - |   | $ | 4.6 |   | $ | 11.4 |   |

| q   | Level                of competition in its markets. Sources of competition to Alltel’s local                exchange business include, but are not limited to, resellers of local                exchange services, interexchange carriers, satellite transmission                services, wireless communications providers, cable television companies,                and competitive access service providers including those utilizing                Unbundled Network Elements-Platform (“UNE-P”), VoIP providers and                providers using other emerging technologies. Alltel’s ILEC operations have                begun to experience competition in their local service areas. Through                September 30, 2005, this competition has not had a material adverse                effect                on the results of operations of Alltel’s ILEC operations, primarily                because these subsidiaries provide wireline telecommunications services                in                mostly rural areas. To date, ILEC subsidiaries have not been required                to                discount intrastate service rates in response to competitive                pressures. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| q   | Level                of revenues and access lines currently subject to rate-of-return                regulation or which could revert back to rate-of-return regulation                in the                future. For the ILEC subsidiaries that follow SFAS No. 71, all interstate                revenues are subject to rate-of-return regulation. The majority of                the                ILEC subsidiaries’ remaining intrastate revenues are either subject to                rate-of-return regulation or could become subject to rate-of-return                regulation upon election by the Company, subject in certain cases                to                approval by the state public service                commissions. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| q   | Level                of profitability of the ILEC subsidiaries. Currently, the prices                charged                to customers for interstate and intrastate services continue to be                sufficient to recover the specific costs of the ILEC subsidiaries                in                providing these services to                customers. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|  Communications                Support Services           |   |                                |    |                                    |   |    |   |   |   |
|----------------------------------------------------------------|--------|-------------------------------------|---------|-----------------------------------------|--------|---------|--------|--------|--------|
|                                                           |   | Three                  Months Ended |    | Nine Months                  Ended |   |
|                                                           |   | September                  30,      |    | September                  30,          |   |
| (Millions,                  except customers in thousands)     |   | 2005                                |    | 2004                                    |   | 2005    |   | 2004   |   |
| Revenues                  and sales:                           |   |                                |    |                                    |   |    |   |   |   |
| Product                  distribution                          |   | $                                   | 146.1   |                                    | $      | 109.2   |   | $      | 402.8  |   | $ | 304.2 |   |
| Long-distance                  and network management services |   |                                | 80.6    |                                    |   | 77.2    |   |   | 227.5  |   |   | 229.1 |   |
| Directory                  publishing                          |   |                                | 32.4    |                                    |   | 31.1    |   |   | 106.0  |   |   | 106.0 |   |
| Telecommunications                  information services       |   |                                | 4.1     |                                    |   | 9.7     |   |   | 12.8   |   |   | 36.1 |   |
| Total                  revenues and sales                      |   |                                | 263.2   |                                    |   | 227.2   |   |   | 749.1  |   |   | 675.4 |   |
| Costs                  and expenses:                           |   |                                |    |                                    |   |    |   |   |   |   |   |   |   |
| Cost                  of services                              |   |                                | 58.9    |                                    |   | 68.9    |   |   | 178.0  |   |   | 193.5 |   |
| Cost                  of products sold                         |   |                                | 159.0   |                                    |   | 124.6   |   |   | 453.4  |   |   | 367.3 |   |
| Selling,                  general, administrative and other    |   |                                | 16.7    |                                    |   | 13.6    |   |   | 48.6   |   |   | 39.9 |   |
| Depreciation                  and amortization                 |   |                                | 8.3     |                                    |   | 8.6     |   |   | 25.3   |   |   | 25.9 |   |
| Total                  costs and expenses                      |   |                                | 242.9   |                                    |   | 215.7   |   |   | 705.3  |   |   | 626.6 |   |
| Segment                  income                                |   | $                                   | 20.3    |                                    | $      | 11.5    |   | $      | 43.8   |   | $ | 48.8 |   |
| Long-distance                  customers                       |   |                                | 1,757.1 |                                    |   | 1,740.0 |   |   | -      |   |   | - |   |

----

|                                                 |   |   |   |
|------------------------------------------------------|--------|--------|--------|
| (Millions)                                           |   |   |   |
| Severance                and employee benefit costs  |   | $      | 0.5    |   |
| Relocation                costs                      |   |   | 0.1    |   |
| Total                restructuring and other charges |   | $      | 0.6    |   |

| **FINANCIAL                CONDITION, LIQUIDITY AND CAPITAL RESOURCES** |   |                             |     |   |   |
|-------------------------------------------------------------------------|--------|----------------------------------|----------|--------|--------|
|                                                                    |   | Nine                Months Ended |     |
|                                                                    |   | September                30,     |     |
| (Millions,                except per share amounts)                     |   |                             | 2005     |   |   | 2004 |   |
| Cash                flows from (used in):                               |   |                             |     |   |   |   |   |
| Operating                activities                                     |   | $                                | 1,901.9  |   | $      | 1,844.1 |   |
| Investing                activities                                     |   |                             | (1,662.3 | )      |   | (717.2 | ) |
| Financing                activities                                     |   |                             | (676.1   | )      |   | (1,136.2 | ) |
| Discontinued                operations                                  |   |                             | 36.2     |   |   | - |   |
| Effect                of exchange rate changes                          |   |                             | (15.2    | )      |   | (0.1 | ) |
| Decrease                in cash and short-term investments              |   | $                                | (415.5   | )      | $      | (9.4 | ) |
| Total                capital structure (a)                              |   | $                                | 18,856.3 |   | $      | 12,604.5 |   |
| Percent                of equity to total capital (b)                   |   |                             | 68.5     | %      |   | 55.5 | % |
| Book                value per share (c)                                 |   |                             | $33.72   |   |   | $23.04 |   |

| (a) | Computed                as the sum of long-term debt including current maturities, redeemable                preferred stock and total shareholders’ equity.                                 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Computed                by dividing total shareholders’ equity by total capital structure as                computed in (a) above.                                                           |
| (c) | Computed                by dividing total shareholders’ equity less preferred stock by the total                number of common shares outstanding at the end of the                period. |

----

----

|                                          |                |                                      |        |
|-----------------------------------------------|---------------------|-------------------------------------------|-------------|
|  Description                             |  Moody’s | Standard&                Poor’s |  Fitch |
| Commercial                paper credit rating | Prime-1             | A-1                                       | F1          |
| Long-term                debt credit rating   | A2                  | A                                         | A           |
| Outlook                                       | Stable              | Credit                WatchDeveloping     | Stable      |

----

----

----

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

**Item      3****.****Quantitative      and Qualitative Disclosures About Market Risk**

----

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

**Item      4.** **Controls      and Procedures**

| (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. On August 1, 2005, Alltel completed its merger with                Western Wireless Corporation. Alltel continues to assess Western                Wireless’                control systems and expects the integration of Western Wireless’ control                systems with Alltel’s control systems to be completed during the second                quarter of 2006. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (b)    | Changes                in internal controls.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | 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 the 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, except                for                the changes arising out of the Western Wireless merger, 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** |
|------------------------------------------------|

**Item      2.** **Unregistered      Sales of Equity Securities and Use of Proceeds**

| (c) | On                January 23, 2004, Alltel announced a $750.0 million stock repurchase                plan                that expires on December 31, 2005. During 2004, the Company repurchased                11.2 million shares of its common stock at a total cost of $595.3                million,                or an average cost of $52.93 per share. No repurchases were made                under the                stock repurchase plan during the first nine months of 2005. As of                September 30, 2005, remaining amounts that may be purchased under                this                plan were $154.7 million. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      6.** **Exhibits**

----

| ALLTEL                CORPORATION                                 |
|-------------------------------------------------------------------|
| (Registrant)                                                      |
|                                                              |
|                                                              |
| /s/                Jeffery R. Gardner                             |
| Jeffery                R. Gardner                                 |
| Executive                Vice President - Chief Financial Officer |
| (Principal                Financial Officer)                      |
| November                8, 2005                                   |

----

| **ALLTEL                CORPORATION** |
|---------------------------------------|
| **FORM                10-Q**          |
| **INDEX                OF EXHIBITS**  |

| Form                10-Q   |                                                                                                                                                                                            |   |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit                No. | Description                of Exhibits                                                                                                                                                          |   |
|                       |                                                                                                                                                                                            |   |
| 10(k)(13)                  | Amendment                No. 12 to ALLTEL Corporation Pension Plan (January 1, 2001                Restatement).                                                                                | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(l)(7)                   | Amendment                No. 6 to ALLTEL Corporation Profit-Sharing Plan (January 1, 2002                Restatement).                                                                          | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(o)(9)                   | Amendment                No. 8 to ALLTEL Corporation 401(k) Plan (January 1, 2001                Restatement).                                                                                  | (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)    |

| *   | Incorporated                herein by reference as indicated. |
|-----|---------------------------------------------------------------|
| (a) | Filed                herewith.                                |