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| UNITED                STATES                                                                                                                                                                                                                                                                                                                                                                                |
| SECURITIES                AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                           |
| WASHINGTON,                D. C. 20549                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                        |
| FORM                10-Q                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                        |
| [x]                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                                                                                                                                                                                                                                                                                                                                  |
| SECURITIES                EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                              |
| For                the quarterly period ended June                30, 2006                                                                                                                                                                                                                                                                                                                                  |
| 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)                                                                                                                                                                                                                                                                                            |

|   |
|--------|

----

| **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 |  23 |
| Item                3.                            | Quantitative                and Qualitative Disclosures About Market                Risk | 48 |
| Item                4.                            | Controls                and Procedures | 49 |
|                                              |   |   |

| **PART                II - OTHER INFORMATION** |
|------------------------------------------------|
|                                           |   |   |
|                                           |   |   |
| Item                1.                         | Legal                Proceedings |   * |
| Item                1A.                        | Risk                Factors | 49 |
| Item                2.                         | Unregistered                Sales of Equity Securities and Use of                Proceeds | 49 |
| Item                3.                         | Defaults                Upon Senior Securities |   * |
| Item                4.                         | Submission                of Matters to a Vote of Security                Holders | 50 |
| 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)                                        |   | June                30, |   | December                31, |   |
| **Assets**                                                                                            |   | 2006 |   | 2005 |   |
| **Current                Assets:**                                                                    |   |   |   |   |   |
| Cash                and short-term investments                                                        |   | $ | 2,531.4 |   | $ | 989.2 |   |
| Accounts                receivable (less allowance for doubtful                                       |   |   |   |   |   |   |   |
| accounts                of $81.2 and $84.7, respectively)                                             |   |   | 1,093.6 |   |   | 1,077.2 |   |
| Inventories                                                                                           |   |   | 160.9 |   |   | 232.6 |   |
| Prepaid                expenses and other                                                             |   |   | 187.2 |   |   | 115.2 |   |
| Assets                held for sale                                                                   |   |   | - |   |   | 1,951.2 |   |
| Total                current assets                                                                   |   |   | 3,973.1 |   |   | 4,365.4 |   |
| Investments                                                                                           |   |   | 365.9 |   |   | 358.4 |   |
| Goodwill                                                                                              |   |   | 9,067.1 |   |   | 8,677.3 |   |
| Other                intangibles                                                                      |   |   | 2,214.0 |   |   | 2,179.1 |   |
| **Property,                Plant and Equipment:**                                                     |   |   |   |   |   |   |   |
| Land                                                                                                  |   |   | 313.5 |   |   | 298.6 |   |
| Building                and improvements                                                              |   |   | 1,243.0 |   |   | 1,211.4 |   |
| Wireline                                                                                              |   |   | 7,021.0 |   |   | 6,942.0 |   |
| Wireless                                                                                              |   |   | 7,062.7 |   |   | 6,852.6 |   |
| Information                processing                                                                 |   |   | 1,266.8 |   |   | 1,187.2 |   |
| Other                                                                                                 |   |   | 541.3 |   |   | 530.3 |   |
| Under                construction                                                                     |   |   | 525.8 |   |   | 475.4 |   |
| Total                property, plant and equipment                                                    |   |   | 17,974.1 |   |   | 17,497.5 |   |
| Less                accumulated depreciation                                                          |   |   | 9,976.1 |   |   | 9,433.9 |   |
| Net                property, plant and equipment                                                      |   |   | 7,998.0 |   |   | 8,063.6 |   |
| Other                assets                                                                           |   |   | 315.5 |   |   | 369.3 |   |
| **Total                Assets**                                                                       |   | $ | 23,933.6 |   | $ | 24,013.1 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                         |   |   |   |   |   |   |   |
| **Current                Liabilities:**                                                               |   |   |   |   |   |   |   |
| Current                maturities of long-term debt                                                   |   | $ | 1,594.1 |   | $ | 205.1 |   |
| Accounts                payable                                                                       |   |   | 583.3 |   |   | 645.4 |   |
| Advance                payments and customer deposits                                                 |   |   | 244.0 |   |   | 240.5 |   |
| Accrued                taxes                                                                          |   |   | 384.5 |   |   | 174.7 |   |
| Accrued                dividends                                                                      |   |   | 150.1 |   |   | 147.8 |   |
| Accrued                interest                                                                       |   |   | 102.3 |   |   | 102.5 |   |
| Current                deferred income taxes                                                          |   |   | - |   |   | 339.0 |   |
| Other                current liabilities                                                              |   |   | 199.2 |   |   | 255.4 |   |
| Liabilities                related to assets held for sale                                            |   |   | - |   |   | 294.4 |   |
| Total                current liabilities                                                              |   |   | 3,257.5 |   |   | 2,404.8 |   |
| Long-term                debt                                                                         |   |   | 4,262.8 |   |   | 5,782.9 |   |
| Deferred                income taxes                                                                  |   |   | 1,894.2 |   |   | 1,860.9 |   |
| Other                liabilities                                                                      |   |   | 907.5 |   |   | 949.0 |   |
| **Shareholders’                Equity:**                                                        |   |   |   |   |   |   |   |
| Preferred                stock, Series C, $2.06, no par value, 10,382 and 11,122                      |   |   |   |   |   |   |   |
| shares                issued and outstanding, respectively                                            |   |   | 0.3 |   |   | 0.3 |   |
| Common                stock, par value $1 per share, 1.0 billion shares                authorized,    |   |   |   |   |   |   |   |
| 389,562,540                and 383,605,936 shares issued and outstanding,                respectively |   |   | 389.6 |   |   | 383.6 |   |
| Additional                paid-in capital                                                             |   |   | 5,484.0 |   |   | 5,339.3 |   |
| Unrealized                holding gain on investments                                                 |   |   | 38.0 |   |   | 22.3 |   |
| Foreign                currency translation adjustment                                                |   |   | - |   |   | (2.8 | ) |
| Retained                earnings                                                                      |   |   | 7,699.7 |   |   | 7,272.8 |   |
| Total                shareholders’ equity                                                       |   |   | 13,611.6 |   |   | 13,015.5 |   |
| **Total                Liabilities and Shareholders’ Equity**                                   |   | $ | 23,933.6 |   | $ | 24,013.1 |   |

----

| **CONSOLIDATED                STATEMENTS OF INCOME (UNAUDITED)**           |   |
|----------------------------------------------------------------------------|--------|
|                                                                       |   | Three                Months |   |  Six                Months |   |
|                                                                       |   | Ended                June 30, |   |  Ended                June 30, |   |
| (Millions,                except per share amounts)                        |   | 2006 |   | 2005 |   |  2006 |   | 2005 |   |
| **Revenues                and sales:**                                     |   |   |   |   |   |    |   |   |   |
| Service                revenues                                            |   | $ | 2,334.6 |   | $ | 1,989.2 |   | $ | 4,582.3 |   | $ | 3,887.5 |   |
| Product                sales                                               |   |   | 339.1 |   |   | 270.9 |   |   | 631.1 |   |   | 498.6 |   |
| Total                revenues and sales                                    |   |   | 2,673.7 |   |   | 2,260.1 |   |   | 5,213.4 |   |   | 4,386.1 |   |
| **Costs                and expenses:**                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of services (excluding depreciation of $256.5, $244.2, |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $507.8,                and $486.1, respectively, included below)           |   |   | 762.4 |   |   | 660.9 |   |   | 1,494.1 |   |   | 1,287.2 |   |
| Cost                of products sold                                       |   |   | 384.7 |   |   | 308.1 |   |   | 740.5 |   |   | 589.9 |   |
| Selling,                general, administrative and other                  |   |   | 510.8 |   |   | 420.6 |   |   | 1,009.8 |   |   | 828.0 |   |
| Depreciation                and amortization                               |   |   | 411.9 |   |   | 348.3 |   |   | 816.4 |   |   | 689.5 |   |
| Integration                expenses and other charges                      |   |   | 12.0 |   |   | - |   |   | 31.5 |   |   | - |   |
| Total                costs and expense                                     |   |   | 2,081.8 |   |   | 1,737.9 |   |   | 4,092.3 |   |   | 3,394.6 |   |
| **Operating                income**                                        |   |   | 591.9 |   |   | 522.2 |   |   | 1,121.1 |   |   | 991.5 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                earnings in unconsolidated partnerships              |   |   | 15.4 |   |   | 15.2 |   |   | 28.3 |   |   | 25.9 |   |
| Minority                interest in consolidated partnerships              |   |   | (11.5 | ) |   | (18.9 | ) |   | (25.4 | ) |   | (37.2 | ) |
| Other                income, net                                           |   |   | 21.1 |   |   | 8.0 |   |   | 33.0 |   |   | 128.7 |   |
| Interest                expense                                            |   |   | (90.6 | ) |   | (76.3 | ) |   | (179.6 | ) |   | (163.0 | ) |
| Gain                on exchange or disposal of assets and other            |   |   | 176.6 |   |   | 188.3 |   |   | 176.6 |   |   | 188.3 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations before income taxes       |   |   | 702.9 |   |   | 638.5 |   |   | 1,154.0 |   |   | 1,134.2 |   |
| Income                taxes                                                |   |   | 265.4 |   |   | 236.4 |   |   | 436.9 |   |   | 419.1 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                           |   |   | 437.5 |   |   | 402.1 |   |   | 717.1 |   |   | 715.1 |   |
| Income                (loss) from discontinued operations                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (net                of income taxes of $2.3 million and $31.1million)      |   |   | (8.6 | ) |   | - |   |   | 9.2 |   |   | - |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                  |   |   | 428.9 |   |   | 402.1 |   |   | 726.3 |   |   | 715.1 |   |
| Preferred                dividends                                         |   |   | - |   |   | 0.1 |   |   | - |   |   | 0.1 |   |
| Net                income applicable to common shares                      |   | $ | 428.9 |   | $ | 402.0 |   | $ | 726.3 |   | $ | 715.0 |   |
| **Earnings                per share:**                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                           |   |   | $1.12 |   |   | $1.28 |   |   | $1.85 |   |   | $2.32 |   |
| Income                (loss) from discontinued operations                  |   |   | (.02 | ) |   | - |   |   | .02 |   |   | - |   |
| Net                income                                                  |   |   | $1.10 |   |   | $1.28 |   |   | $1.87 |   |   | $2.32 |   |
| Diluted:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                           |   |   | $1.12 |   |   | $1.27 |   |   | $1.84 |   |   | $2.31 |   |
| Income                (loss) from discontinued operations                  |   |   | (.02 | ) |   | - |   |   | .02 |   |   | - |   |
| Net                income                                                  |   |   | $1.10 |   |   | $1.27 |   |   | $1.86 |   |   | $2.31 |   |

----

| **CONSOLIDATED                STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                       |   | Six                Months |   |
|                                                                                                                                       |   | Ended                June 30, |   |
| (Millions)                                                                                                                                 |   | 2006 |   | 2005 |   |
| **Cash                Provided from Operations:**                                                                                          |   |   |   |   |   |
| Net                income                                                                                                                  |   | $ | 726.3 |   | $ | 715.1 |   |
| Adjustments                to reconcile net income to net cash provided from                operations:                                    |   |   |   |   |   |   |   |
| Income                from discontinued operations                                                                                         |   |   | (9.2 | ) |   | - |   |
| Depreciation                and amortization                                                                                               |   |   | 816.4 |   |   | 689.5 |   |
| Provision                for doubtful accounts                                                                                             |   |   | 123.6 |   |   | 90.7 |   |
| Non-cash                portion of gain on exchange or disposal of assets and                other                                         |   |   | (107.6 | ) |   | (202.2 | ) |
| Change                in deferred income taxes                                                                                             |   |   | 9.5 |   |   | 6.3 |   |
| Other,                net                                                                                                                  |   |   | (4.3 | ) |   | 11.1 |   |
| Changes                in operating assets and liabilities, net of effects of acquisitions                and                dispositions: |   |   |   |   |   |   |   |
| Accounts                receivable                                                                                                         |   |   | (130.4 | ) |   | (105.8 | ) |
| Inventories                                                                                                                                |   |   | 72.8 |   |   | (2.3 | ) |
| Accounts                payable                                                                                                            |   |   | (59.1 | ) |   | (31.3 | ) |
| Other                current liabilities                                                                                                   |   |   | (229.3 | ) |   | 100.6 |   |
| Other,                net                                                                                                                  |   |   | (45.0 | ) |   | (28.1 | ) |
| Net                cash provided from operations                                                                                           |   |   | 1,163.7 |   |   | 1,243.6 |   |
| **Cash                Flows from Investing Activities:**                                                                                   |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                                                                  |   |   | (598.2 | ) |   | (611.1 | ) |
| Additions                to capitalized software development costs                                                                         |   |   | (16.5 | ) |   | (26.9 | ) |
| Additions                to investments                                                                                                    |   |   | - |   |   | (0.9 | ) |
| Purchases                of property, net of cash acquired                                                                                 |   |   | (645.8 | ) |   | (223.7 | ) |
| Proceeds                from the sale of assets                                                                                            |   |   | - |   |   | 36.2 |   |
| Proceeds                from the sale of investments                                                                                       |   |   | 199.9 |   |   | 353.4 |   |
| Proceeds                from the return on investments                                                                                     |   |   | 22.4 |   |   | 20.4 |   |
| Other,                net                                                                                                                  |   |   | (8.4 | ) |   | 3.1 |   |
| Net                cash used in investing activities                                                                                       |   |   | (1,046.6 | ) |   | (449.5 | ) |
| **Cash                Flows from Financing Activities:**                                                                                   |   |   |   |   |   |   |   |
| Dividends                on common and preferred stock                                                                                     |   |   | (297.1 | ) |   | (220.7 | ) |
| Repayments                of long-term debt                                                                                                |   |   | (0.9 | ) |   | (452.9 | ) |
| Conversion                of convertible notes                                                                                             |   |   | (59.8 | ) |   | - |   |
| Distributions                to minority investors                                                                                         |   |   | (20.3 | ) |   | (27.0 | ) |
| Excess                tax benefits from stock option exercises                                                                             |   |   | 3.2 |   |   | - |   |
| Long-term                debt issued                                                                                                       |   |   | - |   |   | 50.0 |   |
| Common                stock issued                                                                                                         |   |   | 88.6 |   |   | 1,399.3 |   |
| Net                cash provided from (used in) financing activities                                                                       |   |   | (286.3 | ) |   | 748.7 |   |
| **Cash                Flows from Discontinued Operations:**                                                                                |   |   |  |   |   |  |   |
| Cash                provided from operating activities                                                                                     |   |   | 47.0 |   |   | - |   |
| Cash                provided from investing activities                                                                                     |   |   | 1,669.1 |   |   | - |   |
| Cash                provided from financing activities                                                                                     |   |   | 1.2 |   |   | - |   |
| Net                cash provided from discontinued operations                                                                              |   |   | 1,717.3 |   |   | - |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash and short-term                investments                                           |   |   | (5.9 | ) |   | - |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Increase                in cash and short-term investments                                                                                 |   |   | 1,542.2 |   |   | 1,542.8 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| **Cash                and Short-term Investments:**                                                                                        |   |   |   |   |   |   |   |
| Beginning                of the period                                                                                                     |   |   | 989.2 |   |   | 484.9 |   |
| End                of the period                                                                                                           |   | $ | 2,531.4 |   | $ | 2,027.7 |   |

----

| **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, 2005                                                          |   | $ | 0.3 |   | $ | 383.6 |   | $ | 5,339.3 |   | $ | 22.3 |   | $ | (2.8 | ) | $ | 7,272.8 |   | $ | 13,015.5 |   |
| Net                income                                                                          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 726.3 |   |   | 726.3 |   |
| Other              comprehensive loss, net of tax: (See Note 12)                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding losses on investments,                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of reclassification adjustments                                                 |   |   | - |   |   | - |   |   | - |   |   | 15.7 |   |   | - |   |   | - |   |   | 15.7 |   |
| Foreign                currency translation adjustment                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of reclassification adjustments                                               |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 2.8 |   |   | - |   |   |  2.8 |   |
| Comprehensive                income                                                           |   |   | - |   |   | - |   |   | - |   |   | 15.7 |   |   |  2.8 |   |   | 726.3 |   |   | 744.8 |   |
| Employee                plans, net                                                            |   |   | - |   |   | 2.2 |   |   | 85.8 |   |   | - |   |   | - |   |   | - |   |   | 88.0 |   |
| Restricted                stock                                                               |   |   | - |   |   | 0.3 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 0.3 |   |
| Amortization                of unearned compensation (See Note 2)                             |   |   | - |   |   | - |   |   | 17.5 |   |   | - |   |   | - |   |   | - |   |   | 17.5 |   |
| Tax                benefit for non-qualified stock options                                         |   |   | - |   |   | - |   |   | 4.7 |   |   | - |   |   | - |   |   | - |   |   | 4.7 |   |
| Conversion                of convertible notes (See Note 3)                                        |   |   | - |   |   | 3.5 |   |   | 36.7 |   |   | - |   |   | - |   |   | - |   |   | 40.2 |   |
| Dividends:                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                - $.77 per share                                                             |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (299.4 | ) |   | (299.4 | ) |
| Preferred                                                                                          |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Balance                at June 30, 2006                                                       |   | $ | 0.3 |   | $ | 389.6 |   | $ | 5,484.0 |   | $ | 38.0 |   | $ |  - |   | $ | 7,699.7 |   | $ | 13,611.6 |   |

----

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

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

**2.              **
**Accounting      Changes:**

----

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

** _____**

**2.              **
**Accounting      Changes, Continued:**

|                                                                                                          |   |                         |   |                           |   |
|---------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------------------------------|--------|
| (Millions,                except per share amounts)                                                           |   | Three Months Ended |   | SixMonths                Ended |   |
| Compensation                expense related to stock options issued by Alltel                                 |   | $                            | 5.4    |                           | $      | 10.2 |   |
| Compensation                expense related to stock options converted to Alltel stock                options |   |                         |   |                           |   |   |   |
| in                connection with the acquisition of Western Wireless                Corporation              |   |                         | 0.5    |                           |   | 1.0 |   |
| Compensation                expense related to restricted stock awards                                        |   |                         | 2.6    |                           |   | 6.3 |   |
| Compensation                expense before income taxes                                                       |   |                         | 8.5    |                           |   | 17.5 |   |
| Income                tax benefit                                                                             |   |                         | (2.6   | )                              |   | (5.4 | ) |
| Compensation                expense, net of tax                                                               |   | $                            | 5.9    |                           | $      | 12.1 |   |
| Earnings                per share effects of compensation expense, net of tax                                 |   |                         |   |                           |   |   |   |
| Basic                earnings per share                                                                       |   |                         | $.02   |                           |   | $.03 |   |
| Diluted                earnings per share                                                                     |   |                         | $.02   |                           |   | $.03 |   |

|                                                                                             |   |                         |                           |
|--------------------------------------------------------------------------------------------------|--------|------------------------------|--------------------------------|
|   (Millions,                except per share amounts)                                  |   | Three Months Ended |                           | Six                Months Ended |   |
| Net                income as reported                                                            | $      | 402.1                        |                           | $ | 715.1 |   |
| Add                stock-based compensation expense included in                                  |   |                         |                           |   |   |   |
| net                income, net of related tax effects                                            |   | 1.0                          |                           |   | 2.0 |   |
| Deduct                stock-based employee compensation expense determined                       |   |                         |                           |   |   |   |
| under                fair value method for all awards, net of related tax                effects |   | (6.4                         | )                              |   | (13.0 | ) |
| Pro                forma net income                                                              | $      | 396.7                        |                           | $ | 704.1 |   |
| Basic                earnings per share:                                                         |   |                         | As                reported     |   |   | $1.28 |   |   | $2.32 |   |
|                                                                                             |   |                         | Pro                forma  |   |   | $1.26 |   |   | $2.28 |   |
| Diluted                earnings per share:                                                       |   |                         | As                reported     |   |   | $1.27 |   |   | $2.31 |   |
|                                                                                             |   |                         | Pro                forma  |   |   | $1.26 |   |   | $2.27 |   |

----

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

** _____**

**2.              **
**Accounting      Changes, Continued:**

**3.              **
**Acquisitions:**

----

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

** _____**

**3.              **
**Acquisitions,      Continued:**

----

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

** _____**

**3.              **
**Acquisitions,      Continued:**

|                                                                   |   |                                             |                                                |                                 |
|------------------------------------------------------------------------|--------|--------------------------------------------------|-----------------------------------------------------|--------------------------------------|
| (Millions,                except per share amounts)                    |   | Three                Months                Ended |                                                | Six                Months Ended |
| Revenues                and sales                                      |   |                                             | $                2,518.0                            |                                 |   | $                4,884.5 |
| Income                from continuing operations                       |   |                                             | $                   406.8            |                                 |   | $                   724.8 |
| Combined                earnings per share from continuing operations: |   |                                             |                                                |                                 |   |   |
| Basic                earnings per share                                |   |                                             |                      $1.07 |                                 |   |       $1.93 |
| Diluted                earning per share                               |   |                                             |                      $1.05 |                                 |   |                      $1.89 |
| Net                income                                              |   |                                             | $                   419.9            |                                 |   | $                   764.2 |
| Combined                earnings per share:                            |   |                                             |                                                |                                 |   |   |
| Basic                earnings per share                                |   |                                             |                      $1.10 |                                 |   |        $2.04 |
| Diluted                earning per share                               |   |                                             |                      $1.08 |                                 |   |                       $2.00 |

**4.             **
**Goodwill      and Other Intangible Assets:**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                          Communications |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   | Support |   |   |   |
| (Millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Wireless |   | Wireline |   | Services |   | Total |   |
| Balance                at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 7,427.4 |   | $ | 1,247.6 |   | $ | 2.3 |   | $ | 8,677.3 |   |
| Acquired                during the period                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 450.6 |   |   | - |   |   | - |   |   | 450.6 |   |
| Other                adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (60.8 | ) |   | - |   |   | - |   |   | (60.8 | ) |
| Balance                at June 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 7,817.2 |   | $ | 1,247.6 |   | $ | 2.3 |   | $ | 9,067.1 |   |

|                                                     |   |                    |    |                        |   |
|----------------------------------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                                                     |   | June                30, |    | December                31, |   |
| (Millions)                                               |   | 2006                    |    | 2005                        |   |
| Cellular                licenses                         |   | $                       | 1,454.9 |                        | $      | 1,392.3 |   |
| Personal                Communications Services licenses |   |                    | 79.1    |                        |   | 79.1 |   |
| Franchise                rights - wireline               |   |                    | 265.0   |                        |   | 265.0 |   |
|                                                     |   | $                       | 1,799.0 |                        | $      | 1,736.4 |   |

----

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

**_____**

**4.             **
**Goodwill      and Other Intangible Assets, Continued:**

|                             |   |                                   |
|----------------------------------|--------|----------------------------------------|
|                             |   | June                30, 2006           |
|                             |   | Gross                                  |   | Accumulated |   | Net                Carrying |
| (Millions)                       |   | Cost                                   |   | Amortization |   | Value |
| Customer                lists    |   | $                                      | 829.3 |   | $ | (424.1 | ) | $ | 405.2 |
| Franchise                rights  |   |                                   | 22.5 |   |   | (17.1 | ) |   | 5.4 |
| Roaming                agreement |   |                                   | 6.1 |   |   | (1.7 | ) |   | 4.4 |
|                             |   | $                                      | 857.9 |   | $ | (442.9 | ) | $ | 415.0 |
|                             |   |                                   |
|                             |   | December                31, 2005  |
|                             |   |                                   | Gross  |   |   | Accumulated |   |   | Net                Carrying |
| (Millions)                       |   |                                   | Cost |   |   | Amortization |   |   | Value |
| Customer                lists    |   | $                                      | 760.4 |   | $ | (329.2 | ) | $ | 431.2 |
| Franchise                rights  |   |                                   | 22.5 |   |   | (16.4 | ) |   | 6.1 |
| Roaming                agreement |   |                                   | 6.1 |   |   | (0.7 | ) |   | 5.4 |
|                             |   | $                                      | 789.0 |   | $ | (346.3 | ) | $ | 442.7 |

**5.              **
**Equity      Units:**

**6.              **
**Stock-Based      Compensation:**

----

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

**6.        **
**Stock-Based      Compensation, Continued:**

|                                   |   |   |                     |
|----------------------------------------|--------|--------|--------------------------|
| Expected                life           |   |   | 5.9                years |
| Expected                volatility     |   |   | 22.9%                    |
| Dividend                yield          |   |   | 0.8%                     |
| Risk-free                interest rate |   |   | 4.5%                     |

|                                            |   |                     |                                            |                         |
|-------------------------------------------------|--------|--------------------------|-------------------------------------------------|------------------------------|
|                                            |   | (Thousands)              |                                            | Weighted                     |
|                                            |   | Number                of |                                            | Average                Price |
|                                            |   | Shares                   |                                            | Per                Share     |
| Outstanding                at December 31, 2005 |   |                     | 17,316.5                                        |                         |   | $53.94 |
| Granted                                         |   |                     |  1,357.1                                   |                         |   |                  63.25 |
| Exercised                                       |   |                     |  (2,207.8)                                 |                         |   |                  40.12 |
| Forfeited                                       |   |                     |                      (96.0) |                         |   |                  58.93 |
| Expired                                         |   |                     |                      (13.8) |                         |   |                  31.83 |
| Outstanding                at June 30, 2006     |   |                     | 16,356.0                                        |                         |   | $56.57 |
| Exercisable                at end of period     |   |                     | 11,986.3                                        |                         |   | $57.06 |
|                                            |   |                     |                                            |                         |   |   |

----

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

**6.              **
**Stock-Based      Compensation, Continued:**

|                                 |   |                               |                                    |                               |   |                          |   |                     |                        |                                |
|--------------------------------------|--------|------------------------------------|-----------------------------------------|------------------------------------|--------|-------------------------------|--------|--------------------------|-----------------------------|-------------------------------------|
|                                 |   | Options                Outstanding |                                    | Options                Exercisable |
|                                 |   |                               |                                    | Weighted                           |   | Weighted                      |   |                     |                        |  Weighted                      |
|                                 |   | (Thousands)                        |                                    | Average                            |   | Average                       |   | (Thousands)              |                        |  Average                       |
| Range                of              |   | Number                of           |                                    | Remaining                          |   | Exercise                Price |   | Number                of |                        |  Exercise                Price |
| Exercise                Prices       |   | Shares                             |                                    | Contractual                Life    |   | Per                Share      |   | Shares                   |                        |  Per                Share      |
| $                 7.57 - $14.71 |   |                               |                    209.4 |                               |   | 3.7                years      |   |                     | $10.26                      |                                |   |                    179.3 |   |   | $10.70 |
| $26.61                - $32.37       |   |                               |                    425.2 |                               |   | 2.2                years      |   |                     |                  31.92 |                                |   |                    371.3 |   |   |                  31.86 |
| $33.88                - $37.75       |   |                               |  1,104.2                           |                               |   | 1.2                years      |   |                     |                  34.50 |                                |   |  1,102.8 |   |   |                  34.50 |
| $43.12                - $50.28       |   |                               |  2,376.5                           |                               |   | 6.7                years      |   |                     |                  48.41 |                                |   |  1,213.5 |   |   |                  47.89 |
| $50.81                - $58.46       |   |                               |  4,144.5                           |                               |   | 6.7                years      |   |                     |                  54.84 |                                |   |  2,380.0 |   |   |                  54.92 |
| $62.07                - $68.25       |   |                               |  7,954.7                           |                               |   | 4.8                years      |   |                     |                  65.23 |                                |   |  6,597.9 |   |   |                  65.64 |
| $70.75                - $73.13       |   |                               |                    141.5 |                               |   | 3.2                years      |   |                     |                  72.43 |                                |   |                    141.5 |   |   |                  72.43 |
|                                 |   |                               | 16,356.0                                |                               |   | 5.2                years      |   |                     | $56.57                      |                                |   | 11,986.3 |   |   | $57.06 |

|                                           |   |                     |                                           |                         |
|------------------------------------------------|--------|--------------------------|------------------------------------------------|------------------------------|
|                                           |   | (Thousands)              |                                           | Weighted                     |
|                                           |   | Number                of |                                           | Average                Price |
|                                           |   | Shares                   |                                           | Per                Share     |
| Non-vested                at December 31, 2005 |   |                     | 5,051.4                                        |                         |   | $51.94 |
| Granted                                        |   |                     | 1,357.1                                        |                         |   |                  63.25 |
| Vested                                         |   |                     | (2,000.3)                                      |                         |   |                  52.40 |
| Forfeited                                      |   |                     |                     (38.5) |                         |   |                  52.80 |
| Non-vested                at June 30, 2006     |   |                     | 4,369.7                                        |                         |   | $55.23 |
|                                           |   |                     |                                           |                         |   |   |

|                                           |   |                     |                                |                      |
|------------------------------------------------|--------|--------------------------|-------------------------------------|---------------------------|
|                                           |   |                     |                                | Weighted                  |
|                                           |   |                     |                                | Average                   |
|                                           |   | Number                of |                                | Fair                Value |
|                                           |   | Shares                   |                                | Per                Share  |
| Non-vested                at December 31, 2005 |   |                     | 302,530                             |                      |   | $52.52 |
| Granted                                        |   |                     | 302,532                             |                      |   |                  61.38 |
| Vested                                         |   |                     |  (52,927)                      |                      |   |                  49.28 |
| Forfeited                                      |   |                     |                   (6,250) |                      |   |                  53.26 |
| Non-vested                at June 30, 2006     |   |                     | 545,885                             |                      |   | $57.74 |

----

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

**6.              **
**Stock-Based      Compensation, Continued:**

**7.              **
**Employee      Benefit Plans and Postretirement Benefits Other Than      Pensions:**

|                                               |   |                              |   |                            |   |
|----------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
|                                               |   | Three                Months Ended |   | Six                Months Ended |   |
| (Millions)                                         |   | 2006                              |   |                            |   | 2005 |   | 2006 |   | 2005 |   |   |   |
| Benefits                earned during the year     |   | $                                 | 5.1    |                            |   |   |   | $ | 8.3 |   | $ | 11.8 |   | $ | 16.7 |   |
| Interest                cost on benefit obligation |   |                              | 14.4   |                            |   |   |   |   | 14.6 |   |   | 29.3 |   |   | 29.2 |   |
| Special                termination benefits        |   |                              | 4.5    |                            |   |   |   |   | - |   |   | 9.0 |   |   | - |   |
| Settlement                and curtailment losses   |   |                              | 2.4    |                            |   |   |   |   | - |   |   | 3.4 |   |   | - |   |
| Amortization                of prior service cost  |   |                              | 0.4    |                            |   |   |   |   | 0.2 |   |   | 0.5 |   |   | 0.3 |   |
| Recognized                net actuarial loss       |   |                              | 6.8    |                            |   |   |   |   | 7.7 |   |   | 15.2 |   |   | 15.3 |   |
| Expected                return on plan assets      |   |                              | (21.0  | )                               |   |   |   |   | (20.7 | ) |   | (41.9 | ) |   | (41.4 | )  |
| Net                periodic benefit expense        |   | $                                 | 12.6   |                            |   |   |   | $ | 10.1 |   | $ | 27.3 |   | $ | 20.1 |   |

----

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

**7.              **
**Employee      Benefit Plans and Postretirement Benefits Other Than Pensions,      Continued:**

|                                                 |   |                              |   |                            |
|------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|
|                                                 |   | Three                Months Ended |   | Six                Months Ended |
| (Millions)                                           |   | 2006                              |   | 2005                            |   | 2006 |   | 2005 |
| Benefits                earned during the year       |   | $                                 | 0.1    |                            | $ | 0.1 |   | $ | 0.2 |   | $ | 0.2 |
| Interest                cost on benefit obligation   |   |                              | 3.4    |                            |   | 3.5 |   |   | 6.7 |   |   | 7.0 |
| Amortization                of transition obligation |   |                              | 0.2    |                            |   | 0.2 |   |   | 0.4 |   |   | 0.4 |
| Amortization                of prior service cost    |   |                              | 0.4    |                            |   | 0.5 |   |   | 0.9 |   |   | 1.0 |
| Recognized                net actuarial loss         |   |                              | 1.6    |                            |   | 1.7 |   |   | 3.2 |   |   | 3.4 |
| Expected                return on plan assets        |   |                              | -      |                            |   | - |   |   | - |   |   | - |
| Net                periodic benefit expense          |   | $                                 | 5.7    |                            | $ | 6.0 |   | $ | 11.4 |   | $ | 12.0 |

**8.         **
**Integration      Expenses and Other Charges:**

|                                                                         |
|------------------------------------------------------------------------------|
| (Millions)                                                                   |   | Wireless |   | Wireline |   | Total |
| Rebranding                and signage costs                                  |   | $ | 8.3 |   | $ | - |   | $ | 8.3 |
| Computer                system conversion and other integration expenses     |   |   | 2.5 |   |   | - |   |   | 2.5 |
| Costs                associated with pending spin off of wireline operations |   |   | - |   |   | 20.7 |   |   | 20.7 |
| Total                integration expenses and other charges                  |   | $ | 10.8 |   | $ | 20.7 |   | $ | 31.5 |

|                                                                             |   |
|----------------------------------------------------------------------------------|--------|
| (Millions)                                                                       |   |   |   |
| Balance,                beginning of period                                      |   | $ | 29.7 |   |
| Integration                expenses and other charges recorded during the period |   |   | 31.5 |   |
| Non-cash                portion of integration expenses and other charges        |   |   | (0.7 | )  |
| Cash                outlays during the period                                    |   |   | (32.2 | )  |
| Balance,                end of period                                            |   | $ | 28.3 |   |

----

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

**9.              **
**Investments      - Special Dividend:**

**10.         **Gain    on Exchange or Disposal of Assets and    Other:****
**11.       **
**Discontinued      Operations:**

----

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

**11.      **
**Discontinued      Operations, Continued:**

|                                                                |   |                                             |   |                                 |   |
|---------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------------------------------------|--------|
| (Millions)                                                          |   | Three                Months                Ended |   | Six                Months Ended |   |
| Revenues                and sales                                   |   | $                                                | 72.2   |                                 | $      | 278.6 |   |
| Operating                expenses                                   |   |                                             | 62.0   |                                 |   | 216.6 |   |
| Operating                income                                     |   |                                             | 10.2   |                                 |   | 62.0 |   |
| Minority                interest expense in unconsolidated entities |   |                                             | (1.5   | )                                    |   | (6.0 | )  |
| Loss                on sale of discontinued operations              |   |                                             | (14.8  | )                                    |   | (14.8 | )  |
| Other                expense, net (a)                               |   |                                             | (0.2   | )                                    |   | (0.9 | ) |
| Pretax                income (loss) from discontinued operations    |   |                                             | (6.3   | )                                    |   | 40.3 |   |
| Income                tax expense (benefit)                         |   |                                             | 2.3    |                                 |   | 31.1 |   |
| Income                (loss) from discontinued operations           |   | $                                                | (8.6   | )                                    | $      | 9.2 |   |

| (a) | Except                for a $50.0 million credit facility agreement with the Overseas Private                Investment Corporation that was assumed by the buyer of the Bolivian                operations, Alltel had no outstanding indebtedness directly related                to the                international operations that were acquired from Western Wireless,                and                accordingly, no additional interest expense was allocated to discontinued                operations for the period                presented. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**12.      **
**Other      Comprehensive Income (Loss):**

|                                                                   |   |                              |   |                            |   |
|------------------------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
|                                                                   |   | Three                Months Ended |   | Six                Months Ended |   |
| (Millions)                                                             |   | 2006                              |   | 2005                            |   | 2006 |   | 2005 |   |   |
| Other                comprehensive income (loss):                      |   |                              |   |                            |   |   |   |   |   |   |
| Unrealized                holding gains (losses) on investments:       |   |                              |   |                            |   |   |   |   |   |   |
| Unrealized                holding gains (losses) arising in the period |   | $                                 | 11.8   |                            | $      | (18.4 | ) | $ | 24.2 |   | $ | (161.0 | ) |
| Income                tax expense (benefit)                            |   |                              | 4.1    |                            |   | (6.5 | ) |   | 8.5 |   |   | (56.4 | ) |
|                                                                   |   |                              | 7.7    |                            |   | (11.9 | ) |   | 15.7 |   |   | (104.6 | ) |
| Reclassification                adjustments for gains included         |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| in                net income for the period                            |   |                              | -      |                            |   | (75.8 | ) |   | - |   |   | (75.8 | ) |
| Income                tax expense                                      |   |                              | -      |                            |   | 26.5 |   |   | - |   |   | 26.5 |   |
|                                                                        |   |                              | -      |                            |   | (49.3 | ) |   | - |   |   | (49.3 | ) |
|                                                                   |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Net                unrealized gains (losses) in the period             |   |                              | 11.8   |                            |   | (94.2 | ) |   | 24.2 |   |   | (236.8 | ) |
| Income                tax expense (benefit)                            |   |                              | 4.1    |                            |   | (33.0 | ) |   | 8.5 |   |   | (82.9 | ) |
|                                                                   |   |                              | 7.7    |                            |   | (61.2 | ) |   | 15.7 |   |   | (153.9 | ) |
|                                                                   |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment:                |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Translation                adjustments for the period                  |   |                              | (19.7  | )                               |   | - |   |   | (2.1 | ) |   | - |   |
| Reclassification                adjustments for losses included        |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| in                net income for the period                            |   |                              | 4.9    |                            |   | - |   |   | 4.9 |   |   | - |   |
|                                                                   |   |                              | (14.8  | )                               |   | - |   |   | 2.8 |   |   | - |   |
|                                                                   |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss) before tax            |   |                              | (3.0   | )                               |   | (94.2 | ) |   | 27.0 |   |   | (236.8 | ) |
| Income                tax expense (benefit)                            |   |                              | 4.1    |                            |   | (33.0 | ) |   | 8.5 |   |   | (82.9 | ) |
| Other                comprehensive income (loss)                       |   | $                                 | (7.1   | )                               | $      | (61.2 | ) | $ | 18.5 |   | $ | (153.9 | ) |

----

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

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

|                                                                                                                                             |   |                              |   |                            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
|                                                                                                                                             |   | Three                Months Ended |   | Six                Months Ended |   |
| (Millions,                except per share amounts)                                                                                              |   | 2006                              |   | 2005                            |   | 2006 |   | 2005 |   |
| **Basic                earnings per share:**                                                                                                     |   |                              |   |                            |   |   |   |   |   |
| Income                from continuing operations                                                                                                 |   | $                                 | 437.5  |                            | $      | 402.1 |   | $ | 717.1 |   | $ | 715.1 |   |
| Income                (loss) from discontinued operations                                                                                        |   |                              | (8.6   | )                               |   | - |   |   | 9.2 |   |   | - |   |
| Less                preferred dividends                                                                                                          |   |                              | -      |                            |   | (0.1 | ) |   | - |   |   | (0.1 | )  |
| Net                income applicable to common shares                                                                                            |   | $                                 | 428.9  |                            | $      | 402.0 |   | $ | 726.3 |   | $ | 715.0 |   |
| Weighted                average common shares outstanding for the period                                                                         |   |                              | 388.8  |                            |   | 314.5 |   |   | 387.8 |   |   | 308.3 |   |
| Basic                earnings per share:                                                                                                         |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| From                continuing operations                                                                                                        |   |                              | $1.12  |                            |   | $1.28 |   |   | $1.85 |   |   | $2.32 |   |
| From                discontinued operations                                                                                                      |   |                              | (.02   | )                               |   | - |   |   | .02 |   |   | - |   |
| Net                income                                                                                                                        |   |                              | $1.10  |                            |   | $1.28 |   |   | $1.87 |   |   | $2.32 |   |
| **Diluted                earnings per share:**                                                                                                   |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Net                income applicable to common shares                                                                                            |   | $                                 | 428.9  |                            | $      | 402.0 |   | $ | 726.3 |   | $ | 715.0 |   |
| Adjustment                for interest expense on convertible notes, net of tax                                                                  |   |                              | 0.1    |                            |   | - |   |   | 0.2 |   |   | - |   |
| Adjustment                for convertible preferred stock dividends                                                                              |   |                              | -      |                            |   | 0.1 |   |   | - |   |   | 0.1 |   |
| Net                income applicable to common shares assuming conversion of preferred                stock                and convertible notes |   | $                                 | 429.0  |                            | $      | 402.1 |   | $ | 726.5 |   | $ | 715.1 |   |
| Weighted                average common shares outstanding for the period                                                                         |   |                              | 388.8  |                            |   | 314.5 |   |   | 387.8 |   |   | 308.3 |   |
| Increase                in shares resulting from:                                                                                                |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Assumed                exercise of stock options                                                                                                 |   |                              | 0.9    |                            |   | 1.0 |   |   | 1.1 |   |   | 1.0 |   |
| Assumed                conversion of convertible notes                                                                                           |   |                              | 0.5    |                            |   | - |   |   | 0.8 |   |   | - |   |
| Assumed                conversion of preferred stock                                                                                             |   |                              | 0.2    |                            |   | 0.2 |   |   | 0.2 |   |   | 0.2 |   |
| Non-vested                restricted stock awards                                                                                                |   |                              | 0.1    |                            |   | 0.1 |   |   | 0.1 |   |   | 0.1 |   |
| Weighted                average common shares assuming conversion                                                                                |   |                              | 390.5  |                            |   | 315.8 |   |   | 390.0 |   |   | 309.6 |   |
| Diluted                earnings per share:                                                                                                       |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| From                continuing operations                                                                                                        |   |                              | $1.12  |                            |   | $1.27 |   |   | $1.84 |   |   | $2.31 |   |
| From                discontinued operations                                                                                                      |   |                              | (.02   | )                               |   | - |   |   | .02 |   |   | - |   |
| Net                income                                                                                                                        |   |                              | $1.10  |                            |   | $1.27 |   |   | $1.86 |   |   | $2.31 |   |

----

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

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

|                                                           |   | Three                Months Ended |    | Six                Months Ended |   |
|----------------------------------------------------------------|--------|-----------------------------------|---------|---------------------------------|--------|
| (Millions)                                                     |   | 2006                              |    | 2005                            |   | 2006 |   | 2005 |   |
| **Revenues                and Sales from External Customers:** |   |                              |    |                            |   |   |   |   |   |
| Wireless                                                       |   | $                                 | 1,857.5 |                            | $      | 1,453.8 |   | $ | 3,613.4 |   | $ | 2,804.2 |   |
| Wireline                                                       |   |                              | 537.1   |                            |   | 555.9 |   |   | 1,074.1 |   |   | 1,111.9 |   |
| Communications                support services                 |   |                              | 217.7   |                            |   | 192.8 |   |   | 408.7 |   |   | 356.7 |   |
| Total                business segments                         |   | $                                 | 2,612.3 |                            | $      | 2,202.5 |   | $ | 5,096.2 |   | $ | 4,272.8 |   |
|                                                           |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| **Intersegment                Revenues and Sales:**            |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| Wireless                                                       |   | $                                 | 1.6     |                            | $      | 1.5 |   | $ | 3.1 |   | $ | 3.1 |   |
| Wireline                                                       |   |                              | 43.9    |                            |   | 39.2 |   |   | 82.3 |   |   | 76.8 |   |
| Communications                support services                 |   |                              | 69.0    |                            |   | 68.4 |   |   | 128.9 |   |   | 129.2 |   |
| Total                business segments                         |   | $                                 | 114.5   |                            | $      | 109.1 |   | $ | 214.3 |   | $ | 209.1 |   |
|                                                           |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| **Total                Revenues and Sales:**                   |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| Wireless                                                       |   | $                                 | 1,859.1 |                            | $      | 1,455.3 |   | $ | 3,616.5 |   | $ | 2,807.3 |   |
| Wireline                                                       |   |                              | 581.0   |                            |   | 595.1 |   |   | 1,156.4 |   |   | 1,188.7 |   |
| Communications                support services                 |   |                              | 286.7   |                            |   | 261.2 |   |   | 537.6 |   |   | 485.9 |   |
| Total                business segments                         |   |                              | 2,726.8 |                            |   | 2,311.6 |   |   | 5,310.5 |   |   | 4,481.9 |   |
| Less                intercompany eliminations                  |   |                              | (53.1   | )                               |   | (51.5 | ) |   | (97.1 | ) |   | (95.8 | ) |
| Total                revenues and sales                        |   | $                                 | 2,673.7 |                            | $      | 2,260.1 |   | $ | 5,213.4 |   | $ | 4,386.1 |   |

| **Segment                Income:**                                   |   |   |   |   |   |   |   |   |    |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|
| Wireless                                                             |   | $      | 392.1  |   | $      | 321.6  |   | $      | 747.6   |   | $ | 606.9 |   |
| Wireline                                                             |   |   | 235.4  |   |   | 215.3  |   |   | 462.0   |   |   | 429.8 |   |
| Communications                support services                       |   |   | 31.0   |   |   | 11.6   |   |   | 52.5    |   |   | 23.5 |   |
| Total                segment income                                  |   |   | 658.5  |   |   | 548.5  |   |   | 1,262.1 |   |   | 1,060.2 |   |
| Corporate                expenses                                    |   |   | (54.6  | )      |   | (26.3  | )      |   | (109.5  | ) |   | (68.7 | ) |
| Integration                expenses and other charges                |   |   | (12.0  | )      |   | -      |   |   | (31.5   | ) |   | - |   |
| Equity                earnings in unconsolidated partnerships        |   |   | 15.4   |   |   | 15.2   |   |   | 28.3    |   |   | 25.9 |   |
| Minority                interest in consolidated partnerships        |   |   | (11.5  | )      |   | (18.9  | )      |   | (25.4   | ) |   | (37.2 | ) |
| Other                income, net                                     |   |   | 21.1   |   |   | 8.0    |   |   | 33.0    |   |   | 128.7 |   |
| Interest                expense                                      |   |   | (90.6  | )      |   | (76.3  | )      |   | (179.6  | ) |   | (163.0 | ) |
| Gain                on exchange or disposal of assets and other      |   |   | 176.6  |   |   | 188.3  |   |   | 176.6   |   |   | 188.3 |   |
| Income                from continuing operations before income taxes |   | $      | 702.9  |   | $      | 638.5  |   | $      | 1,154.0 |   | $ | 1,134.2 |   |

----

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

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

|                                                                   |   | June                30, , |     | December                31,,  |         |
|------------------------------------------------------------------------|--------|---------------------------|----------|------------------------------------|--------------|
| (Millions)                                                             |   | 2006            |     | 2005                     |    |
| Wireless                                                               |   | $                         | 15,570.4 |                               | $            | 15,416.3 |   |
| Wireline                                                               |   |                      | 5,054.0  |                               |         | 4,878.6 |   |
| Communications                support services                         |   |                      | 468.7    |                               |         | 533.5 |   |
| Total                business segments                                 |   |                      | 21,093.1 |                               |         | 20,828.4 |   |
| Corporate                headquarters assets not allocated to segments |   |                      | 2,867.5  |                               |         | 1,270.1 |   |
| Assets                held for sale                                    |   |                      | -        |                               |         | 1,951.2 |   |
| Less                elimination of intersegment receivables            |   |                      | (27.0    | )                                  |         | (36.6 | ) |
| Total                consolidated assets                               |   | $                         | 23,933.6 |                               | $            | 24,013.1 |   |

|                                                           |   | Three                Months Ended |   | Six                Months Ended |   |
|----------------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
| (Millions)                                                     |   | 2006                              |   | 2005                            |   | 2006 |   | 2005 |   |
| **Revenues                and Sales from External Customers:** |   |                              |   |                            |   |   |   |   |   |
| Product                distribution                            |   | $                                 | 115.1  |                            | $      | 96.3 |   | $ | 224.0 |   | $ | 183.9 |   |
| Long-distance                and network management services   |   |                              | 53.0   |                            |   | 48.8 |   |   | 106.6 |   |   | 95.8 |   |
| Directory                publishing                            |   |                              | 45.5   |                            |   | 44.2 |   |   | 70.0 |   |   | 68.3 |   |
| Telecommunications                information services         |   |                              | 4.1    |                            |   | 3.5 |   |   | 8.1 |   |   | 8.7 |   |
| Total                                                          |   | $                                 | 217.7  |                            | $      | 192.8 |   | $ | 408.7 |   | $ | 356.7 |   |
|                                                           |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| **Intersegment                Revenues and Sales:**            |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Product                distribution                            |   | $                                 | 35.3   |                            | $      | 39.8 |   | $ | 65.9 |   | $ | 72.8 |   |
| Long-distance                and network management services   |   |                              | 30.5   |                            |   | 25.5 |   |   | 57.9 |   |   | 51.1 |   |
| Directory                publishing                            |   |                              | 3.2    |                            |   | 3.1 |   |   | 5.1 |   |   | 5.3 |   |
| Telecommunications                information services         |   |                              | -      |                            |   | - |   |   | - |   |   | - |   |
| Total                                                          |   | $                                 | 69.0   |                            | $      | 68.4 |   | $ | 128.9 |   | $ | 129.2 |   |
|                                                           |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| **Total                Revenues and Sales:**                   |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Product                distribution                            |   | $                                 | 150.4  |                            | $      | 136.1 |   | $ | 289.9 |   | $ | 256.7 |   |
| Long-distance                and network management services   |   |                              | 83.5   |                            |   | 74.3 |   |   | 164.5 |   |   | 146.9 |   |
| Directory                publishing                            |   |                              | 48.7   |                            |   | 47.3 |   |   | 75.1 |   |   | 73.6 |   |
| Telecommunications                information services         |   |                              | 4.1    |                            |   | 3.5 |   |   | 8.1 |   |   | 8.7 |   |
| Total                revenues and sales                        |   | $                                 | 286.7  |                            | $      | 261.2 |   | $ | 537.6 |   | $ | 485.9 |   |

**15.           **
**Pending      Acquisition of Wireless Properties:**

**16.      **
**Subsequent      Events:**

----

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

**16.      **
**Subsequent      Events, Continued:**

----

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

**16.      **
**Subsequent      Events, Continued:**

|                                                          |   |                                                                               |                                     |                                                                                                                  |
|---------------------------------------------------------------|--------|------------------------------------------------------------------------------------|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|                                                          |   |                         Three Months Ended |                                     |                                Six Months Ended |
| (Millions,                except per share amounts)           |   | 2006                                                                               |                                     | 2005                                                                                                                  |   | 2006 |   | 2005 |   |   |
| Revenues                and sales                             |   |                                                                               | $                1,945.3                 |                                                                                                                  |   | $                1,526.0 |   |   | $                3,788.5 |   |   | $                2,942.3 |
| Operating                income                               |   |                                                                               | $                   343.9 |                                                                                                                  |   | $                   291.0 |   |   | $                   635.8 |   |   | $                   528.5 |
| Income                for continuing operations               |   |                                                                               | $                   288.4 |                                                                                                                  |   | $                   259.9 |   |   | $                   422.6 |   |   | $                   433.5 |
| Earnings                per share from continuing operations: |   |                                                                               |                                     |                                                                                                                  |   |   |   |   |   |   |   |   |
| Basic                earnings per share                       |   |                                                                               | $.74                                     |                                                                                                                  |   | $.83 |   |   | $1.09 |   |   | $1.41 |
| Diluted                earning per share                      |   |                                                                               | $.74                                     |                                                                                                                  |   | $.82 |   |   | $1.08 |   |   | $1.40 |

|                                                            |   |   |
|-----------------------------------------------------------------|--------|--------|
| (Millions)                                                      |   |   |
| Current                assets                                   |   | $      | 5,871.5 |
| Goodwill                and other intangible assets             |   |   | 9,719.5 |
| Property,                plant and equipment, net               |   |   | 4,969.1 |
| Investments                and other assets                     |   |   | 446.8 |
| Total                assets                                     |   | $      | 21,006.9 |
| Current                liabilities                              |   | $      | 2,257.1 |
| Long-term                debt                                   |   |   | 3,035.6 |
| Other                liabilities                                |   |   | 1,844.5 |
| Total                liabilities                                |   |   | 7,137.2 |
| Shareholders’                equity                       |   |   | 13,869.7 |
| Total                liabilities and shareholders’ equity |   | $      | 21,006.9 |

----

**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 28 percent over 2005 primarily reflecting                the                effects of Alltel’s August 1, 2005 acquisition of Western Wireless                Corporation (“Western Wireless”). Excluding the effects of acquisitions,                wireless revenues and sales increased 10 percent from a year ago                driven by                Alltel’s continued focus on quality customer growth, improvements in data                revenues and additional Eligible Telecommunications Carrier (“ETC”)                subsidies. Average revenue per customer increased 4 percent from                a year                ago to $52.54, while retail revenue per customer increased to $47.57,                a 2                percent increase from a year ago. Retail minutes of use per wireless                customer per month increased to 638 minutes, an 8 percent increase                from                the same period of 2005. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Wireless                gross customer additions were 883,000 in the quarter, and net customer                additions were 258,000. Within its non-acquired or heritage markets,                gross                customer additions increased 30 percent compared to the second quarter                of                2005. In its heritage markets, Alltel added 97,000 net postpay wireless                customers and added 19,000 net prepaid customers during the second                quarter                of 2006. In the former Western Wireless markets, Alltel added                approximately 30,000 net customers during the second quarter of 2006.                Wireless postpay churn decreased 11 basis points from the same period                a                year ago to 1.47 percent, while total churn declined 8 basis points                year-over-year to 1.91 percent. In Alltel’s heritage markets, postpay                churn declined 10 basis points year-over-year to 1.46                percent. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Wireless                segment income increased 22 percent from a year ago, primarily reflecting                the acquisition-related growth in revenues and sales noted above.                Growth                in wireless segment income was affected by additional customer acquisition                costs due to the significant increase in gross customer additions                noted                above. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                its wireline business, Alltel added 40,000 broadband customers, increasing                Alltel’s broadband customer base to more than 481,000. During the quarter,                the Company lost approximately 31,000 wireline access lines, a                year-over-year decline of 4 percent. Average revenue per wireline                customer                increased 2 percent from a year ago to $68.00 due primarily to growth                in                broadband revenues. Although wireline revenues and sales decreased                2                percent from a year ago, wireline segment income increased 9 percent                year-over-year, primarily due to a reduction in depreciation rates                for                Alltel’s Alabama, Florida, Georgia, North Carolina, Pennsylvania, and                South Carolina operations, reflecting the results of studies of                depreciable lives completed by Alltel during the second half of 2005                and                in the first six months of 2006. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**ACQUISITIONS**

----

| **CONSOLIDATED                RESULTS OF OPERATIONS**                 |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   | Three                Months Ended |   | Six                Months Ended |   |
|                                                                  |   | June                30, |   | June                30, |   |
| (Millions,                except per share amounts)                   |   | 2006 |   | 2005 |   | 2006 |   | 2005 |   |
| Revenues                and sales:                                    |   |   |   |   |   |   |   |   |   |
| Service                revenues                                       |   | $ | 2,334.6 |   | $ | 1,989.2 |   | $ | 4,582.3 |   | $ | 3,887.5 |   |
| Product                sales                                          |   |   | 339.1 |   |   | 270.9 |   |   | 631.1 |   |   | 498.6 |   |
| Total                revenues and sales                               |   |   | 2,673.7 |   |   | 2,260.1 |   |   | 5,213.4 |   |   | 4,386.1 |   |
| Costs                and expenses:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of services                                       |   |   | 762.4 |   |   | 660.9 |   |   | 1,494.1 |   |   | 1,287.2 |   |
| Cost                of products sold                                  |   |   | 384.7 |   |   | 308.1 |   |   | 740.5 |   |   | 589.9 |   |
| Selling,                general, administrative and other             |   |   | 510.8 |   |   | 420.6 |   |   | 1,009.8 |   |   | 828.0 |   |
| Depreciation                and amortization                          |   |   | 411.9 |   |   | 348.3 |   |   | 816.4 |   |   | 689.5 |   |
| Integration                expenses and other charges                 |   |   | 12.0 |   |   | - |   |   | 31.5 |   |   | - |   |
| Total                costs and expenses                               |   |   | 2,081.8 |   |   | 1,737.9 |   |   | 4,092.3 |   |   | 3,394.6 |   |
| Operating                income                                       |   |   | 591.9 |   |   | 522.2 |   |   | 1,121.1 |   |   | 991.5 |   |
| Non-operating                income, net                              |   |   | 25.0 |   |   | 4.3 |   |   | 35.9 |   |   | 117.4 |   |
| Interest                expense                                       |   |   | (90.6 | ) |   | (76.3 | ) |   | (179.6 | ) |   | (163.0 | ) |
| Gain                on exchange or disposal of assets and other       |   |   | 176.6 |   |   | 188.3 |   |   | 176.6 |   |   | 188.3 |   |
| Income                from continuing operations before income taxes  |   |   | 702.9 |   |   | 638.5 |   |   | 1,154.0 |   |   | 1,134.2 |   |
| Income                taxes                                           |   |   | 265.4 |   |   | 236.4 |   |   | 436.9 |   |   | 419.1 |   |
| Income                from continuing operations                      |   |   | 437.5 |   |   | 402.1 |   |   | 717.1 |   |   | 715.1 |   |
| Income                (loss) from discontinued operations, net of tax |   |   | (8.6 | ) |   | - |   |   | 9.2 |   |   | - |   |
| Net                income                                             |   | $ | 428.9 |   | $ | 402.1 |   | $ | 726.3 |   | $ | 715.1 |   |
| Basic                earnings per share:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                      |   |   | $1.12 |   |   | $1.28 |   |   | $1.85 |   |   | $2.32 |   |
| Income                (loss) from discontinued operations             |   |   | (.02 | ) |   | - |   |   | .02 |   |   | - |   |
| Net                income                                             |   |   | $1.10 |   |   | $1.28 |   |   | $1.87 |   |   | $2.32 |   |
| Diluted                earnings per share:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                      |   |   | $1.12 |   |   | $1.27 |   |   | $1.84 |   |   | $2.31 |   |
| Income                (loss) from discontinued operations             |   |   | (.02 | ) |   | - |   |   | .02 |   |   | - |   |
| Net                income                                             |   |   | $1.10 |   |   | $1.27 |   |   | $1.86 |   |   | $2.31 |   |

----

----

----

|                                                                         |
|------------------------------------------------------------------------------|
| (Millions)                                                                   |   | Wireless |   | Wireline |   | Total |
| Rebranding                and signage costs                                  |   | $ | 8.3 |   | $ | - |   | $ | 8.3 |
| Computer                system conversion and other integration expenses     |   |   | 2.5 |   |   | - |   |   | 2.5 |
| Costs                associated with pending spin off of wireline operations |   |   | - |   |   | 20.7 |   |   | 20.7 |
| Total                integration expenses and other charges                  |   | $ | 10.8 |   | $ | 20.7 |   | $ | 31.5 |

| Non-Operating                Income, Net                      |   |                              |   |                       |   |   |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|
|                                                          |   | Three                Months Ended |   | Six                Months Ended |   |
|                                                          |   | June                30,           |   | June                30,         |   |
| (Millions)                                                    |   | 2006                              |   |  2005                      |   | 2006   |   | 2005   |   |
| Equity                earnings in unconsolidated partnerships |   | $                                 | 15.4   |                            | $      | 15.2   |   | $      | 28.3   |   | $ | 25.9 |   |
| Minority                interest in consolidated partnerships |   |                              | (11.5  | )                               |   | (18.9  | )      |   | (25.4  | ) |   | (37.2 | ) |
| Other                income, net                              |   |                              | 21.1   |                            |   | 8.0    |   |   | 33.0   |   |   | 128.7 |   |
| Non-operating                income, net                      |   | $                                 | 25.0   |                            | $      | 4.3    |   | $      | 35.9   |   | $ | 117.4 |   |

----

----

|                                                                |   |                                             |   |                                 |   |
|---------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------------------------------------|--------|
| (Millions)                                                          |   | Three                Months                Ended |   | Six                Months Ended |   |
| Revenues                and sales                                   |   | $                                                | 72.2   |                                 | $      | 278.6 |   |
| Operating                expenses                                   |   |                                             | 62.0   |                                 |   | 216.6 |   |
| Operating                income                                     |   |                                             | 10.2   |                                 |   | 62.0 |   |
| Minority                interest expense in unconsolidated entities |   |                                             | (1.5   | )                                    |   | (6.0 | ) |
| Loss                on sale of discontinued operations              |   |                                             | (14.8  | )                                    |   | (14.8 | ) |
| Other                expense, net                                   |   |                                             | (0.2   | )                                    |   | (0.9 | ) |
| Pretax                income from (loss) discontinued operations    |   |                                             | (6.3   | )                                    |   | 40.3 |   |
| Income                tax expense                                   |   |                                             | 2.3    |                                 |   | 31.1 |   |
| Income                (loss) from discontinued operations           |   | $                                                | (8.6   | )                                    | $      | 9.2 |   |

----

**RESULTS      OF OPERATIONS BY BUSINESS SEGMENT**

| Communications-Wireless                Operations               |   |                              |     |                            |   |
|-----------------------------------------------------------------|--------|-----------------------------------|----------|---------------------------------|--------|
|                                                            |   | Three                Months Ended |     | Six                Months Ended |   |
|                                                            |   | June                30,           |     | June                30,         |   |
| (Millions,                customers in thousands)               |   | 2006                              |     | 2005                            |   | 2006 |   | 2005 |   |
| Revenues                and sales:                              |   |                              |     |                            |   |   |   |   |   |
| Service                revenues                                 |   | $                                 | 1,726.3  |                            | $      | 1,371.1 |   | $ | 3,365.1 |   | $ | 2,645.5 |   |
| Product                sales                                    |   |                              | 132.8    |                            |   | 84.2 |   |   | 251.4 |   |   | 161.8 |   |
| Total                revenues and sales                         |   |                              | 1,859.1  |                            |   | 1,455.3 |   |   | 3,616.5 |   |   | 2,807.3 |   |
| Costs                and expenses:                              |   |                              |     |                            |   |   |   |   |   |   |   |   |   |
| Cost                of services                                 |   |                              | 573.7    |                            |   | 453.8 |   |   | 1,111.6 |   |   | 859.5 |   |
| Cost                of products sold                            |   |                              | 213.8    |                            |   | 150.3 |   |   | 418.2 |   |   | 299.1 |   |
| Selling,                general, administrative and other       |   |                              | 424.2    |                            |   | 331.8 |   |   | 837.3 |   |   | 654.2 |   |
| Depreciation                                                    |   |                              | 255.2    |                            |   | 197.8 |   |   | 501.7 |   |   | 387.6 |   |
| Total                costs and expenses                         |   |                              | 1,466.9  |                            |   | 1,133.7 |   |   | 2,868.8 |   |   | 2,200.4 |   |
| Segment                income                                   |   | $                                 | 392.2    |                            | $      | 321.6 |   | $ | 747.7 |   | $ | 606.9 |   |
| Customers                                                       |   |                              | 11,085.1 |                            |   | 9,067.5 |   |   | - |   |   | - |   |
| Average                customers                                |   |                              | 10,951.3 |                            |   | 9,040.3 |   |   | 10,838.9 |   |   | 8,869.9 |   |
| Gross                customer additions (a)                     |   |                              | 882.6    |                            |   | 805.6 |   |   | 1,688.1 |   |   | 1,529.3 |   |
| Net                customer additions (a)                       |   |                              | 258.1    |                            |   | 266.2 |   |   | 422.8 |   |   | 441.0 |   |
| Market                penetration                               |   |                              | 14.2     | %                               |   | 13.7 | % |   | - |   |   | - |   |
| Postpay                customer churn                           |   |                              | 1.47     | %                               |   | 1.58 | % |   | 1.56 | % |   | 1.65 | % |
| Total                churn                                      |   |                              | 1.91     | %                               |   | 1.99 | % |   | 1.95 | % |   | 2.05 | % |
| Retail                minutes of use per customer per month (b) |   |                              | 638      |                            |   | 593 |   |   | 620 |   |   | 571 |   |
| Retail                revenue per customer per month (c)        |   |                              | $47.57   |                            |   | $46.42 |   |   | $46.91 |   |   | $45.89 |   |
| Average                revenue per customer per month (d)       |   |                              | $52.54   |                            |   | $50.55 |   |   | $51.74 |   |   | $49.71 |   |
| Cost                to acquire a new customer (e)               |   |                              | $374     |                            |   | $355 |   |   | $363 |   |   | $329 |   |

| (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 six month periods ended June                30: |

|                                   |   |                              |    |                            |   |
|----------------------------------------|--------|-----------------------------------|---------|---------------------------------|--------|
|                                   |   | Three                Months Ended |    | Six                Months Ended |   |
| (Millions)                             |   | 2006                              |    | 2005                            |   | 2006 |   | 2005 |   |
| Service                revenues        |   | $                                 | 1,726.3 |                            | $      | 1,371.1 |   | $ | 3,365.1 |   | $ | 2,645.5 |   |
| Less                wholesale revenues |   |                              | (163.6  | )                               |   | (112.2 | ) |   | (314.6 | ) |   | (203.3 | ) |
| Total                retail revenues   |   | $                                 | 1,562.7 |                            | $      | 1,258.9 |   | $ | 3,050.5 |   | $ | 2,442.2 |   |

| (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 six month periods ended June                30: |

|                                                            |   |                              |   |                            |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
|                                                            |   | Three                Months Ended |   | Six                Months Ended |   |
| (Millions,                customers in thousands)               |   | 2006                              |   | 2005                            |   | 2006 |   | 2005 |   |
| Product                sales                                    |   | $                                 | (72.6  | )                               | $      | (51.0 | ) | $ | (137.8 | ) | $ | (100.9 | ) |
| Cost                of products sold                            |   |                              | 96.9   |                            |   | 62.5 |   |   | 192.0 |   |   | 132.2 |   |
| Sales                and marketing expense                      |   |                              | 263.9  |                            |   | 198.9 |   |   | 517.6 |   |   | 383.9 |   |
| Total                costs incurred to acquire new customers    |   | $                                 | 288.2  |                            | $      | 210.4 |   | $ | 571.8 |   | $ | 415.2 |   |
| Gross                customer additions, excluding acquisitions |   |                              | 770.6  |                            |   | 593.0 |   |   | 1,576.1 |   |   | 1,262.7 |   |
| Cost                to acquire a new customer                   |   |                              | $374   |                            |   | $355 |   |   | $363 |   |   | $329 |   |

----

----

----

----

|                                                                     |   |                   |   |
|--------------------------------------------------------------------------|--------|------------------------|--------|
| (Millions)                                                               |   |                   |   |
| Rebranding                and signage costs                              |   | $   8.3 |
| Computer                system conversion and other integration expenses |   | 2.5                    |
| Total                integration expenses and other charges              |   | $                10.8  |

----

----

----

----

| Communications-Wireline              Operations                   |   |   |                                         |   |   |                                       |
|-------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|--------------------------------------------|
|                                                              |   |   | Three Months                Ended  |   |   | Six Months                Ended  |
|                                                              |   |   | June 30,                                |   |   | June 30,                              |
| (Millions,                access lines in thousands)              |   |   | 2006                                         |   |   | 2005                                       |   |   | 2006 |   | 2005 |
| Revenues                and sales:                                |   |   |                                         |   |   |                                       |   |   |   |   |   |
| Local                service                                      |   | $      | 258.7                                        |   | $      | 272.8                                      |   | $ | 520.6 |   | $                                   545.5 |
| Network                access and long-distance                   |   |   | 253.7                                        |   |   | 257.1                                      |   |   | 505.9 |  | 518.0 |
| Miscellaneous                                                     |   |   | 68.6                                         |   |   | 65.2                                       |   |   | 129.9 |   | 125.2 |
| Total                revenues and sales                           |   |   | 581.0                                        |   |   | 595.1                                      |   |   | 1,156.4 |   | 1,188.7 |
| Costs                and expenses:                                |   |   |                                         |   |   |                                       |   |   |   |   |   |
| Cost                of services                                   |   |   | 173.4                                        |   |   | 182.7                                      |   |   | 349.3 |   | 363.7 |
| Cost                of products sold                              |   |   |  8.4                                    |   |   | 9.0                                        |   |   | 15.7 |   | 16.0 |
| Selling,                general, administrative and other         |   |   | 63.2                                         |   |   | 62.7                                       |   |   | 125.2 |   | 126.5 |
| Depreciation                and amortization                      |   |   | 100.6                                        |   |   | 125.4                                      |   |   | 204.2 |   | 252.7 |
| Total                costs and expenses                           |   |   | 345.6                                        |   |   | 379.8                                      |   |   |                  694.4 |   |                  758.9 |
| Segment                income                                     |   | $      | 235.4                                        |   | $      | 215.3                                      |   | $ | 462.0 |   | $                                   429.8 |
| Access                lines in service (excludes broadband lines) |   |   | 2,831.7                                      |   |   | 2,953.0                                    |   |   | - |   | - |
| Average                access lines in service                    |   |   | 2,847.7                                      |   |   | 2,968.0                                    |   |   | 2,859.9 |   | 2,981.1 |
| Average                revenue per customer per month (a)         |   |   | $68.00                                       |   |   | $66.83                                     |   |   | $67.39 |   | $66.46 |

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

----

----

| q   | Level                of competition in its markets. Sources of competition to Alltel’s local                exchange business included, but were 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                began to experience competition in their local service areas. Through                June                30, 2006, this competition did not have a material adverse effect                on the                results of operations of Alltel’s ILEC operations, primarily because these                subsidiaries provided wireline telecommunications services in mostly                rural                areas. Through the date of the spin off, Alltel’s ILEC subsidiaries had                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 followed SFAS No. 71, all                interstate revenues were subject to rate-of-return regulation. The                majority of the ILEC subsidiaries’ remaining intrastate revenues were                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. Through the date of the                spin                off, the prices charged to customers for interstate and intrastate                services continued to be sufficient to recover the specific costs                of the                ILEC subsidiaries in providing these services to                customers. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Communications              Support Services                 |   |                              |    |                                 |   |    |   |   |       |
|--------------------------------------------------------------|--------|-----------------------------------|---------|--------------------------------------|--------|---------|--------|--------|------------|
|                                                         |   | Three                Months Ended |    | Six Months                Ended |   |
|                                                         |   | June 30,                     |    | June 30,                        |   |
| (Millions,                except customers in thousands)     |   | 2006                              |    | 2005                                 |   | 2006    |   | 2005   |       |
| Revenues                and sales:                           |   |                              |    |                                 |   |    |   |   |       |
| Product                distribution                          |   | $                                 | 150.4   |                                 | $      | 136.1   |   | $      | 289.9      |   | $ | 256.7 |   |
| Long-distance                and network management services |   |                              | 83.5    |                                 |   | 74.3    |   |   | 164.5      |   |   | 146.9 |   |
| Directory                publishing                          |   |                              | 48.7    |                                 |   | 47.3    |   |   |  75.1 |   |   |  73.6 |   |
| Telecommunications                information services       |   |                              | 4.1     |                                 |   | 3.5     |   |   |  8.1  |   |   |  8.7 |   |
| Total                revenues and sales                      |   |                              | 286.7   |                                 |   | 261.2   |   |   | 537.6      |   |   | 485.9 |   |
| Costs                and expenses:                           |   |                              |    |                                 |   |    |   |   |       |   |   |   |   |
| Cost                of services                              |   |                              | 60.9    |                                 |   | 62.8    |   |   | 118.8      |   |   | 119.1 |   |
| Cost                of products sold                         |   |                              | 171.7   |                                 |   | 161.3   |   |   | 319.3      |   |   | 294.4 |   |
| Selling,                general, administrative and other    |   |                              | 15.8    |                                 |   | 17.0    |   |   | 32.3       |   |   | 31.9 |   |
| Depreciation                and amortization                 |   |                              | 7.3     |                                 |   | 8.5     |   |   | 14.7       |   |   | 17.0 |   |
| Total                costs and expenses                      |   |                              | 255.7   |                                 |   | 249.6   |   |   | 485.1      |   |   | 462.4 |   |
| Segment                income                                |   | $                                 | 31.0    |                                 | $      | 11.6    |   | $      | 52.5       |   | $ | 23.5 |   |
| Long-distance                customers                       |   |                              | 1,761.7 |                                 |   | 1,779.8 |   |   | -          |   |   | - |

----

| **FINANCIAL                CONDITION, LIQUIDITY AND CAPITAL RESOURCES** |   |                            |     |   |   |
|-------------------------------------------------------------------------|--------|---------------------------------|----------|--------|--------|
|                                                                    |   | Six                Months Ended |     |
|                                                                    |   | June                30,         |     |
| (Millions,                except per share amounts)                     |   | 2006                            |     | 2005   |   |
| Cash                flows from (used in):                               |   |                            |     |   |   |
| Operating                activities                                     |   | $                               | 1,163.7  |   | $      | 1,243.6 |   |
| Investing                activities                                     |   |                            | (1,046.6 | )      |   | (449.5 | ) |
| Financing                activities                                     |   |                            | (286.3   | )      |   | 748.7 |   |
| Discontinued                operations                                  |   |                            | 1,717.3  |   |   | - |   |
| Effect                of exchange rate changes                          |   |                            | (5.9     | )      |   | - |   |
| Increase in                cash and short-term investments         |   | $                               | 1,542.2  |   | $      | 1,542.8 |   |
| Total                capital structure (a)                              |   | $                               | 19,469.2 |   | $      | 14,032.6 |   |
| Percent                of equity to total capital (b)                   |   |                            | 70.0     | %      |   | 63.1 | % |
| Book                value per share (c)                                 |   |                            | $34.94   |   |   | $27.05 |   |

| (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-2         |   |   | F1 |   |
| Long-term                debt credit rating   |   |                | A2       |                                      |   | A-          |   |   | A |   |
| Outlook                                       |   |                | Negative |                                      |   | Stable      |   |   | 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. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (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 any changes in the Company’s                internal control over financial reporting that occurred during the                period                covered by this quarterly report, and they have concluded that there                were                no changes to Alltel’s internal control over financial reporting that have                materially affected, or are reasonably likely to materially affect,                Alltel’s internal control over financial                reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| **PART                II - OTHER INFORMATION** |
|------------------------------------------------|

**Item      1A.**
**Risk      Factors**

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

| (c) | On                January 19, 2006, the Company’s Board of Directors authorized the Company                to repurchase up to $3.0 billion of its outstanding common stock                over a                three-year period ending December 31, 2008. Alltel did not repurchase                any                of its common shares during the first six months of 2006.                Accordingly, as of June 30, 2006, remaining amounts that may be purchased                under the authorization were $3.0 billion. For the period July 1,                2006                through August 7, 2006, Alltel repurchased 4.1 million of its common                shares at a cost of $223.2 million, leaving $2,776.8 million that                may be                repurchased under the                authorization. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

**Item      4.** **Submission      of Matters to a Vote of Security Holders**

| (1)    | The                election of three directors, constituting the class of the Board                of                Directors who will serve a three-year term expiring at the 2009 Annual                Meeting of Stockholders.                                                                   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                  |
|   | Nominee                                                                                                                                                                                                                                                                                               | Votes                For | Votes                Withheld |
|   | William                H. Crown                                                                                                                                                                                                                                                                       | 331,266,954 | 5,059,253 |
|   | Joe                T. Ford                                                                                                                                                                                                                                                                            | 326,952,122 | 9,374,085 |
|   | John                P. McConnell                                                                                                                                                                                                                                                                      | 328,834,413 | 7,491,794 |
|   | Josie                C. Natori                                                                                                                                                                                                                                                                        | 328,776,450 | 7,549,757 |
|   |                                                                                                                                                                                                                                                                                                  |
| (2)    | The                approval of the amended and restated Alltel Performance Incentive                Compensation Plan was approved with 322,444,937 votes for, 10,730,075                votes against and 3,151,195 abstentions.                                                                     |
|   |                                                                                                                                                                                                                                                                                                  |
| (3)    | The                approval of the amended and restated Alltel Long-Term Performance                Incentive Compensation Plan was approved with 321,821,210 votes for,                11,323,414 votes against and 3,181,583 abstentions.                                                           |
|   |                                                                                                                                                                                                                                                                                                  |
| (4)    | The                appointment of PricewaterhouseCoopers LLP to audit Alltel’s consolidated                financial statements for the year ending December 31, 2006 was ratified                with 326,869,678 votes for, 6,944,015 votes against and 2,512,514                abstentions. |

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

----

| ALLTEL                CORPORATION                                 |
|-------------------------------------------------------------------|
| (Registrant)                                                      |
|                                                              |
|                                                              |
| /s/                Sharilyn S. Gasaway                            |
| Sharilyn                S. Gasaway                                |
| Executive                Vice President - Chief Financial Officer |
| (Principal                Financial Officer)                      |
| August                8, 2006                                     |

----

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

| Form                10-Q   |                                                                                                                                                                                            |   |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit                No. | Description                of Exhibits                                                                                                                                                          |   |
|                       |                                                                                                                                                                                            |   |
| 10(j)(16)                  | Amendment                No. 15 to Alltel Corporation Pension Plan (January 1, 2001                Restatement).                                                                                | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(k)(9)                   | Amendment                No. 8 to Alltel Corporation Profit Sharing Plan (January 1, 2002                Restatement).                                                                          | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(k)(10)                  | Amendment                No. 9 to Alltel Corporation Profit Sharing Plan (January 1, 2002                Restatement).                                                                          | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(n)(11)                  | Amendment                No. 10 to Alltel Corporation 401(k) Plan (January 1, 2001                Restatement).                                                                                 | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(n)(12)                  | Amendment                No. 11 to Alltel Corporation 401(k) Plan (January 1, 2001                Restatement).                                                                                 | (a)    |
|                       |                                                                                                                                                                                            |   |
| 10(n)(13)                  | Amendment                No. 12 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)    |

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