|                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                        |
| 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 March                31, 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 |  21 |
| 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 |   * |
| Item                5.                         | Other                Information |   * |
| Item                6.                         | Exhibits | 49 |

----

**ALLTEL      CORPORATION**

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

| **CONSOLIDATED                BALANCE SHEETS (UNAUDITED)**                                            |   |
|-------------------------------------------------------------------------------------------------------|--------|
| (Dollars                in millions, except per share amounts)                                        |   | March                31, |   | December                31, |   |
| **Assets**                                                                                            |   | 2006 |   | 2005 |   |
| **Current                Assets:**                                                                    |   |   |   |   |   |
| Cash                and short-term investments                                                        |   | $ | 886.5 |   | $ | 989.2 |   |
| Accounts                receivable (less allowance for doubtful                                       |   |   |   |   |   |   |   |
| accounts                of $70.0 and $84.7, respectively)                                             |   |   | 1,015.0 |   |   | 1,077.2 |   |
| Inventories                                                                                           |   |   | 193.9 |   |   | 232.6 |   |
| Prepaid                expenses and other                                                             |   |   | 100.5 |   |   | 115.2 |   |
| Assets                held for sale                                                                   |   |   | 2,027.1 |   |   | 1,951.2 |   |
| Total                current assets                                                                   |   |   | 4,223.0 |   |   | 4,365.4 |   |
| Investments                                                                                           |   |   | 374.8 |   |   | 358.4 |   |
| Goodwill                                                                                              |   |   | 8,981.7 |   |   | 8,677.3 |   |
| Other                intangibles                                                                      |   |   | 2,207.6 |   |   | 2,179.1 |   |
| **Property,                Plant and Equipment:**                                                     |   |   |   |   |   |   |   |
| Land                                                                                                  |   |   | 310.1 |   |   | 298.6 |   |
| Building                and improvements                                                              |   |   | 1,237.7 |   |   | 1,211.4 |   |
| Wireline                                                                                              |   |   | 6,988.3 |   |   | 6,942.0 |   |
| Wireless                                                                                              |   |   | 6,971.0 |   |   | 6,852.6 |   |
| Information                processing                                                                 |   |   | 1,223.3 |   |   | 1,187.2 |   |
| Other                                                                                                 |   |   | 540.0 |   |   | 530.3 |   |
| Under                construction                                                                     |   |   | 412.2 |   |   | 475.4 |   |
| Total                property, plant and equipment                                                    |   |   | 17,682.6 |   |   | 17,497.5 |   |
| Less                accumulated depreciation                                                          |   |   | 9,759.6 |   |   | 9,433.9 |   |
| Net                property, plant and equipment                                                      |   |   | 7,923.0 |   |   | 8,063.6 |   |
| Other                assets                                                                           |   |   | 336.0 |   |   | 369.3 |   |
| **Total                Assets**                                                                       |   | $ | 24,046.1 |   | $ | 24,013.1 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                         |   |   |   |   |   |   |   |
| **Current                Liabilities:**                                                               |   |   |   |   |   |   |   |
| Current                maturities of long-term debt                                                   |   | $ | 205.1 |   | $ | 205.1 |   |
| Accounts                payable                                                                       |   |   | 517.2 |   |   | 645.4 |   |
| Advance                payments and customer deposits                                                 |   |   | 239.7 |   |   | 240.5 |   |
| Accrued                taxes                                                                          |   |   | 233.7 |   |   | 174.7 |   |
| Accrued                dividends                                                                      |   |   | 149.5 |   |   | 147.8 |   |
| Accrued                interest                                                                       |   |   | 79.2 |   |   | 102.5 |   |
| Current                deferred income taxes                                                          |   |   | 340.1 |   |   | 339.0 |   |
| Other                current liabilities                                                              |   |   | 262.7 |   |   | 255.4 |   |
| Liabilities                related to assets held for sale                                            |   |   | 301.7 |   |   | 294.4 |   |
| Total                current liabilities                                                              |   |   | 2,328.9 |   |   | 2,404.8 |   |
| Long-term                debt                                                                         |   |   | 5,661.9 |   |   | 5,782.9 |   |
| Deferred                income taxes                                                                  |   |   | 1,868.5 |   |   | 1,860.9 |   |
| Other                liabilities                                                                      |   |   | 891.0 |   |   | 949.0 |   |
| **Shareholders’                Equity:**                                                        |   |   |   |   |   |   |   |
| Preferred                stock, Series C, $2.06, no par value, 10,702 and 11,122                      |   |   |   |   |   |   |   |
| shares                issued and outstanding, respectively                                            |   |   | 0.3 |   |   | 0.3 |   |
| Common                stock, par value $1 per share, 1.0 billion shares                authorized,    |   |   |   |   |   |   |   |
| 388,857,700                and 383,605,936 shares issued and outstanding,                respectively |   |   | 388.9 |   |   | 383.6 |   |
| Additional                paid-in capital                                                             |   |   | 5,440.8 |   |   | 5,339.3 |   |
| Unrealized                holding gain on investments                                                 |   |   | 30.3 |   |   | 22.3 |   |
| Foreign                currency translation adjustment                                                |   |   | 14.8 |   |   | (2.8 | ) |
| Retained                earnings                                                                      |   |   | 7,420.7 |   |   | 7,272.8 |   |
| Total                shareholders’ equity                                                       |   |   | 13,295.8 |   |   | 13,015.5 |   |
| **Total                Liabilities and Shareholders’ Equity**                                   |   | $ | 24,046.1 |   | $ | 24,013.1 |   |

----

| **CONSOLIDATED                STATEMENTS OF INCOME (UNAUDITED)**              |   |
|-------------------------------------------------------------------------------|--------|
|                                                                          |   |  Three                Months |   |
|                                                                          |   |  Ended                March 31, |   |
| (Millions,                except per share amounts)                           |   |  2006 |   | 2005 |   |
| **Revenues                and sales:**                                        |   |    |   |   |   |
| Service                revenues                                               |   | $ | 2,247.7 |   | $ | 1,898.3 |   |
| Product                sales                                                  |   |   | 292.0 |   |   | 227.7 |   |
| Total                revenues and sales                                       |   |   | 2,539.7 |   |   | 2,126.0 |   |
| **Costs                and expenses:**                                        |   |   |   |   |   |   |   |
| Cost                of services (excluding depreciation of $251.3 and $241.9, |   |   |   |   |   |   |   |
| respectively,                included below)                                  |   |   | 731.7 |   |   | 626.3 |   |
| Cost                of products sold                                          |   |   | 355.8 |   |   | 281.8 |   |
| Selling,                general, administrative and other                     |   |   | 499.0 |   |   | 407.4 |   |
| Depreciation                and amortization                                  |   |   | 404.5 |   |   | 341.2 |   |
| Integration                expenses and other charges                    |   |   | 19.5 |   |   | - |   |
| Total                costs and expense                                        |   |   | 2,010.5 |   |   | 1,656.7 |   |
| **Operating                income**                                           |   |   | 529.2 |   |   | 469.3 |   |
|                                                                          |   |   |   |   |   |   |   |
| Equity                earnings in unconsolidated partnerships                 |   |   | 12.9 |   |   | 10.7 |   |
| Minority                interest in consolidated partnerships                 |   |   | (13.9 | ) |   | (18.3 | ) |
| Other                income, net                                              |   |   | 11.9 |   |   | 120.7 |   |
| Interest                expense                                               |   |   | (89.0 | ) |   | (86.7 | ) |
|                                                                          |   |   |   |   |   |   |   |
| Income                from continuing operations before income taxes          |   |   | 451.1 |   |   | 495.7 |   |
| Income                taxes                                                   |   |   | 171.5 |   |   | 182.7 |   |
|                                                                          |   |   |   |   |   |   |   |
| Income                from continuing operations                              |   |   | 279.6 |   |   | 313.0 |   |
| Discontinued                operations (net of income taxes of $28.8)         |   |   | 17.8 |   |   | - |   |
|                                                                          |   |   |   |   |   |   |   |
| Net                income                                                     |   |   | 297.4 |   |   | 313.0 |   |
| Preferred                dividends                                            |   |   | - |   |   | - |   |
| Net                income applicable to common shares                         |   | $ | 297.4 |   | $ | 313.0 |   |
| **Earnings                per share:**                                        |   |   |   |   |   |   |   |
| Basic:                                                                        |   |   |   |   |   |   |   |
| Income                from continuing operations                              |   |   | $.72 |   |   | $1.04 |   |
| Income                from discontinued operations                            |   |   | .05 |   |   | - |   |
| Net                income                                                     |   |   | $.77 |   |   | $1.04 |   |
| Diluted:                                                                      |   |   |   |   |   |   |   |
| Income                from continuing operations                              |   |   | $.72 |   |   | $1.03 |   |
| Income                from discontinued operations                            |   |   | .05 |   |   | - |   |
| Net                income                                                     |   |   | $.77 |   |   | $1.03 |   |

----

| **CONSOLIDATED                STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                       |   | Three                Months |   |   |   |
|                                                                                                                                       |   | Ended                March 31, |   |   |   |
| (Millions)                                                                                                                                 |   |   | 2006 |   |   | 2005 |   |
| **Cash                Provided from Operations:**                                                                                          |   |   |   |   |   |   |   |
| Net                income                                                                                                                  |   | $ | 297.4 |   | $ | 313.0 |   |
| Adjustments                to reconcile net income to net cash provided from                operations:                                    |   |   |   |   |   |   |   |
| Income                from discontinued operations                                                                                         |   |   | (17.8 | ) |   | - |   |
| Depreciation                and amortization                                                                                               |   |   | 404.5 |   |   | 341.2 |   |
| Provision                for doubtful accounts                                                                                             |   |   | 53.7 |   |   | 40.9 |   |
| Change                in deferred income taxes                                                                                             |   |   | 21.5 |   |   | (19.1 | ) |
| Other,                net                                                                                                                  |   |   | 11.2 |   |   | 13.6 |   |
| Changes                in operating assets and liabilities, net of effects of acquisitions                and                dispositions: |   |   |   |   |   |   |   |
| Accounts                receivable                                                                                                         |   |   | 9.3 |   |   | 16.5 |   |
| Inventories                                                                                                                                |   |   | 38.7 |   |   | 8.7 |   |
| Accounts                payable                                                                                                            |   |   | (120.5 | ) |   | 17.6 |   |
| Other                current liabilities                                                                                                   |   |   | 33.6 |   |   | 86.6 |   |
| Other,                net                                                                                                                  |   |   | 1.5 |   |   | (40.3 | ) |
| Net                cash provided from operations                                                                                           |   |   | 733.1 |   |   | 778.7 |   |
| **Cash                Flows from Investing Activities:**                                                                                   |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                                                                  |   |   | (213.7 | ) |   | (254.9 | ) |
| Additions                to capitalized software development costs                                                                         |   |   | (7.2 | ) |   | (11.1 | ) |
| Additions                to investments                                                                                                    |   |   | - |   |   | (0.7 | ) |
| Purchases                of property, net of cash acquired                                                                                 |   |   | (458.9 | ) |   | (51.8 | ) |
| Proceeds                from the return on investments                                                                                     |   |   | 8.9 |   |   | 7.8 |   |
| Other,                net                                                                                                                  |   |   | (0.9 | ) |   | 3.0 |   |
| Net                cash used in investing activities                                                                                       |   |   | (671.8 | ) |   | (307.7 | ) |
| **Cash                Flows from Financing Activities:**                                                                                   |   |   |   |   |   |   |   |
| Dividends                on common and preferred stock                                                                                     |   |   | (147.8 | ) |   | (105.7 | ) |
| Repayments                of long-term debt                                                                                                |   |   | (0.7 | ) |   | (1.9 | ) |
| Conversion                of convertible notes                                                                                             |   |   | (59.8 | ) |   | - |   |
| Distributions                to minority investors                                                                                         |   |   | (11.8 | ) |   | (12.7 | ) |
| Excess                tax benefits from stock option exercises                                                                             |   |   | 1.9 |   |   | - |   |
| Long-term                debt issued                                                                                                       |   |   | - |   |   | 50.0 |   |
| Common                stock issued                                                                                                         |   |   | 54.9 |   |   | 2.8 |   |
| Net                cash used in financing activities                                                                                       |   |   | (163.3 | ) |   | (67.5 | ) |
| **Cash                Flows from Discontinued Operations:**                                                                                |   |   |  |   |   |  |   |
| Cash                provided from operating activities                                                                                     |   |   | 85.6 |   |   | - |   |
| Cash                provided from investing activities                                                                                     |   |   | 4.9 |   |   | - |   |
| Cash                used in financing activities                                                                                           |   |   | (91.7 | ) |   | - |   |
| Net                cash used in discontinued operations                                                                                    |   |   | (1.2 | ) |   | - |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash and short-term                investments                                           |   |   | 0.5 |   |   | - |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| Increase                (decrease) in cash and short-term investments                                                                      |   |   | (102.7 | ) |   | 403.5 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |
| **Cash                and Short-term Investments:**                                                                                        |   |   |   |   |   |   |   |
| Beginning                of the period                                                                                                     |   |   | 989.2 |   |   | 484.9 |   |
| End                of the period                                                                                                           |   | $ | 886.5 |   | $ | 888.4 |   |

----

| **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                                                                            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 297.4 |   |   | 297.4 |   |
| Other                comprehensive loss, net of tax: (See Note 11)                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                  holding losses on investments,                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                  of reclassification adjustments                                                   |   |   | - |   |   | - |   |   | - |   |   | 8.0 |   |   | - |   |   | - |   |   | 8.0 |   |
| Foreign                  currency translation adjustment                                               |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 17.6 |   |   | - |   |   | 17.6 |   |
| Comprehensive                  income                                                             |   |   | - |   |   | - |   |   | - |   |   | 8.0 |   |   | 17.6 |   |   | 297.4 |   |   | 323.0 |   |
| Employee                  plans, net                                                              |   |   | - |   |   | 1.5 |   |   | 53.3 |   |   | - |   |   | - |   |   | - |   |   | 54.8 |   |
| Restricted                  stock                                                                 |   |   | - |   |   | 0.3 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 0.3 |   |
| Amortization                  of unearned compensation (See Note 2)                               |   |   | - |   |   | - |   |   | 9.0 |   |   | - |   |   | - |   |   | - |   |   | 9.0 |   |
| Tax                  benefit for non-qualified stock options                                           |   |   | - |   |   | - |   |   | 2.5 |   |   | - |   |   | - |   |   | - |   |   | 2.5 |   |
| Conversion                  of convertible notes (See Note 3)                                          |   |   | - |   |   | 3.5 |   |   | 36.7 |   |   | - |   |   | - |   |   | - |   |   | 40.2 |   |
| Dividends:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  - $.385 per share                                                              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (149.5 | ) |   | (149.5 | ) |
| Preferred                                                                                              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Balance                  at March 31, 2006                                                             |   | $ | 0.3 |   | $ | 388.9 |   | $ | 5,440.8 |   | $ | 30.3 |   | $ | 14.8 |   | $ | 7,420.7 |   | $ | 13,295.8 |   |

----

**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)                                                                                                                                                            |   |   |   |
| Compensation                expense related to stock options issued by Alltel                                                                                                                                  |   | $      | 4.8    |   |
| Compensation                expense related to stock options converted to Alltel stock options                in                connection with the acquisition of Western Wireless                Corporation |   |   | 0.5    |   |
| Compensation                expense related to restricted stock awards                                                                                                                                         |   |   | 3.7    |   |
| Compensation                expense before income taxes                                                                                                                                                        |   |   | 9.0    |   |
| Income                tax benefit                                                                                                                                                                              |   |   | (2.8   | ) |
| Compensation                expense, net of tax                                                                                                                                                                |   | $      | 6.2    |   |
| Earnings                per share effects of compensation expense, net of tax                                                                                                                                  |   |   |   |   |
| Basic                earnings per share                                                                                                                                                                        |   |   | $.02   |   |
| Diluted                earnings per share                                                                                                                                                                      |   |   | $.02   |   |

|                                                                                                                                                                              |   |   |                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|
| (Millions,                except per share amounts)                                                                                                                               |   |   |                           |
| Net                income as reported                                                                                                                                             | $      | 313.0  |                           |
| Add                stock-based compensation expense included in                                                                                                                   |   |   |                           |
| net                income, net of related tax effects                                                                                                                             |   | 1.0    |                           |
| Deduct                stock-based employee compensation expense determined  under                fair value method for all awards, net of related tax                effects |   | (6.6   | )                              |
| Pro                forma net income                                                                                                                                               | $      | 307.4  |                           |
| Basic                earnings per share:                                                                                                                                          |   |   | As                reported     |   |   | $1.04 |   |
|                                                                                                                                                                              |   |   | Pro                forma       |   |   | $1.02 |   |
| Diluted                earnings per share:                                                                                                                                        |   |   | As                reported     |   |   | $1.03 |   |
|                                                                                                                                                                              |   |   | Pro                forma  |   |   | $1.01 |   |

----

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

** _____**

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

----

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

** _____**

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

|                                                                   |   |   |     |
|------------------------------------------------------------------------|--------|--------|----------|
| (Millions,                except per share amounts)                    |   |   |     |
| Revenues                and sales                                      |   |   | $2,366.5 |   |
| Income                from continuing operations                       |   |   | $318.0   |   |
| Combined                earnings per share from continuing operations: |   |   |     |   |
| Basic                earnings per share                                |   |   | $.83     |   |
| Diluted                earning per share                               |   |   | $.82     |   |
| Net                income                                              |   |   | $344.3   |   |
| Combined                earnings per share:                            |   |   |     |   |
| Basic                earnings per share                                |   |   | $.90     |   |
| Diluted                earning per share                               |   |   | $.89     |   |

----

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

** _____**

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

**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   |   |   | 322.1 |   |   | - |   |   | - |   |   | 322.1 |   |
| Other                adjustments            |   |   | (17.7 | ) |   | - |   |   | - |   |   | (17.7 | ) |
| Balance                at March 31, 2006    |   | $ | 7,731.8 |   | $ | 1,247.6 |   | $ | 2.3 |   | $ | 8,981.7 |   |

|                                                     |   |                     |    |                        |   |
|----------------------------------------------------------|--------|--------------------------|---------|-----------------------------|--------|
|                                                     |   | March                31, |    | December                31, |   |
| (Millions)                                               |   | 2006                     |    | 2005                        |   |
| Cellular                licenses                         |   | $                        | 1,430.8 |                        | $      | 1,392.3 |   |
| Personal                Communications Services licenses |   |                     | 79.1    |                        |   | 79.1 |   |
| Franchise                rights - wireline               |   |                     | 265.0   |                        |   | 265.0 |   |
|                                                     |   | $                        | 1,774.9 |                        | $      | 1,736.4 |   |
|                                                     |   |                     |    |                        |   |   |   |

|                             |   |                             |        |
|----------------------------------|--------|----------------------------------|-------------|
|                             |   | March                31, 2006    |        |
|                             |   | Gross                            |        | Accumulated |   | Net                Carrying |   |
| (Millions)                       |   | Cost                             |        | Amortization |   | Value |   |
| Customer                lists    |   | $                                | 797.9       |   | $ | (375.9 | ) | $ | 422.0 |   |
| Franchise                rights  |   |                             | 22.5        |   |   | (16.7 | ) |   | 5.8 |   |
| Roaming                agreement |   |                             | 6.1         |   |   | (                1.2 | ) |   | 4.9 |   |
|                             |   | $                                | 826.5       |   | $ | (393.8 | ) | $ | 432.7 |   |
|                             |   |                             |
|                             |   | 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 |   |

----

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

**_____**

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

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

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

|                                   |   |   |                     |   |
|----------------------------------------|--------|--------|--------------------------|--------|
| Expected                life           |   |   | 6.5                years |   |
| Expected                volatility     |   |   | 23.6%                    |   |
| Dividend                yield          |   |   | 0.8%                     |   |
| Risk-free                interest rate |   |   | 4.3%                     |   |

----

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

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

|                                            |   |                     |                                                                           |                         |   |
|-------------------------------------------------|--------|--------------------------|--------------------------------------------------------------------------------|------------------------------|--------|
|                                            |   | (Thousands)              |                                                                           | Weighted                     |   |
|                                            |   | Number                of |                                                                           | Average                Price |   |
|                                            |   | Shares                   |                                                                           | Per                Share     |   |
| Outstanding                at December 31, 2005 |   |                     | 17,316.5                                                                       |                         |   | $53.94 |   |
| Granted                                         |   |                     |                     792.0                                  |                         |   |                  62.05 |   |
| Exercised                                       |   |                     |   (1,529.5)                                                          |                         |   |                  36.22 |   |
| Forfeited                                       |   |                     |                       (41.7)                          |                         |   |                  53.52 |   |
| Expired                                         |   |                     |                         (7.6)               |                         |   |                  31.60 |   |
| Outstanding                at March 31, 2006    |   |                     |                          16,529.7 |                         |   | $55.98 |   |
| Exercisable                at end of period     |   |                     |                          12,115.7 |                         |   | $56.95 |   |
|                                            |   |                     |                                                                           |                         |   |   |   |

|                           |   |                                             |   |                               |   |                          |   |                                                                                 |   |                          |   |
|--------------------------------|--------|--------------------------------------------------|--------|------------------------------------|--------|-------------------------------|--------|--------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                           |   | 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 |   |                   240.6                |   | 4.2                years           |   | $10.14                        |   |                  200.8                                                          |   | $10.65                        |   |
| $26.61                - $32.50 |   |                   519.5                |   | 2.3                years           |   |                  31.63   |   |                  467.8                                                          |   |                  31.55   |   |
| $33.88                - $40.30 |   | 1,155.3                                          |   | 1.5                years           |   |                  34.51   |   | 1,153.9                                                                              |   |                  34.50   |   |
| $43.12                - $50.28 |   | 2,480.6                                          |   | 7.0                years           |   |                  48.35   |   | 1,145.2                                                                              |   |                  48.27   |   |
| $50.81                - $58.46 |   | 4,401.3                                          |   | 6.9                years           |   |                  54.80   |   | 2,207.6                                                                              |   |                  55.09   |   |
| $62.05                - $68.25 |   | 7,590.9                                          |   | 4.7                years           |   |                  65.24   |   | 6,798.9                                                                              |   |                  65.61   |   |
| $70.75                - $73.13 |   |   141.5                                |   | 3.4                years           |   |                  72.43   |   |                  141.5                                                          |   |                  72.43   |   |
|                           |   |                     16,529.7 |   | 5.3                years           |   | $55.98                        |   |                           12,115.7 |   | $56.95                        |   |

|                                           |   |                     |                                                 |                         |   |
|------------------------------------------------|--------|--------------------------|------------------------------------------------------|------------------------------|--------|
|                                           |   | (Thousands)              |                                                 | Weighted                     |   |
|                                           |   | Number                of |                                                 | Average                Price |   |
|                                           |   | Shares                   |                                                 | Per                Share     |   |
| Non-vested                at December 31, 2005 |   |                     |  5,051.4                                        |                         |   | $51.94 |   |
| Granted                                        |   |                     |                    792.0              |                         |   |                  62.05 |   |
| Vested                                         |   |                     |  (1,390.9)                                      |                         |   |                  53.22 |   |
| Forfeited                                      |   |                     |                      (38.5) |                         |   |                  52.80 |   |
| Non-vested                at March 31, 2006    |   |                     |  4,414.0                                        |                         |   | $53.34 |   |
|                                           |   |                     |                                                 |                         |   |   |   |

----

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

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

|                                           |   |                     |           |                      |   |
|------------------------------------------------|--------|--------------------------|----------------|---------------------------|--------|
|                                           |   |                     |           | Weighted                  |   |
|                                           |   |                     |           | Average                   |   |
|                                           |   | Number                of |           | Fair                Value |   |
|                                           |   | Shares                   |           | Per                Share  |   |
| Non-vested                at December 31, 2005 |   |                     | 302,530        |                      |   | $52.52 |   |
| Granted                                        |   |                     | 272,000        |                      |   |                  61.07 |   |
| Vested                                         |   |                     |  (52,511) |                      |   |                  49.28 |   |
| Forfeited                                      |   |                     | -              |                      |   | - |   |
| Non-vested                at March 31, 2006    |   |                     | 522,019        |                      |   | $57.30 |   |

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

|                                               |   |   |   |
|----------------------------------------------------|--------|--------|--------|
| (Millions)                                         |   | 2006   |   | 2005 |   |
| Benefits                earned during the year     |   | $      | 6.7    |   | $ | 8.4 |   |
| Interest                cost on benefit obligation |   |   | 14.9   |   |   | 14.6 |   |
| Special                termination benefits        |   |   | 4.5    |   |   | - |   |
| Settlement                loss                     |   |   | 1.0    |   |   | - |   |
| Amortization                of prior service cost  |   |   | 0.1    |   |   | 0.1 |   |
| Recognized                net actuarial loss       |   |   | 8.4    |   |   | 7.6 |   |
| Expected                return on plan assets      |   |   | (20.9  | ) |   | (20.7 | ) |
| Net                periodic benefit expense        |   | $      | 14.7   |   | $ | 10.0 |   |

----

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

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

|                                                 |   |
|------------------------------------------------------|--------|
| (Millions)                                           |   | 2006 |   | 2005 |   |   |
| Benefits                earned during the year       |   | $ | 0.1 |   | $ | 0.1 |   |
| Interest                cost on benefit obligation   |   |   | 3.3 |   |   | 3.5 |   |
| Amortization                of transition obligation |   |   | 0.2 |   |   | 0.2 |   |
| Amortization                of prior service cost    |   |   | 0.5 |   |   | 0.5 |   |
| Recognized                net actuarial loss         |   |   | 1.6 |   |   | 1.7 |   |
| Expected                return on plan assets        |   |   | - |   |   | - |   |
| Net                periodic benefit expense          |   | $ | 5.7 |   | $ | 6.0 |   |

**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 |   |   | - |   |   | 8.7 |   |   | 8.7 |   |
| Total integration                expenses and other charges        |   | $ | 10.8 |   | $ | 8.7 |   | $ | 19.5 |   |

|                                                                             |   |
|----------------------------------------------------------------------------------|--------|
| (Millions)                                                                       |   |   |   |
| Balance,                beginning of period                                      |   | $ | 29.7 |   |
| Integration                expenses and other charges recorded during the period |   |   | 19.5 |   |
| Non-cash                portion of integration expenses and other charges        |   |   | (0.7 | ) |
| Cash                outlays during the period                                    |   |   | (12.6 | ) |
| Balance,                end of period                                            |   | $ | 35.9 |   |

----

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

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

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

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

|                                                                |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|
| (Millions)                                                          |   |   |   |
| Revenues                and sales                                   |   | $      | 206.4  |   |
| Operating                expenses                                   |   |   | 154.6  |   |
| Operating                income                                     |   |   | 51.8   |   |
| Minority                interest expense in unconsolidated entities |   |   | (4.5   | ) |
| Other                expense, net (a)                               |   |   | (0.7   | ) |
| Pretax                income from discontinued operations           |   |   | 46.6   |   |
| Income                tax expense                                   |   |   | 28.8   |   |
| Income                from discontinued operations                  |   | $      | 17.8   |   |

| (a) | Except                for the Bolivian credit facility discussed below, 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

|                                                       |   |   |    |
|------------------------------------------------------------|--------|--------|---------|
| (Millions)                                                 |   |   |    |
| Current                assets                              |   | $      | 216.1   |   |
| Property,                plant and equipment               |   |   | 334.0   |   |
| Goodwill                and other intangible assets (a)    |   |   | 1,439.9 |   |
| Other                assets                                |   |   | 37.1    |   |
| Assets                held for sale                        |   | $      | 2,027.1 |   |
| Current                liabilities                         |   | $      | 182.6   |   |
| Long-term                debt (b)                          |   |   | 47.6    |   |
| Other                liabilities                           |   |   | 71.5    |   |
| Liabilities                related to assets held for sale |   | $      | 301.7   |   |

| (a)    | Includes                the fair value of licenses and customer lists. Because substantially                all                of the assets classified as held for sale will be disposed of by                June 30,                2006, the Company will not complete third party valuations to assign                specific fair values to the identifiable intangible assets of the                international operations and the domestic markets to be                divested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (b)    | Represents                amounts outstanding under a credit facility agreement between Alltel’s                Bolivian subsidiary and the Overseas Private Investment Corporation.                Under                the terms of the credit facility, all outstanding principal is required                to                be repaid in predetermined quarterly installments beginning on July                15,                2006 and ending on April 15, 2014. Interest accrues at a rate of                8.74                percent and is payable on a quarterly basis. The credit facility                contains                certain restrictive covenants, including a debt service coverage                ratio                which does not become effective until the third quarter of 2006,                limitations on the Bolivian subsidiary’s ability to incur additional                indebtedness, make certain asset dispositions or restricted payments.                Substantially all of the Bolivian subsidiary’s assets have been pledged as                collateral for the credit facility. |

**11.     **
**Other      Comprehensive Income (Loss):**

|                                                                   |   |   |   |   |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| (Millions)                                                             |   | 2006   |   | 2005   |   |
| Other                comprehensive income (loss):                      |   |   |   |   |   |
| Unrealized                holding gains (losses) on investments:       |   |   |   |   |   |
| Unrealized                holding gains (losses) arising in the period |   | $      | 12.4   |   | $      | (142.6 | ) |
| Income                tax expense (benefit)                            |   |   | 4.4    |   |   | (49.9 | ) |
|                                                                   |   |   | 8.0    |   |   | (92.7 | ) |
|                                                                   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment for the period  |   |   | 17.6   |   |   | - |   |
|                                                                   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss) before tax            |   |   | 30.0   |   |   | (142.6 | ) |
| Income                tax expense (benefit)                            |   |   | 4.4    |   |   | (49.9 | ) |
| Other                comprehensive income (loss)                       |   | $      | 25.6   |   | $      | (92.7 | ) |

----

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

**12.           **
**Earnings      per Share:**

|                                                                                                                                             |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| (Millions,                except per share amounts)                                                                                              |   | 2006   |   | 2005   |   |
| **Basic                earnings per share:**                                                                                                     |   |   |   |   |   |
| Income                from continuing operations                                                                                                 |   | $      | 279.6  |   | $      | 313.0 |   |
| Income                from discontinued operations                                                                                               |   |   | 17.8   |   |   | - |   |
| Less                preferred dividends                                                                                                          |   |   | -      |   |   | - |   |
| Net                income applicable to common shares                                                                                            |   | $      | 297.4  |   | $      | 313.0 |   |
| Weighted                average common shares outstanding for the period                                                                         |   |   | 386.8  |   |   | 302.2 |   |
| Basic                earnings per share:                                                                                                         |   |   |   |   |   |   |   |
| From                continuing operations                                                                                                        |   |   | $.72   |   |   | $1.04 |   |
| From                discontinued operations                                                                                                      |   |   | .05    |   |   | - |   |
| Net                income                                                                                                                        |   |   | $.77   |   |   | $1.04 |   |
| **Diluted                earnings per share:**                                                                                                   |   |   |   |   |   |   |   |
| Net                income applicable to common shares                                                                                            |   | $      | 297.4  |   | $      | 313.0 |   |
| Adjustment                for interest expense on convertible notes, net of tax                                                                  |   |   | 0.1    |   |   | - |   |
| Adjustment                for convertible preferred stock dividends                                                                              |   |   | -      |   |   | - |   |
| Net                income applicable to common shares assuming conversion of preferred                stock                and convertible notes |   | $      | 297.5  |   | $      | 313.0 |   |
| Weighted                average common shares outstanding for the period                                                                         |   |   | 386.8  |   |   | 302.2 |   |
| Increase                in shares resulting from:                                                                                                |   |   |   |   |   |   |   |
| Assumed                exercise of stock options                                                                                                 |   |   | 1.5    |   |   | 1.0 |   |
| Assumed                conversion of convertible notes                                                                                           |   |   | 1.0    |   |   | - |   |
| Assumed                conversion of preferred stock                                                                                             |   |   | 0.2    |   |   | 0.2 |   |
| Non-vested                restricted stock awards                                                                                                |   |   | 0.2    |   |   | 0.1 |   |
| Weighted                average common shares assuming conversion                                                                                |   |   | 389.7  |   |   | 303.5 |   |
| Diluted                earnings per share                                                                                                        |   |   |   |   |   |   |   |
| From                continuing operations                                                                                                        |   |   | $.72   |   |   | $1.03 |   |
| From                discontinued operations                                                                                                      |   |   | .05    |   |   | - |   |
| Net                income                                                                                                                        |   |   | $.77   |   |   | $1.03 |   |

----

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

**13.           **
**Business      Segment Information:**

| (Millions)                                                                   |   | 2006   |    | 2005   |   |
|------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| **Revenues                and Sales from External Customers:**               |   |   |    |   |   |
| Wireless                                                                     |   | $      | 1,755.9 |   | $      | 1,350.4 |   |
| Wireline                                                                     |   |   | 537.0   |   |   | 556.0 |   |
| Communications                support services                               |   |   | 191.0   |   |   | 170.1 |   |
|                      Total business segments        |   | $      | 2,483.9 |   | $      | 2,076.5 |   |
|                                                                         |   |   |    |   |   |   |   |
| **Intersegment                Revenues and Sales:**                          |   |   |    |   |   |   |   |
| Wireless                                                                     |   | $      | 1.5     |   | $      | 1.6 |   |
| Wireline                                                                     |   |   | 38.4    |   |   | 37.6 |   |
| Communications                support services                               |   |   | 59.9    |   |   | 54.6 |   |
|                      Total business segments        |   | $      | 99.8    |   | $      | 93.8 |   |
|                                                                         |   |   |    |   |   |   |   |
| **Total                Revenues and Sales:**                                 |   |   |    |   |   |   |   |
| Wireless                                                                     |   | $      | 1,757.4 |   | $      | 1,352.0 |   |
| Wireline                                                                     |   |   | 575.4   |   |   | 593.6 |   |
| Communications                support services                               |   |   | 250.9   |   |   | 224.7 |   |
|       Total                business segments   |   |   | 2,583.7 |   |   | 2,170.3 |   |
|                      Less intercompany eliminations |   |   | (44.0   | )      |   | (44.3 | ) |
| Total                revenues and sales                                      |   | $      | 2,539.7 |   | $      | 2,126.0 |   |

| **Segment                Income:**                                                                       |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Wireless                                                                                                 |   | $      | 355.5  |   | $      | 285.3 |   |
| Wireline                                                                                                 |   |   | 226.6  |   |   | 214.5 |   |
| Communications                support services                                                           |   |   | 21.5   |   |   | 11.9 |   |
|                      Total segment income                                       |   |   | 603.6  |   |   | 511.7 |   |
| Corporate                expenses                                                                        |   |   | (54.9  | )      |   | (42.4 | ) |
| Integration                expenses and other charges                                                    |   |   | (19.5  | )      |   | - |   |
| Equity                earnings in unconsolidated partnerships                                            |   |   | 12.9   |   |   | 10.7 |   |
| Minority                interest in consolidated partnerships                                            |   |   | (13.9  | )      |   | (18.3 | ) |
| Other                income, net                                                                         |   |   | 11.9   |   |   | 120.7 |   |
| Interest                expense                                                                          |   |   | (89.0  | )      |   | (86.7 | ) |
|       Income                from continuing operations before income taxes |   | $      | 451.1  |   | $      | 495.7 |   |

|                                                                   |   | March                31,   |     | December                31,   |   |
|------------------------------------------------------------------------|--------|--------------------------------------|----------|-----------------------------------------|--------|
| (Millions)                                                             |   | 2006                       |     | 2005                          |   |
| Wireless                                                               |   | $                                    | 15,536.2 |                                    | $      | 15,416.3 |   |
| Wireline                                                               |   |                                 | 4,828.0  |                                    |   | 4,878.6 |   |
| Communications                support services                         |   |                                 | 495.6    |                                    |   | 533.5 |   |
| Total                business segments                                 |   |                                 | 20,859.8 |                                    |   | 20,828.4 |   |
| Corporate                headquarters assets not allocated to segments |   |                                 | 1,182.8  |                                    |   | 1,270.1 |   |
| Assets                held for sale                                    |   |                                 | 2,027.1  |                                    |   | 1,951.2 |   |
| Less                elimination of intersegment receivables            |   |                                 | (23.6    | )                                       |   | (36.6 | ) |
| Total                consolidated assets                               |   | $                                    | 24,046.1 |                                    | $      | 24,013.1 |   |

----

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

**13.           **
**Business      Segment Information, Continued:**

| (Millions)                                                     |   | 2006   |   | 2005   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|
| **Revenues                and Sales from External Customers:** |   |   |   |   |   |
| Product                distribution                            |   | $      | 108.9  |   | $      | 93.8 |   |
| Long-distance                and network management services   |   |   | 53.6   |   |   | 47.0 |   |
| Directory                publishing                            |   |   | 24.5   |   |   | 24.1 |   |
| Telecommunications                information services         |   |   | 4.0    |   |   | 5.2 |   |
|                    Total                        |   | $      | 191.0  |   | $      | 170.1 |   |
|                                                           |   |   |   |   |   |   |   |
| **Intersegment                Revenues and Sales:**            |   |   |   |   |   |   |   |
| Product                distribution                            |   | $      | 30.6   |   | $      | 26.8 |   |
| Long-distance                and network management services   |   |   | 27.4   |   |   | 25.6 |   |
| Directory                publishing                            |   |   | 1.9    |   |   | 2.2 |   |
| Telecommunications                information services         |   |   | -      |   |   | - |   |
|                    Total                        |   | $      | 59.9   |   | $      | 54.6 |   |
|                                                           |   |   |   |   |   |   |   |
| **Total                Revenues and Sales:**                   |   |   |   |   |   |   |   |
| Product                distribution                            |   | $      | 139.5  |   | $      | 120.6 |   |
| Long-distance                and network management services   |   |   | 81.0   |   |   | 72.6 |   |
| Directory                publishing                            |   |   | 26.4   |   |   | 26.3 |   |
| Telecommunications                information services         |   |   | 4.0    |   |   | 5.2 |   |
|                    Total revenues and sales     |   | $      | 250.9  |   | $      | 224.7 |   |

**14.           **
**Pending      Transactions:**

----

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

**14.           **
**Pending      Transactions, Continued:**

**15.     **
**Subsequent      Events **

----

**ALLTEL      CORPORATION**

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

**GENERAL**

**EXECUTIVE      SUMMARY**

| ·   | Wireless                revenues and sales increased 30 percent over 2005 reflecting the                effects                of Alltel’s August 1, 2005 acquisition of Western Wireless Corporation                (“Western Wireless”) and the exchange of wireless properties with Cingular                Wireless LLC (“Cingular”) completed during the second quarter of 2005.                Excluding the effects of acquisitions, wireless revenues and sales                increased 9 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 $50.90, while retail                revenue per customer increased to $46.21, a 2 percent increase from                a year                ago. Retail minutes of use per wireless customer per month increased                to                610 minutes, a 12 percent increase from the same period of                2005. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Wireless                gross customer additions were 805,000 in the quarter, and net customer                additions were 165,000. Within its non-acquired or heritage markets,                gross                customer additions increased 20 percent compared to the first quarter                of                2005. In its heritage markets, Alltel added 48,000 net postpay wireless                customers and added 105,000 net prepaid customers during the first                quarter                of 2006. The net gain in prepaid customers reflected continued growth                in                Simple Freedom, Alltel’s phone-in-the-box prepay service that is sold                primarily through Wal-Mart stores and the roll-out of Alltel’s new “U”                prepaid wireless service, which offers customers expanded phone selection,                choice of enhanced features and free nationwide long distance calling                originating within the Alltel network. In the acquired markets, Alltel                added 12,000 customers. Wireless postpay churn decreased 6 basis points                from the same period a year ago to 1.66 percent, while total churn                declined 11 basis points year-over-year to 2.00 percent. In Alltel’s                heritage markets, postpay churn declined 4 basis points year-over-year                to                1.68 percent. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Wireless                segment income increased 25 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 44,000 broadband customers, increasing                Alltel’s broadband customer base to 441,000. During the quarter, the                Company lost approximately 23,000 wireline access lines, a year-over-year                decline of 4 percent. Average revenue per wireline customer increased                1                percent from a year ago to $66.77 due primarily to growth in broadband                revenues. Although wireline revenues and sales decreased 3 percent                from a                year ago, wireline segment income increased 6 percent year-over-year,                primarily due to a reduction in depreciation rates for Alltel’s Florida,                Georgia, Pennsylvania and South Carolina operations, reflecting the                results of studies of depreciable lives completed by Alltel during                the                second half of 2005 and in January                2006. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PENDING      TRANSACTIONS TO BE COMPLETED DURING 2006**

----

**ACQUISITIONS**

----

| **CONSOLIDATED                RESULTS OF OPERATIONS**                |   |
|----------------------------------------------------------------------|--------|
|                                                                 |   | Three                Months Ended |   |
|                                                                 |   | March                31, |   |
| (Millions,                except per share amounts)                  |   | 2006 |   | 2005 |   |
| Revenues                and sales:                                   |   |   |   |   |   |
| Service                revenues                                      |   | $ | 2,247.7 |   | $ | 1,898.3 |   |
| Product                sales                                         |   |   | 292.0 |   |   | 227.7 |   |
| Total                revenues and sales                              |   |   | 2,539.7 |   |   | 2,126.0 |   |
| Costs                and expenses:                                   |   |   |   |   |   |   |   |
| Cost                of services                                      |   |   | 731.7 |   |   | 626.3 |   |
| Cost                of products sold                                 |   |   | 355.8 |   |   | 281.8 |   |
| Selling,                general, administrative and other            |   |   | 499.0 |   |   | 407.4 |   |
| Depreciation                and amortization                         |   |   | 404.5 |   |   | 341.2 |   |
| Integration                expenses and other charges                |   |   | 19.5 |   |   | - |   |
| Total                costs and expenses                              |   |   | 2,010.5 |   |   | 1,656.7 |   |
| Operating                income                                      |   |   | 529.2 |   |   | 469.3 |   |
| Non-operating                income, net                             |   |   | 10.9 |   |   | 113.1 |   |
| Interest                expense                                      |   |   | (89.0 | ) |   | (86.7 | ) |
| Income                from continuing operations before income taxes |   |   | 451.1 |   |   | 495.7 |   |
| Income                taxes                                          |   |   | 171.5 |   |   | 182.7 |   |
| Income                from continuing operations                     |   |   | 279.6 |   |   | 313.0 |   |
| Income                from discontinued operations, net of tax       |   |   | 17.8 |   |   | - |   |
| Net                income                                            |   | $ | 297.4 |   | $ | 313.0 |   |
| Basic                earnings per share:                             |   |   |   |   |   |   |   |
| Income                from continuing operations                     |   |   | $.72 |   |   | $1.04 |   |
| Income                from discontinued operations                   |   |   | .05 |   |   | - |   |
| Net                income                                            |   |   | $.77 |   |   | $1.04 |   |
| Diluted                earnings per share:                           |   |   |   |   |   |   |   |
| Income                from continuing operations                     |   |   | $.72 |   |   | $1.03 |   |
| Income                from discontinued operations                   |   |   | .05 |   |   | - |   |
| Net                income                                            |   |   | $.77 |   |   | $1.03 |   |

----

----

|                                                                         |   |
|------------------------------------------------------------------------------|--------|
| (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 |   |   | - |   |   | 8.7 |   |   | 8.7 |   |
| Total integration                expenses and other charges        |   | $ | 10.8 |   | $ | 8.7 |   | $ | 19.5 |   |

| Non-Operating                Income, Net                      |   |                              |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------|
|                                                          |   | Three                Months Ended |   |
|                                                          |   | March                31,          |   |
| (Millions)                                                    |   | 2006                              |   | 2005   |   |
| Equity                earnings in unconsolidated partnerships |   | $                                 | 12.9   |   | $      | 10.7 |   |
| Minority                interest in consolidated partnerships |   |                              | (13.9  | )      |   | (18.3 | ) |
| Other                income, net                              |   |                              | 11.9   |   |   | 120.7 |   |
| Non-operating                income, net                      |   | $                                 | 10.9   |   | $      | 113.1 |   |

----

----

| (Millions)                                                          |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|
| Revenues                and sales                                   |   | $      | 206.4  |   |
| Operating                expenses                                   |   |   | 154.6  |   |
| Operating                income                                     |   |   | 51.8   |   |
| Minority                interest expense in unconsolidated entities |   |   | (4.5   | ) |
| Other                expense, net                                   |   |   | (0.7   | ) |
| Pretax                income from discontinued operations           |   |   | 46.6   |   |
| Income                tax expense                                   |   |   | 28.8   |   |
| Income                from discontinued operations                  |   | $      | 17.8   |   |

----

**RESULTS      OF OPERATIONS BY BUSINESS SEGMENT**

| Communications-Wireless                Operations               |   |                              |                         |
|-----------------------------------------------------------------|--------|-----------------------------------|------------------------------|
|                                                            |   | Three                Months Ended |                         |
|                                                            |   | March                31,          |                         |
| (Millions,                customers in thousands)               |   | 2006                              |                         | 2005 |   |
| Revenues                and sales:                              |   |                              |                         |   |   |
| Service                revenues                                 |   | $                                 | 1,638.8                      |   | $ | 1,274.4 |   |
| Product                sales                                    |   |                              | 118.6                        |   |   | 77.6 |   |
| Total                revenues and sales                         |   |                              | 1,757.4                      |   |   | 1,352.0 |   |
| Costs                and expenses:                              |   |                              |                         |   |   |   |   |
| Cost                of services                                 |   |                              | 537.9                        |   |   | 405.7 |   |
| Cost                of products sold                            |   |                              | 204.4                        |   |   | 148.8 |   |
| Selling,                general, administrative and other       |   |                              | 413.1                        |   |   | 322.4 |   |
| Depreciation                                                    |   |                              | 246.5                        |   |   | 189.8 |   |
| Total                costs and expenses                         |   |                              | 1,401.9                      |   |   | 1,066.7 |   |
| Segment                income                                   |   | $                                 | 355.5                        |   | $ | 285.3 |   |
| Customers                                                       |   |                              | 10,827.1                     |   |   | 8,801.3 |   |
| Average                customers                                |   |                              | 10,731.4                     |   |   | 8,704.6 |   |
| Gross                customer additions (a)                     |   |                              | 805.5                        |   |   | 723.7 |   |
| Net                customer additions (a)                       |   |                              | 164.7                        |   |   | 174.8 |   |
| Market                penetration                               |   |                              | 14.0%                        |   |   | 13.8% |   |
| Postpay                customer churn                           |   |                              | 1.66%                        |   |   | 1.72% |   |
| Total                churn                                      |   |                              | 2.00%                        |   |   | 2.11% |   |
| Retail                minutes of use per customer per month (b) |   |                              | 610                          |   |   | 547 |   |
| Retail                revenue per customer per month (c)        |   |                              | $46.21                       |   |   | $45.31 |   |
| Average                revenue per customer per month (d)       |   |                              | $50.90                       |   |   | $48.80 |   |
| Cost                to acquire a new customer (e)               |   |                              |     $352 |   |   | $306 |   |

| (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 month periods ended March 31: |

|                                   |   |                              |    |
|----------------------------------------|--------|-----------------------------------|---------|
|                                   |   | Three                Months Ended |    |
| (Millions)                             |   | 2006                              |    | 2005 |   |
| Service                revenues        |   | $                                 | 1,638.8 |   | $ | 1,274.4 |   |
| Less                wholesale revenues |   |                              | (151.0  | ) |   | (91.1 | ) |
| Total                retail revenues   |   | $                                 | 1,487.8 |   | $ | 1,183.3 |   |

| (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 month periods ended March                31: |

|                                                            |   |                              |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                            |   | Three                Months Ended |   |
| (Millions,                customers in thousands)               |   | 2006                              |   | 2005 |   |
| Product                sales                                    |   | $                                 | (65.2  | ) | $ | (49.9 | ) |
| Cost                of products sold                            |   |                              | 95.1   |   |   | 69.7 |   |
| Sales                and marketing expense                      |   |                              | 253.7  |   |   | 185.0 |   |
| Total                costs incurred to acquire new customers    |   | $                                 | 283.6  |   | $ | 204.8 |   |
| Gross                customer additions, excluding acquisitions |   |                              | 805.5  |   |   | 669.7 |   |
| Cost                to acquire a new customer                   |   |                              | $352   |   |   | $306 |   |

----

----

----

|                                                                        |                                    |
|-----------------------------------------------------------------------------|-----------------------------------------|
| (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 |    |
|                                                              |   |   |   | March                31,          |    |
| (Millions,                access lines in thousands)              |   |   |   |  2006                        |    | 2005 |   |
| Revenues                and sales:                                |   |   |   |                              |    |   |   |
| Local                service                                      |   |   |   |                              |  $ |  261.9 |   | $                                                      272.7 |
| Network                access and long-distance                   |   |   |   |                              |    |  252.2 |   | 260.9 |
| Miscellaneous                                                     |   |   |   |                              |    |  61.3 |   | 60.0 |
| Total                revenues and sales                           |   |   |   |                              |    |  575.4 |   | 593.6 |
| Costs                and expenses:                                |   |   |   |                              |    |   |   |   |
| Cost                of services                                   |   |   |   |                              |    |  175.9 |   | 181.0 |
| Cost                of products sold                              |   |   |   |                              |    |  7.3 |   | 7.0 |
| Selling,                general, administrative and other         |   |   |   |                              |    |  62.0 |   | 63.8 |
| Depreciation                and amortization                      |   |   |   |                              |    |  103.6 |   | 127.3 |
| Total                costs and expenses                           |   |   |   |                              |    |  348.8 |   | 379.1 |
| Segment                income                                     |   |   |   |                              |  $ |  226.6 |   | $                                     214.5 |
| Access                lines in service (excludes broadband lines) |   |   |   |                              |    |  2,862.5 |   | 2,983.3 |
| Average                access lines in service                    |   |   |   |                              |    |  2,872.7 |   | 2,994.7 |
| Average                revenue per customer per month (a)         |   |   |   |                              |    |  $66.77 |   | $66.08 |

| (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 include, but are not limited to, resellers of local                exchange services, interexchange carriers, satellite transmission                services, wireless communications providers, cable television companies,                and competitive access service providers including those utilizing                Unbundled Network Elements-Platform (“UNE-P”), VoIP providers and                providers using other emerging technologies. Alltel’s ILEC operations have                begun to experience competition in their local service areas. Through                March 31, 2006, this competition has not had a material adverse effect                on                the results of operations of Alltel’s ILEC operations, primarily because                these subsidiaries provide wireline telecommunications services in                mostly                rural areas. To date, ILEC subsidiaries have not been required to                discount                intrastate service rates in response to competitive                pressures. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

----

----

----

| Communications              Support Services                 |                              |
|--------------------------------------------------------------|-----------------------------------|
|                                                         | Three                Months Ended |
|                                                         | March                31,          |
| (Millions,                except customers in thousands)     |                              |      2006          2005 |   |
| Revenues                and sales:                           |                              |   |   |
| Product                distribution                          |                              | $ | 139.5  |   | $ | 120.6 |
| Long-distance                and network management services |                              |   | 81.0  |   |   | 72.6 |
| Directory                publishing                          |                              |   | 26.4  |   |   | 26.3 |
| Telecommunications                information services       |                              |   | 4.0  |   |   | 5.2 |
| Total                revenues and sales                      |                              |   | 250.9  |   |   | 224.7 |
| Costs                and expenses:                           |                              |   |   |   |   |   |
| Cost                of services                              |                              |   | 57.9  |   |   | 56.3 |
| Cost                of products sold                         |                              |   | 147.6  |   |   | 133.1 |
| Selling,                general, administrative and other    |                              |   | 16.5  |   |   | 14.9 |
| Depreciation                and amortization                 |                              |   | 7.4  |   |   | 8.5 |
| Total                costs and expenses                      |                              |   | 229.4  |   |   | 212.8 |
| Segment                income                                |                              | $ | 21.5  |   | $ | 11.9 |
| Long-distance                customers                       |                              |   | 1,750.6  |   |   | 1,793.1 |

----

| **FINANCIAL                CONDITION, LIQUIDITY AND CAPITAL RESOURCES** |   |                              |      |   |   |
|-------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|--------|
|                                                                    |   | Three                Months Ended |      |
|                                                                    |   | March                31,          |      |
| (Millions,                except per share amounts)                     |   | 2006                              |      | 2005   |   |
| Cash                flows from (used in):                               |   |                              |      |   |   |
| Operating                activities                                     |   | $                                 | 733.1     |   | $      | 778.7 |   |
| Investing                activities                                     |   |                              | (671.8    | )      |   | (307.7 | ) |
| Financing                activities                                     |   |                              | (163.3    | )      |   | (67.5 | ) |
| Discontinued                operations                                  |   |                              | (1.2      | )      |   | - |   |
| Effect                of exchange rate changes                          |   |                              |  0.5 |   |   | - |   |
| Increase                (decrease) in cash and short-term investments   |   | $                                 | (102.7    | )      | $      | 403.5 |   |
| Total                capital structure (a)                              |   | $                                 | 19,163.6  |   | $      | 12,839.4 |   |
| Percent                of equity to total capital (b)                   |   |                              | 69.4      | %      |   | 56.4 | % |
| Book                value per share (c)                                 |   |                              | $34.19    |   |   | $23.93 |   |

| (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. On August 1, 2005, Alltel completed its merger with                Western Wireless Corporation. Alltel continues to assess Western                Wireless’                control systems and expects the integration of Western Wireless’ control                systems with Alltel’s control systems to be completed during the second                quarter of 2006. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (b)    | Changes                in internal controls.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | The                term “internal control over financial reporting” (defined in SEC Rule                13a-15(f)) refers to the process of a company that is designed to                provide                reasonable assurance regarding the reliability of financial reporting                and                the preparation of financial statements for external purposes in                accordance with generally accepted accounting principles. Alltel’s                management, with the participation of the Chief Executive Officer                and                Chief Financial Officer, have evaluated 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, except                for                the changes arising out of the third quarter 2005 merger with Western                Wireless, 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 adopted a stock                repurchase plan authorizing the Company to repurchase up to $3.0                billion                of its outstanding common stock over a three-year period ending December                31, 2008. No repurchases were made under the stock repurchase plan                during                the first quarter of 2006. Accordingly, as ofMarch                31, 2006, remaining amounts that may be purchased under this plan                were                $3.0 billion. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| ALLTEL                CORPORATION                                 |
|-------------------------------------------------------------------|
| (Registrant)                                                      |
|                                                              |
|                                                              |
| /s/                Sharilyn S. Gasaway                            |
| Sharilyn                S. Gasaway                                |
| Executive                Vice President - Chief Financial Officer |
| (Principal                Financial Officer)                      |
| May                9, 2006                                        |

----

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

| Form                  10-Q   |                                                                                                                                                                                                  |   |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit                  No. | Description                  of Exhibits                                                                                                                                                              |   |
|                         |                                                                                                                                                                                                  |   |
| 10(a)                        | Amendment,                  effective as of May 8, 2006, to Agreement by and between ALLTEL                  Corporation and Joe T. Ford dated as of July 26, 2001.                                   | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(b)                        | Amendment,                  effective as of May 8, 2006, to Employment Agreement by and between                  ALLTEL                  Corporation and Scott T. Ford dated as of July 24, 2003.     | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(c)                        | Employment                  Agreement by and between Alltel Corporation and Scott T. Ford effective                  as                  of May                  5, 2006                              | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(d)                        | Employment                  Agreement by and between Alltel Corporation and Kevin L. Beebe                  effective                  as of May                  5, 2006                             | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(e)                        | Employment                  Agreement by and between Alltel Corporation and Jeffrey H. Fox                  effective                  as of May                  5, 2006                             | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(f)                        | Employment                  Agreement by and between Alltel Corporation and C.J. Duvall Jr.                  effective                  as of May                  5, 2006                            | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(g)                        | Employment                  Agreement by and between Alltel Corporation and Sharilyn S. Gasaway                  effective as of                  May 5, 2006                                         | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(h)                        | Employment                  Agreement by and between Alltel Corporation and Richard N. Massey                  effective as of                  May 5, 2006                                           | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(i)                        | Employment                  Agreement by and between Alltel Corporation and Keith A. Kostuch                  effective                  as of May 5, 2006                                            | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(j)                        | Employment                  Agreement by and between Alltel Corporation and Sue P. Mosley effective                  as                  of May                  5, 2006                              | (a)    |
|                         |                                                                                                                                                                                                  |   |
| 10(k)                        | Employment                  Agreement by and between Alltel Corporation and John A. Ebner effective                  as                  of May                  5, 2006                              | (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. |
|-----|--------------------------------|