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|                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| UNITED                STATES                                                                                                                                                                                                                                                                                                                                                                            |
| SECURITIES                AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                       |
| WASHINGTON,                D. C. 20549                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                    |
| FORM                10-Q                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                    |
| [x]                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                                                                                                                                                                                                                                                                                                                              |
| SECURITIES                EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                          |
| For                the quarterly period ended March                31, 2007                                                                                                                                                                                                                                                                                                                             |
| OR                                                                                                                                                                                                                                                                                                                                                                                                      |
| [                ]                TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF                THE                                                                                                                                                                                                                                                                                               |
| SECURITIES                EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                    |
| Commission                file number 1-4996                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                    |
| **                                  **ALLTEL                CORPORATION                          |
| (Exact                name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Delaware                                                                                                                                                                                                                                                                                                                                                                                                | 34-0868285 |
| (State                or other jurisdiction of                                                                                                                                                                                                                                                                                                                                                          | (I.R.S.                Employer |
| incorporation                or organization)                                                                                                                                                                                                                                                                                                                                                           | Identification                No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| One                Allied Drive, Little Rock, Arkansas                                                                                                                                                                                                                                                                                                                                                  | 72202 |
| (Address                of principal executive offices)                                                                                                                                                                                                                                                                                                                                                 | (Zip                Code) |
|                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Registrant’s                telephone number, including area code                                                                                                                                                                                                                                                                                                                                 | (501)                905-8000 |
|                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                    |
| (Former                name, former address and former fiscal year, if changed since last                report)                                                                                                                                                                                                                                                                                        |

----

----

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

| **PART                I - FINANCIAL INFORMATION** |
|---------------------------------------------------|
|                                              |   |   |
|                                              |   |   |
| Item                1.                            | Financial                Statements |   2 |
| Item                2.                            | Management’s                Discussion and Analysis of Financial                Condition |   |
|                                              | and                Results of Operations | 18 |
| Item                3.                            | Quantitative                and Qualitative Disclosures About Market                Risk | 32 |
| Item                4.                            | Controls                and Procedures | 32 |
|                                              |   |   |

| **PART                II - OTHER INFORMATION** |
|------------------------------------------------|
|                                           |   |   |
|                                           |   |   |
| Item                1.                         | Legal                Proceedings |   * |
| Item                1A.                        | Risk                Factors | 33 |
| Item                2.                         | Unregistered                Sales of Equity Securities and Use of                Proceeds | 33 |
| Item                3.                         | Defaults                Upon Senior Securities |   * |
| Item                4.                         | Submission                of Matters to a Vote of Security Holders |   * |
| Item                5.                         | Other                Information |   * |
| Item                6.                         | Exhibits | 33 |

----

Table      of Contents

**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**                                                                                            |   | 2007 |   | 2006 |   |
| **Current                Assets:**                                                                    |   |   |   |   |   |
| Cash                and short-term investments                                                        |   | $ | 576.8 |   | $ | 934.2 |   |
| Accounts                receivable (less allowance for doubtful                                       |   |   |   |   |   |   |   |
| accounts                of $43.1 and $54.9, respectively)                                             |   |   | 765.2 |   |   | 807.3 |   |
| Inventories                                                                                           |   |   | 214.4 |   |   | 218.6 |   |
| Prepaid                expenses and other                                                             |   |   | 82.4 |   |   | 67.7 |   |
| Assets                related to discontinued operations                                              |   |   | 4.0 |   |   | 4.3 |   |
| Total                current assets                                                                   |   |   | 1,642.8 |   |   | 2,032.1 |   |
| Investments                                                                                           |   |   | 184.5 |   |   | 368.9 |   |
| Goodwill                                                                                              |   |   | 8,418.8 |   |   | 8,447.0 |   |
| Other                intangibles                                                                      |   |   | 2,083.8 |   |   | 2,129.4 |   |
| **Property,                Plant and Equipment:**                                                     |   |   |   |   |   |   |   |
| Land                                                                                                  |   |   | 322.1 |   |   | 314.9 |   |
| Building                and improvements                                                              |   |   | 973.3 |   |   | 955.1 |   |
| Operating                plant and equipment                                                          |   |   | 8,144.2 |   |   | 7,933.8 |   |
| Information                processing                                                                 |   |   | 1,081.3 |   |   | 1,048.1 |   |
| Furniture                and fixtures                                                                 |   |   | 177.3 |   |   | 173.8 |   |
| Under                construction                                                                     |   |   | 360.1 |   |   | 496.0 |   |
| Total                property, plant and equipment                                                    |   |   | 11,058.3 |   |   | 10,921.7 |   |
| Less                accumulated depreciation                                                          |   |   | 5,971.1 |   |   | 5,690.3 |   |
| Net                property, plant and equipment                                                      |   |   | 5,087.2 |   |   | 5,231.4 |   |
| Other                assets                                                                           |   |   | 114.0 |   |   | 89.4 |   |
| Assets                related to discontinued operations                                              |   |   | 44.5 |   |   | 45.5 |   |
| **Total                Assets**                                                                       |   | $ | 17,575.6 |   | $ | 18,343.7 |   |
| **Liabilities                and Shareholders’ Equity**                                         |   |   |   |   |   |   |   |
| **Current                Liabilities:**                                                               |   |   |   |   |   |   |   |
| Current                maturities of long-term debt                                                   |   | $ | 75.3 |   | $ | 36.3 |   |
| Accounts                payable                                                                       |   |   | 487.9 |   |   | 576.1 |   |
| Advance                payments and customer deposits                                                 |   |   | 204.9 |   |   | 186.2 |   |
| Accrued                taxes                                                                          |   |   | 204.2 |   |   | 114.1 |   |
| Accrued                dividends                                                                      |   |   | 44.6 |   |   | 46.0 |   |
| Accrued                interest                                                                       |   |   | 49.1 |   |   | 79.3 |   |
| Other                current liabilities                                                              |   |   | 153.2 |   |   | 156.5 |   |
| Liabilities                related to discontinued operations                                         |   |   | 0.4 |   |   | 2.8 |   |
| Total                current liabilities                                                              |   |   | 1,219.6 |   |   | 1,197.3 |   |
| Long-term                debt                                                                         |   |   | 2,661.3 |   |   | 2,697.4 |   |
| Deferred                income taxes                                                                  |   |   | 1,059.6 |   |   | 1,109.5 |   |
| Other                liabilities                                                                      |   |   | 698.7 |   |   | 677.6 |   |
| Total                liabilities                                                                      |   |   | 5,639.2 |   |   | 5,681.8 |   |
| **Shareholders’                Equity:**                                                        |   |   |   |   |   |   |   |
| Preferred                stock, Series C, $2.06, no par value, 10,127 and 10,307                      |   |   |   |   |   |   |   |
| shares                issued and outstanding, respectively                                            |   |   | 0.3 |   |   | 0.3 |   |
| Common                stock, par value $1 per share, 1.0 billion shares                authorized,    |   |   |   |   |   |   |   |
| 350,409,318                and 364,505,820 shares issued and outstanding,                respectively |   |   | 350.4 |   |   | 364.5 |   |
| Additional                paid-in capital                                                             |   |   | 3,433.1 |   |   | 4,296.8 |   |
| Accumulated                other comprehensive income (loss)                                          |   |   | (27.0 | ) |   | 9.5 |   |
| Retained                earnings                                                                      |   |   | 8,179.6 |   |   | 7,990.8 |   |
| Total                shareholders’ equity                                                       |   |   | 11,936.4 |   |   | 12,661.9 |   |
| **Total                Liabilities and Shareholders’ Equity**                                   |   | $ | 17,575.6 |   | $ | 18,343.7 |   |

----

Table      of Contents

| **CONSOLIDATED                STATEMENTS OF INCOME (UNAUDITED)**              |
|-------------------------------------------------------------------------------|
|                                                                          |   | Three                Months Ended |
|                                                                          |   | March                31, |
| (Millions,                except per share amounts)                           |   | 2007 |   | 2006 |   |   |
| **Revenues                and sales:**                                        |   |   |   |   |   |   |
| Service                revenues                                               |   | $ | 1,880.1 |   | $ | 1,649.2 |   |
| Product                sales                                                  |   |   | 198.4 |   |   | 194.1 |   |
| Total                revenues and sales                                       |   |   | 2,078.5 |   |   | 1,843.3 |   |
| **Costs                and expenses:**                                        |   |   |   |   |   |   |   |
| Cost                of services (excluding depreciation of $188.8 and $160.8, |   |   |   |   |   |   |   |
| respectively,                included below)                                  |   |   | 611.0 |   |   | 542.8 |   |
| Cost                of products sold                                          |   |   | 287.5 |   |   | 272.7 |   |
| Selling,                general, administrative and other                     |   |   | 469.9 |   |   | 425.7 |   |
| Depreciation                and amortization                                  |   |   | 349.5 |   |   | 299.3 |   |
| Integration                expenses and other charges                         |   |   | 6.3 |   |   | 10.8 |   |
| Total                costs and expenses                                       |   |   | 1,724.2 |   |   | 1,551.3 |   |
| **Operating                income**                                           |   |   | 354.3 |   |   | 292.0 |   |
|                                                                          |   |   |   |   |   |   |   |
| Equity                earnings in unconsolidated partnerships                 |   |   | 15.0 |   |   | 12.9 |   |
| Minority                interest in consolidated partnerships                 |   |   | (9.7 | ) |   | (13.9 | )  |
| Other                income, net                                              |   |   | 7.7 |   |   | 10.8 |   |
| Interest                expense                                               |   |   | (46.7 | ) |   | (84.7 | ) |
| Gain                on disposal of assets                                     |   |   | 56.5 |   |   | - |   |
|                                                                          |   |   |   |   |   |   |   |
| Income                from continuing operations before income taxes          |   |   | 377.1 |   |   | 217.1 |   |
| Income                taxes                                                   |   |   | 146.8 |   |   | 82.9 |   |
|                                                                          |   |   |   |   |   |   |   |
| Income                from continuing operations                              |   |   | 230.3 |   |   | 134.2 |   |
| Income                (loss) from discontinued operations (net of income tax  |   |   |   |   |   |   |   |
| expense                (benefit) of $(0.1) and $117.5, respectively)          |   |   | (0.2 | ) |   | 163.2 |   |
|                                                                          |   |   |   |   |   |   |   |
| Net                income                                                     |   |   | 230.1 |   |   | 297.4 |   |
| Preferred                dividends                                            |   |   | - |   |   | - |   |
| Net                income applicable to common shares                         |   | $ | 230.1 |   | $ | 297.4 |   |
| **Earnings                per share:**                                        |   |   |   |   |   |   |   |
| Basic:                                                                        |   |   |   |   |   |   |   |
| Income                from continuing operations                              |   |   | $.64 |   |   | $.35 |   |
| Income                (loss) from discontinued operations                     |   |   | - |   |   | .42 |   |
| Net                income                                                     |   |   | $.64 |   |   | $.77 |   |
| Diluted:                                                                      |   |   |   |   |   |   |   |
| Income                from continuing operations                              |   |   | $.64 |   |   | $.35 |   |
| Income                (loss) from discontinued operations                     |   |   | - |   |   | .42 |   |
| Net                income                                                     |   |   | $.64 |   |   | $.77 |   |

----

Table      of Contents

| **CONSOLIDATED                STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                       |   |                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                                                                       |   | Three                Months Ended |   |   |   |
|                                                                                                                                       |   | March                31,          |   |   |   |
| (Millions)                                                                                                                                 |   | 2007                              |   | 2006 |   |
| **Cash                Flows from Operating Activities:**                                                                                   |   |                              |   |   |   |
| Net                income                                                                                                                  |   | $                                 | 230.1  |   | $ | 297.4 |   |
| Adjustments                to reconcile net income to net cash provided from                operations:                                    |   |                              |   |   |   |   |   |
| Loss                (income) from discontinued operations                                                                                  |   |                              | 0.2    |   |   | (163.2 | ) |
| Depreciation                and amortization expense                                                                                       |   |                              | 349.5  |   |   | 299.3 |   |
| Provision                for doubtful accounts                                                                                             |   |                              | 37.3   |   |   | 48.7 |   |
| Non-cash                portion of gain on disposal of assets                                                                              |   |                              | (56.5  | ) |   | - |   |
| Change                in deferred income taxes                                                                                             |   |                              | 12.1   |   |   | 40.5 |   |
| Other,                net                                                                                                                  |   |                              | (6.7   | ) |   | (0.1 | ) |
| Changes                in operating assets and liabilities, net of effects of acquisitions                and                dispositions: |   |                              |   |   |   |   |   |
| Accounts                receivable                                                                                                         |   |                              | 3.5    |   |   | (8.7 | ) |
| Inventories                                                                                                                                |   |                              | 4.3    |   |   | 36.6 |   |
| Accounts                payable                                                                                                            |   |                              | (89.8  | ) |   | (100.6 | ) |
| Other                current liabilities                                                                                                   |   |                              | 99.0   |   |   | (46.8 | ) |
| Other,                net                                                                                                                  |   |                              | (21.8  | ) |   | (18.3 | ) |
| Net                cash provided from operating activities                                                                                 |   |                              | 561.2  |   |   | 384.8 |   |
| **Cash                Flows from Investing Activities:**                                                                                   |   |                              |   |   |   |   |   |
| Additions                to property, plant and equipment                                                                                  |   |                              | (161.8 | ) |   | (150.7 | ) |
| Additions                to capitalized software development costs                                                                         |   |                              | (7.8   | ) |   | (7.7 | ) |
| Purchases                of property, net of cash acquired                                                                                 |   |                              | (2.5   | ) |   | (458.9 | ) |
| Proceeds                from the sale of investments                                                                                       |   |                              | 188.7  |   |   | - |   |
| Proceeds                from the return on investments                                                                                     |   |                              | 10.9   |   |   | 8.9 |   |
| Other,                net                                                                                                                  |   |                              | (0.4   | ) |   | 7.3 |   |
| Net                cash provided from (used in) investing activities                                                                       |   |                              | 27.1   |   |   | (601.1 | ) |
| **Cash                Flows from Financing Activities:**                                                                                   |   |                              |   |   |   |   |   |
| Dividends                paid on common and preferred stock                                                                                |   |                              | (45.9  | ) |   | (147.8 | ) |
| Repayments                of long-term debt                                                                                                |   |                              | (0.7   | ) |   | (0.7 | ) |
| Repurchases                of common stock                                                                                                 |   |                              | (938.8 | ) |   | - |   |
| Cash                payments to effect conversion of convertible notes                                                                     |   |                              | -      |   |   | (59.8 | ) |
| Distributions                to minority investors                                                                                         |   |                              | (7.7   | ) |   | (11.8 | ) |
| Excess                tax benefits from stock option exercises                                                                             |   |                              | 3.8    |   |   | 3.4 |   |
| Common                stock issued                                                                                                         |   |                              | 42.4   |   |   | 54.9 |   |
| Net                cash used in financing activities                                                                                       |   |                              | (946.9 | ) |   | (161.8 | ) |
| **Cash                Flows from Discontinued Operations:**                                                                                |   |                              |   |   |   |   |   |
| Cash                provided from operating activities                                                                                     |   |                              | 1.9    |   |   | 434.5 |   |
| Cash                used in investing activities                                                                                           |   |                              | (0.7   | ) |   | (65.8 | ) |
| Cash                used in financing activities                                                                                           |   |                              | -      |   |   | (91.8 | ) |
| Net                cash provided from discontinued operations                                                                              |   |                              | 1.2    |   |   | 276.9 |   |
|                                                                                                                                       |   |                              |   |   |   |   |   |
| Effect                of exchange rate changes on cash and short-term                investments                                           |   |                              | -      |   |   | 0.6 |   |
|                                                                                                                                       |   |                              |   |   |   |   |   |
| Decrease                in cash and short-term investments                                                                                 |   |                              | (357.4 | ) |   | (100.6 | ) |
|                                                                                                                                       |   |                              |   |   |   |   |   |
| **Cash                and Short-term Investments:**                                                                                        |   |                              |   |   |   |   |   |
| Beginning                of the period                                                                                                     |   |                              | 934.2  |   |   | 982.4 |   |
| End                of the period                                                                                                           |   | $                                 | 576.8  |   | $ | 881.8 |   |

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Table      of Contents

|  **CONSOLIDATED                STATEMENT OF                SHAREHOLDERS’ EQUITY (UNAUDITED)** |   |
|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                     |   |   |   |   |   |   |   | Accumulated |   |    |   |   |     |
|                                                                                                     |   |   |   |   |   | Additional |   | Other |   |    |   |   |     |
|                                                                                                     |   | Preferred |   | Common |   | Paid-In |   | Comprehensive |   | Retained |   |   |     |
|                                                                                                     |   | Stock |   | Stock |   | Capital |   | Income                (Loss) |   | Earnings |   | Total |   |
| Balance                at December 31, 2006                                                              |   | $ | 0.3 |   | $ | 364.5 |   | $ | 4,296.8 |   | $ | 9.5 |   |  $ | 7,990.8  |   |  $ | 12,661.9  |   |
| Cumulative                effect adjustment to adopt recognition                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                measurement provisions of FASB Interpretation                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| No.                48 (See Note 2)                                                                       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 3.2 |   |   | 3.2 |   |
| Net                income                                                                                |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 230.1 |   |   | 230.1 |   |
| Other                comprehensive loss, net of tax (See Note 10)                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding losses on investments,                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of reclassification adjustments                                                       |   |   | - |   |   | - |   |   | - |   |   | (37.5 | ) |   | - |   |   | (37.5 | ) |
| Defined                benefit pension plans                                                             |   |   | - |   |   | - |   |   | - |   |   | 0.9 |   |   | - |   |   | 0.9 |   |
| Other                postretirement benefit plan                                                         |   |   | - |   |   | - |   |   | - |   |   | 0.1 |   |   | - |   |   | 0.1 |   |
| Comprehensive                income                                                                      |   |   | - |   |   | - |   |   | - |   |   | (36.5 | ) |   | 230.1 |   |   | 193.6 |   |
| Employee                plans, net                                                                       |   |   | - |   |   | 1.0 |   |   | 43.8 |   |   | - |   |   | - |   |   | 44.8 |   |
| Issuance                of restricted stock                                                              |   |   | - |   |   | 0.2 |   |   | - |   |   | - |   |   | - |   |   | 0.2 |   |
| Amortization                of stock-based compensation                                                  |   |   | - |   |   | - |   |   | 7.9 |   |   | - |   |   | - |   |   | 7.9 |   |
| Tax                benefit for non-qualified stock options                                               |   |   | - |   |   | - |   |   | 5.8 |   |   | - |   |   | - |   |   | 5.8 |   |
| Repurchases                of stock                                                                      |   |   | - |   |   | (15.3 | ) |   | (923.5 | ) |   | - |   |   | - |   |   | (938.8 | ) |
| Other                                                                                                    |   |   | - |   |   | - |   |   | 2.3 |   |   | - |   |   | - |   |   | 2.3 |   |
| Dividends:                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                - $.125 per share                                                                  |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (44.5 | ) |   | (44.5 | ) |
| Preferred                                                                                                |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Balance                at March 31, 2007                                                                 |   | $ | 0.3 |   | $ | 350.4 |   | $ | 3,433.1 |   | $ | (27.0 | ) | $ | 8,179.6 |   | $ | 11,936.4 |   |

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Table      of Contents

**NOTES        TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

** _____**

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

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

----

Table      of Contents

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

** _____**

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

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

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Table      of Contents

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

** _____**

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

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

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Table      of Contents

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

** _____**

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

|                                        |   |
|---------------------------------------------|--------|
| (Millions)                                  |   |
| Balance                at December 31, 2006 |   | $ | 8,447.0 |   |
| Acquired                during the period   |   |   | 1.8 |   |
| Other                adjustments            |   |   | (30.0 | ) |
| Balance                at March 31, 2007    |   | $ | 8,418.8 |   |

|                                                                  |   |                       |    |                          |   |
|-----------------------------------------------------------------------|--------|----------------------------|---------|-------------------------------|--------|
|                                                                  |   | March                31,,, |    | December                31,,, |   |
| (Millions)                                                            |   | 20077                      |    | 20066                         |   |
| Cellular                and Personal Communications Services licenses |   | $                          | 1,657.8 |                          | $      | 1,657.8 |   |

|                                 |   |                             |   |
|--------------------------------------|--------|----------------------------------|--------|
|                                 |   | March                31, 2007    |   |
|                                 |   |                             |   |   |   | Net |   |
|                                 |   | Gross                            |   | Accumulated |   | Carrying |   |
| (Millions)                           |   | Cost                             |   | Amortization |   | Value |   |
| Customer                lists        |   | $                                | 946.6  |   | $ | (524.0 | ) | $ | 422.6 |   |
| Roaming                agreement     |   |                             | 6.1    |   |   | (3.0 | ) |   | 3.1 |   |
| Non-compete                agreement |   |                             | 0.3    |   |   | - |   |   | 0.3 |   |
|                                 |   | $                                | 953.0  |   | $ | (527.0 | ) | $ | 426.0 |   |
|                                 |   |                             |
|                                 |   | December                31, 2006 |
|                                 |   |                             |   |   |   |   |   | Net |   |
|                                 |   |  Gross                      |   | Accumulated |   | Carrying |   |
| (Millions)                           |   |  Cost                       |   | Amortization |   | Value |   |
| Customer                lists        |   | $                                | 946.6  |   | $ | (478.6 | ) | $ | 468.0 |   |
| Roaming                agreement     |   |                             | 6.1    |   |   | (2.5 | ) |   | 3.6 |   |
|                                 |   | $                                | 952.7  |   | $ | (481.1 | ) | $ | 471.6 |   |

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

|                                                                                                          |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| (Millions,                except per share amounts)                                                           |   | 2007   |   | 2006   |   |
| Compensation                expense related to stock options issued by Alltel                                 |   | $      | 4.6    |   | $      | 4.8 |   |
| Compensation                expense related to stock options converted to Alltel stock                options |   |   |   |   |   |   |   |
| in                connection with the acquisition of Western Wireless                                         |   |   | 0.2    |   |   | 0.5 |   |
| Compensation                expense related to restricted stock awards                                        |   |   | 3.1    |   |   | 3.7 |   |
| Compensation                expense before income taxes                                                       |   |   | 7.9    |   |   | 9.0 |   |
| Income                tax benefit                                                                             |   |   | (2.4   | )      |   | (2.8 | ) |
| Compensation                expense, net of tax                                                               |   | $      | 5.5    |   | $      | 6.2 |   |

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Table      of Contents

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

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

|                                                            |   |                                                            |                     |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|--------------------------|
|                                                            |   | Three                Months Ended March                31, |                     |
|                                                            |   | 20077                                                           |                     | 20066 |   |
| Weighted                average grant date fair value per share |   |                                                            | $18.51                   |   |   | $15.66 |   |
| Expected                life                                    |   |                                                            | 6.4                years |   |   | 6.5                years |   |
| Expected                volatility                              |   |                                                            | 21.3%                    |   |   | 23.6% |   |
| Dividend                yield                                   |   |                                                            | 0.8%                     |   |   | 0.8% |   |
| Risk-free                interest rate                          |   |                                                            | 4.8%                     |   |   | 4.3% |   |

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Table      of Contents

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

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

|                                            |   |                     |                                                                  |                         |   |
|-------------------------------------------------|--------|--------------------------|-----------------------------------------------------------------------|------------------------------|--------|
|                                            |   | (Thousands)              |                                                                  | Weighted                     |   |
|                                            |   | Number                of |                                                                  | Average                Price |   |
|                                            |   | Shares                   |                                                                  | Per                Share     |   |
| Outstanding                at December 31, 2006 |   |                     | 16,176.2                                                              |                         |   | $46.78 |   |
| Granted                                         |   |                     |                     986.5                         |                         |   |                  61.51 |   |
| Exercised                                       |   |                     |                     (932.3)                       |                         |   |                  47.37 |   |
| Forfeited                                       |   |                     |                       (77.5)            |                         |   |                  45.65 |   |
| Expired                                         |   |                     |                         (1.2) |                         |   |                  26.18 |   |
| Outstanding                at March 31, 2007    |   |                     | 16,151.7                                                              |                         |   | $47.65 |   |
| Exercisable                at end of period     |   |                     | 11,902.2                                                              |                         |   | $46.78 |   |

|                                           |   |                     |                                       |                         |   |
|------------------------------------------------|--------|--------------------------|--------------------------------------------|------------------------------|--------|
|                                           |   | (Thousands)              |                                       | Weighted                     |   |
|                                           |   | Number                of |                                       | Average                Price |   |
|                                           |   | Shares                   |                                       | Per                Share     |   |
| Non-vested                at December 31, 2006 |   |                     |  4,391.9                              |                         |   | $45.89 |   |
| Granted                                        |   |                     |                    986.5    |                         |   |                      61.51 |   |
| Vested                                         |   |                     |  (1,077.9)                            |                         |   |                      43.50 |   |
| Forfeited                                      |   |                     |       (51.0) |                         |   |                      47.77 |   |
| Non-vested                at March 31, 2007    |   |                     |  4,249.5                              |                         |   |                    $50.10 |   |

|                                           |   |                     |                                      |                      |   |
|------------------------------------------------|--------|--------------------------|-------------------------------------------|---------------------------|--------|
|                                           |   |                     |                                      | Weighted                  |   |
|                                           |   |                     |                                      | Average                   |   |
|                                           |   | Number                of |                                      | Fair                Value |   |
|                                           |   | Shares                   |                                      | Per                Share  |   |
| Non-vested                at December 31, 2006 |   |                     | 487,552                                   |                      |   | $58.37 |   |
| Granted                                        |   |                     | 248,625                                   |                      |   |   60.51 |   |
| Vested                                         |   |                     | (104,900)                                 |                      |   |   56.78 |   |
| Forfeited                                      |   |                     |                    (3,833) |                      |   |   53.18 |   |
| Non-vested                at March 31, 2007    |   |                     | 627,444                                   |                      |   | $59.51 |   |

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Table      of Contents

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

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

|                                                 |   |                              |   |                              |   |
|------------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|
|                                                 |   | PensionBenefits                   |   | PostretirementBenefits            |   |
|                                                 |   | Three                Months Ended |   | Three                Months Ended |   |   |
| (Millions)                                           |   | 2007                              |   | 2006                              |   | 2007 |   | 2006 |   |   |
| Net                periodic benefit expense:         |   |                              |   |                              |   |   |   |   |   |   |
| Benefits                earned during the year       |   | $                                 | 2.7    |                              | $      | 6.7 |   | $ | 0.1 |   | $ | 0.1 |   |
| Interest                cost on benefit obligation   |   |                              | 3.2    |                              |   | 14.9 |   |   | 0.1 |   |   | 3.3 |   |
| Special                termination benefits          |   |                              | -      |                              |   | 4.5 |   |   | - |   |   | - |   |
| Settlement                and curtailment losses     |   |                              | -      |                              |   | 1.0 |   |   | - |   |   | - |   |
| Amortization                of prior service cost    |   |                              | 0.2    |                              |   | 0.1 |   |   | - |   |   | 0.5 |   |
| Amortization                of transition obligation |   |                              | -      |                              |   | - |   |   | - |   |   | 0.2 |   |
| Amortization                of net actuarial loss    |   |                              | 1.2    |                              |   | 8.4 |   |   | 0.1 |   |   | 1.6 |   |
| Expected                return on plan assets        |   |                              | (3.6   | )                                 |   | (20.9 | ) |   | - |   |   | - |   |
| Net                periodic benefit expense          |   | $                                 | 3.7    |                              | $      | 14.7 |   | $ | 0.3 |   | $ | 5.7 |   |

----

Table      of Contents

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

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

**7.         **
**Integration      Expenses and Other Charges:**

|                                                                     |   |                              |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                     |   | Three                Months Ended |   |
| (Millions)                                                               |   | 2007                              |   | 2006 |   |
| Severance                and employee benefit costs                      |   | $                                 | 3.7    |   | $ | - |   |
| Rebranding                and signage costs                              |   |                              | 0.1    |   |   | 8.3 |   |
| Computer                system conversion and other integration expenses |   |                              | 2.5    |   |   | 2.5 |   |
| Total                integration expenses and other charges              |   | $                                 | 6.3    |   | $ | 10.8 |   |

|                                                                             |   |   |   |
|----------------------------------------------------------------------------------|--------|--------|--------|
| (Millions)                                                                       |   |   |   |
| Balance,                beginning of period                                      |   | $      | 0.1    |   |
| Integration                expenses and other charges recorded during the period |   |   | 6.3    |   |
| Cash                outlays during the period                                    |   |   | (1.7   | ) |
| Balance,                end of period                                            |   | $      | 4.7    |   |

| **8.         ** | **Gain                on Disposal of Assets:** |
|--------------------------------------------------------------|------------------------------------------------|

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Table      of Contents

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

**9.         **
**Discontinued      Operations:**

----

Table      of Contents

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

**9.         **
**Discontinued      Operations, Continued:**

|                                                                |   |                              |   |
|---------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                |   | Three                Months Ended |   |
| (Millions)                                                          |   | 2007                              |   | 2006 |   |
| Revenues                and sales                                   |   | $                                 | 7.6    |   | $ | 903.3 |   |
| Operating                expenses (a)                               |   |                              | 9.2    |   |   | 614.2 |   |
| Operating                income (loss)                              |   |                              | (1.6   | ) |   | 289.1 |   |
| Minority                interest expense in unconsolidated entities |   |                              | -      |   |   | (4.5 | ) |
| Other                income, net                                    |   |                              | 1.3    |   |   | 1.9 |   |
| Interest                expense (b)                                 |   |                              | -      |   |   | (5.8 | ) |
| Pretax                income (loss) from discontinued operations    |   |                              | (0.3   | ) |   | 280.7 |   |
| Income                tax expense (benefit)                         |   |                              | (0.1   | ) |   | 117.5 |   |
| Income                (loss) from discontinued operations           |   | $                                 | (0.2   | ) | $ | 163.2 |   |

| (a)    | Operating                expenses for 2007 included an impairment charge of $1.7 million to                reflect                the fair value less cost to sell of the four rural markets in Minnesota                required to be divested, and resulted in the write-down in the carrying                values of goodwill ($1.4 million) and customer list ($0.3 million)                allocated to these markets. Operating expenses for 2006 exclude general                corporate overhead expenses previously allocated to the wireline                business                in accordance with Emerging Issues Task Force Issue No. 87-24, “Allocation                of Interest Expense to Discontinued Operations”. The amount of corporate                overhead expenses added back to Alltel’s continuing operations totaled                $5.1 million for the three months ended March 31, 2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (b)    | Except                for $260.8 million of long-term debt directly related to the wireline                business that was transferred to Windstream and a $50.0 million credit                facility agreement that was assumed by the buyer of the Bolivian                operations, Alltel had no outstanding indebtedness directly related                to the                wireline business, the international operations or the domestic markets                to                be divested, and accordingly, no additional interest expense was                allocated                to discontinued operations for the periods                presented.                                                                                                                                                                                                                                                                   |

|                                                                |   |                         |   |                                  |   |
|---------------------------------------------------------------------|--------|------------------------------|--------|---------------------------------------|--------|
|  (Millions)                                                    |   | March                31,2007 |   | December                31, 2006 |   |
| Current                assets                                       |   | $                            | 4.0    |                                  | $      | 4.3 |   |
| Property,                plant and equipment, net                   |   |                         | 20.3   |                                  |   | 19.6 |   |
| Goodwill                                                            |   |                         | 2.3    |                                  |   | 3.7 |   |
| Cellular                licenses                                    |   |                         | 21.5   |                                  |   | 21.5 |   |
| Customer                list                                        |   |                         | 0.4    |                                  |   | 0.7 |   |
| Non-current                assets                                   |   |                         | 44.5   |                                  |   | 45.5 |   |
| Total                assets related to discontinued operations      |   | $                            | 48.5   |                                  | $      | 49.8 |   |
| Current                liabilities                                  |   | $                            | 0.4    |                                  | $      | 2.8 |   |
| Total                liabilities related to discontinued operations |   | $                            | 0.4    |                                  | $      | 2.8 |   |

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Table      of Contents

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

**10.      C**
**omprehensive      Income:**

|                                                                         |   |                                    |   |
|------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                         |   | Three                Months Ended  |   |
| (Millions)                                                                   |   | 2007                                    |   | 2006 |   |
| Net                income                                                    |   | $                                       | 230.1  |   | $ | 297.4 |   |
| Other                comprehensive income (loss):                            |   |                                    |   |   |   |   |   |
| Unrealized                holding gains (losses) on investments:             |   |                                    |   |   |   |   |   |
| Unrealized                holding gains (losses) arising in the period       |   |                                    | (1.1   | ) |   | 12.4 |   |
| Income                tax expense (benefit)                                  |   |                                    | (0.4   | ) |   | 4.4 |   |
|                                                                         |   |                                    | (0.7   | ) |   | 8.0 |   |
| Less                reclassification adjustments for gains included          |   |                                    |   |   |   |   |   |
| in                net income for the period                                  |   |                                    | (56.5  | ) |   | - |   |
| Income                tax expense                                            |   |                                    | 19.7   |   |   | - |   |
|                                                                         |   |                                    | (36.8  | ) |   | - |   |
|                                                                         |   |                                    |   |   |   |   |   |
| Net                unrealized gains (losses) in the period                   |   |                                    | (57.6  | ) |   | 12.4 |   |
| Income                tax expense (benefit)                                  |   |                                    | (20.1  | ) |   | 4.4 |   |
|                                                                         |   |                                    | (37.5  | ) |   | 8.0 |   |
|                                                                         |   |                                    |   |   |   |   |   |
| Foreign                currency translation adjustment for the period        |   |                                    | -      |   |   | 17.6 |   |
|                                                                         |   |                                    |   |   |   |   |   |
| Defined                benefit pension plans:                                |   |                                    |   |   |   |   |   |
| Amounts                included in net periodic benefit cost for the period: |   |                                    |   |   |   |   |   |
| Amortization                of prior service cost                            |   |                                    | 0.2    |   |   | - |   |
| Amortization                of net actuarial loss                            |   |                                    | 1.2    |   |   | - |   |
|                                                                         |   |                                    | 1.4    |   |   | - |   |
| Income                tax expense                                            |   |                                    | 0.5    |   |   | - |   |
|                                                                         |   |                                    | 0.9    |   |   | - |   |
|                                                                         |   |                                    |   |   |   |   |   |
| Other                postretirement benefit plans:                           |   |                                    |   |   |   |   |   |
| Amounts                included in net periodic benefit cost for the period: |   |                                    |   |   |   |   |   |
| Amortization                of net actuarial loss                            |   |                                    | 0.1    |   |   | - |   |
| Income                tax expense                                            |   |                                    | -      |   |   | - |   |
|                                                                         |   |                                    | 0.1    |   |   | - |   |
|                                                                         |   |                                    |   |   |   |   |   |
| Other                comprehensive income (loss) before tax                  |   |                                    | (56.1  | ) |   | 30.0 |   |
| Income                tax expense (benefit)                                  |   |                                    | (19.6  | ) |   | 4.4 |   |
| Other                comprehensive income (loss)                             |   |                                    | (36.5  | ) |   | 25.6 |   |
| Comprehensive                income                                          |   | $                                       | 193.6  |   | $ | 323.0 |   |

|                                                         |   |                               |   |                                  |   |
|--------------------------------------------------------------|--------|------------------------------------|--------|---------------------------------------|--------|
|  (Millions)                                             |   | March                31, 2007 |   | December                31, 2006 |   |
| Unrealized                holding gains on investments       |   | $                                  | -      |                                  | $      | 37.5 |   |
| Defined                benefit pension plans                 |   |                               | (24.9  | )                                     |   | (25.8 | ) |
| Other                postretirement benefit plan             |   |                               | (2.1   | )                                     |   | (2.2 | ) |
| Accumulated                other comprehensive income (loss) |   | $                                  | (27.0  | )                                     | $      | 9.5 |   |

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Table      of Contents

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

**11.  **
**Earnings      per Share:**

|                                                                                                                                             |   |                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                                                                             |   | Three                Months Ended |   |
| (Millions,                except per share amounts)                                                                                              |   | 2007                              |   | 2006 |   |
| **Basic                earnings per share:**                                                                                                     |   |                              |   |   |   |
| Income                from continuing operations                                                                                                 |   | $                                 | 230.3  |   | $ | 134.2 |   |
| Income                (loss) from discontinued operations                                                                                        |   |                              | (0.2   | ) |   | 163.2 |   |
| Less                preferred dividends                                                                                                          |   |                              | -      |   |   | - |   |
| Net                income applicable to common shares                                                                                            |   | $                                 | 230.1  |   | $ | 297.4 |   |
| Weighted                average common shares outstanding for the period                                                                         |   |                              | 357.2  |   |   | 386.8 |   |
| Basic                earnings per share:                                                                                                         |   |                              |   |   |   |   |   |
| From                continuing operations                                                                                                        |   |                              | $.64   |   |   | $.35 |   |
| From                discontinued operations                                                                                                      |   |                              | -      |   |   | .42 |   |
| Net                income                                                                                                                        |   |                              | $.64   |   |   | $.77 |   |
| **Diluted                earnings per share:**                                                                                                   |   |                              |   |   |   |   |   |
| Net                income applicable to common shares                                                                                            |   | $                                 | 230.1  |   | $ | 297.4 |   |
| 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 |   | $                                 | 230.1  |   | $ | 297.5 |   |
| Weighted                average common shares outstanding for the period                                                                         |   |                              | 357.2  |   |   | 386.8 |   |
| Increase                in shares resulting from:                                                                                                |   |                              |   |   |   |   |   |
| Assumed                exercise of stock options                                                                                                 |   |                              | 2.1    |   |   | 1.5 |   |
| Assumed                conversion of convertible notes                                                                                           |   |                              | 0.1    |   |   | 1.0 |   |
| Assumed                conversion of preferred stock                                                                                             |   |                              | 0.2    |   |   | 0.2 |   |
| Non-vested                restricted stock awards                                                                                                |   |                              | 0.2    |   |   | 0.2 |   |
| Weighted                average common shares assuming conversion of the above                securities                                         |   |                              | 359.8  |   |   | 389.7 |   |
| Diluted                earnings per share:                                                                                                       |   |                              |   |   |   |   |   |
| From                continuing operations                                                                                                        |   |                              | $.64   |   |   | $.35 |   |
| From                discontinued operations                                                                                                      |   |                              | -      |   |   | .42 |   |
| Net                income                                                                                                                        |   |                              | $.64   |   |   | $.77 |   |

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Table      of Contents

**ALLTEL      CORPORATION**

**FORM      10-Q**

**PART      I - FINANCIAL INFORMATION**

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

**EXECUTIVE      SUMMARY**

| ·                         | Revenues                and sales increased 13 percent over 2006 driven by Alltel’s continued                focus on quality customer growth, improvements in data revenues and                additional Eligible Telecommunications Carrier (“ETC”) support. Growth in                revenues and sales in the quarter also reflected the effects of Alltel’s                October 3, 2006 acquisition of Midwest Wireless Holdings (“Midwest                Wireless”). Average revenue per customer and retail revenue per customer                increased two percent and one percent year-over-year to $52.49 and                $46.88,                respectively, due to continued growth in data and ETC revenues, partially                offset by lower voice revenues per customer. Average revenue per                customer                for the first quarter of 2007 also reflected additional wholesale                transport revenues earned from charging third parties, principally                Windstream Corporation (“Windstream”), for use of Alltel’s fiber-optic                network. |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                          | Gross                customer additions were 867,000 in the quarter, an 8 percent increase                from                a year ago, while net customer additions were 237,000, a 44 percent                increase from 2006. During the first quarter of 2007, Alltel added                109,000                net postpay customers, more than twice the level achieved in the                first                quarter of 2006, and added 128,000 net prepaid customers. Postpay                churn                decreased 33 basis points from the same period a year ago to 1.33                percent,                while total churn declined 23 basis points year-over-year to 1.77                percent,                marking the fifth consecutive quarter that both churn metrics improved                on                a comparative year-over-year basis. In addition, the churn levels                attained                in the first quarter of 2007 were the lowest in Alltel’s                history. |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                       | Operating                income increased 21 percent from a year ago, primarily reflecting                the                growth in revenues and sales noted above and declines in bad debt                and                roaming expenses. The decrease in roaming expense resulted from negotiated                lower cost per minute charges. |
|----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SPIN-OFF      OF WIRELINE TELECOMMUNICATIONS BUSINESS**

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Table of Contents
**ACQUISITIONS**

| **CUSTOMER                AND OTHER OPERATING STATISTICS**      |   |                              |
|-----------------------------------------------------------------|--------|-----------------------------------|
|                                                            |   | Three                Months Ended |
|                                                            |   | March                31,          |
| (Thousands,                except per customer amounts)         |   | 2007                              |   | 2006 |
| Customers                                                       |   |                              | 12,060.6 |   |   | 10,827.1 |
| Average                customers                                |   |                              | 11,940.7 |   |   | 10,731.4 |
| Gross                customer additions (a)                     |   |                              | 867.5 |   |   | 805.5 |
| Net                customer additions (a)                       |   |                              | 236.6 |   |   | 164.7 |
| Market                penetration                               |   |                              | 15.2% |   |   | 14.0% |
| Postpay                customer churn                           |   |                              | 1.33% |   |   | 1.66% |
| Total                churn                                      |   |                              | 1.77% |   |   | 2.00% |
| Retail                minutes of use per customer per month (b) |   |                              | 651 |   |   | 610 |
| Retail                revenue per customer per month (c)        |   |                              | $46.88 |   |   | $46.21 |
| Average                revenue per customer per month (d)       |   |                              | $52.49 |   |   | $51.23 |

| (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. |

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Table of Contents
| (c) | Retail                revenue per customer per month is calculated by dividing 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)                                       |   | 2007                                    |    | 2006 |   |
| Service                revenues                  |   | $                                       | 1,880.1 |   | $ | 1,649.2 |   |
| Less                wholesale roaming revenues   |   |                                    | (154.2  | ) |   | (151.0 | ) |
| Less                wholesale transport revenues |   |                                    | (46.4   | ) |   | (10.4 | ) |
| Total                retail revenues             |   | $                                       | 1,679.5 |   | $ | 1,487.8 |   |

| (d)    | Average                revenue per customer per month is calculated by dividing service                revenues                by average customers for the period. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                |

----

| Table              of Contents**CONSOLIDATED                RESULTS OF OPERATIONS** |   |                              |    |
|-------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                |   | Three                Months Ended |    |
|                                                                                |   | March                31,          |    |
| (Millions,                except per share amounts)                                 |   | 2007                              |    | 2006 |   |
| Revenues                and sales:                                                  |   |                              |    |   |   |
| Service                revenues                                                     |   | $                                 | 1,880.1 |   | $ | 1,649.2 |   |
| Product                sales                                                        |   |                              | 198.4   |   |   | 194.1 |   |
| Total                revenues and sales                                             |   |                              | 2,078.5 |   |   | 1,843.3 |   |
| Costs                and expenses:                                                  |   |                              |    |   |   |   |   |
| Cost                of services                                                     |   |                              | 611.0   |   |   | 542.8 |   |
| Cost                of products sold                                                |   |                              | 287.5   |   |   | 272.7 |   |
| Selling,                general, administrative and other                           |   |                              | 469.9   |   |   | 425.7 |   |
| Depreciation                and amortization                                        |   |                              | 349.5   |   |   | 299.3 |   |
| Integration                expenses and other charges                               |   |                              | 6.3     |   |   | 10.8 |   |
| Total                costs and expenses                                             |   |                              | 1,724.2 |   |   | 1,551.3 |   |
| Operating                income                                                     |   |                              | 354.3   |   |   | 292.0 |   |
| Non-operating                income, net                                            |   |                              | 13.0    |   |   | 9.8 |   |
| Interest                expense                                                     |   |                              | (46.7   | ) |   | (84.7 | ) |
| Gain                on disposal of assets                                           |   |                              | 56.5    |   |   | - |   |
| Income                from continuing operations before income taxes                |   |                              | 377.1   |   |   | 217.1 |   |
| Income                taxes                                                         |   |                              | 146.8   |   |   | 82.9 |   |
| Income                from continuing operations                                    |   |                              | 230.3   |   |   | 134.2 |   |
| Income                (loss) from discontinued operations                           |   |                              | (0.2    | ) |   | 163.2 |   |
| Net                income                                                           |   | $                                 | 230.1   |   | $ | 297.4 |   |
| Basic                earnings per share:                                            |   |                              |    |   |   |   |   |
| Income                from continuing operations                                    |   |                              | $.64    |   |   | $.35 |   |
| Income                (loss) from discontinued operations                           |   |                              | -       |   |   | .42 |   |
| Net                income                                                           |   |                              | $.64    |   |   | $.77 |   |
| Diluted                earnings per share:                                          |   |                              |    |   |   |   |   |
| Income                from continuing operations                                    |   |                              | $.64    |   |   | $.35 |   |
| Income                (loss) from discontinued operations                           |   |                              | -       |   |   | .42 |   |
| Net                income                                                           |   |                              | $.64    |   |   | $.77 |   |

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|                                                                     |   |                              |   |   |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------|
|                                                                     |   | Three                Months Ended |   |
| (Millions)                                                               |   | 2007                              |   | 2006   |   |
| Severance                and employee benefit costs                      |   | $                                 | 3.7    |   | $      | - |   |
| Rebranding                and signage costs                              |   |                              | 0.1    |   |   | 8.3 |   |
| Computer                system conversion and other integration expenses |   |                              | 2.5    |   |   | 2.5 |   |
| Total                integration expenses and other charges              |   | $                                 | 6.3    |   | $      | 10.8 |   |

| Non-Operating                Income, Net                      |   |                              |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------|
|                                                          |   | Three                Months Ended |   |
|                                                          |   | March                31,          |   |
| (Millions)                                                    |   | 2007                              |   | 2006   |   |
| Equity                earnings in unconsolidated partnerships |   | $                                 | 15.0   |   | $      | 12.9 |   |
| Minority                interest in consolidated partnerships |   |                              | (9.7   | )      |   | (13.9 | ) |
| Other                income, net                              |   |                              | 7.7    |   |   | 10.8 |   |
| Non-operating                income, net                      |   | $                                 | 13.0   |   | $      | 9.8 |   |

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|                                                                |   |                              |   |
|---------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                |   | Three                Months Ended |   |
| (Millions)                                                          |   | 2007                              |   | 2006 |   |
| Revenues                and sales                                   |   | $                                 | 7.6    |   | $ | 903.3 |   |
| Operating                expenses                                   |   |                              | 9.2    |   |   | 614.2 |   |
| Operating                income (loss)                              |   |                              | (1.6   | ) |   | 289.1 |   |
| Minority                interest expense in unconsolidated entities |   |                              | -      |   |   | (4.5 | ) |
| Other                income, net                                    |   |                              | 1.3    |   |   | 1.9 |   |
| Interest                expense                                     |   |                              | -      |   |   | (5.8 | ) |
| Pretax                income (loss) from discontinued operations    |   |                              | (0.3   | ) |   | 280.7 |   |
| Income                tax expense (benefit)                         |   |                              | (0.1   | ) |   | 117.5 |   |
| Income                (loss) from discontinued operations           |   | $                                 | (0.2   | ) | $ | 163.2 |   |

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| **FINANCIAL                CONDITION, LIQUIDITY AND CAPITAL RESOURCES** |   |                              |      |
|-------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                    |   | Three                Months Ended |      |
|                                                                    |   | March                31,          |      |
| (Millions,                except per share amounts)                     |   | 2007                              |      | 2006 |   |
| Cash                flows from (used in):                               |   |                              |      |   |   |
| Operating                activities from continuing operations          |   | $                                 | 561.2     |   | $ | 384.8 |   |
| Investing                activities from continuing operations          |   |                              | 27.1      |   |   | (601.1 | ) |
| Financing                activities from continuing operations          |   |                              | (946.9    | ) |   | (161.8 | ) |
| Discontinued                operations                                  |   |                              | 1.2       |   |   | 276.9 |   |
| Effect                of exchange rate changes                          |   |                              | -         |   |   | 0.6 |   |
| Decrease                in cash and short-term investments              |   | $                                 | (357.4    | ) | $ | (100.6 | ) |
| Total                capital structure (a)                              |   |                              | $14,673.7 |   |   | $18,902.7 |   |
| Percent                of equity to total capital (b)                   |   |                              | 81.3%     |   |   | 70.3% |   |
| Book                value per share (c)                                 |   |                              | $34.06    |   |   | $34.19 |   |

| (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. |

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|                                          |                |                                      |        |
|-----------------------------------------------|---------------------|-------------------------------------------|-------------|
|  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            | Negative                                  | Negative    |

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

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

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

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

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

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

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

| (c) | On                January 19, 2006, Alltel’s Board of Directors authorized the Company to                repurchase up to $3.0 billion of its outstanding common stock over                a                three-year period ending December 31, 2008. During 2006, Alltel                repurchased 28,472,500 shares of its common stock at a total cost                of                $1,595.6 million, or at an average cost of $56.04 per share. Information                pertaining to this authorization for the first quarter of 2007 is                presented in the table below. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               |   |                                                                     |   |                                                                 |   |                                                                                                                         |   |                                                                                                                                                                     |
|------------------------------------|--------|--------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     Period     |   |   Total                Numberof                SharesPurchased |   |   AveragePrice                Paidper                Share |   | Total                Number ofShares                Purchasedas                Part ofPubliclyAnnounced                Plans |   | Maximum                Number of Shares                (or ApproximateDollar                Value) that MayYet                Be PurchasedUnder                the Plans |
| January                1-31, 2007  |   |                  5,000,000                                          |   | $61.39                                                               |   |                  5,000,000                                                                                              |   |  $1,097.5                million                                                                                                                                    |
| February                1-28, 2007 |   |                  4,750,000                                          |   | $61.86                                                               |   |                  4,750,000                                                                                              |   |                                     $   803.7 million      |
| March                1-31, 2007    |   |                  5,500,000                                          |   | $61.46                                                               |   |                  5,500,000                                                                                              |   |                                     $   465.6 million           |
| Totals                             |   | 15,250,000                                                               |   | $61.56                                                               |   | 15,250,000                                                                                                                   |   |                                                                                                                                                                     |

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

Index of Exhibits

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|   | ALLTEL                CORPORATION                                 |
|--------|-------------------------------------------------------------------|
|   | (Registrant)                                                      |
|   |                                                              |
|   |                                                              |
|   | /s/                Sharilyn S. Gasaway                            |
|   | Sharilyn                S. Gasaway                                |
|   | Executive                Vice President - Chief Financial Officer |
|   | (Principal                Financial Officer)                      |
|   | May                8, 2007                                        |

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

| Form                10-Q   |                                                                                                                                                                                            |   |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit                No. | Description                of Exhibits                                                                                                                                                          |   |
|                       |                                                                                                                                                                                            |   |
| 10(o)(16)                  | Amendment                No. 15 to ALLTEL Corporation 401(k) Plan (January 1, 2001                Restatement).                                                                                 | (a)    |
|                       |                                                                                                                                                                                            |   |
| 31(a)                      | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                                               | (a)    |
|                       |                                                                                                                                                                                            |   |
| 31(b)                      | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                                               | (a)    |
|                       |                                                                                                                                                                                            |   |
| 32(a)                      | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | (a)    |
|                       |                                                                                                                                                                                            |   |
| 32(b)                      | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | (a)    |

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