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| UNITED                STATES                                                                                     |
|------------------------------------------------------------------------------------------------------------------|
| SECURITIES                AND EXCHANGE COMMISSION                                                                |
| WASHINGTON,                D. C.   20549                                                          |
|                                                                                                             |
| FORM                10-Q                                                                                         |
|                                                                                                             |
| [x]  QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                            |
| SECURITIES                EXCHANGE ACT OF 1934                                                                   |
| For                the quarterly period ended  September 30,                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 | 22 |
| Item                3.                                  | Quantitative                and Qualitative Disclosures About Market                Risk | 39 |
| Item                4.                                  | Controls                and Procedures | 39 |
|                                                    |   |   |

| **PART                II – OTHER INFORMATION** |
|------------------------------------------------------|
|                                                 |   |   |
|                                                 |   |   |
| Item                1.                               | Legal                Proceedings | 40 |
| Item                1A.                              | Risk                Factors | 40 |
| Item                2.                               | Unregistered                Sales of Equity Securities and Use of                Proceeds | 44 |
| Item                3.                               | Defaults                Upon Senior Securities |   * |
| Item                4.                               | Submission                of Matters to a Vote of Security                Holders | 44 |
| Item                5.                               | Other                Information |   * |
| Item                6.                               | Exhibits | 44 |

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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)                                              |   | September                30, |   |   | December                31, |   |
| **Assets**                                                                                                  |   | 2007 |   |   | 2006 |   |
| **Current                Assets:**                                                                          |   |   |   |   |   |   |
|  Cash                and short-term investments                                                        |   | $ | 824.6 |   |   | $ | 934.2 |   |
|  Accounts                receivable (less allowance for doubtful                                       |   |   |   |   |   |   |   |   |
|  accounts                of $73.2 and $54.9, respectively)                                             |   |   | 872.6 |   |   |   | 807.3 |   |
|  Inventories                                                                                           |   |   | 166.9 |   |   |   | 218.6 |   |
|  Prepaid                expenses and other                                                             |   |   | 84.1 |   |   |   | 67.7 |   |
|  Assets                related to discontinued operations                                              |   |   | - |   |   |   | 4.3 |   |
|  Total                current assets                                                                   |   |   | 1,948.2 |   |   |   | 2,032.1 |   |
| Investments                                                                                                 |   |   | 188.8 |   |   |   | 368.9 |   |
| Goodwill                                                                                                    |   |   | 8,421.1 |   |   |   | 8,447.0 |   |
| Other                intangibles                                                                            |   |   | 2,001.0 |   |   |   | 2,129.4 |   |
| **Property,                Plant and Equipment:**                                                           |   |   |   |   |   |   |   |   |
|  Land                                                                                                  |   |   | 335.0 |   |   |   | 314.9 |   |
|  Buildings                and improvements                                                             |   |   | 1,011.5 |   |   |   | 955.1 |   |
|  Operating                plant and equipment                                                          |   |   | 8,519.1 |   |   |   | 7,933.8 |   |
|  Information                processing                                                                 |   |   | 1,142.8 |   |   |   | 1,048.1 |   |
|  Furniture                and fixtures                                                                 |   |   | 184.8 |   |   |   | 173.8 |   |
|  Under                construction                                                                     |   |   | 358.9 |   |   |   | 496.0 |   |
|  Total                property, plant and equipment                                                    |   |   | 11,552.1 |   |   |   | 10,921.7 |   |
|  Less                accumulated depreciation                                                          |   |   | 6,520.7 |   |   |   | 5,690.3 |   |
|  Net                property, plant and equipment                                                      |   |   | 5,031.4 |   |   |   | 5,231.4 |   |
| Other                assets                                                                                 |   |   | 115.3 |   |   |   | 89.4 |   |
| Assets                related to discontinued operations                                                    |   |   | - |   |   |   | 45.5 |   |
| **Total                Assets**                                                                             |   | $ | 17,705.8 |   |   | $ | 18,343.7 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                               |   |   |   |   |   |   |   |   |
| **Current                Liabilities:**                                                                     |   |   |   |   |   |   |   |   |
|  Current                maturities of long-term debt                                                   |   | $ | 39.0 |   |   | $ | 36.3 |   |
|  Accounts                payable                                                                       |   |   | 523.5 |   |   |   | 576.1 |   |
|  Advance                payments and customer deposits                                                 |   |   | 199.6 |   |   |   | 186.2 |   |
|  Accrued                taxes                                                                          |   |   | 316.5 |   |   |   | 114.1 |   |
|  Accrued                dividends                                                                      |   |   | 43.1 |   |   |   | 46.0 |   |
|  Accrued                interest                                                                       |   |   | 48.7 |   |   |   | 79.3 |   |
|  Other                current liabilities                                                              |   |   | 188.5 |   |   |   | 156.5 |   |
|  Liabilities                related to discontinued operations                                         |   |   | - |   |   |   | 2.8 |   |
|  Total                current liabilities                                                              |   |   | 1,358.9 |   |   |   | 1,197.3 |   |
| Long-term                debt                                                                               |   |   | 2,665.3 |   |   |   | 2,697.4 |   |
| Deferred                income taxes                                                                        |   |   | 1,085.4 |   |   |   | 1,109.5 |   |
| Other                liabilities                                                                            |   |   | 654.4 |   |   |   | 677.6 |   |
|  Total                liabilities                                                                      |   |   | 5,764.0 |   |   |   | 5,681.8 |   |
| **Shareholders’                Equity:**                                                              |   |   |   |   |   |   |   |   |
|  Preferred                stock, Series C, $2.06, no par value, 10,028 and 10,307                      |   |   |   |   |   |   |   |   |
|  shares                issued and outstanding, respectively                                            |   |   | 0.3 |   |   |   | 0.3 |   |
|  Common                stock, par value $1 per share, 1.0 billion shares                authorized,    |   |   |   |   |   |   |   |   |
|  344,485,125                and 364,505,820 shares issued and outstanding,                respectively |   |   | 344.5 |   |   |   | 364.5 |   |
|  Additional                paid-in capital                                                             |   |   | 3,050.3 |   |   |   | 4,296.8 |   |
|  Accumulated                other comprehensive income (loss)                                          |   |   | (25.1 | ) |   |   | 9.5 |   |
|  Retained                earnings                                                                      |   |   | 8,571.8 |   |   |   | 7,990.8 |   |
|  Total                shareholders’ equity                                                       |   |   | 11,941.8 |   |   |   | 12,661.9 |   |
| **Total                Liabilities and Shareholders’ Equity**                                         |   | $ | 17,705.8 |   |   | $ | 18,343.7 |   |

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Table          of Contents

| **CONSOLIDATED                STATEMENTS OF INCOME (UNAUDITED)**    |   |
|------------------------------------------------------------------------------------|--------|
|                                                                               |   | Three                Months Ended |   |   | Nine                Months Ended |   |
|                                                                               |   | September                30, |   |   | September                30, |   |
| (Millions,                except per share amounts)                                |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| **Revenues                and sales:**                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Service                revenues                                              |   | $ | 2,071.5 |   |   | $ | 1,795.4 |   |   | $ | 5,923.2 |   |   | $ | 5,178.7 |   |
|  Product                sales                                                 |   |   | 210.0 |   |   |   | 211.9 |   |   |   | 611.9 |   |   |   | 617.1 |   |
| Total                revenues and sales                                            |   |   | 2,281.5 |   |   |   | 2,007.3 |   |   |   | 6,535.1 |   |   |   | 5,795.8 |   |
| **Costs                and expenses:**                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cost                of services (excluding depreciation of $225.7, $190.5,   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  $680.8                and $559.1, respectively, included below)              |   |   | 682.2 |   |   |   | 610.1 |   |   |   | 1,933.4 |   |   |   | 1,726.9 |   |
|  Cost                of products sold                                         |   |   | 300.0 |   |   |   | 293.8 |   |   |   | 876.1 |   |   |   | 849.8 |   |
|  Selling,                general, administrative and other                    |   |   | 496.1 |   |   |   | 438.3 |   |   |   | 1,445.5 |   |   |   | 1,298.5 |   |
|  Depreciation                and amortization                                 |   |   | 358.2 |   |   |   | 307.1 |   |   |   | 1,060.0 |   |   |   | 916.0 |   |
|  Integration                expenses, restructuring and other charges         |   |   | 11.0 |   |   |   | - |   |   |   | 53.3 |   |   |   | 10.8 |   |
| Total                costs and expenses                                            |   |   | 1,847.5 |   |   |   | 1,649.3 |   |   |   | 5,368.3 |   |   |   | 4,802.0 |   |
| **Operating                income**                                                |   |   | 434.0 |   |   |   | 358.0 |   |   |   | 1,166.8 |   |   |   | 993.8 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                earnings in unconsolidated partnerships                      |   |   | 17.1 |   |   |   | 17.3 |   |   |   | 48.5 |   |   |   | 45.6 |   |
| Minority                interest in consolidated partnerships                      |   |   | (8.8 | ) |   |   | (11.7 | ) |   |   | (27.4 | ) |   |   | (37.1 | ) |
| Other                income, net                                                   |   |   | 5.9 |   |   |   | 37.3 |   |   |   | 19.2 |   |   |   | 69.1 |   |
| Interest                expense                                                    |   |   | (46.2 | ) |   |   | (63.8 | ) |   |   | (140.3 | ) |   |   | (234.9 | ) |
| Gain                (loss) on exchange or disposal of assets and other             |   |   | - |   |   |   | (50.5 | ) |   |   | 56.5 |   |   |   | 126.1 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations before income taxes               |   |   | 402.0 |   |   |   | 286.6 |   |   |   | 1,123.3 |   |   |   | 962.6 |   |
| Income                taxes                                                        |   |   | 123.3 |   |   |   | 121.3 |   |   |   | 415.8 |   |   |   | 374.7 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                   |   |   | 278.7 |   |   |   | 165.3 |   |   |   | 707.5 |   |   |   | 587.9 |   |
| Income                from discontinued operations (net of income tax expense      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (benefit)                of $(4.2), $7.9, $(2.5) and $222.6, respectively)   |   |   | 3.9 |   |   |   | 21.9 |   |   |   | 0.9 |   |   |   | 325.6 |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                          |   |   | 282.6 |   |   |   | 187.2 |   |   |   | 708.4 |   |   |   | 913.5 |   |
| Preferred                dividends                                                 |   |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Net                income applicable to common shares                              |   | $ | 282.5 |   |   | $ | 187.1 |   |   | $ | 708.3 |   |   | $ | 913.4 |   |
| **Earnings                per share:**                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Basic:                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                from continuing operations                             |   |   | $.81 |   |   |   | $.43 |   |   |   | $2.03 |   |   |   | $1.52 |   |
|  Income                from discontinued operations                           |   |   | .01 |   |   |   | .06 |   |   |   | - |   |   |   | .84 |   |
|  Net                income                                                    |   |   | $.82 |   |   |   | $.49 |   |   |   | $2.03 |   |   |   | $2.36 |   |
|  Diluted:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                from continuing operations                             |   |   | $.80 |   |   |   | $.43 |   |   |   | $2.01 |   |   |   | $1.51 |   |
|  Income                from discontinued operations                           |   |   | .01 |   |   |   | .05 |   |   |   | - |   |   |   | .84 |   |
|  Net                income                                                    |   |   | $.81 |   |   |   | $.48 |   |   |   | $2.01 |   |   |   | $2.35 |   |

----

Table          of Contents

| **CONSOLIDATED                STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                       |   | Nine                Months Ended |   |
|                                                                                                                                       |   | September                30, |   |
| (Millions)                                                                                                                                 |   | 2007 |   |   | 2006 |   |
| **Cash                Flows from Operating Activities:**                                                                                   |   |   |   |   |   |   |
| Net                income                                                                                                                  |   | $ | 708.4 |   |   | $ | 913.5 |   |
| Adjustments                to reconcile net income to net cash provided from operating                activities:                          |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                                                                                         |   |   | (0.9 | ) |   |   | (325.6 | ) |
| Depreciation                and amortization expense                                                                                       |   |   | 1,060.0 |   |   |   | 916.0 |   |
| Provision                for doubtful accounts                                                                                             |   |   | 140.9 |   |   |   | 179.9 |   |
| Non-cash                portion of loss (gain) on exchange or disposal of assets                                                           |   |   | (56.5 | ) |   |   | (149.1 | ) |
| Change                in deferred income taxes                                                                                             |   |   | 30.4 |   |   |   | 6.2 |   |
| Adjustment                to income tax liabilities, including contingency reserves                                                        |   |   | (33.8 | ) |   |   | - |   |
| Other,                net                                                                                                                  |   |   | (24.7 | ) |   |   | (6.3 | ) |
| Changes                in operating assets and liabilities, net of effects of acquisitions                and                dispositions: |   |   |   |   |   |   |   |   |
| Accounts                receivable                                                                                                         |   |   | (207.5 | ) |   |   | (245.9 | ) |
| Inventories                                                                                                                                |   |   | 51.8 |   |   |   | 39.6 |   |
| Accounts                payable                                                                                                            |   |   | (54.4 | ) |   |   | (35.3 | ) |
| Other                current liabilities                                                                                                   |   |   | 235.6 |   |   |   | (255.1 | ) |
| Other,                net                                                                                                                  |   |   | (10.5 | ) |   |   | (40.9 | ) |
| Net                cash provided from operating activities                                                                                 |   |   | 1,838.8 |   |   |   | 997.0 |   |
| **Cash                Flows from Investing Activities:**                                                                                   |   |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                                                                  |   |   | (720.3 | ) |   |   | (718.6 | ) |
| Additions                to capitalized software development costs                                                                         |   |   | (24.3 | ) |   |   | (24.0 | ) |
| Purchases                of property, net of cash acquired                                                                                 |   |   | (6.2 | ) |   |   | (676.5 | ) |
| Proceeds                from the sale of investments                                                                                       |   |   | 188.7 |   |   |   | 200.5 |   |
| Proceeds                from the return on investments                                                                                     |   |   | 40.2 |   |   |   | 36.7 |   |
| Other,                net                                                                                                                  |   |   | 0.9 |   |   |   | 7.8 |   |
| Net                cash used in investing activities                                                                                       |   |   | (521.0 | ) |   |   | (1,174.1 | ) |
| **Cash                Flows from Financing Activities:**                                                                                   |   |   |   |   |   |   |   |   |
| Dividends                paid on common and preferred stock                                                                                |   |   | (133.5 | ) |   |   | (447.1 | ) |
| Repayments                of long-term debt                                                                                                |   |   | (36.9 | ) |   |   | (1,012.2 | ) |
| Repurchases                of common stock                                                                                                 |   |   | (1,360.3 | ) |   |   | (709.0 | ) |
| Cash                payments to effect conversion of convertible notes                                                                     |   |   | - |   |   |   | (59.8 | ) |
| Distributions                to minority investors                                                                                         |   |   | (31.8 | ) |   |   | (27.7 | ) |
| Excess                tax benefits from stock option exercises                                                                             |   |   | 25.7 |   |   |   | 9.1 |   |
| Common                stock issued                                                                                                         |   |   | 59.0 |   |   |   | 191.5 |   |
| Net                cash used in financing activities                                                                                       |   |   | (1,477.8 | ) |   |   | (2,055.2 | ) |
| **Cash                Flows from Discontinued Operations:**                                                                                |   |   |   |   |   |   |   |   |
| Cash                provided from operating activities                                                                                     |   |   | 2.8 |   |   |   | 595.4 |   |
| Cash                provided from investing activities                                                                                     |   |   | 47.6 |   |   |   | 3,746.6 |   |
| Cash                used in financing activities                                                                                           |   |   | - |   |   |   | (0.2 | ) |
| Net                cash provided from discontinued operations                                                                              |   |   | 50.4 |   |   |   | 4,341.8 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash and short-term                investments                                           |   |   | - |   |   |   | (5.9 | ) |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Increase                (decrease) in cash and short-term investments                                                                      |   |   | (109.6 | ) |   |   | 2,103.6 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| **Cash                and Short-term Investments:**                                                                                        |   |   |   |   |   |   |   |   |
| Beginning                of the period                                                                                                     |   |   | 934.2 |   |   |   | 982.4 |   |
| End                of the period                                                                                                           |   | $ | 824.6 |   |   | $ | 3,086.0 |   |

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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                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 708.4 |   |   |   | 708.4 |   |
| Other                comprehensive loss, net of tax (See Note 11)                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding losses on investments,                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of reclassification adjustments                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (37.5 | ) |   |   | - |   |   |   | (37.5 | ) |
| Defined                benefit pension plans                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2.7 |   |   |   | - |   |   |   | 2.7 |   |
| Other                postretirement benefit plan                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.2 |   |   |   | - |   |   |   | 0.2 |   |
| Comprehensive                income                                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (34.6 | ) |   |   | 708.4 |   |   |   | 673.8 |   |
| Employee                plans, net                                                        |   |   | - |   |   |   | 1.8 |   |   |   | 38.4 |   |   |   | - |   |   |   | - |   |   |   | 40.2 |   |
| Issuance                of restricted stock                                               |   |   | - |   |   |   | 0.2 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.2 |   |
| Amortization                of stock-based compensation                                   |   |   | - |   |   |   | - |   |   |   | 24.5 |   |   |   | - |   |   |   | - |   |   |   | 24.5 |   |
| Tax                benefit for non-qualified stock options                                |   |   | - |   |   |   | - |   |   |   | 27.0 |   |   |   | - |   |   |   | - |   |   |   | 27.0 |   |
| Repurchases                of stock                                                       |   |   | - |   |   |   | (22.0 | ) |   |   | (1,338.3 | ) |   |   | - |   |   |   | - |   |   |   | (1,360.3 | ) |
| Other                                                                                     |   |   | - |   |   |   | - |   |   |   | 1.9 |   |   |   | - |   |   |   | - |   |   |   | 1.9 |   |
| Dividends:                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                - $.375 per share                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (130.5 | ) |   |   | (130.5 | ) |
| Preferred                                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Balance                at September 30, 2007                                              |   | $ | 0.3 |   |   | $ | 344.5 |   |   | $ | 3,050.3 |   |   | $ | (25.1 | ) |   | $ | 8,571.8 |   |   | $ | 11,941.8 |   |

----

Table          of Contents

**NOTES      TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

|   | **1.** | **General:** |
|--------|--------|--------------|

|   | **2.** | **Accounting                Changes:** |
|--------|--------|----------------------------------------|

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Table          of Contents

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

** _____**

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

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Table          of Contents

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

** _____**

|   | **3.** | **Acquisitions:** |
|--------|--------|-------------------|

----

Table          of Contents

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

** _____**

|   | **3.** | **Acquisitions,                Continued:** |
|--------|--------|---------------------------------------------|

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

|                                         |   |   |    |
|----------------------------------------------|--------|--------|---------|
| (Millions)                                   |   |   |    |
| Balance                at December 31, 2006  |   | $      | 8,447.0 |   |
| Acquired                during the period    |   |   | 1.8     |   |
| Other                adjustments             |   |   | (27.7   | ) |
| Balance                at September 30, 2007 |   | $      | 8,421.1 |   |

|                                                                  |   |                         |    |   |                        |   |
|-----------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------|--------|
|                                                                  |   | September                30, |    |   | December                31, |   |
| (Millions)                                                            |   | 2007                         |    |   | 2006                        |   |
| Cellular                and Personal Communications Services licenses |   | $                            | 1,661.5 |   |                        | $      | 1,657.8 |   |

|                                   |   |                              |   |
|----------------------------------------|--------|-----------------------------------|--------|
|                                   |   | September                30, 2007 |   |
|                                   |   |                              |   |   |   |   |   | Net |   |
|                                   |   | Gross                             |   |   | Accumulated |   |   | Carrying |   |
|  (Millions)                       |   | Cost                              |   |   | Amortization |   |   | Value |   |
| Customer                lists          |   | $                                 | 946.6  |   |   | $ | (609.5 | ) |   | $ | 337.1 |   |
| Roaming                agreement       |   |                              | 6.1    |   |   |   | (3.8 | ) |   |   | 2.3 |   |
| Non-compete                agreement   |   |                              | 0.3    |   |   |   | (0.2 | ) |   |   | 0.1 |   |
|                                   |   | $                                 | 953.0  |   |   | $ | (613.5 | ) |   | $ | 339.5 |   |
|                                   |   |                              |   |
|                                   |   | 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 |   |

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Table          of Contents

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

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

|                                                                                                                                                             |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                      |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions,                except per share amounts)                                                                                                                                       |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Compensation                expense related to stock options issued by Alltel                                                                                                             |   | $ | 4.9 |   |   | $ | 4.5 |   |   | $ | 13.7 |   |   | $ | 14.7 |   |
| Compensation                expense related to stock options converted to Alltel stock  options                in connection                with the acquisition of Western Wireless |   |   | 0.5 |   |   |   | 0.5 |   |   |   | 1.0 |   |   |   | 1.5 |   |
| Compensation                expense related to restricted stock awards                                                                                                                    |   |   | 3.7 |   |   |   | 7.1 |   |   |   | 9.8 |   |   |   | 13.4 |   |
| Compensation                expense before income taxes                                                                                                                                   |   |   | 9.1 |   |   |   | 12.1 |   |   |   | 24.5 |   |   |   | 29.6 |   |
| Income                tax benefit                                                                                                                                                         |   |   | (3.0 | ) |   |   | (4.2 | ) |   |   | (7.9 | ) |   |   | (9.6 |  ) |
| Compensation                expense, net of tax                                                                                                                                           |   | $ | 6.1 |   |   | $ | 7.9 |   |   | $ | 16.6 |   |   | $ | 20.0 |   |

|                                                            |                                           |
|-----------------------------------------------------------------|------------------------------------------------|
|                                                            | Nine                Months Ended September 30, |
|                                                            | 2007                                           | 2006 |
| Weighted                average grant date fair value per share | $17.41                                         | $15.19 |
| Expected                life                                    | 5.9                years                       | 5.9                years |
| Expected                volatility                              | 20.9%                                          | 22.9% |
| Dividend                yield                                   | 0.8%                                           | 0.8% |
| Risk-free                interest rate                          | 4.7%                                           | 4.5% |

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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                                          |   1,601.4                                   |   |   |   61.66            |   |
| Exercised                                        |   (2,627.2)                                 |   |   |   37.41            |   |
| Forfeited                                        |     (129.8)                       |   |   |   46.06            |   |
| Expired                                          |         (1.2) |   |   |   26.18            |   |
| Outstanding                at September 30, 2007 | 15,019.4                                              |   |   | $50.01                       |   |
| Exercisable                at end of period      | 10,779.6                                              |   |   | $49.11                       |   |

|                   |   |
|-------------------------------------------------|--------|
|                                            |   | (Thousands) |   |   | Weighted |   |
|                                            |   | Number                of |   |   | Average                Price |   |
|                                            |   | Shares |   |   | Per                Share |   |
| Non-vested                at December 31, 2006  |   |  4,391.9 |   |   | $45.89  |
| Granted                                         |   |  1,601.4 |   |   |  61.66  |
| Vested                                          |   |  (1,676.7) |   |   |  44.90  |
| Forfeited                                       |   |                      (76.8) |   |   |  41.31  |
| Non-vested                at September 30, 2007 |   |  4,239.8 |   |   | $52.32  |   |

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Table          of Contents

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

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

|                                            |                            |   |   |                      |   |
|-------------------------------------------------|---------------------------------|--------|--------|---------------------------|--------|
|                                            |                            |   |   | Weighted                  |   |
|                                            |                            |   |   | Average                   |   |
|                                            | Number                of        |   |   | Fair                Value |   |
|                                            | Shares                          |   |   | Per                Share  |   |
| Non-vested                at December 31, 2006  | 487,552                         |   |   | $58.37                    |   |
| Granted                                         | 255,520                         |   |   |   60.64         |   |
| Vested                                          | (128,441)                       |   |   |   57.58         |   |
| Forfeited                                       |     (3,833) |   |   |   53.18         |   |
| Non-vested                at September 30, 2007 | 610,798                         |   |   | $59.52                    |   |

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

|                      |   |
|----------------------------------------------------|--------|
|                                               |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                         |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Benefits                earned during the year     |   | $ | 2.7 |   |   | $ | 2.3 |   |   | $ | 8.2 |   |   | $ | 14.1 |   |
| Interest                cost on benefit obligation |   |   | 3.2 |   |   |   | 3.0 |   |   |   | 9.6 |   |   |   | 32.3 |   |
| Special                termination benefits        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9.0 |   |
| Settlement                and curtailment losses   |   |   | - |   |   |   | 0.4 |   |   |   | - |   |   |   | 3.8 |   |
| Amortization                of prior service cost  |   |   | 0.3 |   |   |   | 0.3 |   |   |   | 0.8 |   |   |   | 0.8 |   |
| Amortization                of net actuarial loss  |   |   | 1.2 |   |   |   | 1.0 |   |   |   | 3.6 |   |   |   | 16.2 |   |
| Expected                return on plan assets      |   |   | (3.6 | ) |   |   | (3.4 | ) |   |   | (10.8 | ) |   |   | (45.3 | ) |
| Net                periodic benefit expense        |   | $ | 3.8 |   |   | $ | 3.6 |   |   | $ | 11.4 |   |   | $ | 30.9 |   |

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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,                Continued:** |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|                        |   |
|------------------------------------------------------|--------|
|                                                 |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                           |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Benefits                earned during the year       |   | $ | 0.1 |   |   | $ | 0.1 |   |   | $ | 0.3 |   |   | $ | 0.3 |   |
| Interest                cost on benefit obligation   |   |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.3 |   |   |   | 6.8 |   |
| Amortization                of transition obligation |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.4 |   |
| Amortization                of prior service cost    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.9 |   |
| Recognized                net actuarial loss         |   |   | 0.1 |   |   |   | - |   |   |   | 0.3 |   |   |   | 3.2 |   |
| Expected                return on plan assets        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net                periodic benefit expense          |   | $ | 0.3 |   |   | $ | 0.2 |   |   | $ | 0.9 |   |   | $ | 11.6 |   |

|   | **7.** | **Integration                Expenses, Restructuring and Other                Charges:** |
|--------|--------|------------------------------------------------------------------------------------------|

|                                              |   |
|----------------------------------------------------------------------------|--------|
|                                                                       |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                                                 |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Severance                and employee benefit costs                        |   | $ | 0.3 |   |   | $ | - |   |   | $ | 4.7 |   |   | $ | - |   |
| Rebranding                and signage costs                                |   |   | 3.9 |   |   |   | - |   |   |   | 4.3 |   |   |   | 8.3 |   |
| Computer                system conversion and other integration expenses   |   |   | 1.7 |   |   |   | - |   |   |   | 6.1 |   |   |   | 2.5 |   |
| Lease                termination costs                                     |   |   | 2.6 |   |   |   | - |   |   |   | 2.6 |   |   |   | - |   |
| Costs                associated with pending acquisition of Alltel         |   |   | 2.5 |   |   |   | - |   |   |   | 35.6 |   |   |   | - |   |
| Total                integration expenses, restructuring and other charges |   | $ | 11.0 |   |   | $ | - |   |   | $ | 53.3 |   |   | $ | 10.8 |   |

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Table          of Contents

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

|   | **7.** | **Integration                Expenses, Restructuring and Other Charges,                Continued:** |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|                                                                                                           |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| (Millions)                                                                                                     |   |   |   |
| Balance,                beginning of period                                                                    |   | $ | 0.1 |   |
| Integration                expenses, restructuring and other charges recorded during the                period |   |   | 53.3 |   |
| Cash                outlays during the period                                                                  |   |   | (36.6 | ) |
| Balance,                end of period                                                                          |   | $ | 16.8 |   |

| **8.** | **Gain                (Loss) on Exchange or Disposal of Assets and                Other:** |
|--------|--------------------------------------------------------------------------------------------|

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Table          of Contents

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

| **9.** | **Income                Taxes:** |
|--------|----------------------------------|

|                                                     |   |
|-----------------------------------------------------------------------------------|--------|
|                                                                              |   | Three                Months Ended |   |   | Nine                Months Ended |   |
|                                                                              |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Statutory                federal income tax rates                                 |   |   | 35.0 | % |   |   | 35.0 | % |   |   | 35.0 | % |   |   | 35.0 | % |
| Increase                (decrease):                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State                income taxes, net of federal benefit                         |   |   | 4.1 |   |   |   | 4.7 |   |   |   | 4.0 |   |   |   | 3.9 |   |
| Non-deductible                costs associated with pending acquisition of Alltel |   |   | 0.2 |   |   |   | - |   |   |   | 1.1 |   |   |   | - |   |
| Non-deductible                loss on debt exchange                               |   |   | - |   |   |   | 3.4 |   |   |   | - |   |   |   | 1.0 |   |
| Reversal                of income tax contingency reserves                        |   |   | (8.1 | ) |   |   | - |   |   |   | (3.0 | ) |   |   | - |   |
| Effective                tax rate adjustment                                      |   |   | - |   |   |   | 1.5 |   |   |   | - |   |   |   | 0.2 |   |
| Tax-exempt                interest income                                         |   |   | (0.2 | ) |   |   | (2.7 | ) |   |   | (0.2 | ) |   |   | (1.4 | ) |
| Other                items, net                                                   |   |   | (0.3 | ) |   |   | 0.4 |   |   |   | 0.1 |   |   |   | 0.2 |   |
| Effective                income tax rates                                         |   |   | 30.7 | % |   |   | 42.3 | % |   |   | 37.0 | % |   |   | 38.9 | % |

|   | **10.** | **Discontinued                Operations:** |
|--------|---------|---------------------------------------------|

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Table          of Contents

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

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

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Table          of Contents

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

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

|                                       |   |
|---------------------------------------------------------------------|--------|
|                                                                |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                                          |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues                and sales                                   |   | $ | - |   |   | $ | 127.3 |   |   | $ | 7.8 |   |   | $ | 1,830.8 |   |
| Operating                expenses (a)                               |   |   | - |   |   |   | 97.4 |   |   |   | 10.6 |   |   |   | 1,253.6 |   |
| Operating                income (loss)                              |   |   | - |   |   |   | 29.9 |   |   |   | (2.8 | ) |   |   | 577.2 |   |
| Minority                interest expense in unconsolidated entities |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6.0 | ) |
| Loss                on disposal of discontinued operations          |   |   | (0.3 | ) |   |   | - |   |   |   | (0.1 | ) |   |   | (14.8 | ) |
| Other                income, net                                    |   |   | - |   |   |   | 0.6 |   |   |   | 1.3 |   |   |   | 0.9 |   |
| Interest                expense (b)                                 |   |   | - |   |   |   | (0.7 | ) |   |   | - |   |   |   | (9.1 | ) |
| Pretax                income (loss) from discontinued operations    |   |   | (0.3 | ) |   |   | 29.8 |   |   |   | (1.6 | ) |   |   | 548.2 |   |
| Income                tax expense (benefit) (c)                     |   |   | (4.2 | ) |   |   | 7.9 |   |   |   | (2.5 | ) |   |   | 222.6 |   |
| Income                from discontinued operations                  |   | $ | 3.9 |   |   | $ | 21.9 |   |   | $ | 0.9 |   |   | $ | 325.6 |   |

| (a)    | Operating                expenses for the nine-month period of 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.  Operating                expenses for 2006 excluded 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 $7.0 million for the nine                months ended September 30, 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.                                                                                                                                                                                       |
|   |
| (c)    | Income                taxes in the three and nine month periods of 2007 reflected a change                in                the estimate of tax benefits associated with transaction costs incurred                in                connection with the wireline spin-off and the reversal of income                tax                contingency reserves applicable to the sold financial services division                due to the expiration of certain state statutes of                limitation.                                                                                                                                                                                                                                                                                                                                            |

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Table          of Contents

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

|   | **11.** | **Comprehensive                Income:** |
|--------|---------|------------------------------------------|

|                  |   |
|------------------------------------------------------------------------------|--------|
|                                                                         |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                                                   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Net                income                                                    |   | $ | 282.6 |   |   | $ | 187.2 |   |   | $ | 708.4 |   |   | $ | 913.5 |   |
| Other                comprehensive income (loss):                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains (losses) on investments:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains (losses) arising in the period       |   |   | - |   |   |   | - |   |   |   | (1.1 | ) |   |   | 24.2 |   |
| Income                tax expense (benefit)                                  |   |   | - |   |   |   | - |   |   |   | (0.4 | ) |   |   | 8.5 |   |
|                                                                         |   |   | - |   |   |   | - |   |   |   | (0.7 | ) |   |   | 15.7 |   |
| 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 | ) |   |   | 24.2 |   |
| Income                tax expense (benefit)                                  |   |   | - |   |   |   | - |   |   |   | (20.1 | ) |   |   | 8.5 |   |
|                                                                         |   |   | - |   |   |   | - |   |   |   | (37.5 | ) |   |   | 15.7 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Translation                adjustments for the period                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2.1 | ) |
| Reclassification                adjustments for losses included              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                net income for the period                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.9 |   |
|                                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2.8 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Defined                benefit pension plans:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts                included in net periodic benefit cost for the period: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                of prior service cost                            |   |   | 0.3 |   |   |   | - |   |   |   | 0.8 |   |   |   | - |   |
| Amortization                of net actuarial loss                            |   |   | 1.2 |   |   |   | - |   |   |   | 3.6 |   |   |   | - |   |
|                                                                         |   |   | 1.5 |   |   |   | - |   |   |   | 4.4 |   |   |   | - |   |
| Income                tax expense                                            |   |   | 0.6 |   |   |   | - |   |   |   | 1.7 |   |   |   | - |   |
|                                                                         |   |   | 0.9 |   |   |   | - |   |   |   | 2.7 |   |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                postretirement benefit plan:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts                included in net periodic benefit cost for the period: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                of net actuarial loss                            |   |   | 0.1 |   |   |   | - |   |   |   | 0.3 |   |   |   | - |   |
| Income                tax expense                                            |   |   | - |   |   |   | - |   |   |   | 0.1 |   |   |   | - |   |
|                                                                         |   |   | 0.1 |   |   |   | - |   |   |   | 0.2 |   |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss) before tax                  |   |   | 1.6 |   |   |   | - |   |   |   | (52.9 | ) |   |   | 27.0 |   |
| Income                tax expense (benefit)                                  |   |   | 0.6 |   |   |   | - |   |   |   | (18.3 | ) |   |   | 8.5 |   |
| Other                comprehensive income (loss)                             |   |   | 1.0 |   |   |   | - |   |   |   | (34.6 | ) |   |   | 18.5 |   |
| Comprehensive                income                                          |   | $ | 283.6 |   |   | $ | 187.2 |   |   | $ | 673.8 |   |   | $ | 932.0 |   |

|                                               |   |
|--------------------------------------------------------------|--------|
|  (Millions)                                             |   | September                30, 2007 |   |   | December                31, 2006 |   |
| Unrealized                holding gains on investments       |   | $ | - |   |   | $ | 37.5 |   |
| Defined                benefit pension plans                 |   |   | (23.1 | ) |   |   | (25.8 | ) |
| Other                postretirement benefit plan             |   |   | (2.0 | ) |   |   | (2.2 | ) |
| Accumulated                other comprehensive income (loss) |   | $ | (25.1 | ) |   | $ | 9.5 |   |

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

|   | **12.** | **Earnings                per Share:** |
|--------|---------|----------------------------------------|

|                                                                                                     |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions,                except per share amounts)                                                                               |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| **Basic                earnings per share:**                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                  |   | $ | 278.7 |   |   | $ | 165.3 |   |   | $ | 707.5 |   |   | $ | 587.9 |   |
| Income                from discontinued operations                                                                                |   |   | 3.9 |   |   |   | 21.9 |   |   |   | 0.9 |   |   |   | 325.6 |   |
| Less                preferred dividends                                                                                           |   |   | (0.1 | ) |   |   | (0.1 | ) |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Net                income applicable to common shares                                                                             |   | $ | 282.5 |   |   | $ | 187.1 |   |   | $ | 708.3 |   |   | $ | 913.4 |   |
| Weighted                average common shares outstanding for the period                                                          |   |   | 343.5 |   |   |   | 384.6 |   |   |   | 348.5 |   |   |   | 386.7 |   |
| Basic                earnings per share:                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From                continuing operations                                                                                         |   |   | $.81 |   |   |   | $.43 |   |   |   | $2.03 |   |   |   | $1.52 |   |
| From                discontinued operations                                                                                       |   |   | .01 |   |   |   | .06 |   |   |   | - |   |   |   | .84 |   |
| Net                income                                                                                                         |   |   | $.82 |   |   |   | $.49 |   |   |   | $2.03 |   |   |   | $2.36 |   |
| **Diluted                earnings per share:**                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income applicable to common shares                                                                             |   | $ | 282.5 |   |   | $ | 187.1 |   |   | $ | 708.3 |   |   | $ | 913.4 |   |
| Adjustment                for interest expense on convertible notes, net of tax                                                   |   |   | - |   |   |   | 0.1 |   |   |   | - |   |   |   | 0.3 |   |
| Adjustment                for convertible preferred stock dividends                                                               |   |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Net                income applicable to common shares assuming conversion of                preferred stock and convertible notes |   | $ | 282.6 |   |   | $ | 187.3 |   |   | $ | 708.4 |   |   | $ | 913.8 |   |
| Weighted                average common shares outstanding for the period                                                          |   |   | 343.5 |   |   |   | 384.6 |   |   |   | 348.5 |   |   |   | 386.7 |   |
| Increase                in shares resulting from:                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assumed                exercise of stock options                                                                                  |   |   | 2.7 |   |   |   | 1.2 |   |   |   | 2.4 |   |   |   | 1.2 |   |
| Assumed                conversion of convertible notes                                                                            |   |   | 0.1 |   |   |   | 0.6 |   |   |   | 0.1 |   |   |   | 0.7 |   |
| Assumed                conversion of preferred stock                                                                              |   |   | 0.3 |   |   |   | 0.2 |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Non-vested                restricted stock awards                                                                                 |   |   | 0.3 |   |   |   | 0.1 |   |   |   | 0.3 |   |   |   | 0.1 |   |
| Weighted                average common shares assuming conversion of the above                securities                          |   |   | 346.9 |   |   |   | 386.7 |   |   |   | 351.5 |   |   |   | 388.9 |   |
| Diluted                earnings per share:                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From                continuing operations                                                                                         |   |   | $.80 |   |   |   | $.43 |   |   |   | $2.01 |   |   |   | $1.51 |   |
| From                discontinued operations                                                                                       |   |   | .01 |   |   |   | .05 |   |   |   | - |   |   |   | .84 |   |
| Net                income                                                                                                         |   |   | $.81 |   |   |   | $.48 |   |   |   | $2.01 |   |   |   | $2.35 |   |

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

|   | **13.** | **Pending                Acquisition of Alltel by Two Private Investment                Firms:** |
|--------|---------|--------------------------------------------------------------------------------------------------|

|   | **14.** | **Commitments                and Contingencies – Legal                Proceedings:** |
|--------|---------|--------------------------------------------------------------------------------------------|

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

| **14.** | **Commitments                and Contingencies – Legal Proceedings,                Continued:** |
|---------|-------------------------------------------------------------------------------------------------------|

| **15.** | **Subsequent                Event**– **Tender Offers to Repurchase Long-Term                Debt:** |
|---------|-----------------------------------------------------------------------------------------------------------|

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**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 14 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 both increased 4 percent year-over-year to $55.96 and $49.62,                respectively, due to continued growth in data and ETC revenues, partially                offset by lower voice revenues per customer.  Average revenue                per customer for the third quarter of 2007 also reflected growth                in data                roaming revenues and additional wholesale transport revenues earned                from                charging third parties, principally Windstream Corporation (“Windstream”),                for use of Alltel’s fiber-optic                network. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Excluding                the effects of acquisitions, gross customer additions were 905,000                in the                quarter, a 9 percent increase from a year ago, while net customer                additions were 205,000, a 103 percent increase from                2006.  Postpay churn decreased 36 basis points from the same                period a year ago to 1.31 percent, while total churn declined 28                basis                points year-over-year to 1.9 percent, marking the seventh consecutive                quarter that both churn metrics improved on a comparative year-over-year                basis. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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, when compared to the rates                in                effect in the third quarter of                2006. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PENDING      ACQUISITION OF ALLTEL BY TWO PRIVATE INVESTMENT FIRMS**

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**SPIN-OFF      OF WIRELINE TELECOMMUNICATIONS BUSINESS**

**ACQUISITIONS**

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**CUSTOMER      AND OTHER OPERATING STATISTICS**

|                                             |                              |
|-----------------------------------------------------------------|-----------------------------------|
|                                                            | Three                Months Ended |   | Nine                Months Ended |   |
|                                                            | September                30,      |   | September                30, |   |
| (Thousands,                except per customer amounts)         | 2007                              |   | 2006 |   | 2007 |   | 2006 |   |
| Customers                                                       | 12,447.1                          |   | 11,162.3 |   | - |   | - |   |
| Average                customers                                | 12,338.4                          |   | 11,133.2 |   | 12,140.3 |   | 10,933.6 |   |
| Gross                customer additions (a)                     | 904.8                             |   | 805.4 |   | 2,562.2 |   | 2,493.5 |   |
| Net                customer additions (a)                       | 205.0                             |   | 77.2 |   | 623.1 |   | 500.0 |   |
| Market                penetration                               | 15.6%                             |   | 14.5% |   | - |   | - |   |
| Postpay                customer churn                           | 1.31%                             |   | 1.67% |   | 1.27% |   | 1.60% |   |
| Total                churn                                      | 1.90%                             |   | 2.18% |   | 1.78% |   | 2.03% |   |
| Retail                minutes of use per customer per month (b) | 746                               |   | 645 |   | 708 |   | 629 |   |
| Retail                revenue per customer per month (c)        | $49.62                            |   | $47.66 |   | $48.28 |   | $47.18 |   |
| Average                revenue per customer per month (d)       | $55.96                            |   | $53.76 |   | $54.21 |   | $52.63 |   |

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

|                    |   |
|--------------------------------------------------|--------|
|                                             |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                       |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Service                revenues                  |   | $ | 2,071.5 |   |   | $ | 1,795.4 |   |   | $ | 5,923.2 |   |   | $ | 5,178.7 |   |
| Less                wholesale roaming revenues   |   |   | (196.5 | ) |   |   | (171.5 | ) |   |   | (520.8 | ) |   |   | (486.1 | ) |
| Less                wholesale transport revenues |   |   | (38.1 | ) |   |   | (32.2 | ) |   |   | (127.4 | ) |   |   | (50.4 | ) |
| Total                retail revenues             |   | $ | 1,836.9 |   |   | $ | 1,591.7 |   |   | $ | 5,275.0 |   |   | $ | 4,642.2 |   |

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

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| **CONSOLIDATED                RESULTS OF OPERATIONS**                      |     |
|----------------------------------------------------------------------------|--------------------|
|                                                                       |               | Three                Months Ended |   |   | Nine                Months Ended |     |
|                                                                       |               | September                30, |   |   | September                30, |     |
| (Millions,                except per share amounts)                        |               | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues                and sales:                                         |               |   |   |   |   |   |   |   |   |   |   |   |
|  Service                revenues                                      |               | $ | 2,071.5 |   |   | $ | 1,795.4 |   |   | $ | 5,923.2 |   |   | $ | 5,178.7 |   |
|  Product                sales                                         |               |   | 210.0 |   |   |   | 211.9 |   |   |   | 611.9 |   |   |   | 617.1 |   |
|                   Total revenues and sales                       |               |   | 2,281.5 |   |   |   | 2,007.3 |   |   |   | 6,535.1 |   |   |   | 5,795.8 |   |
| Costs                and expenses:                                         |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cost                of services                                      |               |   | 682.2 |   |   |   | 610.1 |   |   |   | 1,933.4 |   |   |   | 1,726.9 |   |
|  Cost                of products sold                                 |               |   | 300.0 |   |   |   | 293.8 |   |   |   | 876.1 |   |   |   | 849.8 |   |
|  Selling,                general, administrative and other            |               |   | 496.1 |   |   |   | 438.3 |   |   |   | 1,445.5 |   |   |   | 1,298.5 |   |
|  Depreciation                and amortization                         |               |   | 358.2 |   |   |   | 307.1 |   |   |   | 1,060.0 |   |   |   | 916.0 |   |
|  Integration                expenses, restructuring and other charges |               |   | 11.0 |   |   |   | - |   |   |   | 53.3 |   |   |   | 10.8 |   |
|                   Total costs and expenses                       |               |   | 1,847.5 |   |   |   | 1,649.3 |   |   |   | 5,368.3 |   |   |   | 4,802.0 |   |
| Operating                income                                            |               |   | 434.0 |   |   |   | 358.0 |   |   |   | 1,166.8 |   |   |   | 993.8 |   |
| Non-operating                income, net                                   |               |   | 14.2 |   |   |   | 42.9 |   |   |   | 40.3 |   |   |   | 77.6 |   |
| Interest                expense                                            |               |   | (46.2 | ) |   |   | (63.8 | ) |   |   | (140.3 | ) |   |   | (234.9 | ) |
| Gain                (loss) on exchange or disposal of assets and other     |               |   | - |   |   |   | (50.5 | ) |   |   | 56.5 |   |   |   | 126.1 |   |
| Income                from continuing operations before income taxes       |               |   | 402.0 |   |   |   | 286.6 |   |   |   | 1,123.3 |   |   |   | 962.6 |   |
| Income                taxes                                                |               |   | 123.3 |   |   |   | 121.3 |   |   |   | 415.8 |   |   |   | 374.7 |   |
| Income                from continuing operations                           |               |   | 278.7 |   |   |   | 165.3 |   |   |   | 707.5 |   |   |   | 587.9 |   |
| Income                from discontinued operations                         |               |   | 3.9 |   |   |   | 21.9 |   |   |   | 0.9 |   |   |   | 325.6 |   |
| Net                income                                                  |               | $ | 282.6 |   |   | $ | 187.2 |   |   | $ | 708.4 |   |   | $ | 913.5 |   |
| Basic                earnings per share:                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                from continuing operations                     |               |   | $.81 |   |   |   | $.43 |   |   |   | $2.03 |   |   |   | $1.52 |   |
|  Income                from discontinued operations                   |               |   | .01 |   |   |   | .06 |   |   |   | - |   |   |   | .84 |   |
|  Net                income                                            |               |   | $.82 |   |   |   | $.49 |   |   |   | $2.03 |   |   |   | $2.36 |   |
| Diluted                earnings per share:                                 |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                from continuing operations                     |               |   | $.80 |   |   |   | $.43 |   |   |   | $2.01 |   |   |   | $1.51 |   |
|  Income                from discontinued operations                   |               |   | .01 |   |   |   | .05 |   |   |   | - |   |   |   | .84 |   |
|  Net                income                                            |               |   | $.81 |   |   |   | $.48 |   |   |   | $2.01 |   |   |   | $2.35 |   |

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|                                              |   |
|----------------------------------------------------------------------------|--------|
|                                                                       |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                                                 |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Severance                and employee benefit costs                        |   | $ | 0.3 |   |   | $ | - |   |   | $ | 4.7 |   |   | $ | - |   |
| Rebranding                and signage costs                                |   |   | 3.9 |   |   |   | - |   |   |   | 4.3 |   |   |   | 8.3 |   |
| Computer                system conversion and other integration expenses   |   |   | 1.7 |   |   |   | - |   |   |   | 6.1 |   |   |   | 2.5 |   |
| Lease                termination costs                                     |   |   | 2.6 |   |   |   | - |   |   |   | 2.6 |   |   |   | - |   |
| Costs                associated with pending acquisition of Alltel         |   |   | 2.5 |   |   |   | - |   |   |   | 35.6 |   |   |   | - |   |
| Total                integration expenses, restructuring and other charges |   | $ | 11.0 |   |   | $ | - |   |   | $ | 53.3 |   |   | $ | 10.8 |   |

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| Non-Operating                Income, Net                      |   |
|---------------------------------------------------------------|--------|
|                                                          |   | Three                Months Ended |   |   | Nine                Months Ended |   |
|                                                          |   | September                30, |   |   | September                30, |   |
| (Millions)                                                    |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Equity                earnings in unconsolidated partnerships |   | $ | 17.1 |   |   | $ | 17.3 |   |   | $ | 48.5 |   |   | $ | 45.6 |   |
| Minority                interest in consolidated partnerships |   |   | (8.8 | ) |   |   | (11.7 | ) |   |   | (27.4 | ) |   |   | (37.1 | ) |
| Other                income, net                              |   |   | 5.9 |   |   |   | 37.3 |   |   |   | 19.2 |   |   |   | 69.1 |   |
| Non-operating                income, net                      |   | $ | 14.2 |   |   | $ | 42.9 |   |   | $ | 40.3 |   |   | $ | 77.6 |   |

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|                                       |   |
|---------------------------------------------------------------------|--------|
|                                                                |   | Three                Months Ended |   |   | Nine                Months Ended |   |
| (Millions)                                                          |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenues                and sales                                   |   | $ | - |   |   | $ | 127.3 |   |   | $ | 7.8 |   |   | $ | 1,830.8 |   |
| Operating                expenses                                   |   |   | - |   |   |   | 97.4 |   |   |   | 10.6 |   |   |   | 1,253.6 |   |
| Operating                income (loss)                              |   |   | - |   |   |   | 29.9 |   |   |   | (2.8 | ) |   |   | 577.2 |   |
| Minority                interest expense in unconsolidated entities |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6.0 | ) |
| Loss                on disposal of discontinued operations          |   |   | (0.3 | ) |   |   | - |   |   |   | (0.1 | ) |   |   | (14.8 | ) |
| Other                income, net                                    |   |   | - |   |   |   | 0.6 |   |   |   | 1.3 |   |   |   | 0.9 |   |
| Interest                expense                                     |   |   | - |   |   |   | (0.7 | ) |   |   | - |   |   |   | (9.1 | ) |
| Pretax                income (loss) from discontinued operations    |   |   | (0.3 | ) |   |   | 29.8 |   |   |   | (1.6 | ) |   |   | 548.2 |   |
| Income                tax expense (benefit)                         |   |   | (4.2 | ) |   |   | 7.9 |   |   |   | (2.5 | ) |   |   | 222.6 |   |
| Income                from discontinued operations                  |   | $ | 3.9 |   |   | $ | 21.9 |   |   | $ | 0.9 |   |   | $ | 325.6 |   |

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|  **FINANCIAL              CONDITION, LIQUIDITY AND CAPITAL RESOURCES**      |   |
|-----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   | Nine                Months Ended |   |
|                                                                                                      |   | September                30, |   |
| (Millions,                except per share amounts)                                                       |   | 2007 |   |   | 2006 |   |
| Cash                flows from (used in):                                                                 |   |   |   |   |   |   |
|                  Operating activities from continuing operations                                     |   | $ | 1,838.8 |   |   | $ | 997.0 |   |
|                  Investing activities from continuing operations                                     |   |   | (521.0 | ) |   |   | (1,174.1 | ) |
|                  Financing activities from continuing operations                                     |   |   | (1,477.8 | ) |   |   | (2,055.2 | ) |
|                  Discontinued operations                                                             |   |   | 50.4 |   |   |   | 4,341.8 |   |
|                  Effect of exchange rate changes                                                     |   |   | - |   |   |   | (5.9 | ) |
| Increase                (decrease) in cash and short-term investments                                     |   | $ | (109.6 | ) |   | $ |  2,103.6 |   |
| Total                capital structure (a)                                                                |   |   | $14,646.8 |   |   |   | $16,292.5 |   |
| Percent                of equity to total capital (b)                                                     |   |   | 81.5% |   |   |   | 82.0% |   |
| Book                value per share (c)                                                                   |   |   | $34.66 |   |   |   | $35.25 |   |

| (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 | Withdrawn |
| Long-term                debt credit rating   | A2 | BB | BB- |

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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. |
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| (b)    | Changes                in internal control over financial reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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|   | 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      1.   Legal      Proceedings**

**Item      1A.   Risk      Factors**

***We      face intense competition in our business that could reduce our market share      or      adversely affect our business, financial condition or results of      operations.***

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**Item      1A.   Risk Factors (Continued):**

***We      are subject to government regulation of the telecommunications      industry.***

***Rapid      and significant changes in technology could require us to significantly increase      capital investment or could result in reduced demand for our      services.***

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**Item      1A.   Risk Factors (Continued):**

***We      and our suppliers may be subject to claims of infringement regarding      telecommunications technologies that are protected by patents and other      intellectual property rights.***

***A      high rate of customer churn would negatively impact our      business.***

***System      failures could result in higher churn, reduced revenue and increased costs      and      could harm our reputation.***

***We      rely heavily on third parties to provide specialized services; a failure by      such      parties to provide the agreed upon services could materially adversely affect      our business, results of operations and financial      condition.***

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**Item      1A.   Risk Factors (Continued):**

***Our      wireless licenses are subject to renewal and potential revocation in the event      that we violate applicable laws.***

***Our      costs could increase and our revenues could decrease due to perceived health      risks from radio frequency emissions, especially if these perceived risks are      substantiated.***

***Declines      in our operating performance could ultimately result in an impairment of our      indefinite-lived assets, including goodwill, or our long-lived assets, including      property and equipment.***

***We      may incur higher than anticipated inter-carrier compensation      costs.***

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**Item      1A.   Risk Factors (Continued):**

***As      the wireless market matures, we must increasingly seek to attract customers      from      competitors and face increased credit risk from first time wireless      customers. ***

***The      loss of any of our senior management team or attrition among our buyers or      key      sales associates could adversely affect our business, financial condition or      results of operations.***

**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.  During the first six months of 2007, Alltel repurchased                22,024,000 shares of its common stock at a total cost of $1,360.3                million,                or at an average cost of $61.76 per share.  No repurchases were                made under this authorization during the third quarter of                2007. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (1)    | A                proposal to adopt the Agreement and Plan of Merger dated as of May                20,                2007, by and among Alltel Corporation, Atlantis Holdings LLC and                Atlantis                Merger Sub, Inc. was approved with 252,785,977 votes for, 3,993,107                votes                against and 3,626,806 abstentions.                                                                                                                                                                                              |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)    | A                proposal to adjourn or postpone the special meeting to a later date                or                time, if necessary or appropriate, to solicit additional proxies                in favor                of the proposal to approve the merger agreement if there are insufficient                votes at the time of such adjournment or postponement to approve                the                merger agreement was approved with 228,357,732 votes for, 27,987,683                votes                against and 3,850,809 abstentions. |

**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)                      |
|        | October                19, 2007                                   |

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Table          of Contents

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

| Form                10-Q   |                                                                                                                                                                                            |   |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit                No. | Description                of Exhibits                                                                                                                                                          |   |
|                       |                                                                                                                                                                                            |   |
| 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. |
|-----|--------------------------------|