##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  |  | For the quarterly period ended March 31, 2006                                               
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  |  | For the transition period
    from           to                                             

Commission File
No. 333-60639





American Cellular Corporation


(Exact name of registrant as specified in its charter)


|                                                                                       |  |                                                   
|-------------------------------------------------------------------------------------- |  | --------------------------------------------------
|Delaware(State or other jurisdiction of
    incorporation or organization)             |  | 22-3043811(I.R.S. Employer
    Identification No.)
|                                                                                      
|14201 Wireless Way
    Oklahoma City, Oklahoma(Address of principal executive offices) |  | 73134(Zip Code)                                   

(405) 529-8500


(Registrants telephone number, including area code)





þ o




12b-2


o o þ


12b-2 o þ












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##### 










AMERICAN CELLULAR CORPORATION


INDEX TO
FORM 10-Q


|                                                                        |  |                                                                                                            |  |      |    | 
|----------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|Item                                                                    |  |                                                                                                            |  |     
|Number                                                                  |  |                                                                                                            |  | Page
|                                                                        |  |                                                                                                            |  |     
|PART I. FINANCIAL
    INFORMATION                                      
|1                                                                       |  | Condensed Consolidated Financial Statements
    (Unaudited):                                               |  |      |    | 
|                                                                        |  | Condensed Consolidated Balance Sheets as of
    March 31, 2006 and December 31, 2005                       |  |      | 2  | 
|                                                                        |  | Condensed Consolidated Statements of
    Operations for the Three Months Ended March 31, 2006 and
    2005 |  |      | 3  | 
|                                                                        |  | Condensed Consolidated Statements of Cash
    Flows for the Three Months Ended March 31, 2006 and 2005     |  |      | 4  | 
|                                                                        |  | Notes to Condensed Consolidated Financial
    Statements                                                   |  |      | 5  | 
|2                                                                       |  | Managements Discussion and Analysis
    of Financial Condition
    and Results of Operations              |  |      | 7  | 
|3                                                                       |  | Quantitative and Qualitative Disclosures
    about Market Risk                                             |  |      | 15 | 
|4                                                                       |  | Controls and Procedures                                                                                    |  |      | 16 | 
|PART II. OTHER INFORMATION                                             
|1                                                                       |  | Legal Proceedings                                                                                          |  |      | 17 | 
|1A                                                                      |  | Risk Factors                                                                                               |  |      | 17 | 
|2                                                                       |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                            |  |      | 17 | 
|3                                                                       |  | Defaults Upon Senior Securities                                                                            |  |      | 17 | 
|4                                                                       |  | Submission of Matters to a Vote of Security
    Holders                                                    |  |      | 17 | 
|5                                                                       |  | Other Information                                                                                          |  |      | 17 | 
|6                                                                       |  | Exhibits                                                                                                   |  |      | 17 | 
|Certification by Principal Executive Officer Pursuant to Rule 15d-14(a)
|Certification by Principal Financial Officer Pursuant to Rule 15d-14(a)
|Certification by Principal Executive Officer Pursuant to Section 1350  
|Certification by Principal Financial Officer Pursuant to Section 1350  



1



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##### Table of Contents






PART I.


FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements

AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                            |                                                                                        |                            |                                            |             |                   |               |             |             |               |               | 
|------------------------------------------- | -------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ----------- | ----------------- | ------------- | ----------- | ----------- | ------------- | ------------- | 
|                                            |                                                                                        | March 31, 2006             |                                            |             | December 31, 2005 |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | (Unaudited)                |                                            |             |                  
|ASSETS                                     
|CURRENT ASSETS:                             |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Cash and cash equivalents                                                              |                            | $                                          | 58,268,967  |                   |               | $           | 76,610,593  |              
|                                            | Accounts receivable, net                                                               |                            |                                            | 37,341,989  |                   |               |             | 47,268,967  |              
|                                            | Inventory                                                                              |                            |                                            | 5,183,169   |                   |               |             | 5,066,257   |              
|                                            | Deferred tax assets                                                                    |                            |                                            | 3,324,000   |                   |               |             | 3,324,000   |              
|                                            | Prepaid expenses                                                                       |                            |                                            | 1,873,060   |                   |               |             | 1,543,322   |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total current assets       |                                            |             | 105,991,185       |               |             |             | 133,813,139   |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|PROPERTY, PLANT AND EQUIPMENT, net (Note 3) |                                                                                        |                            | 154,846,222                                |             |                   |               | 158,285,766 |            
|                                            |                                                                                        |                            |                                            |             |                   |              
|OTHER ASSETS:                               |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Accounts receivable-affiliates                                                         |                            |                                            | 10,951,196  |                   |               |             | 2,777,611   |              
|                                            | Wireless license acquisition costs                                                     |                            |                                            | 681,425,440 |                   |               |             | 681,424,159 |              
|                                            | Goodwill                                                                               |                            |                                            | 574,813,057 |                   |               |             | 574,813,057 |              
|                                            | Deferred financing costs, net                                                          |                            |                                            | 12,854,527  |                   |               |             | 13,427,299  |              
|                                            | Customer list, net                                                                     |                            |                                            | 35,102,251  |                   |               |             | 41,278,292  |              
|                                            | Other non-current assets                                                               |                            |                                            | 571,914     |                   |               |             | 664,602     |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total other assets         |                                            |             | 1,315,718,385     |               |             |             | 1,314,385,020 |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        |                            | Total assets                               |             | $                 | 1,576,555,792 |             |             | $             | 1,606,483,925 | 
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                           
|LIABILITIES AND STOCKHOLDERS EQUITY       
|CURRENT LIABILITIES:                        |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Accounts payable                                                                       |                            | $                                          | 18,428,747  |                   |               | $           | 18,076,266  |              
|                                            | Accrued expenses                                                                       |                            |                                            | 8,019,845   |                   |               |             | 9,710,379   |              
|                                            | Accrued interest payable                                                               |                            |                                            | 15,792,881  |                   |               |             | 37,863,006  |              
|                                            | Deferred revenue and customer deposits                                                 |                            |                                            | 13,926,193  |                   |               |             | 12,680,381  |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total current liabilities  |                                            |             | 56,167,666        |               |             |             | 78,330,032    |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|OTHER LIABILITIES:                          |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Notes payable, net (Note 4)                                                            |                            |                                            | 915,048,354 |                   |               |             | 914,793,408 |              
|                                            | Deferred tax liabilities                                                               |                            |                                            | 154,561,984 |                   |               |             | 157,685,899 |              
|                                            | Deferred gain on disposition of operating assets and other
    non-current liabilities |                            |                                            | 30,815,645  |                   |               |             | 30,743,034  |              
|                                            | Commitments (Note 5)                                                                   |                            |                                            |             |                   |               |             |             |              
|STOCKHOLDERS EQUITY:                       |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Class A common stock, $.01 par value, 50 shares
    authorized and issued              |                            |                                            | 1           |                   |               |             | 1           |              
|                                            | Class B common stock, $.01 par value, 300 shares
    authorized and issued             |                            |                                            | 3           |                   |               |             | 3           |              
|                                            | Paid-in capital                                                                        |                            |                                            | 474,547,248 |                   |               |             | 474,547,248 |              
|                                            | Accumulated deficit                                                                    |                            |                                            | (54,585,109 | )                 |               |             | (49,615,700 | )            
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total stockholders equity |                                            |             | 419,962,143       |               |             |             | 424,931,552   |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        |                            | Total liabilities and stockholders equity |             | $                 | 1,576,555,792 |             |             | $             | 1,606,483,925 | 
|                                            |                                                                                        |                            |                                            |             |                   |              



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                         |                                                                                         |                          |            |             |             |   |            |             |             | 
|------------------------ | --------------------------------------------------------------------------------------- | ------------------------ | ---------- | ----------- | ----------- | - | ---------- | ----------- | ----------- | 
|                         |                                                                                         | For the Three Months     |           
|                         |                                                                                         | Ended March 31,          |           
|                         |                                                                                         |                          |           
|                         |                                                                                         | 2006                     |            |             | 2005        |  
|                         |                                                                                         |                          |            |             |             |  
|                         |                                                                                         | (Unaudited)              |           
|OPERATING REVENUE:       |                                                                                         |                          |            |             |             |   |            |            
|                         | Service revenue                                                                         |                          | $          | 87,472,952  |             |   | $          | 86,558,291  |            
|                         | Roaming revenue                                                                         |                          |            | 22,982,871  |             |   |            | 22,518,722  |            
|                         | Equipment and other revenue                                                             |                          |            | 5,848,518   |             |   |            | 5,008,491   |            
|                         |                                                                                         |                          |            |             |             |  
|                         |                                                                                         | Total operating revenue  |            |             | 116,304,341 |   |            |             | 114,085,504 | 
|                         |                                                                                         |                          |            |             |             |  
|OPERATING EXPENSES:      |                                                                                         |                          |            |             |             |   |            |            
|                         | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |            | 29,722,958  |             |   |            | 29,618,633  |            
|                         | Cost of equipment                                                                       |                          |            | 12,213,827  |             |   |            | 11,658,321  |            
|                         | Marketing and selling                                                                   |                          |            | 16,275,647  |             |   |            | 14,372,904  |            
|                         | General and administrative                                                              |                          |            | 21,326,979  |             |   |            | 21,241,241  |            
|                         | Depreciation and amortization                                                           |                          |            | 21,453,781  |             |   |            | 21,255,302  |            
|                         | Gain on disposition of operating assets                                                 |                          |            | (748,547    | )           |   |            |            |            
|                         |                                                                                         |                          |            |             |             |  
|                         |                                                                                         | Total operating expenses |            |             | 100,244,645 |   |            |             | 98,146,401  | 
|                         |                                                                                         |                          |            |             |             |  
|OPERATING INCOME         |                                                                                         |                          | 16,059,696 |             |             |   | 15,939,103 |            
|OTHER EXPENSE:           |                                                                                         |                          |            |             |             |   |            |            
|                         | Interest expense                                                                        |                          |            | (23,785,118 | )           |   |            | (23,783,598 | )          
|                         | Other expense, net                                                                      |                          |            | (258,520    | )           |   |            | (652,434    | )          
|                         |                                                                                         |                          |            |             |             |  
|LOSS BEFORE INCOME TAXES |                                                                                         |                          | (7,983,942 | )           |             |   | (8,496,929 | )          
|                         | Income tax benefit                                                                      |                          |            | 3,014,533   |             |   |            | 3,228,834   |            
|                         |                                                                                         |                          |            |             |             |  
|NET LOSS                 |                                                                                         | $                        | (4,969,409 | )           |             | $ | (5,268,095 | )          
|                         |                                                                                         |                          |            |             |             |  



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                |                                                  |                                                     |             |             |             |   |            |             |            |  
|--------------------------------------------------------------------------------------------------------------- | ------------------------------------------------ | --------------------------------------------------- | ----------- | ----------- | ----------- | - | ---------- | ----------- | ---------- | -
|                                                                                                                |                                                  | For the Three Months Ended                          |            
|                                                                                                                |                                                  | March 31,                                           |            
|                                                                                                                |                                                  |                                                     |            
|                                                                                                                |                                                  | 2006                                                |             |             | 2005        |  
|                                                                                                                |                                                  |                                                     |             |             |             |  
|                                                                                                                |                                                  | (Unaudited)                                         |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                           |                                                  |                                                     |             |             |             |   |            |            
|Net loss                                                                                                        |                                                  | $                                                   | (4,969,409  | )           |             | $ | (5,268,095 | )          
|Adjustments to reconcile net loss to net cash used in operating
    activities, net of effects of acquisition  |                                                  |                                                     |             |             |             |   |            |            
|                                                                                                                | Depreciation and amortization                    |                                                     |             | 21,453,781  |             |   |            | 21,255,302  |           
|                                                                                                                | Amortization of bond premium and financing costs |                                                     |             | 845,718     |             |   |            | 845,553     |           
|                                                                                                                | Deferred income taxes                            |                                                     |             | (3,123,915  | )           |   |            | (3,335,011  | )         
|                                                                                                                | (Gain) loss on disposition of operating assets   |                                                     |             | (713,194    | )           |   |            | 6,195       |           
|                                                                                                                | Other operating activities                       |                                                     |             | 135,300     |             |   |            |            |           
|Changes in current assets and liabilities                                                                      |                                                  |                                                     |             |             |             |   |            |            
|                                                                                                                | Accounts receivable                              |                                                     |             | 9,926,978   |             |   |            | 4,150,630   |           
|                                                                                                                | Inventory                                        |                                                     |             | (116,912    | )           |   |            | 1,668,495   |           
|                                                                                                                | Prepaid expenses and other                       |                                                     |             | (329,924    | )           |   |            | (528,439    | )         
|                                                                                                                | Accounts payable                                 |                                                     |             | 352,481     |             |   |            | 7,759,030   |           
|                                                                                                                | Accrued expenses                                 |                                                     |             | (23,760,659 | )           |   |            | (27,371,980 | )         
|                                                                                                                | Deferred revenue and customer deposits           |                                                     |             | 1,245,812   |             |   |            | (60,420     | )         
|                                                                                                                |                                                  |                                                     |             |             |             |  
|                                                                                                                |                                                  | Net cash provided by (used in) operating activities |             |             | 946,057     |   |            |             | (878,740   | )
|                                                                                                                |                                                  |                                                     |             |             |             |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                           |                                                  |                                                     |             |             |             |   |            |            
|                                                                                                                | Capital expenditures                             |                                                     |             | (11,032,018 | )           |   |            | (8,588,089  | )         
|                                                                                                                | Change in receivable/payable  affiliates        |                                                     |             | (8,329,383  | )           |   |            | 2,951,586   |           
|                                                                                                                | Other investing activities                       |                                                     |             | 91,718      |             |   |            | (29,444     | )         
|                                                                                                                |                                                  |                                                     |             |             |             |  
|                                                                                                                |                                                  | Net cash used in investing activities               |             |             | (19,269,683 | ) |            |             | (5,665,947 | )
|                                                                                                                |                                                  |                                                     |             |             |             |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                           |                                                  |                                                     |             |             |             |   |            |            
|                                                                                                                | Deferred financing costs                         |                                                     |             | (18,000     | )           |   |            |            |           
|                                                                                                                |                                                  |                                                     |             |             |             |  
|                                                                                                                |                                                  | Net cash used in financing activities               |             |             | (18,000     | ) |            |             |           |  
|                                                                                                                |                                                  |                                                     |             |             |             |  
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                                                       |                                                  |                                                     | (18,341,626 | )           |             |   | (6,544,687 | )          
|CASH AND CASH EQUIVALENTS, beginning of period                                                                  |                                                  |                                                     | 76,610,593  |             |             |   | 41,488,979 |            
|                                                                                                                |                                                  |                                                     |             |             |             |  
|CASH AND CASH EQUIVALENTS, end of period                                                                        |                                                  | $                                                   | 58,268,967  |             |             | $ | 34,944,292 |            
|                                                                                                                |                                                  |                                                     |             |             |             |  
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                              |                                                  |                                                     |             |             |             |   |            |            
|Cash paid for                                                                                                  |                                                  |                                                     |             |             |             |   |            |            
|                                                                                                                | Interest                                         |                                                     | $           | 45,006,430  |             |   | $          | 45,009,213  |           
|                                                                                                                | Income taxes                                     |                                                     | $           | 119,854     |             |   | $          | (29,975     | )         
|SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING
    ACTIVITIES:                                    |                                                  |                                                     |             |             |             |   |            |            
|                                                                                                                | Transfer of fixed assets from (to) affiliates    |                                                     | $           | 155,798     |             |   | $          | (2,085      | )         



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)




10-K




|   |             
|-- | ------------
|1. | Organization





|   |                      
|-- | ---------------------
|2. | Business Combinations



| |                     
| | --------------------
| | Pending Acquisitions







| |                   
| | ------------------
| | Recent Acquisition

mid-to




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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                              
|-- | -----------------------------
|3. | Property, Plant and Equipment



|                                    |  |                  |          |   |              |   |          |  
|----------------------------------- |  | ---------------- | -------- | - | ------------ | - | -------- | -
|                                    |  | March 31,        |          |   | December 31, |  
|                                    |  | 2006             |          |   | 2005         |  
|                                    |  |                  |          |   |              |  
|                                    |  | ($ in thousands) |         
|Gross property, plant and equipment |  | $                | 327,072  |   |              | $ | 315,158  |  
|Accumulated depreciation            |  |                  | (172,226 | ) |              |   | (156,872 | )
|                                    |  |                  |          |   |              |  
|Property, plant and equipment, net  |  | $                | 154,846  |   |              | $ | 158,286  |  
|                                    |  |                  |          |   |              |  



|   |              
|-- | -------------
|4. | Notes Payable



|                               |                     |                  |         |         |              |   |         |         | 
|------------------------------ | ------------------- | ---------------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                               |                     | March 31,        |         |         | December 31, |  
|                               |                     | 2006             |         |         | 2005         |  
|                               |                     |                  |         |         |              |  
|                               |                     | ($ in thousands) |        
|9.5% senior subordinated notes |                     | $                | 15,048  |         |              | $ | 14,794  |        
|10.0% senior notes             |                     |                  | 900,000 |         |              |   | 900,000 |        
|                               |                     |                  |         |         |              |  
|                               | Total notes payable |                  | $       | 915,048 |              |   | $       | 914,794 | 
|                               |                     |                  |         |         |              |  



|   |                              
|-- | -----------------------------
|5. | Commitments and Contingencies



| |            
| | -----------
| | Commitments





| |              
| | -------------
| | Contingencies



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion and analysis presents factors that
we believe are relevant to an assessment and understanding of
our condensed consolidated financial position and results of
operations. This financial and business analysis should be read
in conjunction with our December 31, 2005 consolidated
financial statements included in our Annual Report on
Form 10-K for the
fiscal year ended December 31, 2005 and our condensed
consolidated financial statements and the notes thereto included
in Item 1.


OVERVIEW






CRITICAL ACCOUNTING POLICIES AND PRACTICES


10-K




ACQUISITIONS




| |                                    
| | -----------------------------------
| | Pending Acquisition of Texas 15 RSA







| |                                  
| | ---------------------------------
| | Acquisition of Pennsylvania 4 RSA

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NEW ROAMING AGREEMENT WITH CINGULAR WIRELESS






| |   |                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | mutual agreement to lower roaming rates, with us paying Cingular
    a flat incollect rate through mid-2009 that is approximately
    half the blended rate in previous roaming agreements;                                                                                                                             
|
| |  | agreement to continue to mutually prefer one another for roaming
    through the term of the new roaming agreement, which has been
    extended approximately one year through mid-2009; and                                                                                                                            
|
| |  | we received approximately $0.8 million from Cingular as a
    settlement for prior claims under various agreements between us
    and the former AT&T Wireless, and have and will continue to
    receive certain formula-based residual payments in connection
    with such settlement through mid-2008 at the latest;
|
| |  | the new roaming agreement provides for
    home-on-home
    roaming in areas where both carriers operate.                                                                                                                                                                                                             

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2006 
      AND MARCH 31, 2005




|                                                     |  |                    |           |   |      |   |           |  
|---------------------------------------------------- |  | ------------------ | --------- | - | ---- | - | --------- | -
|                                                     |  | Three Months Ended |          
|                                                     |  | March 31,          |          
|                                                     |  |                    |          
|                                                     |  | 2006               |           |   | 2005 |  
|                                                     |  |                    |           |   |      |  
|Market population(1)                                 |  |                    | 5,166,500 |   |      |   | 5,069,900 |  
|Ending subscribers                                   |  |                    | 665,200   |   |      |   | 700,100   |  
|Market penetration(2)                                |  |                    | 12.9      | % |      |   | 13.8      | %
|Post-paid and pre-paid gross subscriber additions(3) |  |                    | 41,000    |   |      |   | 37,600    |  
|Gross subscriber additions                           |  |                    | 48,300    |   |      |   | 51,500    |  
|Average subscribers                                  |  |                    | 665,700   |   |      |   | 705,100   |  
|Average monthly service revenue per subscriber(4)    |  | $                  | 44        |   |      | $ | 41        |  
|Average monthly post-paid churn(5)                   |  |                    | 2.0       | % |      |   | 2.5       | %






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the population in our licensed areas for the period
    indicated. The results are based upon the 2003 population
    estimates provided by MapInfo Corporation, a location software
    company, adjusted to exclude those portions of our RSAs and
    metropolitan statistical areas, or MSAs, not covered by our
    licenses.
|   
|(2) | Market penetration is calculated by dividing ending subscribers
    by market population.                                                                                                                                                                                                                                                    
|   
|(3) | Represents gross subscriber additions added during the period,
    excluding reseller additions. We typically do not incur
    commission and equipment costs or equipment revenue from
    reseller additions.                                                                                                                              
|   
|(4) | Average monthly service revenue per subscriber is calculated by
    dividing service revenue by average subscribers and dividing by
    the number of months in the period. We exclude roaming revenue
    from this calculation, since roaming revenue is not derived from
    our subscribers.                                             

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|    |                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | Average monthly post-paid churn represents the percentage of the
    post-paid subscribers which deactivate service each month. The
    calculation divides the total post-paid deactivations during the
    period by the average post-paid subscribers for the period.



| |                      
| | ---------------------
| | Basis of Presentation



|                         |                                                                                         |                          |        |         |            |   |        |           |         |  |     |       |     |  
|------------------------ | --------------------------------------------------------------------------------------- | ------------------------ | ------ | ------- | ---------- | - | ------ | --------- | ------- |  | --- | ----- | --- | -
|                         |                                                                                         | Three Months Ended       |        |         |           
|                         |                                                                                         | March 31,                |        |         | Percentage |  
|                         |                                                                                         |                          |        |         | Change     |  
|                         |                                                                                         | 2006                     |        |         | 2005       |   |        | 06 vs. 05 |        
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|                         |                                                                                         | ($ in thousands)         |        |         |           
|Operating revenue:       |                                                                                         |                          |        |         |            |   |        |           |         |  |     |      
|                         | Service revenue                                                                         |                          | $      | 87,473  |            |   | $      | 86,558    |         |  |     | 1.1   | %  
|                         | Roaming revenue                                                                         |                          |        | 22,983  |            |   |        | 22,519    |         |  |     | 2.1   | %  
|                         | Equipment and other revenue                                                             |                          |        | 5,848   |            |   |        | 5,008     |         |  |     | 16.8  | %  
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|                         |                                                                                         | Total operating revenue  |        |         | 116,304    |   |        |           | 114,085 |  |     |       | 1.9 | %
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|Operating expenses:      |                                                                                         |                          |        |         |            |   |        |           |         |  |     |      
|                         | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |        | 29,723  |            |   |        | 29,619    |         |  |     | 0.4   | %  
|                         | Cost of equipment                                                                       |                          |        | 12,214  |            |   |        | 11,658    |         |  |     | 4.8   | %  
|                         | Marketing and selling                                                                   |                          |        | 16,276  |            |   |        | 14,373    |         |  |     | 13.2  | %  
|                         | General and administrative                                                              |                          |        | 21,327  |            |   |        | 21,241    |         |  |     | 0.4   | %  
|                         | Depreciation and amortization                                                           |                          |        | 21,454  |            |   |        | 21,255    |         |  |     | 0.9   | %  
|                         | Gain on disposition of operating assets                                                 |                          |        | (749    | )          |   |        |          |         |  |     | *     |    
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|                         |                                                                                         | Total operating expenses |        |         | 100,245    |   |        |           | 98,146  |  |     |       | 2.1 | %
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|Operating income         |                                                                                         |                          | 16,059 |         |            |   | 15,939 |           |         |  | 0.8 | %    
|                         | Interest expense                                                                        |                          |        | (23,785 | )          |   |        | (23,784   | )       |  |     | *     |    
|                         | Other expense, net                                                                      |                          |        | (258    | )          |   |        | (652      | )       |  |     | (60.4 | )% 
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|Loss before income taxes |                                                                                         |                          | (7,984 | )       |            |   | (8,497 | )         |         |  | 6.0 | %    
|                         | Income tax benefit                                                                      |                          |        | 3,015   |            |   |        | 3,229     |         |  |     | *     |    
|                         |                                                                                         |                          |        |         |            |   |        |           |        
|Net loss                 |                                                                                         | $                        | (4,969 | )       |            | $ | (5,268 | )         |         |  | 5.7 | %    
|                         |                                                                                         |                          |        |         |            |   |        |           |        






| |   |                              
| | - | -----------------------------
| | * | Calculation is not meaningful



| |            
| | -----------
| | Subscribers



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| |                  
| | -----------------
| | Operating Revenue





| |                
| | ---------------
| | Service revenue







| |                
| | ---------------
| | Roaming revenue

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| |                            
| | ---------------------------
| | Equipment and other revenue







| |                   
| | ------------------
| | Operating Expenses





| |                
| | ---------------
| | Cost of service

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|                                  |                       |                              |        |        |            |  |      |        |   |   |            |        |  |  |      |       |  
|--------------------------------- | --------------------- | ---------------------------- | ------ | ------ | ---------- |  | ---- | ------ | - | - | ---------- | ------ |  |  | ---- | ----- | -
|                                  |                       | Three Months Ended March 31, |       
|                                  |                       |                              |       
|                                  |                       | 2006                         |        |        | 2005       | 
|                                  |                       |                              |        |        |            | 
|                                  |                       | Amount                       |        |        | Percentage |  |      | Amount |   |   | Percentage |       
|                                  |                       |                              |        |        |            |  |      |        |   |   |            |       
|                                  |                       | ($ in thousands)             |       
|Network and other operating costs |                       | $                            | 22,729 |        |            |  | 76.5 | %      |   | $ | 18,935     |        |  |  | 63.9 | %    
|Roaming costs                     |                       |                              | 6,994  |        |            |  | 23.5 | %      |   |   | 10,684     |        |  |  | 36.1 | %    
|                                  |                       |                              |        |        |            |  |      |        |   |   |            |       
|                                  | Total cost of service |                              | $      | 29,723 |            |  |      | 100.0  | % |   | $          | 29,619 |  |  |      | 100.0 | %
|                                  |                       |                              |        |        |            |  |      |        |   |   |            |       



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| |                  
| | -----------------
| | Cost of equipment







| |                            
| | ---------------------------
| | Marketing and selling costs







| |                                    
| | -----------------------------------
| | General and administrative expenses



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| |                              
| | -----------------------------
| | Depreciation and amortization







| |                                        
| | ---------------------------------------
| | Gain on disposition of operating assets





| |                      
| | ---------------------
| | Non-Operating Results



| |                 
| | ----------------
| | Interest expense



LIQUIDITY AND CAPITAL RESOURCES






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| |                                  
| | ---------------------------------
| | Working Capital and Net Cash Flow







10-K




| |                  
| | -----------------
| | Capital Resources







| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | incur indebtedness;                                                                     
|
| |  | incur or assume liens;                                                                  
|
| |  | pay dividends or make other restricted payments;                                        
|
| |  | impose dividend or other payment restrictions affecting our
    restricted subsidiaries;
|
| |  | issue and sell capital stock of our restricted subsidiaries;                            
|
| |  | issue certain capital stock;                                                            
|
| |  | issue guarantees of indebtedness;                                                       
|
| |  | enter into transactions with affiliates;                                                
|
| |  | sell assets;                                                                            
|
| |  | engage in unpermitted lines of business;                                                

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| |   |                                                                                
| | - | -------------------------------------------------------------------------------
| |  | enter into sale and leaseback transactions; and                                
|
| |  | merge or consolidate with or transfer substantial assets to
    another entity.



| |                                     
| | ------------------------------------
| | Capital Expenditures and Commitments

E-911.






| |                        
| | -----------------------
| | Contractual Obligations



10-K


FORWARD-LOOKING STATEMENTS









|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures about Market
    Risk





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|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

13a-15(e) 15d-15(e)


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PART II.


OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings








|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K







|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits



|        |      |  |             |                                                                     |           |  |     | 
|------- | ---- |  | ----------- | ------------------------------------------------------------------- | --------- |  | --- | 
|Exhibit |      |  |             |                                                                     | Method of | 
|Numbers |      |  | Description |                                                                     | Filing    | 
|        |      |  |             |                                                                     |           | 
|        | 31.1 |  |             | Rule 15d-14(a) Certification by our principal executive
    officer |           |  | (1) | 
|        | 31.2 |  |             | Rule 15d-14(a) Certification by our principal financial
    officer |           |  | (1) | 
|        | 32.1 |  |             | Section 1350 Certification by our principal executive
    officer   |           |  | (1) | 
|        | 32.2 |  |             | Section 1350 Certification by our principal financial
    officer   |           |  | (1) | 






|    |                
|--- | ---------------
|(1) | Filed herewith.

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SIGNATURES






| |                                  
| | ---------------------------------
| | American Cellular
    Corporation



| |                            
| | ---------------------------
| | /s/ Steven P. Dussek       
| |                            
| | Steven P. Dussek           
| | Chief Executive Officer and
| | principal executive officer



| |                            
| | ---------------------------
| | /s/ Bruce R. Knooihuizen   
| |                            
| | Bruce R. Knooihuizen       
| | Executive Vice President,  
| | Chief Financial Officer and
| | principal financial officer

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INDEX TO EXHIBITS


|        |      |  |             |                                                                     |           |  |     | 
|------- | ---- |  | ----------- | ------------------------------------------------------------------- | --------- |  | --- | 
|Exhibit |      |  |             |                                                                     | Method of | 
|Numbers |      |  | Description |                                                                     | Filing    | 
|        |      |  |             |                                                                     |           | 
|        | 31.1 |  |             | Rule 15d-14(a) Certification by our principal executive
    officer |           |  | (1) | 
|        | 31.2 |  |             | Rule 15d-14(a) Certification by our principal financial
    officer |           |  | (1) | 
|        | 32.1 |  |             | Section 1350 Certification by our principal executive
    officer   |           |  | (1) | 
|        | 32.2 |  |             | Section 1350 Certification by our principal financial
    officer   |           |  | (1) | 






|    |                
|--- | ---------------
|(1) | Filed herewith.