Lehman Brothers Worldwide Wireless

1
Lehman Brothers WorldwideWireless Wireline
Conference

• Kevin Beebe - Group President Operations
• New York, NY June 2, 2005

2
Safe Harbor Statement and Regulation G
Disclaimer

• Safe Harbor Statement
• This presentation includes statements about
  expected future events and future financial
  results that are forward-looking statements
  within the meaning of the Private Securities
  Litigation Reform Act of 1995. ALLTEL claims the
  protection of the safe-harbor for forward-looking
  statements contained in the Private Securities
  Litigation Reform Act of 1995. Forward-looking
  statements are subject to uncertainties that
  could cause actual future events and results to
  differ materially from those expressed in the
  forward-looking statements. These forward-looking
  statements are based on estimates, projections,
  beliefs, and assumptions and are not guarantees
  of future events and results. Actual future
  events and results may differ materially from
  those expressed in these forward-looking
  statements as a result of a number of important
  factors. Representative examples of these factors
  include (without limitation) adverse changes in
  economic conditions in the markets served by
  ALLTEL the extent, timing, and overall effects
  of competition in the communications business
  material changes in the communications industry
  generally that could adversely affect vendor
  relationships with equipment and network
  suppliers and customer relationships with
  wholesale customers changes in communications
  technology the risks associated with pending
  acquisitions and the integration of acquired
  businesses adverse changes in the terms and
  conditions of the company's wireless roaming
  agreements the uncertainties related to ALLTEL's
  strategic investments the effects of litigation
  and the effects of federal and state legislation,
  rules, and regulations governing the
  communications industry. In addition to these
  factors, actual future performance, outcomes, and
  results may differ materially because of more
  general factors including (without limitation)
  general industry and market conditions and growth
  rates, economic conditions, and governmental and
  public policy changes.

Regulation G Disclaimer Todays presentation will
include certain non-GAAP financial measures. I
refer you to the Investor Relations section of
ALLTELs Web site where the company has posted
additional information regarding these non-GAAP
financial measures, including a reconciliation of
each such measure to the most directly comparable
GAAP measure. The companys Web site is located
at www.alltel.com.
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A Closer Look at ALLTELas of 3/31/05
1Q05 of Total Revenue 62 28 10

• 1Q05
• Wireless 8.8M
• Wireline (ILEC CLEC) 3.0M
• Long-Distance 1.8M
• DSL 283K

• Wireless
• Wireline (ILEC, CLEC, Internet)
• Communication Support Services

Business Mix
Customers

• Wireless
• 64M POPs
• 2/3 of customers in Tier 2 and 3 markets
• Wireline
• 50 of our wireline is overlapped by our wireless

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First Quarter 2005 Highlights
Revenue (in billions)
Operating Income (1) (in millions)
EPS (1)
10 yoy
8 yoy
18 yoy
14 yoy
29 yoy
(6) yoy
(1) yoy
Wireless
Wireline
(21 bp) yoy
85 yoy
2 yoy
6 yoy
(In thousands)
1Q04
1Q05
(1) From Current Businesses
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Wireless Business 1Q05Quality Customer Growth,
Data, ETC Revenue, Roaming Driving Revenue
Service Revenue growth of 14
Retail Service Revenue in billions
Wholesale Service Revenue in millions
10 Increase YOY
15 Increase YOY

• Quality customer growth
• Data revenue
• ETC revenue

• Solid growth in CDMA MOU
• Stability in analog and TDMA MOU

(1) Source Analyst and company reports
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Data Revenue And Technology Plans

• Data of ARPU

• Technology Plans
• 1X coverage expanding will cover 95 of POPs
  by year-end
• Launched EVDO in 3 markets (Cleveland, Akron
  Tampa)
• Plans to deploy in 6-10 additional markets by
  year-end

• Drivers
• Text messaging
• Application downloads

7
Wireless Business 1Q05Industry Leading Cost
Structure
OIBDA Margins1
Industry OIBDA Margins1

• Solid revenue growth, expense management and
  fewer gross adds

Source Analyst and company reports
Cash Cost Per User
Operating Income Per Customer
9 Increase YOY

• Drivers
• Retention expense
• 27 growth in MOU per customer
• Data services
• Roaming expense

1OIBDA defined as operating income before
depreciation and amortization (measured on
service revenues). T-Mobile USA represents
results from 4Q04. Deutsche Telecom releases on
May 12th, 2005.
8
2005 Wireless Activities

• Expand data footprint
• Rebranding initiative
• Integrate Cingular properties
• Close/Integrate Western Wireless

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Rebranding Initiative

• Post-Pay Churn Rates

• Developed Wireless Proofpoints
• Automatic one-minute credit for dropped calls
• Anytime rate plan changes without changing
  contracts
• Unlimited calls home

• Developed Specific Activities
• New look to Alltel logo
• More customer-friendly design within retail
  stores
• Advertising campaign highlighting proofpoints

• Drivers
• Improving service levels (networks, retail
  stores, call centers)
• Proactively migrating customers to current rate
  plans and handsets

Expect .02-.03 per share of added expenses in 2Q
10
ALLTEL Western Wireless Increases Presence in
Markets Where We Add Significant Value
Pro Forma Domestic Footprint
Covered U.S. POPs 75.9M Network Coverage 1M sq.
mi. Spectrum Position Avg. 30MHZ (primarily in
850MHz band)
11
ALLTEL Western Wireless Diversifies Our
Roaming Revenue Sources
Cingular
Verizon
PRO FORMA ALLTEL
PRO FORMA ALLTEL
Cingular
Verizon
Sprint/Nextel
T-Mobile
PRO FORMA ALLTEL
PRO FORMA ALLTEL
Nextel
T- Mobile
Sprint
Note ALLTEL Pro Forma licensed coverage. All
others represent approximate network build out.
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ALLTEL Western WirelessThe Premier Regional
Communications Company

• This transaction
• Is accretive to ALLTEL in first full year of
  operations (2006)
• Combines complementary assets geographically and
  technologically
• Increases ALLTELs wireless revenue mix to nearly
  70
• Increases our retail position in markets where we
  add significant value
• Creates the leading independent roaming partner
  in our markets with the top four national
  players offering multiple technologies (CDMA,
  GSM, TDMA)
• Adds diversity and increased growth through
  International markets
• Creates revenue upside and cost synergy
  opportunities
• Preserves a solid balance sheet
• Maintains flexibility for strategic options

13
Wireline Business 1Q05Access Lines Continue to
Decline, But Broadband Customer Base Grows
Year-Over-Year Total Access Lines

• Declines driven by wireless and broadband
  substitution

ARPU
3.4 Decline YOY
2 Increase YOY
Broadband Customer Base Year-Over-Year

• 1Q05 net adds of 40K is the highest in company
  history

• ARPU Driven by
• Increase in broadband
• Increase in feature revenue

62 Increase YOY
14
Wireline Business 1Q05Industry Leading Cost
Structure
OIBDA Margins1
Industry OIBDA Margins1
Source Analyst and company reports
Cash Cost Per User
Operating Income Per Customer
9 Increase YOY
1OIBDA defined as operating income before
depreciation and amortization (measured on total
revenues).
15
2005 Wireline Activities

• Thorough review of strategic alternatives
• Continue broadband deployment
• Signed agreement with DISH to offer TV
• Evaluating VoIP and fiber deployment
• Rebranding initiative

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Summary - Why Invest in ALLTEL?

• Integrated telecom with highest relative
  contribution from wireless in the industry
• Solid balance sheet
• Strong and growing equity free cash flow
• Solid track record of shareholder returns
• 2.7 dividend yield
• Wireless Business accelerating top-line by
  improving quality of customer growth and
  retention, and maintaining industry leading cash
  cost per user
• Wireline Business higher broadband penetration,
  growing feature revenues, and maintaining
  industry leading margins

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Reconciliation of Non-GAAP Financial Measures for
the years ended December 31, 2004, 2003, 2002,
2001 and 2000
19
Reconciliation of Non-GAAP Financial Measures for
the years ended December 31, 2004, 2003, 2002,
2001 and 2000
20
Reconciliation of Non-GAAP Financial Measures for
the three months ended March 31
21
Reconciliation of Non-GAAP Financial Measures for
the three months ended March 31
22
Other Reconciliations of Non-GAAP Financial
Measures
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Other Reconciliations of Non-GAAP Financial
Measures
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Pro Forma Segment OIBDA for the year ended
December 31, 2004