Raymond James 25th Annual

1

Jeff Gardner Executive Vice President Chief
Financial Officer

• Raymond James 25th Annual
• Institutional Investors Conference
• The Hyatt Regency Grand Cypress
• Orlando, FL
• March 1, 2004

2
Safe Harbor Statement

• This presentation includes certain estimates and
  other forward-looking statements, including
  statements with respect to anticipated operating
  and financial performance, growth opportunities
  and growth rates, acquisition and divestiture
  opportunities, and other statements of
  expectation. Words such as expects,
  anticipates, intends, plans, believes,
  assumes, seeks, estimates, and should,
  and variations of these words and similar
  expressions, are intended to identify these
  forward-looking statements. Forward-looking
  statements are subject to uncertainties that
  could cause actual future performance, outcomes
  and results to differ materially. These
  statements by the Company and its management are
  based on estimates, projections, beliefs and
  assumptions of management and are not guarantees
  of future performance. The company disclaims any
  obligation to update or revise any
  forward-looking statement based on the occurrence
  of future events, the receipt of new information,
  or otherwise.

3
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 this presentation
  along with 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.

4
Agenda

• 4Q03 / 2003 Highlights
• New Organizational Structure
• Wireless Business
• Wireline Business
• Capital Structure / Stock Repurchase Plan
• Financial Performance
• Summary

5
4Q03 Highlights / 2003 Highlights

• 4Q03 YOY FY 2003 YOY
• Equity free cash flow1 218M (4) 1,008M 26
• Wireless
• Service revenue 1,128M 6 4,466M 12
• ARPU 47.26 1 47.51 1
• Gross adds (000s) 696.9 3 2,709.4 13
• Post-pay churn 1.96 (13) 2.09 (6)
• Net adds (000s) 95.4 85 274.4 (2)
• Wireline
• Revenue 616M 1 2,436M 12
• Segment income 237M 6 884M 10

1Defined as Net Income Depreciation
Amortization - CAPEX and Capitalized Software.
6
New Organizational Structure

• Why
• Dedicate sales focus by segment keep support
  groups converged
• Improve service levels to our customers
• Remove duplication and improve feedback loops
• Financial Impact
• 15M pre-tax charge in 1Q
• Expect 20M of savings in 2004

7
Wireless Business

• A Closer Look
• 60 million POPs
• Over 8 million customers
• Customer Mix
• Tier 1 - 37
• Tier 2 - 34
• Tier 3 - 29

Wireless National Calling Areas Cover All 50
States
8
Wireless BusinessNational Plans and MOU Growth
Driving ARPU
of Gross Adds on Total/National Freedom Rate
Plans
MOU (Minutes of Use) Per Customer
24 Increase
ARPU Year Over Year
1 Increase
Strong National plan sales and MOU growth is
driving ARPU
9
Wireless BusinessQuantity and Quality of Gross
Adds are Improving
Gross Adds Quarter Over Quarter in thousands
Post Pay as Percentage of Total Gross
The quantity and quality of gross adds continues
to improve
10
Wireless BusinessALLTEL Touch2Talk

• Kodiak Networks
• ALLTEL IS-95 CDMA Network
• Kyocera T2T Capable Phone

Pricing 5/month 100 minutes private
T2T 10/month 500 minutes private
T2T 20/month unlimited minutes private T2T

• Benefits
• Footprint
• will be available on our entire digital network
  end of 1Q
• Latency
• Call setup in under 3 seconds
• Intra-call in as low as 150 milliseconds
• Functionality
• Use handset to set up group and add users to
  group
• Easily toggle between T2T call and wireless call

11
Wireless BusinessImproving PostPay Churn
Improving service levels, competitive pricing
plans and proactive retention efforts are all
contributing to post-pay churn improvements
12
Wireless BusinessCost Structure

• OIBDA Margins1
• Heritage
• Margins have been steady yoy, even with...
• Increased spending on advertising and retention
  which is
• Driving better churn and customer growth
• Acquired (CenturyTel)
• Margins have been lower than Heritage because
  of...
• Significantly improving quantity and quality of
  gross adds

1OIBDA defined as operating income before
depreciation and amortization.
13
Wireline Business
Wireless Wireline National Calling Areas Cover
All 50 States

• A Closer Look
• 2nd largest independent ILEC
• Approximately 3.1 million customer lines
• No UNE-P lines today
• Approximately 50 of wireline access lines
  overlap wireless service areas

14
Wireline BusinessAccess Lines Decline Slightly,
But ARPU Increases
Access lines have declined 2 YoY
But ARPU has increased. . .

• Reasons for decline
• Wireless substitution
• Broadband
• Economic conditions

In Thousands
Driven by DSL and Feature Revenue
Feature Revenue Per Eligible Line - 10 growth
YoY
DSL Customers - 118 increase YoY

• 7 penetration of addressable lines
• Almost 90 have ALLTEL Internet Service

15
Conservative Capital Structure

• ALLTEL has one of the strongest credit profiles
  in the telecom industry
• Well capitalized balance sheet
• A1 / Prime-1 / F1 (SP / Moodys / Fitch)
  Commercial Paper ratings
• A / A2 / A (SP / Moodys / Fitch) long-term
  credit ratings
• Net Debt / OIBDA 1.31
• Net Debt/Total Capitalization 332
• 750M stock repurchase plan approval
• 5 of shares outstanding
• Authorizes repurchase over period ending 12/31/05

1 From current businesses as of 12/31/03. 2
Assumes 80 equity credit for AT Equity Units.
16
Solid Financial Performance Delivering
Consistent Growth
Operating Income Before Depreciation and
Amortization (bn)1
Revenue (bn)1
Dividends per Share
Earnings per Share1
1 From Current Businesses (after the restatement
of discontinued operations which reflects the 2Q
03 sale of the financial services division of
the information services business).
17
Solid Financial Performance Strong and Growing
Free Cash Flow
Millions
of Revenues

5-Year CAGR 13.8
1
1 From Current Businesses (after the restatement
of discontinued operations which reflects the 2Q
03 sale of the financial services division of
the information services business).
18
Summary

• Solid balance sheet
• Strong equity free cash flow over 1B in 2003
• 3 dividend yield
• Wireless Business improving quality of customer
  growth and significantly improving retention
• Wireline Business higher DSL penetration and
  feature revenue
• Industry leading cost structure

19
Reconciliation of Non-GAAP Financial Measures for
the years ended December 31, 2003, 2002, 2001,
2000 and 1999
20
Reconciliation of Non-GAAP Financial Measures for
the years ended December 31, 2003, 2002, 2001,
2000 and 1999
21
Other Reconciliations of Non-GAAP Financial
Measures
22
Other Reconciliations of Non-GAAP Financial
Measures
23