Alltel Weaker 4th quarter 2005 results but not all bad.

[Barry]

Alltel weaker-than-expected 4th quarter 2005 earnings, but outpaced analysts' predictions by adding 147,000 net new wireless subscribers during the final three months of 2005, most of which were prepaid customers.

Alltel reported that 90,000 of 147,000 net new wireless subscribers were prepaid customers. The carrier's heritage markets performed strongly, and Alltel lost only 37,000 subscribers from former Cingular Wireless L.L.C. markets, which Alltel transitioned from GSM to CDMA technology. Some analysts had predicted the rural carrier would lose all 119,000 subscribers in those areas.

Alltel's customer churn figures were at 2.2 percent for the quarter, up from 2.17 percent in fourth-quarter 2004. For the year, Alltel said it had total wireless churn of 2.17 percent, down from the 2.23 percent the carrier reported for 2004. Average revenue per user for the fourth quarter stood at $52.13, up 6 percent from the same quarter in 2004. Yearly ARPU was up 7 percent from 2004 to $51.44.

Alltel reported consolidated revenue of $2.58 billion for its wireless and wireline business and fully diluted earnings for the quarter of 77 cents per share from current businesses.

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