In our communications business,
wireless and wireline revenues from current businesses increased 16
percent and 6 percent over the prior year, respectively, to $2.1
billion and $1.3 billion, reflecting our increasing ability to offer
our customers a simple, high-value bundled service package.
Following the merger with 360° Communications, which was
completed in early July, communications now represents around 70
percent of our revenues, with more than 40 percent derived directly
from the growing wireless sector. Continuing our strategy of
developing strong, geographically focused markets, we announced in
December a definitive merger agreement with Aliant Communications,
which has wireless operations covering nearly the entire state of
Nebraska and wireline properties in a portion of the state. We also
acquired or agreed to acquire several smaller wireline and wireless
properties in Alabama, Georgia and Colorado. This was also a milestone year
for our Information Services business, with revenues from current
businesses nearing $1.2 billion after seven consecutive quarters of
double-digit growth and the signing of major international contracts
in India and Poland. This brings the total number of countries we
serve worldwide to 48. Our information technology strength was
further boosted by significant strategic alliances with industry
leaders Ford Credit for automotive financing and with First American
Real Estate Information Services and Transamerica Real Estate
Information Companies in the mortgage industry. We extended our
long-standing agreement with Bank of America and will support the
conversion of another 21 million consumer accounts to their
nationwide Model Banking Program. Reflecting our continuing global
strength and expertise, ALLTEL placed 49th in Business Week's top
100 best-performing information technology companies in the
world. ALLTEL's approach to business is
a simple one: to play to our strengths and deliver the highest
possible value to each of our customers. By focusing our
technologies, people and expertise on selected industries and
geographic markets, we have been able to maximize the value of our
assets and position ourselves as leaders in our fields. In 1998,
perhaps more than in any other year, the benefits of this simple
approach have been recognized by our stockholders, customers and
employees alike - and I am confident that in a crowded and complex
marketplace, the clarity of ALLTEL's offering will continue to set
us apart. 
It gives me great pleasure to report another milestone
year for ALLTEL, in both the Company's overall financial performance
and the competitive positioning of each of our business units for
strong, sustainable growth. We reported, from current businesses,
revenues and sales of $5.2 billion - a 15 percent increase over the
prior-year period - net income of $580.3 million and basic earnings
per share of $2.11, a 22 percent increase. In addition, ALLTEL's
stock hit a record high of $61-3/8 in 1998, and the Board approved
the 38th consecutive annual dividend increase in the Company's
history, raising the indicated annual dividend 5 percent to $1.22
per share.
Joe T. Ford,
Chairman and Chief Executive Officer
January 28, 1999
