In any business, there are areas where competitive advantage can be gained through quantity and scale, and areas where it can only be won through quality and attention to detail. ALLTEL’s best opportunities for market leadership lie in the second category, particularly in the way we manage and support our relationships with customers. In 2004, we took a number of important steps to improve our performance in this crucial business discipline.

Recognizing that one of our core competitive strengths is founded on face-to-face interactions and telephone conversations between individuals, we focused first and foremost on our retail and call center operations. A team of top ALLTEL customer service and retail managers helped us evaluate current performance, standardize best practices and design a consistent training program for every customer-facing employee. By year-end, everyone who works in our call centers had participated in this program, and the retail store roll-out will be completed by the end of 2005.

By dealing directly with most of our customers through our own call centers and nearly 800 retail locations, we are in a stronger position than most to cultivate customer loyalty. Even when ALLTEL products are sold through independent outlets, we still encourage direct customer relationships. For example, we send welcome messages inviting new wireless customers to contact us with set-up or usage questions. Each relationship is then managed through the entire lifecycle of the customer with a series of pre-planned calls designed to better match our service with individual lifestyle needs.

Building on this groundwork, we believe that 2005 will allow us to take the ALLTEL brand to a new position of strength in an increasingly competitive marketplace.