1. ALLTEL CORPORATION
SUPPLEMENTAL OPERATING INFORMATION (UNAUDITED)
for the quarterly periods in the year 2007
(Dollars in millions, except per customer amounts)
2007
Total 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
Controlled POPs 79,383,821 79,383,821 79,575,793 79,575,793 79,575,793
Customers 12,785,193 12,785,193 12,447,085 12,242,066 12,060,572
Penetration rate 16.1% 16.1% 15.6% 15.4% 15.2%
Average customers 12,253,760 12,585,179 12,338,361 12,147,380 11,940,660
Average retail customers (excludes reseller customers) 11,491,493 11,822,912 11,576,094 11,385,113 11,178,393
Gross customer additions:
Postpay 2,399,238 667,137 644,055 555,895 532,151
Prepay 1,187,049 356,915 260,746 234,066 335,322
Reseller - - - - -
Total internal 3,586,287 1,024,052 904,801 789,961 867,473
Net customer additions:
Postpay 721,372 218,787 212,791 180,910 108,884
Prepay 244,459 123,897 (7,772) 584 127,750
Reseller - - - - -
Total internal 965,831 342,684 205,019 181,494 236,634
Cash costs:
Cost of services $ 2,625.8 $ 692.4 $ 682.2 $ 640.2 $ 611.0
Cost of products sold 1,194.0 317.9 300.0 288.6 287.5
Selling, general, administrative and other 1,957.8 512.3 496.1 479.5 469.9
Less product sales 818.8 206.9 210.0 203.5 198.4
Total $ 4,958.8 $ 1,315.7 $ 1,268.3 $ 1,204.8 $ 1,170.0
Cash costs per unit per month (A) $33.72 $34.85 $34.26 $33.06 $32.66
Revenues:
Service revenues $ 7,984.3 $ 2,061.1 $ 2,071.5 $ 1,971.6 $ 1,880.1
Less wholesale roaming revenues 705.6 184.8 196.5 170.1 154.2
Less wholesale transport revenues 161.9 34.5 38.1 42.9 46.4
Less reseller revenues 27.5 5.8 8.0 7.5 6.2
Retail revenues $ 7,089.3 $ 1,836.0 $ 1,828.9 $ 1,751.1 $ 1,673.3
Average revenue per customer per month (B) $54.30 $54.59 $55.96 $54.10 $52.49
Retail revenue per customer per month (C) $51.41 $51.76 $52.66 $51.27 $49.90
Retail minutes of use per customer per month (D) 730 795 746 724 651
Postpay churn 1.28% 1.34% 1.31% 1.16% 1.33%
Total churn 1.79% 1.81% 1.90% 1.67% 1.77%
Note: Since January 1, 2002, the number of reseller customers included in the customer base has not changed and Alltel has not included the effects of reseller activity in its reported gross and net customer additions for any period subsequent
to 2001. Revenues earned from resellers had been classified as retail revenues. Effective January 1, 2008, Alltel changed its classification of reseller activity from retail to wholesale operations and prospectively will include reseller
customers in its reported gross and net customer additions, consistent with industry practice. Prior period retail revenue per unit statistics have been adjusted to reflect the reclassification of the reseller operations. Prior period average and
total customer counts were not adjusted for reseller customers because the effects were immaterial.
(A) Cash costs per unit per month is calculated by dividing the sum of the reported cost of services, cost of products sold, selling, general, administrative and other expenses less product sales by average customers for the period.
(B) Average revenue per customer per month is calculated by dividing service revenues by average customers for the period.
(C) Retail revenue per customer per month is calculated by dividing retail revenues (service revenues less wholesale and reseller revenues) by average retail customers for the period.
(D) Retail minutes of use per customer per month represents the average monthly minutes that Alltel's customers use on both the Company's network and while roaming on other carriers' networks.