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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 C7/S+jKO5ABoJRvGwHxcX6VHAcXugh95nl3g+SUoxWijA0flQcnIvyYZ8LgIuDJi
 6QJks0eYLxKMLZfvwnbN8g==

<SEC-DOCUMENT>0001144204-08-047529.txt : 20080814
<SEC-HEADER>0001144204-08-047529.hdr.sgml : 20080814
<ACCEPTANCE-DATETIME>20080814171609
ACCESSION NUMBER:		0001144204-08-047529
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080814
FILED AS OF DATE:		20080814
DATE AS OF CHANGE:		20080814

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OTELCO INC.
		CENTRAL INDEX KEY:			0001288359
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				522128395
		STATE OF INCORPORATION:			AL
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		505 THIRD AVE E
		CITY:			ONEONTA
		STATE:			AL
		ZIP:			35121
		BUSINESS PHONE:		205-625-3574

	MAIL ADDRESS:	
		STREET 1:		505 THIRD AVE E
		CITY:			ONEONTA
		STATE:			AL
		ZIP:			35121

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RURAL LEC ACQUISITION LLC
		DATE OF NAME CHANGE:	20040423

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Kunz John Patrick
		CENTRAL INDEX KEY:			0001310428

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32362
		FILM NUMBER:		081020439

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(239) 498-5009

	MAIL ADDRESS:	
		STREET 1:		10200 IDLE PINE LANE
		CITY:			BONITA SPRINGS
		STATE:			FL
		ZIP:			34135
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>v123777_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-08-14</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001288359</issuerCik>
        <issuerName>OTELCO INC.</issuerName>
        <issuerTradingSymbol>OTT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001310428</rptOwnerCik>
            <rptOwnerName>Kunz John Patrick</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10200 IDLE PINE LANE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BONITA SPRINGS</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>34135</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Class A common stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A common stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <transactionDate>
                <value>2008-08-14</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>15.90</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Spouse</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The reported securities consist of Income Deposit Securities.  Each Income Deposit Security consists of one share of Class A
 common stock and one 13% senior subordinated note due 2019 with a $7.50 principal amount.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Curtis L. Garner, Jr., Attorney-In-Fact</signatureName>
        <signatureDate>2008-08-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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