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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,
 TwE7qChql7qoxP/JrypMODGHzpe3PDTJhdRNcQ9Kdn9krf3rkz38g4S6ElPZzgTl
 ewalZ6xG5qikJR6lr0Df9w==

<SEC-DOCUMENT>0001179110-05-000738.txt : 20050107
<SEC-HEADER>0001179110-05-000738.hdr.sgml : 20050107
<ACCEPTANCE-DATETIME>20050107172217
ACCESSION NUMBER:		0001179110-05-000738
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050106
FILED AS OF DATE:		20050107
DATE AS OF CHANGE:		20050107

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Weaver Michael Dan
		CENTRAL INDEX KEY:			0001310282

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32362
		FILM NUMBER:		05519079

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(205) 625-3596

	MAIL ADDRESS:	
		STREET 1:		40 CHERT ROAD
		CITY:			ONEONTA
		STATE:			AL
		ZIP:			35121

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
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-01-06</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001310282</rptOwnerCik>
            <rptOwnerName>Weaver Michael Dan</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>40 CHERT ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ONEONTA</rptOwnerCity>
            <rptOwnerState>AL</rptOwnerState>
            <rptOwnerZipCode>35121</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>President and Chief Exec Offic</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <transactionDate>
                <value>2005-01-06</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3855</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>14.288</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>104287</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Included in the sale of 3,855 Income Deposut Securities (&quot;IDSs&quot;) that each consisted of one share of Class A common stock and one 13% senior subordinated note due 2019 with a $7.50 principal amount.</footnote>
        <footnote id="F2">This is the sale price of the IDSs set forth in the Underwriting Agreement dated December 16, 2004, relating to the sale of the IDSs.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Michael D. Weaver</signatureName>
        <signatureDate>2005-01-06</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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