June 2016

(1) Mobile technology coverage estimates based on information provided by the Instituto Federal de Telecomunicaciones.(2) Source: Instituto Federal de Telecomunicaciones 2Q15 report.

1

Red Compartida: an enabler of Financial Inclusion

Financial inclusion efforts in Mexico seek to harness the opportunities offered by mobile technology– in Mexico today, 54 out of every 100 residents have mobile internet services.

However, to leverage cellular penetration in the country, we need reliable, fast, and affordable ways to reach users.

Red Compartida, by providing at least 85% of the population (more than 40 million additional citizens) with high-quality and low-priced broadband access will achieve exactly this.

Red Compartida will make possible the expansion of 4G data access to a much larger proportion of the population.

This increase in access will facilitate the development and spread of new apps & services targeted towards meeting the financial needs of historically under-served segments of the population.

73%

22%

5%

(1) Mobile technology coverage estimates based on information provided by the Instituto Federal de Telecomunicaciones.(2) Source: Instituto Federal de Telecomunicaciones 2Q15 report.

2

Population Centers with > 10,000 Inhabitants(1) Population Centers with > 500 Inhabitants(1)

4G – LTE Coverage is Still Limited(1)

92%

87%

50%

Operator #1

80%

73%

14%

Operator #2

75%

69%

10%

Operator #3

2G 4G (LTE)3G/4G (Non LTE)

~91% of population

18K cities

Data Traffic by Technology(2)

The Coverage Challenge

~66% of population

~900 towns

~91% of population

~18,000 towns

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2G 3G 4G

Single wholesale shared nationwide 4G networkWill provide high quality mobile connectivity in Mexico using

90 MHz contiguous spectrum in the 700 MHz band (APT)

Project HighlightsThe Red Compartida Project

Spectrum’s AttributesProject HighlightsKey Rights and Obligations of the Developer

Minimum population coveragerequirement of 85% over a five-

year period

To be awarded through a competitive bidding process

under a PPP contract(1)

Selection criteria based on highest population coverage

commitments

Economies of scale in network equipment and user devices

Reduced investment in infrastructure

In use worldwide for mobile services

Superior propagation and building penetration, leading to reduced network CapEx needs

Constitutional Mandate,contributing to continuity across

presidential terms

Non exclusive right to lease existing infrastructure to deploy

network

Commitment to cover 30% by March 31, 2018

Source: Bidding Rules published by the Ministry of Communications and Transportation (or Secretaría de Comunicaciones y Transportes – SCT).(1) Public-Private Partnership.

20-year term concession, renewable for an

additional 20 years

Not allowed to provide retail telecom services to end users

3

Red Compartida – 90 MHz in 700 MHz band 1.9-2.1 GHz (PCS and AWS) band - 30 MHz

4

2.5 GHz (MMDS) band - 30 MHz

The Red Compartida Cost Advantage

The figures below illustrate Red Compartida’s cost advantages by contrasting the necessary investments to provide coverage to a 100 km 2 urban area against projected costs of doing so with 30 MHz of spectrum in the 1.9-2.1 GHz and 2.5 GHz bands, respectively

[128 cell sites]

Total number of sites

Share of BTS vs. Existing/Leased Sites

Available spectrum (MHz)

Channels

Capacity per site (MB)

Total network capacity (GB)

Total CapEx (USD)

CapEx per GB (USD)

45 136 257

1.43 0.63 0.45

90 30 30

2 x 45 2 x 15 2 x 15

457,829 152,610 152,610

20,602,284 20,754,894 39,220,645

$3,903,552 $6,392,000 $12,079,000

$0.85 $4.19 $7.91

Coverage Radius (Km)

20% / 80% 0 / 100% 0 / 100%

[257 cell sites]

Coverage layer

Density layer

24

21

136

0

257

0

Regulate and Monito

r

PPP Contract

Coverage and Wholesale

Requirements

5

Red Compartida’s StructureThe Red Compartida Project

Mobile Virtual Network Operator (MVNOs)

Financial Sponsors

(PE, Infrastructure, Pension and Sovereign Wealth Funds)

Financial Institutions PROMTEL

Debt

Interest Payments

Spectrum License

Annual Commission for Use of Spectrum

Investment, Construction &

Operation

Payment for Services and/or Profits

Potential Client and Buyers of Broadband Capacity

Regulatory Agency

Mobile Network Operators (MNOs)

Fixed Network Operators (FNOs) Without Mobile

Infrastructure (Cable Companies, CLECs , FTTH,

etc.)

Local Partners(Conglomerates, Businessmen,

Local PE firms, etc.)

Capital and Know-How Profits

“New Generation” Service Providers (Internet of Things, Machine-to-

Machine, Digital Cloud, etc.)

Strategic Partner(Red Compartida’s Developer and

Operator)

Capital and Know-How

Profits

Consortium (Potential Investment Partners)

4Q’16

Process Overview

6

Key Process Considerations

3Q’162Q’161Q’16

January 29Publication of Bidding Rules

May 3 – August 1Developers’ proposal submission to IFT for anti-trust review

September 8Presentation of technical bids

September 5Notification of anti- trust resolution

September 28Winning bidder awarded

5 days after SPV creationRequest to IFT for:

• Spectrum concession (Promtel)

• Wholesaler concession

December 9Concessions award and signing of PPP contract with Promtel

2016

The Red Compartida Project

Source: Secretaria de Comunicaciones y Transportes.Note: Dates other than the publication of the Bidding Rules are tentative only.

September 19Technical bids resolution

25 Days After Winning Bidder Announcement Creation of SPV

10 Days After Winning Bidder AnnouncementWinning bidder notification to IFT

More Competition

• Competition will bring down prices for users, expand access, and create more consumer choices.

Greater Capacity

• Increased supply capacity is needed in Mexico to meet the growing demand for data and broadband.

Better Quality

• Providing access to faster, more reliable 4G coverage to a larger share of population.

7

Summary

Red Compartida seeks to achieve three key objectives:

The achievement of these goals will facilitate the development and adoption of new applications & services to better serve the financial needs of the entire Mexican population.