3Q.2011 Colombia Mobile Operator ForecastColombia to have 54 million mobile subscriber connections in 2015 with MovistarColombia taking 23.4% market share

October 2011

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

INDUSTRY AVERAGE SUBSCRIBER GROWTH IN COLOMBIA’S WIRELESS MARKET INCREASED TO 8.4%

The operator-wide average subscriber growth (YoY) was 8.4% in 2Q.2011, up from 5.7% in 2Q.2010.

The largest operator, Comcel, saw its subscriber growth (YoY) increase from 4.6% in 2Q.2010 to 8.1% in 2Q.2011.

Movistar Colombia’s subscriber growth decreased from 5.6% in 2Q.2010 to 4.3% in 2Q.2011.

Subscriber growth at Tigo Colombia continues to be higher than that of Comcel and Movistar Colombia. In 2Q.2011, subscriber growth at TigoColombia was 20.9%, up from 14.7% in 2Q.2010.

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Comcel (America Movil S.A.B de C.V.)Movistar Colombia (Telefonica S.A.)Tigo Colombia (Millicom International Cellular S.A.)Industry Total

Chart 1: Subscriber Growth (4Q08 – 2Q11), %

Subscriber growth increases in Colombia8.4% industry average subscriber growth in 2Q.2011

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

INDUSTRY AVERAGE ARPU CONTINUES TO INCREASE IN COLOMBIA

The industry average monthly ARPU was US$ 9.97 in 2Q.2011, up 6.8% YoY.

At the operator level, Comcel’smonthly ARPU increased by 6.6% (YoY) to reach US$ 9.35 in 2Q.2011.

ARPU growth (YoY) at MovistarColombia increased from 1.8% in 2Q.2010 to 7.9% in 2Q.2011.

On the other hand, Tigo Colombia’s ARPU growth declined from 18% in 2Q.2010 to 3% in 2Q.2011.

Chart 2: ARPU Growth (4Q08 – 2Q11), %

ARPU growth in Colombia is increasing6.8% industry average ARPU growth in 2Q.2011

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Comcel (America Movil S.A.B de C.V.)Movistar Colombia (Telefonica S.A.)Tigo Colombia (Millicom International Cellular S.A.)Industry Total

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

The operator-wide average Minute of Use (MOU) per subscriber was 177 minutes per month in 2Q.2011, down -6.6% YoY.

MOU/Sub growth (YoY) at Comceldeclined to -4.4% in 2Q.2011 (down from 20.6% in 2Q.2010).

Movistar Colombia’s MOU/Sub growth (YoY) decreased to -6.6% in 2Q.2011 (down from 23.7% in 2Q.2010).

MOU per subscriber at Comcel and Movistar Colombia was 196 minutes and 132 minutes respectively in 2Q.2011.

Chart 3: MOU/Sub Growth (4Q08 – 2Q11), %

Minutes of Use per Subscriber is increasingIndustry average MOU/Sub is about 177 minutes per month

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Comcel (America Movil S.A.B de C.V.) Movistar Colombia (Telefonica S.A.)

Industry Total

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

27.1% INDUSTRY AVERAGE EBITDA GROWTH IN 2Q.2011

• The industry average EBITDA growth rate (YoY) increased from 25.9% in 2Q.2010 to 27.1% in 2Q.2011.

• Comcel’s EBITDA growth (YoY) jumped from 7.0% in 2Q.2010 to 32.0% in 2Q.2011.

• EBITDA growth rate (YoY) at TigoColombia was 25.2%, up from 20.6% in 2Q.2010.

Chart 3: EBITDA Growth (4Q08 – 2Q11), %

Positive EBITDA growth at all of Comcel, Movistar and Tigo in 2Q.2011

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Comcel (America Movil S.A.B de C.V.)Tigo Colombia (Millicom International Cellular S.A.)Industry Total

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

We forecast that the number of total wireless subscriber connections in Colombia will increase from 43.7 million in the end of 2010 to 54 million in the end of 2015.

Given the latest quarter numbers, our model predicts that Comcel will have approximately 35.8 million mobile subscribers in 2015.

In our view, Comcel will continue to hold a dominant position in Colombia with a 66.3% market share in 2015.

We forecast that Movistar Clolombiawill be growing steadily over the forecast period. We forecast that it will have 12.6 million wireless subscribers in 2015 (23.4% market share).

We expect that Tigo Colombia will have 5.5 million mobile subscribers in 2015 (10.3% market share).

Chart 4: Subscribers by operator (CY09 – CY15F)

So what is IEMR’s Forecast? Total mobile subscriber connections in Colombia to reach 54 million in 2015

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Comcel (America Movil S.A.B de C.V.)Movistar Colombia (Telefonica S.A.)

Tigo Colombia (Millicom International Cellular S.A.)

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

WE EXPECT THE OPERATOR-WIDE AVERAGE ARPU LEVEL TO INCREASE OVER THE NEXT TWO YEARS

Our forecasting model predicts that the industry ARPU will be increasing over the forecast period.

We forecast that the industry average ARPU will be approximately COP 19,400 per month in 2013.

Tigo Colombia’s ARPU will continue to be the highest among operators at about COP 23,120 over the next two years.

We expect that Comcel’s ARPU level will be approximately COP 19,190 in 2013.

Chart 5: Average Revenue per User (ARPU) per month (CY09 – CY13F), COP

So what is IEMR’s Forecast?ARPU levels in Colombia to increase

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Comcel (America Movil S.A.B de C.V.)Movistar Colombia (Telefonica S.A.)Tigo Colombia (Millicom International Cellular S.A.)Average

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© 2011 IE Market Research Corp.All rights reserved.

Source: IEMR

Comcel will continue to be the operator with the highest level of profitability in Colombia’s wireless market over the forecast period.

Our model is predicting that Comcel’s EBITDA margins (calculated as EBITDA/service revenue) will be approximately 62% over the next two years.

On the other hand, we expect that Movistar Colombia’s EBITDA margin will be approximately 37.6% in 2013.

Tigo Colombia’s EBITDA margins will continue to be lower than those of Comcel and Movistar Colombia.

Chart 6: EBITDA margins (CY09 – CY13F), %

So what is IEMR’s Forecast? Comcel to enjoy the highest profitability

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Comcel (America Movil S.A.B de C.V.)Movistar Colombia (Telefonica S.A.)Tigo Colombia (Millicom International Cellular S.A.)Average

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