Stefano de Angelis – Chief Executive Officer Adrian Calaza – Chief Financial Officer Pedro Insussarry – Financial Director Solange Barthe Dennin – Manager of Investor Relations

Good day everyone, and welcome to the Telecom Argentina TEO Second Quarter 2014 Earnings Conference Call. Today’s conference is being recorded. Participating on today’s call, we have Mr. Stefano de Angelis, Chief Executive Officer of Telecom Argentina; Mr. Adrian Calaza, Chief Financial Officer; Mr. Pedro Insussarry, Financial Director and Ms. Solange Barthe Dennin, Manager of Investor Relations. At this time, I’ll turn the call over to Mr. Pedro Insussarry, Please go ahead.

Okay. Thank you, Greg and good morning to everybody on behalf of Telecom Argentina I would like to thank you for participating in this conference call. As stated, the purpose of this call is to share with you the consolidated results of the Telecom Argentina Group that correspond to the first half of 2014 and ended on last June 30. We would like to remind all those that have not received our press release or presentation, you can call our Investor Relations office to request the documents or download them from the Investor Relations section of our website located at www.telecom.com.ar/investors. Additionally, this conference call and slide presentation is being broadcasted through the webcast feature available in subsection and can also be replayed through this same channel. Before we continue with the conference call, I would like to go over some Safe Harbor information and other details of the call, as we usually do in our traditional quarterly conference calls, we would like to clarify that during the conference call and Q&A session, we may produce forward-looking statements about Telecom’s future performance, plans, strategies and targets. Such statements are subject to uncertainties that could cause Telecom’s actual results and operations to differ materially. Such uncertainties include, but are not limited to the effects of the public emergency law and complementary regulations, the effects of ongoing industry and economic regulation, possible changes in demand for Telecom products and services, and effects of marginal factors such as changes in general markets or economic conditions in legislation or in regulations. Our press release dated July 29, 2014, a copy of which was included in the Form 6-K report furnished to the SEC, describes certain factors that may affect any forward-looking statements that we may produce during this session. Furthermore, we urge the audience…

Thank you, Pedro. And good morning to everyone. Please refer to Slide 5 where we have a summary of the main achievements for the quarter. Our business continued with a similar revenue expansion trend registered in the recent quarters, achieving a 23% increase driven by the growth of 56% in mobile internet in Argentina. 55% growth in data and 26% increase in fixed broadband. In terms of clients, it is worth mentioning that as a result of our entrance strategy, during the quarter market penetration reached 30% of the total subs, while the mobile 3G customer base in Argentina continue to increase accounting 9.4 million. In addition Smartphone sell out in the second quarter represented 81%. SEC and SLC continue to decrease, as a result of the sustainable reduction in handset subsidies. As we move into [indiscernible]. In this sense the second – our ARPU ratio decreased to 9.1 times in second quarter 2014 from 3 to 3.2 times one year ago. Our mobile subsidiary in Paraguay, Núcleo achieved a 10% increase year-on-year in the postpaid segment with a steady improvement in the customer mix. Moreover, it’s important to highlight that broadband net ads continue to increase, reaching 92,000 in the last 12 months with an increasing ARPU of 20%. In this sense Goodyear cell cabinet deployment helped us to increase our broadband customer base while we are offering connections speeds of more than 10 mega to the retail and [indiscernible] enterprise markets, thus the more competitive with compelling commercials offers. When it comes to our financials for this year our shareholders approved a total dividend payment of 1.2 billion pesos equivalent to a payout ratio of 37% for full year 2013. The first installment of 601 million pesos was paid in June and the second one will be paid…

Thank you, Stefano. Please turn to Slide 13, where we can – you can see the evolution of consolidated revenue and EBITDA. In the first half of 2014 consolidated revenues reached 15.6 billion pesos with a 23% year-on-year, particularly sustained by mobile services in Argentina and fixed broadband that represented 69% and 10% of consolidated revenues respectively. It is important to underlines that this revenue growth was achieved even not only after negative attacks already mentioned, but decline in economic activity and billing by second, but most of all having [indiscernible] an effect regulated services in 2002. EBITDA total 4.1 billion pesos in the first half of 2014. Representing 26% of revenues and growing at a base of 14% year-on-year. And back to Slide 14, where we zoom into the evolution of our EBITDA with its most relevant component. As mentioned before, with consolidated revenues growing by 23% year-on-year, but in the context of accelerating inflation and contraction in consumption, we have redoubled our efforts in cost control and efficiency gains, especially on SAC and SRC that continues to decrease, as a result of the sustainable reduction in Hazard subsidies, helping us to improve the return of allowance. Despite this consolidated operating cost increased about of topline levels, mainly due to increasing taxation and inflation and labor costs and labor-related costs. As mentioned before, significant reduction in handset subsidies, allowed us to both for a second quarter in a row a positive margin in Hazard business. With sales growing by 68% percent versus perhaps 2013 while handsets cost increased by 47%. Labor costs grew by 35% year-on-year impacting our margin in 150 basis points, but it’s important to stand out that 122 million pesos were due to severance payments related to reorganization or restructuring costs. The increasing fees for services,…

Just as a very final remarks. As recently announced, I will resign on August 13 in order to take another responsibility in the Telecom Argentina. The appointment of the new CEO will be determined by specific Board of Directors of Telecom Argentina that will be held within the order. It's worth mentioning that this year in hazard was a very exciting experience and a very unpredictable context. And I hope to have contributed, joined with all the people of Telecom Argentina, to grant a sustainable fact within report. I also would like thank you for your attention during this period ended the conference call we have we are performance, and I'm sorry for this very late announce, but prefer to announce this news before the conference call and not later on. Now, again move to the question-and-answer. Thank you.

(Operator Instructions) And it appears we have no question at this time. I'll turn it back to management for any additional or closing remarks.

Okay Greg, can we refresh if we have any one in the queue? We’re open to any questions you have?

(Operator Instructions) And it appears that we still have no question at this time.

Okay. Thank you very much to everybody for participating in this conference call. And please do not hesitate to call us with any questions you may have. Good morning to all and we expect to meet again in the next conference call. Thank you very much.

That does conclude today's conference. Thank you for participation.