Third Quarter 2012Third Quarter 2012Earnings ResultsEarnings Results

Conference Call PresentationConference Call Presentation

Financial data prepared under IFRS

This presentation is based on audited financial statements and may include statements that could constitute forward-lookingstatements, including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings pershare, capital expenditures, dividends, liquidity and capital structure; the impact of the emergency laws enacted by the Argentinegovernment; and the impact of rate changes and competition on the Company’s future financial performance. Forward-lookingstatements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”,“estimates”, “future” or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantlyaffect the Company’s expected results. The risks and uncertainties include, but are not limited to, uncertainties concerning theimpact of the emergency laws enacted by the Argentine government which have resulted in the repeal of Argentina’s convertibilitylaw, the devaluation of the peso, restrictions on the ability to exchange pesos into foreign currencies, the adoption of a restrictivecurrency transfer policy, the “pesification” of tariffs charged for public services, the elimination of indexes to adjust rates charged forpublic services and the executive branch announcement to renegotiate the terms of the concessions granted to public service

DisclaimerDisclaimer

1

public services and the executive branch announcement to renegotiate the terms of the concessions granted to public serviceproviders, including Telecom. Due to extensive and rapid changes in laws and economic and business conditions in Argentina, it isdifficult to predict the impact of these changes on the Company’s financial condition. Other factors may include, but are not limitedto, the evolution of the economy in Argentina, growing inflationary pressure and reduction in consumer spending and the outcome ofcertain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only asthe date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-lookingstatements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation,changes in the Company’s business or to reflect the occurrence of unanticipated events. Information included in this presentation isunaudited and may not coincide with that included in the financial statements of the Company, due to rounding, reclassificationmatters, and other reasons. Readers are encouraged to consult the Company’s Annual Report and Form 20-F as well as periodicfilings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission and theArgentine Comisión Nacional de Valores.

• Market Overview

• Business Highlights

AgendaAgenda

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• Financials

• Q&A Session

368442 452 457 465

1,7%

9,2% 8,9%

5,2%

0,0%

Market Overview: Uncertain in economic trendsMarket Overview: Uncertain in economic trends

Billions USD, at current prices – Last 12 months∆ YoY - constant prices

Trade Balance (Billions USD) Last 12 monthsFiscal Balance as % of GDP Last 12 months*

Real GDP* Trade & Fiscal BalanceConsumption

211249 256 262 268

11,6 10,0 11,4 11,5 12,8

1,7%

0,3% 0,1% -0,1% -0,1%

∆ YoY - constant prices

9,0%10,7%

7,0%

4,2% 4,7%

Billions USD, at current prices – Last 12 months

2010 2011 1Q12 2Q12 3Q12

3

Source: MECON, INDEC and Company Estimates•Official GDP YoY variation, constant prices. •Fiscal Balance represents primarily fiscal surplus

• The slowdown in the economy affected fiscalrevenues, making financial assistance fromthe Central Bank and the National PensionFund increasingly needed.

• Efforts to achieve a higher commercialsurplus continue kicking-in.

• Expected higher agricultural exports and astronger growth coming from Brazil will helpto relieve the economy from externalconstrains and to sustain a more favorablecontext.

• Weak economic conditions in 1H12, recentmonths have shown some signs of recovery inthe economy, although September did notmaintain the same trend.

• The drought effects on the agricultural outputimpacted mainly in the 1H12, while the growth inservice sector continues giving support to theeconomy.

• In September, industrial production suffered adecline of 4,4% YoY, while in 9M12 thereduction was 1,3%.

• A slightly more positive consumerconfidence was perceived in 3Q12, wherethe increase on wages and low real interestrates added purchasing power toconsumers.

• Inflation remains stable at high levels andin general, wages negotiation concluded atlower levels than last year.

• Telecommunications is a defensive sector,although it is not excluded from theeconomy cycles.

2010 2011 1Q12 2Q12 3Q12e 2010 2011 1Q12 2Q12 3Q12e

• Market Overview

• Business Highlights

AgendaAgenda

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• Financials

• Q&A Session

Business Business HighlightsHighlights

Consolidated MNP leadership, acquiring valuable customers

Optimizing frequency bandwidth usage

Rationalizing SAC & SRC

Data and fixed BB revenues rose +31% and +29% YoY in 3Q12

Fixed BB ARPU increased +9% QoQ and +19% YoY in 3Q12FIXED

MOBILE

5

Fixed BB ARPU increased +9% QoQ and +19% YoY in 3Q12

Bundling services (ADSL+ fixed lines + Video Streaming + Mobile internet) delivering value

FINANCIALS

FIXED

Capex freed due to cancelled spectrum auction, reassigned toadditional access network deployment.

Strong cash flow generation and solid financial position with nodebt instruments in foreign currency

34,6 36,3 35,4 37,4

Mobile: Value generation seen thru VAS revenuesMobile: Value generation seen thru VAS revenues

Subscriber Share EvolutionMillion of lines

Others*

54,550,9

+5%

+7%53,2

56,3

+5,7%

+5,9%

320 304 334 329

49,8

55,852,7

58,2

TOU (SMS/Month)

MOU (Mins/Month)

ARPU (ARS/Month)

+12%

-5%

0%

Mobile KPI

+11%

-1%

+1%

16,3 18,2 17,8 18,9

2010 2011 9M11 9M12e

6

Note: Argentinean operation only – does not include trunking subscribersSource: Market estimates of the top 3 providers in the industry.

• Postpaid account for ~90% of 3Q12 net adds

• Consolidated MNP leadership :

• 3 out of 4 port-ins are high-value customers

• ARPU up +12% YoY to ARS 55,8 in 9M12

Market share

TEO

+1,1 Msubs.

+10 pts

+11%

33,5% 33,6%32,1% 33,4%

+6,3%98 98 101 102

9M11 9M12 3Q11 3Q12

0% +1%

3,8% 5,2% 3,9%

9,0% 9,0% 9,4%

5.095 5.7274.175 4.555

2.997

4.482

3.1964.128

391

774

524890

Mobile: Postpaid & VAS a growing duetMobile: Postpaid & VAS a growing duet

Million ARS – Argentine Market

Internet Services

Data (SMS)

as % of Argentine Service Revenues -Before capitalization of SAC & SRC

Service Revenue Breakdown SAC & SRC

7.895+98%

+50%

+12% Handset subsidies

Agent Commission

+70%

+29%

9.573

+9%Retail & Wholesale Voice

8.483

10.983+29%

+21%

16,2%17,3%

16,4%SAC & SRC

3,6% 3,1% 2,9%

1Q12 2Q12 3Q122010 2011 9M11 9M12

7

VAS as % of Service Revenues

• Sustained growth in Mobile Internet revenues; +70% YoY in 9M12

• First mobile price adjustment effective as of October 2012.

Advertising

52%47%

Voice

48%40%

• Accelerating upgrades to all-inclusive plans (Minutes+SMS+Mobile Internet)

• Handset upgrades to promote data usage and improve spectrum efficiency

• Capitalizing MNP leadership to rationalize Subscribers Acquisition and Retention Costs

1.8782.149 2.078

2.270

Paraguayan Market: Growing and deliveringParaguayan Market: Growing and deliveringSubscribers

Thousand of lines (includes 3G modems)

+14%

+9%

466

714

516

627

158

264185

236OPBDA

REVENUES

+53%

+67%

Financials

+22%

+28%

IFRS Million of ARS

2010 2011 9M11 9M12

81 Postpaid includes 3G modems but excludes WIMAX

• Revenues in ARS rose +22% vs. 9M11

• FCF increased +53% YoY vs. 9M11

2010 2011 9M11 9M12

Margin 34% 37% 36% 38%

• Postpaid1 customer base rose +22%

• Leadership in mobile internet, twofoldgrowth internet service revenues

• Marketing synergies between Argentinaand Paraguay

9.450 342 38932 366

369 111 11.608

+2.158(+23%)

IFRS, Million of ARS, Percentage

Mobile Revenues: Value added services sustains growthMobile Revenues: Value added services sustains growthEvolution of revenues 9M11 – 9M12

9M11 Revenues

Retail Voice

Wholesale* Voice

Data Internet Equipment Nucleo* (Paraguay)

9M12 Revenues

9

+12% +3% +29% +22%+36%

Note: Wholesale voice shows Interconnection revenues (CPP, TRLD, Roaming and others)Núcleo revenues expressed in ARS and includes equipment.

36%11% 8%28% 12%% of total MobileRevenues

5%

+70%YoY Variation

1.3801.550 1.505 1.612

BroadbandBroadband: ARPU expansion delivered in 3Q12: ARPU expansion delivered in 3Q12

• Data services revenues up +31% YoY in 3Q12

• ARPU rose +19% YoY in 3Q12

• FTTC network upgrade to compete with CATV

• Adding value thru bundling services and video streaming services

Thousand of broadband accesses

Evolution of Accesses

+7%+12%

1.380

2010 2011 9M11 9M12e

Market share1

1,2% 1,1% 1,3% 1,1%1,5%

88,291,1

95,6 96,5105,1

3Q11 4Q11 1Q12 2Q12 3Q12

Monthly Churn

ARPU (ARS)

10

1 Source: Market estimates of the top 3 providers in the industry.

35%

TEO

+19%

35%

ARPU & Churn Evolution

34%35%

4.107 4.141 4.132 4.140

Fixed voice: ARPU continue growing despite frozen tariffsFixed voice: ARPU continue growing despite frozen tariffs

• Retail voice revenues increased 5% YoY due to packs of services

• Increasing ARPU thanks to supplementary services and flat pricing offers

+0,2%+0,8%

Thousand of lines in service

Evolution of Lines in Service

46,6 46,9 46,9 47,4

48,8

3Q11 4Q11 1Q12 2Q12 3Q12

2010 2011 9M11 9M12

11

1Source: Company reports of the main providers in the industry.ARBU: Includes only concepts billed to clients* Market share estimated.

ARS +5%(excluding broadband and data)

ARBU evolution

Market share1 47% 47% 47%*47%

TEO

3.909 90 -4112 315 -5 4.417

+508(+13%)

IFRS, Million of ARS, Percentage

FixedFixed Services: Internet Revenues accelerated in 3Q12Services: Internet Revenues accelerated in 3Q12

38%

Regulated

Evolution of revenues 9M11 – 9M12

Regulated

Revenues 9M11

Retail Voice Wholesale Voice

Data Internet Equipment Revenues 9M12

12

YoY Variation

-8%+5%

Note: Does not include intercompany revenues.Graph not in scale

-1%

12% 33%42% 12%% of total Fixed Line Revenues

62%

42%

58%

Regulated

Non Regulated

1%

+27%

Non Regulated

+28%

21%

18%

33%

21%

7%

OthersIT

Mobile access

Fixed

1.852

2.318

1.2621.545

Evolution of Evolution of CAPEXCAPEX

Million of ARS

PP&E Capex BreakdownCapex Evolution

+23%

+32%

2.424

3.192

+25%PP&E

+22%

1.7752.187

33% Fixed access

Core & Infraestructure1

572 874513 642

2010 2011 9M11 9M12

13

Note: 1Core & infrastructure refers to network related capex, including quality and innovation capex.

% Revenues 17% 13% 14%

• Spectrum auction cancellation will require to reschedule capex deployment

• IP Backhauling in more than half of 3G sites

• FTTC rollout approaching planned deployment speed

17%

+53%Intangible AssetsSAC/SRC

+25%

Exploiting network resources to keep growingExploiting network resources to keep growing

Optimizing• Migrating to 6-sector cell sites to maximize

coverage and capacity

• Gradual refarming spectrum allocated on2G to the more efficient 3G

• Investments to solve signaling complexityin an extensive-low weight data trafficdemand. ie: status updates, messagingapps, twits, etc

• Virtual dual carrier technology increasesspeed and capacity for 3G networks

14

Adapting

speed and capacity for 3G networks

• Increasing mobile access points thru nonconventional sites and small cells toaddress coverage and capacity needs

• Seeking alternative network solutions. WiFiand femtocells offloading.

• Market Overview

• Business Highlights

AgendaAgenda

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• Financials

• Q&A Session

4.775

5.645

TEO Group: Consolidated Results TEO Group: Consolidated Results

+23%

IFRS, Million of ARS, Percentage

Revenues OPBDA*IFRS, Million of ARS,

13.359

16.025

4.4014.726

+26%18.498

14.627

4.867

5.993+18% 3Q

+20%

+7%

4.134 5.126

4.4505.254

2010 2011 9M11 9M12

1.431 1.647

1.474 1.492

1.496 1.587

2010 2011 9M11 9M12

2Q

1Q

3Q

16

OPBDA Margin

33% 32% 33% 29%Regulated Revenues 14% 12%

+18%+6%

4.4014.867

12% 10%

+24%

+1%

+15%

2Q

1Q

*Operating Profit Before Depreciation & Amortization.

TEO Group: Consolidated TEO Group: Consolidated CostsCosts

Consolidated Costs 1 as % of Revenues Operating Costs 1 9M12

9,1%

19,7%21,3%

8,2%7,6%

Marketing & Selling

expenses

ITX

70,7%67,2%Labor Costs

Taxes

Marketing &

Others2

21%

13%

11%30%

25%

17

1. Excluding Depreciation & Amortizations.2. Others includes: Fees for services, fees for Call Center outsourcing,

maintenance, materials and supplies, bad debt expenses..

• Cost pressure in 3Q12 was partially compensated by reduced interconnection costs and lower mobile subsidies

• Strong impact of 2011 wage negotiations (+ 31,3%). 2012 collective bargain agreement ended with lower rates than previous year

• Discontinued energy subsidies account for 50 bps loss in margins

• After MNP efforts, a more conservative approach toward SAC & SRC will help to sustain margins in an inflationary context

16,7% 17,9%

14,0% 14,8%

8,6% 9,1%

9M11 9M12

Others2

Taxes

Labor Costs

ITX costsMarketing & Sales

1.8911.870

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

Operating Profit Net Income attributable to Telecom

2.863 2.803

3.857

3.162

+22%

+30%

+1%-2%

2.513

1.935

IFRS, Million of ARS, PercentageD&A 9M11 9M12 ∆%PP&E 1.111 1.325 19%

SAC and Connection costs

429 586 37%

Other intangible assets

13 16 23%

Total 1.553 1.927 24%

634 698

627 577

609 616

2010 2011 9M11 9M12

1.8911.870

958 1.033

971 849

934 921

2010 2011 9M11 9M12

18

O. Profit Margin 22% 21% 13% 14%21% 17% 14% 12%

-8%-13%

+10%+8%

2Q

1Q

2Q

1Q

-1% 3Q+1% 3Q

2.724

1.601

282 87 820

IFRS, Million of ARS - Last 12 months

TEO Group: FCF and Net Financial PositionTEO Group: FCF and Net Financial Position

6.318 3.604

10

OPBDA Capex ∆ WK & others

Operating Free Cash Flow

2.0252.697

19

Note:(1) Includes Telecom USA(2) Includes Springville(3) OFCF: Operating Free Cash Flow before Taxes.(4) $807 TA, $13 Nucleo

Net Financial Position

3Q11(Cash)

Net Financial Position

3Q12(Cash)

Net Interest

FX Variations

Operating Free Cash

Flow3

Taxes Dividend Payments4

Free Cash Flow = 1.123

Telecom Argentina 1.328(1)

Telecom Personal 1.471 (2)

Nucleo (Paraguay) (102)

Net Financial Position

• Market Overview

• Business Highlights

AgendaAgenda

20

• Financials

• Q&A Session