First Quarter of Fiscal Year 2012First Quarter of Fiscal Year 2012Earnings Earnings ResultsResults

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

2

• Financials

• Q&A Session

0,9%

9,2% 8,9%

4,3%

Market Overview: Consumption maintains its impetusMarket Overview: Consumption maintains its impetus

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

307368

442 450

179 211249 255 16,9

11,6 10,0 11,4

1,5% 1,7%

0,3% 0,1%

∆ YoY - constant prices

0,5%

9,0%10,7%

4,9%

Billions USD, at current prices – Last 12 months

3

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

• Fiscal front continued to deteriorate, expensesrose 39% YoY in 1Q12, while revenuesincreased 35%. Higher social expenses, werepartially offsets by decelerating transfers to theprivate sector.

• Imports experimented its first decrease inalmost 2 years, while exports were sustaineddue to high commodities prices.

• Capital outflows reduced significantly and theexchange rate remained stable.

• International context has shownimprovements as recovery in the UnitedStates gains traction and dangers fromEurope recede, although risks remain high.

• After a turbulent 4Q11, the measures taken bythe authorities seems to take effect, interestrates slumped and capital outflow eased,although industrial production decelerated.

• Improved climate increased agriculturalproduction with higher commodities prices,giving support to macro stabilization.

• Measures in the FX market taken in the4Q11 and an accommodative monetarypolicy, end maintaining real interest rateslow, fostering private consumption.

• Inflation remains high while wagesnegotiation started in different sectors atlower levels from previous year.

• Construction sector has deceleratedsignificantly from last year, although it stillshowing positive growth.

2009

179

2009

10,0 11,4

2009 2010 2011 1Q12e

• Market Overview

• Business Highlights

AgendaAgenda

4

• Financials

• Q&A Session

Business Business HighlightsHighlights

Strong top of mind strengthens market position

VAS +44% YoY; 52% of services revenues

Internet revenues up 31% YoY in 1Q12

Bundling voice with fixed/wireless broadbandFIXED

MOBILE

5

Bundling voice with fixed/wireless broadband

NGN & FTTC deployments in key locations position TEO as first mover in these technologies

FINANCIALS

FIXED

As from FY12 Financial Statements are prepared under IFRS

Strong commercial activities & energy costs affected margins

P$ 0,82 per share dividend will be made starting on May 10, 2012

34,6 36,3 34,5 36,7

Mobile: Leadership in net adds with a view to MNPMobile: Leadership in net adds with a view to MNP

• #1 in Revenue Share

• #1 Postpaid net adds

• MNP Promotions:

• Focus on customer life extension

• Focus on packages to enhance customer satisfaction

• ARPU up +16% YoY in 1Q12

• Sustained Smartphone leadership

TEO vs. market growthMillion of lines

Others

54,550,9

+5%

+7%51,4

55,2

+6%

+7%

16,3 18,2 16,9 18,5

2010 2011 1Q11 1Q12e

102 99 96 93

299 322 310 288

44,4

51,447,4

54,9

2010 2011 1Q11 1Q12

6

Note: Argentinean operation only – does not include trunking subscribersSource: Market estimates of the main providers in the industry for total subscribers.

NationalMarket share TOU

(SMS/Month)

MOU (Mins/Month)

ARPU (ARS/Month)

+16%

+8%

-3%

Mobile KPITEO

+1,6 Msubs.

+70 pts

+11%

32,9% 33,6%32,1% 33,4%

+10%

+16%

-7%

-3%

4.482

5.095

5.727

+28%

Mobile: Value Added ServiceMobile: Value Added Service

Million ARS – Argentine Market

Data

as % of Service Revenues – Before capitalization of SAC & SRC

9,0%

4,2%3,8%

3,5%3,6%

15,3%16,4%

Service Revenue Breakdown SAC & SRC

2.432

+12%

Handset subsidies

Advertising

3.101

+14%

Retail & Wholesale Voice

8.483

10.983+29%

391 774 153 276

2.997

4.482

9561.323

1.323 1.502

2010 2011 1Q11 1Q12

7

VAS as % of Service Revenues

Internet Services

Data (SMS)

Note: Argentinean operation only

• Mobile Internet Services revenues +80% YoY

• Change In Agent commissions with focus in quality acquisitions and customer retention

• Handset upgrades increases to yield base, stimulate usage and facilitate upselling

7,6% 9,0%

1Q11 1Q12+98%

+50% Agent Commission

52%

+80%

+38%

+14%

46%48%40%

1.8782.149

1.9012.203

2010 2011 1Q11 1Q12

Paraguay Mobile Market: 3G services driving expansionParaguay Mobile Market: 3G services driving expansion

• Successful adoption of Personal Brand restyling

• Increasing EBITDA margins thanks to high VASrevenue growth

• Outstanding postpaid growth; backed on Mobileinternet services

• Elimination of unlimited SMS & Voice promotionsreduced MOU and TOU

• Churn levels at 1,8% down from 2,9% at 1Q11

KPI

Mobile lines Thousand of lines (includes 3G modems)

+14%

+16%

Financials

8

54 61 66 55

239 275 270 244

23,527,1

25,427,5

2010 2011 1Q11 1Q12

TOU (SMS/Month)

MOU (Mins/Month)

ARPU(GUA/Month)In thousands

+15%

+15%

+13%

KPI+8%

-10%

-17%

466

714

148199158

264

48 73

2010 2011 1Q11 1Q12

OPBDA

REVENUES

+53%

+67%

Financials

+34%

+52%

IFRS Million of ARS

Margin 34% 37% 32% 37%

2.883165 14

367 123 10251 3.705

+822(+29%)

IFRS, Million of ARS, Percentage

Mobile Revenues: Data & Internet, key drivers of growthMobile Revenues: Data & Internet, key drivers of growth

Evolution of revenues 1Q11 – 1Q12

1Q11 Revenues

Retail Voice

Wholesale* Voice

Data Internet Equipment Nucleo* (Paraguay)

1Q12 Revenues

9

+18% +3% +38% +34%+34%

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

36%11% 7%29% 11%% of total MobileRevenues

6%

+80%YoY Variation

2.5312.891

2.6022.960

4.5264.441

Others1

BroadbandBroadband: Sustained revenue and customer expansion: Sustained revenue and customer expansion

• Bundling and new products contributes to control churn

• Arnet Play video streaming supports customer retention

• Arnet Turbo increases bandwidth and improves customer experience

• 10Mb residential targeted offer

• ARPU up +16% YoY

Thousand of broadband accesses

Evolution of Accesses

4.009

+14%

+13%

3.911

+14%

+14%

1.380 1.550 1.407 1.566

2010 2011 1Q11 1Q12e

NationalMarket share1

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

82,286,0 88,2 91,1

95,6

1Q11 2Q11 2Q11 4Q11 1Q12

Monthly Churn

ARPU (ARS)

10

1 Source: Market estimates of the main providers in the industry.2 It must be noted that the calculation method of ARPUs of 2011 was adjusted in order to exclude from thesubscriber base the dongles of customers that already had fixed broadband access.

35%

TEO

+16%

• ARPU up +16% YoY

35%

ARPU (2) & Churn Evolution

+11%

35%35%

+12%

4.107 4.141 4.110 4.138

Fixed voice: Commercial offers based on simplicityFixed voice: Commercial offers based on simplicity

• Simple offer proposition: Pricing & bundling:

� Unlimited local minutes

� 100-200-300 calls per month - no time limits

� ADSL + Video Streaming + 3G services

• ARBU up 7% YoY in 1Q12 thanks to flat pricing and value added services.

• Sustained low churn levels (0,5%)

+0,7%+0,8%

Thousand of lines in service

Evolution of Lines in Service

43,745,7 46,6 46,9 46,9

1Q11 2Q11 3Q11 4Q11 1Q12

4.107 4.141 4.110 4.138

2010 2011 1Q11 1Q12

11

1Source: Company reports of the main providers in the industry.* FY 11 refers to 4Q11 market share. ARBU: Includes only concepts billed to clients

ARS

• Sustained low churn levels (0,5%)

+7%(excluding broadband and data)

ARBU evolution

NationalMarket share1 47% 47% 47%*47%

1.421-1010928

-1441.251

+170(+14%)

IFRS, Million of ARS, Percentage

FixedFixed Services: BB + ICT continue to accelerate growthServices: BB + ICT continue to accelerate growth

39%

Regulated

Evolution of revenues 1Q11 – 1Q12

Regulated

Revenues 1Q11

Retail Voice WholesaleVoice

Data Internet Equipment Revenues 1Q12

12

YoY Variation

-36%+8%

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

-1%

12% 32%43% 12%% of total FixedLine Revenues

61%

42%

58%

Regulated

Non Regulated

1%

+21%

Non Regulated

+31%

24%

18%

36%

15%

7%

Others

IT

Mobile access

Fixed access

1.852

2.318

Evolution of CAPEXEvolution of CAPEX

Million of ARS

PP&E Capex BreakdownCapex Evolution

+49%

+32%

2.424

3.192

+25%PP&E

462690

Core & Infraestructure1572 874

129 198333

492

2010 2011 1Q11 1Q12

13

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

% Revenues 17% 11% 13%

• Intangible assets mainly SAC & SRC

• Increase in “Commercial Assets” due to MNP implementation

• FTTC rollout to improve fixed BB bandwidth

• NGN & FTTC deployments in key locations position TEO as first mover in these technologies

• Mobile access network upgrade for capacity increase

17%

+53%Intangible Assets +53%

+48%462

• Market Overview

• Business Highlights

AgendaAgenda

14

• Financials

• Q&A Session

TEO Group: Consolidated Results TEO Group: Consolidated Results

+23%

IFRS, Million of ARS, Percentage

Revenues OPBDA*IFRS, Million of ARS,

+26%18.498

14.627

4.874

6.015

2010 2011 1Q11 1Q122010 2011 1Q11 1Q12

15

OPBDA Margin

33%

*OPBDA = Operating Profit Before Depreciation & Amortization.

33% 35% 32%

4.1345.126

Regulated Revenues 14% 12%

+24%

+15%

1.436 1.648

4.874

13% 11%

TEO Group: Consolidated TEO Group: Consolidated CostsCosts

Consolidated Costs 1 as % of Revenues Operating Costs 1 1Q12

Labor Costs

Taxes

Others2

19%

13%

26%

20,5%

8,8% 8,0%

Marketing &

ITX Costs

68,0%65,5%

16

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

maintenance, materials and supplies, bad debt expenses..

• Strong momentum in postpaid adds and upgrades increases SAC/SRC

• Higher energy and labor related costs affects margins.

ITX costsMarketing & Sales

12%30%

15,2% 17,3%

12,7% 13,2%

8,7% 9,0%

20,1%20,5%

1Q11 1Q12

Others2

Marketing & Sales

Taxes

Labor costs

14

29

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

Operating Profit Net Income

3.857

3.162

+22% 2.542

1.949+30%

Non Controlling

Interest

1.935

2.513

634 698

106

2010 2011 1Q11 1Q122010 2011 1Q11 1Q12

17

O. Profit Margin 22% 21% 13% 14%23% 20% 15% 14%

+11%708

640+8%

958 1.033Attributable to

Telecom (Owners of the parent)

+10%

+30%

3.262

1.348

211 60 915

IFRS, Million of ARS - Last 12 months

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

6.227 3.420

455

OPBDA Capex ∆ WK & others

Operating Free Cash Flow

1.712

2.982

18

Note:(1) Includes Telecom USA(2) Includes Springville(3) OFCF: Operating Free Cash Flow before Taxes.

Net Financial Position

1Q11(Cash)

Net Financial Position

1Q12(Cash)

Net Interest

FX Variations

Operating Free Cash

Flow3

Taxes Dividend Payment

Free Cash Flow = 1.914

Telecom Argentina 716 (1)

Telecom Personal 2.370 (2)

Nucleo (Paraguay) (104)

Net Financial Position

• Market Overview

• Business Highlights

AgendaAgenda

19

• Financials

• Q&A Session