Telecom ArgentinaTelecom Argentina

3Q13 Earnings Release3Q13 Earnings Release3Q13 Earnings Release3Q13 Earnings Release

Conference Call Presentation

This presentation is based on audited financial statements and may include statements that could constitute forward-looking statements,

including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings per share, capital

expenditures, dividends, liquidity and capital structure; the impact of the emergency laws enacted by the Argentine government; and the

impact of rate changes and competition on the Company’s future financial performance. Forward-looking statements 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 significantly affect the Company’s expected results. The risks and

uncertainties include, but are not limited to, uncertainties concerning the impact of the emergency laws enacted by the Argentine government

which have resulted in the repeal of Argentina’s convertibility law, the devaluation of the peso, restrictions on the ability to exchange pesos

into foreign currencies, the adoption of a restrictive currency transfer policy, the “pesification” of tariffs charged for public services, the

elimination of indexes to adjust rates charged for public services and the executive branch announcement to renegotiate the terms of the

concessions granted to public service providers, including Telecom. Due to extensive and rapid changes in laws and economic and business

DisclaimerDisclaimer

1

concessions granted to public service providers, including Telecom. Due to extensive and rapid changes in laws and economic and business

conditions in Argentina, it is difficult to predict the impact of these changes on the Company’s financial condition. Other factors may include,

but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and reduction in consumer spending and the

outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as

the date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-looking statements

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 is unaudited and may not

coincide with that included in the financial statements of the Company, due to rounding, reclassification matters, and other reasons. Readers

are encouraged to consult the Company’s Annual Report and Form 20-F as well as periodic filings made on Form 6-K, which are filed with or

furnished to the United States Securities and Exchange Commission and the Argentine Comisión Nacional de Valores.

AgendaAgenda

Market Overview

Business Highlights

Financials

2

Financials

Q&A Session

11.4 10.012.4 11.2 10.7 9.4

1,7% 0,3%-0,2% -0,2% -0,2% -0,2%

211 249 267 270 276 277368 442 467 471 481 482

26.3% 29.4% 24.5% 24.5% 25.4% 24.8%

9.2% 8.9%1.9% 3.0% 7.1% 4.5%

Market Overview: Navigating in a challenging contextMarket Overview: Navigating in a challenging context

Billion USD, at current prices – Last 12 months

∆ YoY - constant prices

Trade Balance (Billion USD) Last 12 months

Fiscal Balance as % of GDP Last 12 months*National Wages - ∆ % YoY

Billion USD, at current prices – Last 12 months

Real GDP* Consumption & Wages Trade & Fiscal Balance

2010 2011 2012 1Q13 2Q13 3Q13e2010 2011 2012 1Q13 2Q13 3Q13e2010 2011 2012 1Q13 2Q13 3Q13e

3

Source: MECON, INDEC and Company Estimates

•Official GDP YoY variation, constant prices.

•Fiscal Balance represents primarily fiscal surplus

� 3Q13 activity continued to grow but at slower

pace vs. 2Q13, lead by an upturn in the

agricultural production and construction

� Industrial production was impacted by a

reduction in carmaker exports while non

metallic mineral products helped to sustain

the growth trend in 3Q13

� Commodity prices show some adjustments

(soya, corn, oil); but industry and public

construction stimulated the commercial

activity

� Despite decrease in real wages, private

consumption remained stable in 3Q13 thanks

to the personal income tax reduction, the

expansion in public social expenditures (social

plans and pensions) and the increase in

consumer lending

� A more positive consumer confidence was

perceived in 3Q13 vs. 3Q12 after consecutive

declines since the beginning of 2012

� Regardless increases in agricultural exports,

rising energy imports continued to affect the

trade balance

� Official FX rate accelerated its depreciation

pace slightly improving external

competitiveness

� Although tax collection pushes revenues up,

public expenditures continue to grow above

public revenues, deteriorating the fiscal

balance. The assistance from the Central Bank

(to service debt) and from the public pension

funds system continued

AgendaAgenda

Market Overview

Business Highlights

Financials

4

Financials

Q&A Session

Business HighlightsBusiness Highlights

� Leading revenue share and growth while optimizing commercial costs

� Focus in service quality improvement strengthening 3G/Data access capacity

� 3G customer base reached 41% in 3Q13, with strong share in smartphonesellout that achieved 65%

MOBILE

� Continuous FTTx deployment to enrich value proposition

FIXED

� Strict cost control to mitigate increase higher labor costs and taxes associated torevenues

� Share buy back program adds value to Shareholders

5

FINANCIALS

� Continuous FTTx deployment to enrich value proposition

� Fixed broadband ARPU rose +19% YoY in 3Q13

� Strengthening positive trend in fixed lines and BB net adds thru significantincrease in service provisioning activities

32.2 35.4 35.3 39.5 43.2

26.0 27.9 26.8 26.0 27.2

4.9 5.1 5.55.8 6.3

3Q12 4Q12 1Q13 2Q13 3Q13

12.7 12.8 12.8 13.0 13.4

6.2 6.2 6.3 6.3 6.4

Mobile: Mobile: Value proposition fostered growth in post and prepaid Value proposition fostered growth in post and prepaid segments; ARPU uplift driven by nonsegments; ARPU uplift driven by non--voice revenuesvoice revenues

Million of lines

Postpaid 1

Prepaid

+4%

19.1

+5%

19.018.9+5%

YoY var

19.3

Mobile CustomerEvolution

19.9

Voice

Non Voice

58.2 63.3 62.1 65.5 70.4+21%v

+5%

+34%

YoY var

ARPU & Mob. InternetUnique User

In Million

AR$/Month/million of customers

Mobile Unique

Internet User

+28%v

3Q12 4Q12 1Q13 2Q13 3Q13

6Note: Argentinean operation only. Figures might not sum up due to rounding1 Includes “Cuentas Claras” subscribers

Source: Market estimates of the top 3 providers in the industry – Exclude trunking services

Monthly Unique Internet Users: Number of subs. that use internet at least once a month

Market

share

+1 MM subs.

33.2%33.3% 33.5% 32.9%32.9%

� ~550 k net adds in 3Q13 vs. +193 k in 2Q13

� Non voice ARPU up +34% in 3Q13 thanks to increasing VAS penetration and usage

� New Data, SMS and Voice bundle to increase usage/penetration while defending traditional service revenues

� Focus in smartphone offer over dongles to improve customer experience

4.6 5.2 6.0 6.88.1

3Q12 4Q12 1Q13 2Q13 3Q13

3G Customers

+77%

YoY var

32%24% 28% 41%35%3G subs/

Customer

base

3G Customer Evolution

In Million

3.9%0.5%

9.4%

9.3%

5,727 6,299 4,555 4,967

4,4825,765

4,128 5,390

774

1,248

890

1,405

Mobile: Sustaining #1 in revenue share while optimizing costsMobile: Sustaining #1 in revenue share while optimizing costs

Million ARS – Argentine Market

Internet Services

Data

(SMS & Content)

as % of Argentine Service Revenues - Before

capitalization of SAC & SRC

Handset subsidies

Agent Commissions

Retail &

Wholesale Voice

16.2%SAC & SRC

+61%

+29%

+10%

+21% +23%

+58%

+31%

+9%

11,762

9,573

13,312

10,983

Service Revenue Breakdown

SAC & SRC

12.5% -3.7%

-3.4%

YoY var

-0.1%

14.2% 14.5%

10.9%

2.9% 2.7%

0.5%

3Q12 4Q12 1Q13 2Q13 3Q13

5,727 4,555 4,967

2011 2012 9M12 9M13

7

VAS as % of Service

Revenues

� Internet Services and Data (SMS+Content) up by +58% and 31% respectively YoY standing as the main drivers of Service Revenue growth

� Outstanding revenue growth despite limited pricing actions

Advertising

58%52%53%48%

� 58% VAS participation is the highest in the region

� Lower SAC & SRC due to reduced subsidies notwithstanding significant improvement in handset mix

-0.2%

714

867

627

842

264331

236302

1,860 1,872 1,888 1,906 1,925

410 428 447 475 482

Paraguay:Paraguay: VAS pushes revenues upVAS pushes revenues up

Thousand of lines

OIBDA

REVENUES

IFRS Million of ARS

+34%

+28%

17%

4%

2,3352,3012,270 +6%

Pre

+21%

+25%

Post

paid 1

YoY var

2,381

Customers Financials

2,407

2011 2012 9M12 9M133Q12 4Q12 1Q13 2Q13 3Q13

8

1 Postpaid includes “Cuentas Claras”, 3G modems and WIMAX.

Figures might not sum up due to rounding.

Paraguayan local currency is the Guaraní.

� VAS revenues up 41% in 9M13, reaching 54% of Service Revenues

� Continuous network expansion to enhance coverage and capacity

OIBDA

Margin 38% 38% 36%37%

Pre

paid

� Expand broadband 4G thru LTE hotspot modems

� Improve customer mix due to significant postpaid growth

11,608 299 1131,262 515 701 215 14,713

IFRS, Million of ARS, Percentage

Mobile Revenues: Mobile Revenues: VAS gaining participation in Mobile RevenuesVAS gaining participation in Mobile RevenuesEvolution of revenues 9M12 – 9M13

+3,105; +27%

9M12

Revenues

Retail

Voice

Wholesale*

Voice

Data Internet Handsets Paraguay* 9M13

Revenues

9

Note:

Wholesale voice shows Interconnection revenues (CPP, TRLD, Roaming and others)

*Paraguayan (Nucleo S.A.)revenues expressed in ARS and includes handsets.

Figures might not sum up due to rounding

37%10% 9%24% 14%% of total Mobile

Revenues6%

YoY

Variation+9% +9% +31% +58% +50% +34%

1,612 1,629 1,626 1,634 1,669

Fixed Broadband: Fixed Broadband: Confirming positive net adds trendConfirming positive net adds trend

� FTTx deployment focused on offering higher speedsto enrich value proposal

� ARPU rose by 19% YoY in 3Q13 with slight reductionin churn

� Broadband regains strength with ~35k net adds in3Q13

Thousand of broadband accesses Evolution of BBAccesses

+57k; +4%

1,612 1,626

3Q12 4Q12 1Q13 2Q13 3Q13

Market

share11,5% 1,5% 1,6% 1,5% 1,4%

105,1111,5 114,9

123,6 125,5

3Q12 4Q12 1Q13 2Q13 3Q13

Monthly

Churn

ARPU

(ARS)

10

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

34% 33% 33%34%

ARPU & Churn Evolution

+19%

34%

AR$/Month

4,140 4,128 4,109 4,114 4,124

Fixed Voice & Data: Fixed Voice & Data: Data contributes to growth in Fixed Data contributes to growth in Fixed

Revenues Revenues

(excluding broadband and data)Thousand of lines in service

0,5% 0,5% 0,6% 0,6% 0,5%

48,849,9 49,5

52,8 53,1

3Q12 4Q12 1Q13 2Q13 3Q13

Monthly

Churn

ARPU

(ARS)

Evolution of Lines in Services

ARBU evolution

+9%

3Q12 4Q12 1Q13 2Q13 3Q13*

583735

528 686

2011 2012 9M12 9M13

IFRS Million of ARS

� Positive LIS net adds in 3Q13 thanks to significantimprovement in service provisioning

� ARBU reached P$53 per month, +9% YoY thanks tosuccessful bundled offers

� New value proposition of ICT+Data Center servicesstarted to deliver revenue growth

11

1Source: Company reports of the main providers in the industry.

*3Q13 market share refers to 2Q13 figures. ARBU: Includes only concepts billed to clients

ARS

Market share1 46% 46% 46%48%

3Q12 4Q12 1Q13 2Q13 3Q13

Data Revenues

+26%+30%

46%

4.417 131 35158 385 -12 5.114

IFRS, Million of ARS, Percentage

Fixed Services: BB + Data services continue to be key driversFixed Services: BB + Data services continue to be key drivers

38%

33%

Regulated

Evolution of revenues 9M12 – 9M13

Regulated

+697; +16%

Revenues

9M12

Retail Voice Wholesale

Voice

Data

Services

Internet Equipment Revenues

9M13

12

YoY

Variation

Note: Does not include intercompany revenues.

Graph not in scale

13% 36%39% 11%% of total Fixed Revenues

67%62%

Non Regulated

1%

Non Regulated

+7% +6% +30% +27% -20%

3,192 3,257

655 813

842

1,342

Evolution of Evolution of CAPEX: Focus in Network quality CAPEX: Focus in Network quality upgrade (+55% upgrade (+55% vs. 9M12)*vs. 9M12)*

Million of ARS

+32%

2,187

+59%

2,896

+2%

PP&E Capex Breakdown

31%

18%

4%

18%

33%

21%

7%

Core &

Infraestructure

IT

Others

9M12 9M13

1

Capex Evolution

+24%2Q

3Q

690 741

655

2011 2012 9M12 9M13

13

Note: 1Core & infrastructure refers to network related capex,

including quality and innovation capex.

* Only considering capex assigned to network

% Revenues 15% 14% 15%

� Confirming positive trends in capex dedicated to network quality upgrade

� Accelerating FTTx rollout deployment to improve commercial offers and user experience

� Controlled level of handset subsidy stabilized intangible assets

� Capex execution affected by exogenous factors

17%

+7%

25%

22%

21%

18%

Mobile access

Fixed access1Q

New

Conventional

Sites 3G

New Non

Conventional

Sites

6 Sectors

Consistent Executing action plan in a consistent mannerConsistent Executing action plan in a consistent manner

>20%

>4x

>5x

Access Network

Migration to 6-sector cell sites to take advantage of existing infrastructure

Spectrum refarming from 2G to 3G to

Incremental coverage and capacity thru unconventional sites

Vs. 9M12

Sites 3G

Overlay

Swap +

Modernization

+ Upgrade HW

>10%

>3x

14

VDSL Cabinet

on air >2x

Speeding 3G device penetration to optimize spectrum usage

Spectrum refarming from 2G to 3G to increase data speed and capacity

Increasing pace of FTTx deployment to improve BB speed availability

AgendaAgenda

Market Overview

Business Highlights

Financials

15

Financials

Q&A Session

5,9936,570

1,5871,930

4,726

5,554

6,649

5,645

7,114

TEO Group: Consolidated Results TEO Group: Consolidated Results

IFRS, Million of ARS, Percentage IFRS, Million of ARS, Percentage

22,117

18,498

+20%

+10%+24%

19,827

16,025+18%

2Q

Revenues OIBDA*

3Q

+26%

+22%3Q

1,647 1,799

1,4921,825

2011 2012 9M12 9M13

5,126 6,064

5,2546,649

2011 2012 9M12 9M13

16

OIBDA

Margin32% 30% 29% 28%

Regulated

Revenues12% 10% 10% 9%

+18% +9%

*Operating Income Before Depreciation & Amortization.

+27%+22%

1Q

2Q

1Q

2Q

3,812 172628

500810

314 292 268

138%

9M12 9M13

TEO Group: Consolidated Costs and OIBDA evolutionTEO Group: Consolidated Costs and OIBDA evolution

IFRS, Million of ARS

Operating Income Before Depreciation and Amortization 9M12 – 9M13

11,315+26% 14,299

+828; +18%OPEX1

4,726 5,55424%14%

27%34%

24% 20%25%

OIBDA

9M12

Revenues &

other

incomes

ITX Costs Labor Costs Taxes Marketing &

Sales

Fees for

services,

maintenance

and

materials

VAS Costs Others* OIBDA

9M13

17

YoY

Variation

1Consolidated cost excluding Depreciation & Amortizations and Results on disposal and writedown of PP%E* Others includes bad debt expenses, maintenance, materials, supplies and others

OIBDA

Margin-0.3%+0.5% -0.8% 0.0% +0.3% -1.2% 28.0%0.0%

% of

Revenues

29.5%

9,1% 9,9%1,3% 2,5%

21,3% 21,3%

7,6% 7,0%

Marketing &

Sales

ITX Costs

Taxes

72.1%70.6%

VAS costs

TEO Group: TEO Group: Actions to increase efficiencies to offset higher Actions to increase efficiencies to offset higher

consolidated costsconsolidated costs

21%

14%

22%

4%

Operating Costs19M13 vs. 9M12

Consolidated Costs1 as % of Revenues VAS Costs

Salary and

Social Security

Taxes

Others

16,5% 16,3%

14,8% 15,1%

9,1% 9,9%

9M12 9M13

Others2

Taxes

Labor costs

18

1. Excluding Depreciation & Amortizations and Results on disposal and writedown of

PP&E

2. Others includes: Fees for services, maintenance and materials; fees for Call Center

outsourcing; bad debt expenses,

10%29%

� Agreements with unions reached ~25% in two installments,

starting in July with a 15.5% increase

� Significant impact coming from provincial turnover tax rate

growth

� Increase in VAS costs related to growth in penetration and

usage of services with high marginal contribution

Interconnection

Costs

Selling expenses

9211,203

3,9663,857

2,8033,263

2,513

616870

2,685

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

+3%

IFRS, Million of ARS, Percentage

+7%

1,891

2,324

Operating IncomeNet Income

attributable to Telecom

+31%

+16%

3Q

+23%

+41%

Financia l Results 9M12 9M13

Net Interests $ 194 $ 428

FX resul ts -$ 29 -$ 131

Others -$ 6 $ 80

Total $ 159 $ 377

3Q

1.033 1.115

849 945

2011 2012 9M12 9M13

698 802

577652

616

2011 2012 9M12 9M13

19

O. Income

Margin21% 18% 14% 12%17% 16% 12% 12%

+13%

+8%

+11%

1Q

2Q

1Q

2Q

+15%

� Positive hedging actions to mitigate FX impact on

accounts payables

3,001

1,227

498 90 16 310

IFRS, Million of ARS - Last 9 months

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

5,554 2,896

343

OIBDA Capex Δ WK & others

Operating free Cash Flow

Net Financial Position

3,648

5,684

20

Note:

(1) Includes Telecom USA

(2) Includes Springville

(3) OFCF: Operating Free Cash Flow before Taxes

(4) $16 Millions represents Nucleo dividends payments to third parties

(5) Net of tax credits of ARS 8MM (Gross amount ARS 1,235 MM)

Net Financial

Position

FY12

(Net Cash)

Net Financial

Position

9M13

(Net Cash)

Net Interest

& Others

FX

Variations

Operating

Free Cash

Flow3

Taxes 5Dividend

Payments4

Telecom Argentina 1,093(1)

Telecom Personal 4,745(2)

Nucleo (Paraguay) (154)

Share buy

back

Free Cash Flow = 1,774

Net Financial Position

AgendaAgenda

Market Overview

Business Highlights

Financials

21

Financials

Q&A Session