Edgar Filing: TELECOM ARGENTINA SA

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Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of November 2010

Commission File Number: 001-13464

Telecom Argentina S.A.

(Translation of registrant’s name into English)

Alicia Moreau de Justo, No. 50, 1107

Buenos Aires, Argentina

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨ No x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨ No x

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Telecom Argentina S.A.

TABLE OF CONTENTS


Item
1.		Press Release, dated November 2, 2010 entitled “Telecom Argentina S.A. announces consolidated nine-month period and third quarter results for fiscal year 2010”

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FOR IMMEDIATE RELEASE

Market Cap P$18.7 billion

November 2, 2010

Contacts:

Pedro Insussarry

Solange Barthe Dennin

(54-11) 4968-3743/3752

Telecom Argentina S.A. announces consolidated nine-month period (‘9M10’) and

third quarter results for fiscal year 2010 (‘3Q10’)^*

•

Consolidated Net Revenues amounted to P$10,484 million (+18% vs. 9M09); Mobile business in Argentina +22% vs. 9M09; Internet +31% vs. 9M09.

•

Mobile subscribers in Argentina +2.0 million (+14% vs. 9M09), +654 thousand (+4% vs. 2Q10).

•

Value Added Services in Argentina: +40% vs. 9M09; 39% of Service Revenues.

•

ADSL ARPU increased to P$75 (+15% vs. 9M09); churn decreased to 1.5% from 1.8% in 9M09.

•

Operating Profit Before Depreciation and Amortization (“OPBDA”) reached P$3,282 million (+15% vs. 9M09), 31% of Net Revenues.

•

Net Income reached P$1,309 million (+30 % vs. 9M09).

•

Net Cash Position: P$850 million, an increase of P$993 million vs. 9M09 after having paid P$689 million in dividends during the period.

•

Fitch Ratings increased the national rating of Telecom Argentina to AA from AA- with stable perspectives.


*(in million P$, except where noted)*	As of September, 30
*(in million P$, except where noted)*	2010		2009			D $			D %
Consolidated Net Revenues		10,484		8,861			1,623			18	%
Voice, Data & Internet		3,401		3,043			358			12	%
Mobile		7,083		5,818			1,265			22	%
Operating Profit before D&A		3,282		2,855			427			15	%
Operating Profit		2,322		2,035			287			14	%
Net Income		1,309		1,006			303			30	%
Shareholder’s equity		5,692		5,024			668			13	%
Net Financial Position – Cash / (Debt)		850		(143	)		993			n/a
CAPEX (excluding materials)		1,074		1,022			52			5	%
Fixed lines in service (in thousand lines)		4,087		4,044			43			1	%
Mobile customers (in thousand)		17,843		15,778			2,065			13	%
Personal (Argentina)		15,988		13,994			1,994			14	%
Núcleo (Paraguay) – Wimax customers are included-		1,855		1,784			71			4	%
Broadband acceses (in thousand)		1,330		1,170			160			14	%
Fixed line traffic (in MM minutes, Internet & Public Telephony not incl.)		11,409		11,632			(223	)		-2	%
Incoming/Outgoing mobile voice traffic in Arg. (in MM minutes)		13,708		11,817			1,891			16	%
Average Billing per user (ARBU) Fixed Telephony/voice (in P$)		42		41			1.9			5	%
Average Revenue per user (ARPU) Cellular Telephony Arg. (in P$)		43		40			2.7			7	%

*	Unaudited non financial data

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Buenos Aires, November 2, 2010 – Telecom Argentina (NYSE: TEO; BASE: TECO2), one of Argentina’s leading telecommunications companies, announced today Net Income of P$1,309 million for the nine-month period ended September 30, 2010, or +30% when compared to the same period last year.


	9M10			9M09			D$		D%
Net Revenues (MMP$)		10,484			8,861			1,623		18	%
Net Income (MMP$)		1,309			1,006			303		30	%
Earnings per Share (P$)		1.33			1.02			0.31
Earnings per ADR (P$)		6.65			5.11			1.54
OPBDA*		31	%		32	%
Operating Profit*		22	%		23	%
Net Income*		12	%		11	%

*	As a percentage of Net Revenues

During 9M10, Consolidated Net Revenues increased by 18% (+P$1,623 million vs. 9M09) to P$10,484 million, mainly fueled by the Mobile and Broadband businesses. Moreover, Operating Profit increased by 14% (+P$287 million vs. 9M09) to P$2,322 million.

Consolidated Operating Revenues

Fixed Services (Voice, Data Transmission & Internet)

During 9M10 revenues generated by these services amounted to P$3,401 million, +12% vs. 9M09; with internet revenues growing, in relative terms, the most (+31% vs. 9M09).

Voice

Total Revenues for this service reached P$2,167 million in 9M10 (+4% vs. 9M09). The results of this line of business continue to be affected by frozen tariffs of regulated services and lower interconnection revenues.

Monthly Charges and Supplementary Services increased by P$30 million, or 5% vs. 9M09, to P$658 million, as a consequence of a higher number of lines in service (+1%), which surpassed 4 million, and a 17% increase in supplementary services.

Revenues generated by Local and Domestic Long Distance Measured Services and International Services totaled P$990 million, an increase of 5% vs. 9M09. In relative terms, revenues from local calls increased the most with 8% vs. 9M09 mainly due to the incorporation of flat rate packs and secondly by domestic long distance traffic (+4% vs. 9M09). Meanwhile, revenues from international traffic remained at similar levels in comparison to the same period from last year.

Interconnection revenues reached P$318 million (-3% vs. 9M09), mainly due to the incorporation of new interconnection points with mobile operators. This resulted in lower prices due to lower traffic which, in turn, negatively affected these revenues.

Public telephony reached P$47 million (-P$6 million vs. 9M09). Finally, other revenues totaled P$154 million (+16% vs.9M09).

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Data Transmission and Internet

Data transmission revenues amounted to P$236 million (+20% vs. 9M09), where the focus was to strengthen Telecom’s position as an integrated ICT provider for wholesale and government segments. Telecom continued enhancing virtualization solutions which complement the Virtual Hosting and Virtual Desktop offers, providing a wide option in Datacenter services.

In the SMEs and the businesses segments, Telecom continues to offer a broad portfolio of services that adapt all the needs of these segments, such as the product “Integra” (high quality internet access and personalized customer care services) and virtual private network service (oriented to clients with several offices that want to use voice, data or video integrated services) which registered the major increases during the period.

With the aim to provide more value to businesses, Arnet Biz and Arnet Biz Plus products, offered to professionals, businesses and SMEs segments, offers tools to develop their commercial activity through the best connection experience, proprietary inbox domain and more presence in the web.

Revenues related to Internet totaled P$998 million (+P$239 million or 31% vs. 9M09), mainly due to the constant expansion of broadband services.

As of September 30, 2010, Telecom surpassed 1.3 million ADSL accesses (+14% vs. 9M09). These connections represented 33% of Telecom’s fixed lines in service. In addition, ADSL ARPU reached P$75 in 9M10, +15% when compared to 9M09 and churn reached 1.5% in 9M10 (vs. 1.8% in 9M09).

During 9M10, Telecom continued enhancing broadband domestic use, under the slogan “Internet en Todo” (Internet everywhere), with promotions focused towards selling different Internet-based products.

Data Transmission and Internet both have significantly increased their contribution to net consolidated revenues, reaching 12% (vs. 11% in 9M09) and 36% (vs. 31% in 9M09) respectively of fixed services revenues.

Mobile Services

Clients have significantly increased in the period, reaching 17.8 million as of the end of September 2010, representing an increase of 1.5 million since December, 31, 2009 and 2 million since September 30, 2009.

The activities developed to stimulate the usage of the value added services (“VAS”) and to retain high value segments allowed Personal to increase consolidated net revenues to P$7,083 million (+22% vs. 9M09), while improving its profitability.

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Telecom Personal in Argentina

As of the end of September 2010, Personal reached almost 16 million subscribers in Argentina (+14% or 2 million vs. 9M09), consolidating its market position. The overall subscriber base mix continued with 70% of prepaid subscribers and 30% postpaid (including “Cuentas claras” plans and 3G modems).

In the nine month period, Net Revenues reached P$6,748 million (+P$1,232 million or 22% vs. 9M09) while Service Revenues (excluding handset sales) amounted to P$6,027 million (+21% vs. 9M09), with 39% corresponding to value-added services (‘VAS’) revenues. VAS revenues increased vs. 9M09 by 40%.

During the period, the overall voice traffic minutes increased by 16% vs. 9M09. Particularly, SMS traffic performance (charged incoming and outgoing messages), climbed to 4,449 million in 9M10 from a monthly average of 2,647 million messages in 9M09 (+68% vs. 9M09). Average Monthly Revenue per User (ARPU) increased to approximately P$43 during 9M10 (+7% vs. 9M09) as ARPU in 3Q10 reached P$45.

Initiatives

During the third quarter, Personal launched an integrated campaign to promote the increase of handset upgrades and continued to incorporate clients to the different value added services the Company offers. That is why Personal offered a promotion where VAS such as Personal Email, Pack 2.0 and Music downloads, could be added to the basic plan.

Another remarkable launch this quarter was a service providing traffic information on mobile devices through video streaming and alerts by SMS and MMS. Personal also increased social networks platform access through an agreement with Twitter that allows the use of the micro blogging network with SMS.

Regarding the launching of new handsets, Personal Black deepened its smartphone portfolio strategy by incorporating the latest available handsets, such as the IPhone 4, Sony Ericsson Vivaz y Samsung Wave. Personal Black, an exclusive service platform with premium customer services is the key vehicle of smartphone strategy. Personal leads the segment with more than 55% of market share. Additionally, Personal introduced customized data plans due to the launched of the IPad.

During the period, Personal continued its strategy through benefits such as service packs and recharges to its current client base. As part of their customer loyalty and retention strategy, new benefits to Club Personal clients were given. Remarkably, during the quarter, Personal clients activated more than 20 million service packs, which represented an increase of 62% vs. 3Q09.

Finally, Personal announced that it will be the main sponsor of Rally Dakar 2011 which will take place next year in Argentina and Chile.

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Telecom Personal in Paraguay

By the end of September 2010, Nucleo’s subscriber base increased to approximately 1.9 million clients (including Wimax clients). Prepaid and Postpaid customers represented 86% and 14%, respectively.

Personal’s subsidiary in Paraguay generated revenues equivalent to P$335 million during 9M10 (+11% vs. 9M09).

Consolidated Operating Costs

The Cost of Services Provided, Administrative Expenses and Selling Expenses totaled P$8,162 million in 9M10, an increase of P$1,336 million, or +20%, vs. 9M09. The increase is a consequence of higher commercial costs due to a higher volume of revenues, inflationary effects on the general cost structure, and greater expenses related to competition in the industry.

The cost breakdown is as follows:

- Salaries and Social Security Contributions totaled P$1,342 million (+25% vs. 9M09), mainly affected by increases in salaries due to the new labor agreement and the increase in employees. Regarding personnel, the incorporation of 291 employees in the mobile business was partially compensated by the decrease in headcount in the fixed line business (-166 employees vs. 9M09) in the same period. Total headcount at the end of the period was 15,493 employees.

- Taxes reached P$898 million (+24% vs. 9M09), influenced mainly by a higher volume of revenues, but also impacted by higher rates in turnover taxes and higher municipal and provincial rates and fees paid to regulatory entities. It was also affected by taxes related to debit and credit tax associated to the dividend payment, and the income tax payment.

- Network access costs (includes TLRD, Roaming, Interconnection, international settlement charges and lease of circuits) amounted to P$1,017 million, +P$2 million vs. 9M09. This was mainly due to savings from stimulating on-net traffic between mobile clients.

- Agents, prepaid card commissions and other commissions were P$900 million (+16% vs. 9M09), mainly due to the increase in commissions paid to commercial agents associated with higher revenues from more sophisticated handsets, higher costs associated with a higher volume of acquisitions and retention of customers and higher cards sales and prepaid recharges.

- Advertising amounted to P$294 million (+19% vs. 9M09), oriented towards supporting the commercial activity in mobile and Internet services and to strengthen the Telecom Group brand position.

- Cost of handsets sold totaled P$1,111million (+38% vs. 9M09) due to a change in the mix of handset sold, increased sales of high-end handsets and a

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higher number of handsets upgrades, this to stimulate VAS usage. These effects resulted in the increase of the average cost of handsets. Additionally, this was affected by the increase in Internal Tax, better known as the Technological Tax.

- Fees for services amounted to $449 million (+27% vs. 9M09), principally due to higher costs from the call centers, with more services requirements and inflationary effects on the price of these services.

- Depreciation of Fixed and Intangible Assets reached P$960 million (+17% vs. 9M09). Fixed-line telephony totaled P$523 million (+7% vs. 9M09) and mobile services totaled P$437 million (+32% vs. 9M09), due to higher investment in fixed assets.

- Others Costs totaled P$1,191 million (+18% vs. 9M09). This increase was mainly due to general increases in services such as maintenance, materials and supplies, transportation, freight, transport, and rental expenses. The decrease in bad debt expenses of 8% vs. 9M09 is notable. There was also an increase in cost related to VAS, such as content offers, evidenced in recent periods.

Consolidated Financial and Holding Results

Financial and Holding Results resulted in a loss of P$44 million, a decrease of P$273 million vs. 9M09. This was mainly due to losses for FX results of P$86 million in 9M10 ( losses of P$207 million vs. 9M09); and a gain in net financial interest of P$50 million in 9M10 (+P$72 million vs. 9M09), partially compensated by losses in holding on inventories by P$4 million in 9M10 (+P$4 million vs. 9M09).

Consolidated Net Financial Position

As of September 30, 2010, Net Financial Position (Cash, Cash Equivalents and current Investments minus Loans) totaled P$850 million in cash, an improvement of P$993 million vs. Net Financial Debt as of September 2009. This was due to the strong cash flow generation evidenced in the period that allowed the payment of P$689 million in dividends.

During 9M10, Personal purchased a nominal amount of US$ 5.85 million Series 3 Notes due 2010. These operations were made through open market purchases and with liquid funds from the Company. The Notes acquired were cancelled according to the terms and conditions of the Indenture.

Consolidated Capital Expenditures

During 9M10, the Company invested P$1,074 million (excluding materials). This amount was allocated to Voice, Data and Internet businesses (P$502 million) and Mobile services (P$572 million). In relative terms, capex reached 10% of revenues.

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Main capex projects are related to the deployment of 3G services to support the growth of mobile broadband together with the launch of innovative VAS. Moreover, with this investment, the Company foresees the expansion of broadband services to improve transmission and speed available to clients together with the expansion of backbone and backhaul networks to meet the growing demand of our fixed and mobile clients.

Recent Relevant Matters

In October, Personal purchased a nominal amount of US$ 1.23 million Series 3 Notes due 2010 having an outstanding of approximately U$S173 million which mature in December of this year. These operations were made through open market purchases and with liquid funds from the Company. The Notes acquired were cancelled according to the terms and conditions of the Indenture.

On October 18, 2010, Fitchs Ratings increased the national rating of Telecom Argentina to AA from AA- with a stable perspective.

On October 26, 2010, The Board of Directors of Telecom Argentina called for an Extraordinary Shareholders’ Meeting to approve the modification of the Bylaws on November, 30, 2010 and for an Ordinary Shareholders’ Meeting on the same day, to, among others items, determine the number of Directors and Alternate Directors and the appointment of these.

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Telecom is the parent company of a leading telecommunications group in Argentina, where it offers directly or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine government’s transfer of the telecommunications system in the northern region of Argentina.

Nortel Inversora S.A. (“Nortel”), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom’s common stock. Nortel is a holding company whose common stock (approximately 68% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock comprised of preferred shares that are held by minority shareholders.

As of September 30, 2010, Telecom had 984,380,978 shares outstanding.

(*) Employee Stock Ownership Program

For more information, please contact the Investor Relations Department:

Pedro Insussarry

(5411) 4968 3743

Solange Barthe Dennin

(5411) 4968 3752

Evangelina Sánchez

(5411) 4968 3718

Ruth Fuhrmann

(5411) 4968 4448

Horacio Nicolás del Campo

(5411) 4968 6236

Voice Mail: (5411) 4968 3628

Fax: (5411) 4968 3616

E-mail: relinver@ta.telecom.com.ar

For information about Telecom Group services, visit:

www.telecom.com.ar

www.personal.com.ar

www.personal.com.py

www.arnet.com.ar

Disclaimer

This document may contain 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 effects of its debt restructuring process; the impact of 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, the impact of emergency laws enacted by the Argentine government that have resulted in the repeal of Argentina’s Convertibility law, devaluation of the peso, various changes in restrictions on the ability to exchange pesos into foreign currencies, and currency transfer policy generally, 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 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 evolution 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 press release, including, without limitation, changes in the Company’s business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Company’s Annual Report on 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 for further information concerning risks and uncertainties faced by Telecom.

(Financial tables follow)

*******

Enrique Garrido

Chairman

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TELECOM ARGENTINA S.A.

Consolidated information

Nine Month period and Third Quarter results – Fiscal Year 2010

(In millions of Argentine pesos)

1- Consolidated Balance Sheet


	09/30/2010		12/31/2009		D$			D%
Cash, equivalents and investments		1,758		1,289		469			36	%
Trade receivables		1,212		1,163		49			4	%
Other current assets		663		491		172			35	%
Total Current Assets		3,633		2,943		690			23	%
Fixed & Intangible assets		7,746		7,612		134			2	%
Other non-current assets		86		78		8			10	%
Total Non Current Assets		7,832		7,690		142			2	%
Total Assets		11,465		10,633		832			8	%
Accounts payable		2,156		2,212		(56	)		-3	%
Loans		833		763		70			9	%
Taxes payable		856		769		87			11	%
Dividends payable		364		—		364			—
Reserves		88		73		15			21	%
Other current liabilities		392		352		40			11	%
Total Current Liabilities		4,689		4,169		520			12	%
Accounts payable		—		24		(24	)		-100	%
Loans		76		58		18			31	%
Taxes payable		163		212		(49	)		-23	%
Reserves		479		374		105			28	%
Other non-current liabilities		267		268		(1	)		0	%
Total Non Current Liabilities		985		936		49			5	%
Total Liabilities		5,674		5,105		569			11	%
Minority Interest		99		92		7			8	%
Shareholders’ equity		5,692		5,436		256			5	%
Total Liabilities, Minority Interest and Equity		11,465		10,633		832			8	%


2- Consolidated Loans
	09/30/2010		12/31/2009		D$			D%
Corporate Bonds		691		685		6			1	%
Banks and other financial institutions		58		72		(14	)		-19	%
Bank overdraft		19		—		19			—
Accrued interest		20		3		17			—
Derivatives		45		3		42			—
Total Current Loans		833		763		70			9	%
Banks and other financial institutions		76		58		18			31	%
Total Non Current Loans		76		58		18			31	%
Total Loans		909		821		88			11	%

Derivatives valuation effect for notes (Other Current Credits)		—		1		(1	)		-100	%
Cash and cash equivalents (include non current Government bonds)		1,759		1,289		470			36	%
Net Financial Position- Cash		850		469		381			81	%

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TELECOM ARGENTINA S.A.

Consolidated information

Nine Month period and Third Quarter results – Fiscal Year 2010

(In millions of Argentine pesos)

3- Consolidated Income Statement

Nine Months Comparison


	09/30/2010			09/30/2009			D$			D%
Net revenues		10,484			8,861			1,623			18	%
Cost of services		(5,296	)		(4,434	)		(862	)		19	%
Gross Profit		5,188			4,427			761			17	%
Administrative expenses		(365	)		(301	)		(64	)		21	%
Selling expenses		(2,501	)		(2,091	)		(410	)		20	%
Operating Profit		2,322			2,035			287			14	%
Equity income from related companies		—			13			(13	)		-100	%
Financial and holding results		(44	)		(317	)		273			-86	%
Other expenses, net		(208	)		(157	)		(51	)		32	%
Results from ordinary operations		2,070			1,574			496			32	%
Taxes on income		(754	)		(560	)		(194	)		35	%
Minority interest		(7	)		(8	)		1			-13	%
Net Income		1,309			1,006			303			30	%

Operating Profit before D & A		3,282			2,855			427			15	%
*As a % of Net Revenues*		31	%		32	%

Financial and Holding results


	09/30/2010			09/30/2009			D$			D%
Financial results generated by assets
Interest		114			98			16			16	%
Foreign currency exchange results		28			107			(79	)		-74	%
Holding results generated by inventories		(4	)		(8	)		4			-50	%
Other financial results		(1	)		3			(4	)		-133	%
Total Financial results generated by assets		137			200			(63	)		-32	%
Financial results generated by liabilities
Interest		(64	)		(120	)		56			-47	%
Foreign currency exchange results and loss on derivatives		(114	)		(400	)		286			-72	%
Other financial results		(3	)		3			(6	)		-200	%
Total Financial results generated by liabilities		(181	)		(517	)		336			-65	%
Total Financial and holding results		(44	)		(317	)		273			-86	%

4- Consolidated Income Statement

Three Months Comparison


	09/30/2010			09/30/2009			D$			D%
Net revenues		3,767			3,107			660			21	%
Cost of services		(1,933	)		(1,547	)		(386	)		25	%
Gross Profit		1,834			1,560			274			18	%
Administrative expenses		(121	)		(101	)		(20	)		20	%
Selling expenses		(930	)		(735	)		(195	)		27	%
Operating Profit		783			724			59			8	%
Financial and holding results		2			(166	)		168			-101	%
Other expenses, net		(85	)		(85	)		—			0	%
Results from ordinary operations		700			473			227			48	%
Taxes on income		(252	)		(166	)		(86	)		52	%
Minority interest		(4	)		(4	)		—			0	%
Net Income		444			303			141			47	%

Operating Profit before D & A		1,118			1,014			104			10	%
*As a % of Net Revenues*		30	%		33	%

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TELECOM ARGENTINA S.A.

Consolidated information

Nine Month period and Third Quarter results – Fiscal Year 2010

(In millions of Argentine pesos)

5- Consolidated Revenues Breakdown

Nine Months Comparison


	09/30/2010		09/30/2009		D$			D%
Fixed Telephony		1,947		1,867		80			4	%
Measured service Local		387		358		29			8	%
Measured service DLD		383		367		16			4	%
Monthly charges		658		628		30			5	%
Public telephones		47		53		(6	)		-11	%
Interconnection		318		328		(10	)		-3	%
Others		154		133		21			16	%
International Telephony		220		220		—			0	%
Data transmission & Internet		1,234		956		278			29	%
Data		236		197		39			20	%
Internet		998		759		239			31	%
Measured service		51		44		7			16	%
Monthly charges		942		711		231			32	%
Modems		5		4		1			25	%
MobileTelephony		7,083		5,818		1,265			22	%
Telecom Personal		6,748		5,516		1,232			22	%
Monthly fee and measured service		1,358		1,216		142			12	%
Pre-paid		933		782		151			19	%
Calling Party Pays		450		418		32			8	%
TLRD*		564		573		(9	)		-2	%
VAS		2,359		1,691		668			40	%
Handset sales		721		548		173			32	%
Others (Includes Roaming)		363		288		75			26	%
Núcleo		335		302		33			11	%
Monthly fee and measured service		48		47		1			2	%
Pre-paid		93		89		4			4	%
Calling Party Pays		8		7		1			14	%
TLRD*		24		29		(5	)		-17	%
VAS		125		95		30			32	%
Internet – Wimax		12		13		(1	)		-8	%
Handset sales		4		5		(1	)		-20	%
Others (Includes Roaming)		21		17		4			24	%
Total net revenues		10,484		8,861		1,623			18	%

*	Charges for the temination of calls of the cellular operators.

6- Consolidated Revenues Breakdown

Three Months Comparison


	09/30/2010		09/30/2009		D$			D%
Fixed Telephony		671		639		32			5	%
Measured service Local		135		125		10			8	%
Measured service DLD		131		124		7			6	%
Monthly charges		223		211		12			6	%
Public telephones		15		17		(2	)		-12	%
Interconnection		111		115		(4	)		-3	%
Others		56		47		9			19	%
International Telephony		76		71		5			7	%
Data transmission & Internet		432		343		89			26	%
Data		78		70		8			11	%
Internet		354		273		81			30	%
Measured service		17		16		1			6	%
Monthly charges		335		255		80			31	%
Modems		2		2		—			0	%
MobileTelephony		2,588		2,054		534			26	%
Telecom Personal		2,469		1,942		527			27	%
Monthly fee and measured service		474		397		77			19	%
Pre-paid card		311		267		44			17	%
Calling Party Pays		159		143		16			11	%
TLRD*		198		191		7			4	%
VAS		910		643		267			42	%
Handset sales		298		203		95			47	%
Others (Includes Roaming)		119		98		21			22	%
Núcleo		119		112		7			6	%
Monthly fee and measured service		13		11		2			18	%
Pre-paid card		36		37		(1	)		-3	%
Calling Party Pays		3		3		—			0	%
TLRD*		8		10		(2	)		-20	%
VAS		46		38		8			21	%
Internet – Wimax		4		4		—			0	%
Handset sales		2		2		—			0	%
Others (Includes Roaming)		7		7		—			0	%
Total net Revenues		3,767		3,107		660			21	%

*	Charges for the temination of calls of the cellular operators.

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7- Consolidated Income Statement by segments

Nine Month period – Fiscal Year 2010

(In million of Argentine pesos)


	Segments									Variation vs 9M09
	Voice, Data and Internet			Mobile Telephony			Consolidated			D$			D%
Net Revenues		3,401			7,083			10,484			1,623			18	%
Salaries and social security contributions		(1,013	)		(329	)		(1,342	)		(267	)		25	%
Taxes, taxes with the regulatory authority		(225	)		(673	)		(898	)		(172	)		24	%
Materials and supplies		(339	)		(168	)		(507	)		(69	)		16	%
Bad debt expenses		(19	)		(68	)		(87	)		8			-8	%
Interconnection cost		(145	)		—			(145	)		(14	)		11	%
Settlement charges		(99	)		—			(99	)		22			-18	%
Lease of lines and circuits		(66	)		(41	)		(107	)		(4	)		4	%
Service fees		(170	)		(279	)		(449	)		(96	)		27	%
Advertising		(100	)		(194	)		(294	)		(47	)		19	%
Agent, Prepaid card commissions and other commissions		(88	)		(812	)		(900	)		(122	)		16	%
Cost of voice, data and cellular handsets		(33	)		(1,078	)		(1,111	)		(307	)		38	%
Roaming and TLRD		—			(666	)		(666	)		(6	)		1	%
Others		(279	)		(318	)		(597	)		(122	)		26	%
Total Costs before D&A		(2,576	)		(4,626	)		(7,202	)		(1,196	)		20	%
Operating Profit before D&A		825			2,457			3,282			427			15	%
Depreciation of fixed assets		(510	)		(436	)		(946	)		(140	)		17	%
Amortization of intangible assets		(13	)		(1	)		(14	)		—			0	%
Operating Profit		302			2,020			2,322			287			14	%
Equity income from related companies		—			—			—			(13	)		—
Financial and Holding Income		57			(101	)		(44	)		273			-86	%
Other expenses, net		(138	)		(70	)		(208	)		(51	)		32	%
Income from ordinary operations		221			1,849			2,070			496			31	%
Taxes on income		(266	)		(488	)		(754	)		(194	)		35	%
Minority interest		—			(7	)		(7	)		1			-13	%
Net Income / (Loss)		(45	)		1,354			1,309			303			30	%

8- Consolidated Income Statement by segments

Nine Month period – Fiscal Year 2009

(In million of Argentine pesos )


	Segments
	Voice, Data and Internet			Mobile Telephony			Consolidated
Net Revenues		3,043			5,818			8,861
Salaries and social security contributions		(826	)		(249	)		(1,075	)
Taxes, taxes with the regulatory authority		(195	)		(531	)		(726	)
Materials and supplies		(299	)		(139	)		(438	)
Bad debt expenses		(24	)		(71	)		(95	)
Interconnection cost		(131	)		—			(131	)
Settlement charges		(121	)		—			(121	)
Lease of lines and circuits		(60	)		(43	)		(103	)
Service fees		(153	)		(200	)		(353	)
Advertising		(82	)		(165	)		(247	)
Agent, Prepaid card commissions and other commissions		(75	)		(703	)		(778	)
Cost of voice, data and cellular handsets		(30	)		(774	)		(804	)
Roaming and TLRD		—			(660	)		(660	)
Others		(229	)		(246	)		(475	)
Total Costs before D&A		(2,225	)		(3,781	)		(6,006	)
Operating Profit before D&A		818			2,037			2,855
Depreciation of fixed assets		(477	)		(329	)		(806	)
Amortization of intangible assets		(13	)		(1	)		(14	)
Operating Profit		328			1,707			2,035
Equity income from related companies		—			13			13
Financial and Holding Income		(161	)		(156	)		(317	)
Other expenses, net		(94	)		(63	)		(157	)
Income from ordinary operations		73			1,501			1,574
Taxes on income		(204	)		(356	)		(560	)
Minority interest		—			(8	)		(8	)
Net Income / (Loss)		(131	)		1,137			1,006

This exposition of the financial statements is not coincident with the individual financial statements for each company due to the eliminations of intercompany operations.

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9- Consolidated Income Statement by segments

Third Quarter – FY 2010

(In million of Argentine pesos)


	Segments									Variation vs 3Q09
	Voice, Data and Internet			Mobile Telephony			Consolidated			D$			D%
Net Revenues		1,179			2,588			3,767			660			21	%
Salaries and social security contributions		(379	)		(119	)		(498	)		(111	)		29	%
Taxes, taxes with the regulatory authority		(83	)		(243	)		(326	)		(76	)		30	%
Materials and supplies		(126	)		(62	)		(188	)		(36	)		24	%
Bad debt expenses		(5	)		(19	)		(24	)		(1	)		4	%
Interconnection cost		(50	)		—			(50	)		(6	)		14	%
Settlement charges		(29	)		—			(29	)		7			-19	%
Lease of lines and circuits		(21	)		(15	)		(36	)		—			0	%
Service fees		(63	)		(112	)		(175	)		(47	)		37	%
Advertising		(47	)		(68	)		(115	)		(26	)		29	%
Agent, Prepaid card commissions and other commissions		(30	)		(297	)		(327	)		(51	)		18	%
Cost of voice, data and cellular handsets		(13	)		(436	)		(449	)		(165	)		58	%
Roaming and TLRD		—			(222	)		(222	)		(5	)		2	%
Others		(97	)		(113	)		(210	)		(39	)		23	%
Total Costs before D&A		(943	)		(1,706	)		(2,649	)		(556	)		27	%
Operating Profit before D&A		236			882			1,118			104			10	%
Depreciation of fixed assets		(174	)		(157	)		(331	)		(47	)		17	%
Amortization of intangible assets		(4	)		—			(4	)		2			-33	%
Operating Profit		58			725			783			59			8	%
Financial and Holding Income		26			(24	)		2			168			-101	%
Other expenses, net		(56	)		(29	)		(85	)		—			0	%
Income from ordinary operations		28			672			700			227			48	%
Taxes on income		(71	)		(181	)		(252	)		(86	)		52	%
Minority interest		—			(4	)		(4	)		—			0	%
Net Income / (Loss)		(43	)		487			444			141			46	%

10- Consolidated Income Statement by Segments

Third Quarter – FY 2009

(In million of Argentine pesos)


	Segments
	Voice, Data and Internet			Mobile Telephony			Consolidated
Net Revenues		1,053			2,054			3,107
Salaries and social security contributions		(297	)		(90	)		(387	)
Taxes, taxes with the regulatory authority		(67	)		(183	)		(250	)
Materials and supplies		(103	)		(49	)		(152	)
Bad debt expenses		(3	)		(20	)		(23	)
Interconnection cost		(44	)		—			(44	)
Settlement charges		(36	)		—			(36	)
Lease of lines and circuits		(21	)		(15	)		(36	)
Service fees		(56	)		(72	)		(128	)
Advertising		(33	)		(56	)		(89	)
Agent, Prepaid card commissions and other commissions		(28	)		(248	)		(276	)
Cost of cellular handsets		(11	)		(273	)		(284	)
Roaming and TLRD		—			(217	)		(217	)
Others		(81	)		(90	)		(171	)
Total Costs before D&A		(780	)		(1,313	)		(2,093	)
Operating Profit before D&A		273			741			1,014
Depreciation of fixed assets		(161	)		(123	)		(284	)
Amortization of intangible assets		(5	)		(1	)		(6	)
Operating Profit		107			617			724
Financial and Holding Income		(74	)		(92	)		(166	)
Other expenses, net		(60	)		(25	)		(85	)
Income (loss) from ordinary operations		(27	)		500			473
Taxes on income		(46	)		(120	)		(166	)
Minority interest		—			(4	)		(4	)
Net Income / (Loss)		(73	)		376			303

This exposition of the financial statements is not coincident with the individual financial statements for each company due to the eliminations of intercompany operations.

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TELECOM ARGENTINA S.A.

Unconsolidated Information

Nine Month period and Third Quarter results – Fiscal Year 2010

(In million of Argentine pesos)

11- Balance Sheet


	09/30/2010			12/31/2009			D$			D%
Cash, equivalents and investments		1,021			578			443			77	%
Trade receivables		600			724			(124	)		-17	%
Other current assets		97			85			12			14	%
Total Current Assets		1,718			1,387			331			24	%
Other Trade receivables		36			46			(10	)		-22	%
Fixed & Intangible assets		4,326			4,346			(20	)		-0.5	%
Investments		2,196			1,915			281			15	%
Other non-current assets		3			3			—			0	%
Total Non current Assets		6,561			6,310			251			4	%
Total Assets		8,279			7,697			582			8	%
Accounts payable		913			931			(18	)		-2	%
Compensation and social benefits payable		269			244			25			10	%
Taxes Payable		231			263			(32	)		-12	%
Dividends payable		364			—			364			—
Other liabilities		46			39			7			18	%
Reserves		76			57			19			33	%
Total Current Liabilities		1,899			1,534			365			24	%
Accounts payable		—			24			(24	)		-100	%
Compensation and social benefits payable		87			81			6			7	%
Taxes Payable		134			202			(68	)		-34	%
Other liabilities		142			153			(11	)		-7	%
Reserves		325			267			58			22	%
Total Non Current Liabilities		688			727			(39	)		-5	%
Total Liabilities		2,587			2,261			326			14	%
Shareholders’ equity		5,692			5,436			256			5	%
Total Liabilities and Equity		8,279			7,697			582			8	%


12- Income Statement
	09/30/2010			09/30/2009			D$			D%
Net revenues		3,916			3,525			391			11	%
Cost of services		(2,048	)		(1,842	)		(206	)		11	%
Gross Profit		1,868			1,683			185			11	%
Administrative expenses		(252	)		(195	)		(57	)		29	%
Selling expenses		(822	)		(693	)		(129	)		19	%
Operating Profit		794			795			(1	)		-0.1	%
Equity income from related companies		855			665			190			29	%
Financial & holding results		59			(160	)		219			-137	%
Other incomes & expenses net		(133	)		(91	)		(42	)		46	%
Results from ordinary operations		1,575			1,209			366			30	%
Taxes on income		(266	)		(203	)		(63	)		31	%
Net Income		1,309			1,006			303			30	%

Operating Profit before D&A		1,314			1,282			32			2	%
*As a % of Net Revenues*		34	%		36	%

Financial and Holding results
	09/30/2010			09/30/2009			D$			D%
Financial results generated by assets
Interest		67			66			1			2	%
Foreign currency exchange results		15			79			(64	)		-81	%
Other financial results		—			2			(2	)		-100	%
Total Financial results generated by assets		82			147			(65	)		-44	%
Financial results generated by liabilities
Interest		(6	)		(50	)		44			-88	%
Foreign currency exchange results and loss on derivatives		(16	)		(258	)		242			-94	%
Other financial results		(1	)		1			(2	)		-200	%
Total Financial results generated by liabilities		(23	)		(307	)		284			-93	%
Total Financial and holding results		59			(160	)		219			-137	%

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TELECOM ARGENTINA S.A.

Unconsolidated Information

Nine Month period and Third Quarter results – Fiscal Year 2010

(In million of Argentine pesos)

13- Income Statement

Three Months Comparison


	09/30/2010			09/30/2009			D$			D%
Net revenues		1,354			1,212			142			12	%
Cost of services		(728	)		(643	)		(85	)		13	%
Gross Profit		626			569			57			10	%
Administrative expenses		(97	)		(65	)		(32	)		49	%
Selling expenses		(305	)		(244	)		(61	)		25	%
Operating Profit		224			260			(36	)		-14	%
Equity income from related companies		318			220			98			45	%
Financial & holding results		27			(73	)		100			-137	%
Other incomes & expenses net		(54	)		(58	)		4			-7	%
Results from ordinary operations		515			349			166			48	%
Taxes on income		(71	)		(46	)		(25	)		54	%
Net Income		444			303			141			47	%

Operating Profit before D&A		401			388			13			3	%
As a % of Net Revenues		30	%		32	%

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Telecom Argentina S.A.

Date: November 4, 2010

/S/ ENRIQUE GARRIDO

Enrique Garrido

Chairman of the Board of Directors