Consolidated Revenues amounted to P$16,025 million (+20% vs. 9M11); Fixed Internet +28% vs. 9M11; Fixed Data +27% vs. 9M11; and Mobile business in Argentina +21% vs. 9M11.

Mobile subscribers in Argentina: 18.9 million; +1.1 million (+6% vs. 9M11).

Mobile Value Added Services in Argentina (Internet and Data): +35% vs. 9M11; 52% of Service Revenues.

Mobile ARPU reached P$55.8 per month in 9M12 (+12% vs. 9M11).

ADSL ARPU increased to P$99.2 per month in 9M12 (+16% vs. 9M11); monthly churn remained at 1.3% in 9M12.

Operating Profit Before Depreciation and Amortization (“OPBDA”) reached P$4,726 million (+7% vs. 9M11), 29.5% of Net Revenues.

Operating Profit amounted to P$2,803 million.

Net Income amounted to P$1,923 million (+2% vs. 9M11). Net Income attributable to Telecom Argentina amounted P$1,891 million (+1% vs. 9M11).

Net Cash Position: P$2,697 million, an increase of P$672 million vs. 9M11 due to the cash generation and after Telecom Argentina’s cash dividend payment of P$807 million.

Capex reached P$2,187 million in 9M12 (+23% vs. 9M11), 14% of Consolidated Revenues.

(in million P$, except where noted)

Revenues

Fixed Services

Mobile Services

Operating Profit before D&A

Operating Profit

Net Income attributable to Telecom Argentina

Shareholders’ equity attributable to Telecom Argentina

Net Financial Position—Cash

CAPEX

Fixed lines in service (in thousand lines)

Mobile customers (in thousand)

Personal (Argentina)

Núcleo (Paraguay)—including Wimax customers-

Broadband acceses (in thousand)

Fixed line traffic (in MM minutes, Internet & Public Telephony not incl.)

Incoming / Outgoing mobile voice traffic in Arg.(in MM minutes)

Average Billing per user (ARBU) Fixed Telephony / voice (in P$)

Average Revenue per user (ARPU) Mobile Services in Arg. (in P$)

Average Revenue per user (ARPU) ADSL (in P$)

Consolidated Revenues (MMP$)

Net Income attributable to Telecom (MMP$)

Earnings per Share (P$)

Earnings per ADR (P$)

OPBDA *

Operating Profit *

Net Income*

The actions developed to increase the usage of value added services (“VAS”), such as innovative offers to clients and equipments sales, allowed Personal to increase consolidated revenues to third parties to P$11,608 million (+23% vs. 9M11).

Telecom Personal in Argentina

As of September 30, 2012, Personal reached 18.9 million subscribers in Argentina (+6% or 1.1 million vs. 9M11), improving its market position. It is worth noting that the overall subscriber base mix continued to improve with 33% in the postpaid segment (+12% vs. 9M11).

In 9M12, Revenues to third parties reached P$10,981 million (+P$2,047 million or 23% vs. 9M11) while Service Revenues (excluding equipment) amounted to P$9,573 million (+21% vs. 9M11), with 52% corresponding to value-added services (“VAS”) revenues (vs. 47% in 9M11). VAS revenues strongly increased by 35% vs. 9M11.

During the quarter, VAS usage continued to be promoted, where Personal’s clients tended to acquire more sophisticated equipments with more services, thus improving its usage experience.

in Argentina (in billion P$)

Total Mobile Traffic

(in billion minutes)

During 9M12, the overall traffic of voice minutes increased by 8% vs. 9M11. SMS traffic (incoming and outgoing charged messages) continued to increase, although at a slower pace of growth, due to other Internet alternatives provided by Personal. The traffic climbed to a monthly average of 5,662 million in 9M12 from 5,484 million messages in 9M11 (+3% vs. 9M11). Due to this increase in traffic and VAS usage, Average Monthly Revenue per User (“ARPU”) increased to P$55.8 during 9M12 (+12% vs. 9M11).

Personal in Argentina

Initiatives

During 3Q12, Personal continued with its strategy in terms of service convenience, through special promotions in prepaid credit recharges and new packages customized to Club Personal’s members. In addition, a new platform was implemented with the objective of reaching each segment with customized benefits and improving the customer experience.

Personal extended its digital platform for customer service by using the application “Mi Cuenta Personal”, available for Android’s handsets, so that each client can manage its services from its handset. Moreover, Personal consolidated its position in the mobile Internet market with its proposal of daily unlimited Internet that massifies mobile Internet access.

Furthermore, Personal continued expanding its commercial network in the country by opening new commercial offices focusing in a clients’ experience model. In line with this concept, Personal launched a Black Tour, the itinerant experience centre of Personal, which visits more than 50 cities of the country with the last technology and smartphones so that clients can have their own experience.

Personal continued with its brand positioning strategy by sponsoring, for the ninth time, the Winter Ski Season and also included its name in the rugby international championship: “Personal Rugby Championship” and supported the national team Los Pumas in those games played in Argentina.

Nucleo’s subscriber base reached 2.3 million clients (+9% vs. 9M11). Prepaid and postpaid customers represented 82% and 18%, respectively.

Personal’s subsidiary in Paraguay continued growing supported by a commercial offer strategy and the leadership in the mobile Internet market despite the economic environment. The Company generated revenues equivalent to P$627 million during 9M12 (+22% vs. 9M11). Moreover, the level of ARPU reached approximately Gs.27,100 in 9M12, vs. Gs.26,500 one year ago. VAS represented 48% of 9M12 service revenues.

(in MM$)

Fixed Services (Voice, Data Transmission & Internet)

During 9M12 revenues generated by fixed services amounted to P$4,417 million, +13% vs. 9M11; with Internet (+28% vs. 9M11) and Data revenues (+27% vs. 9M11) growing the most in relative terms in this segment.

Voice

Total Revenues for this service reached P$2,386 million in 9M12 (+4% vs. 9M11). The results of this line of business continued to be affected by frozen tariffs of regulated services enforced by the Argentine Government in 2002.

Revenues generated by Measured Services totaled P$968 million, an increase of P$47 million or +5% vs. 9M11 mainly due to the incorporation of flat rate packs with local calls.

Monthly Charges and Supplementary Services reached P$768 million, an increase of P$58 million or +8% vs. 9M11 with more than 4.1 million of lines in service and an increasing in penetration of Value Added Services.

The average monthly bill per user (ARBU) reached P$47.7 in 9M12 vs. P$45.4 in 9M11.

Interconnection revenues reached P$385 million (-1% vs. 9M11). Meanwhile, other revenues totaled P$265 million (-6% vs. 9M11).

During September, a mass campaign to impulse Aladino handset sales was launched.

(in billion minutes)

Revenues related to Internet totaled P$1,442 million (+ P$315 million or +28% vs. 9M11), mainly due to the continued expansion of broadband services.

Data transmission revenues amounted to P$528 million (+27% vs. 9M11), where the focus was to strengthen Telecom’s position as an integrated ICT provider.

As of September 30, 2012, Telecom surpassed 1.6 million ADSL accesses (+7% vs. 9M11). These connections represented 39% of Telecom’s fixed lines in service. In addition, ADSL ARPU reached approximately P$99.2 in 9M12, +16% when compared to 9M11 and the monthly churn rate remained at 1.3% in 9M12, continuing at low levels.

During 3Q12, Telecom Argentina continued with the campaign ¨Reputación¨ through a new Facebook application. This promotion offers Arnet 6Mb WIFI with Arnet Móvil (mobile internet) during six months with the possibility to extend the promotion to twelve months if the application was contracted through the online feature.

Furthermore, during the quarter, a new campaign “Arnet Play” was launched with an offer that remarks the main services and the different content that is included. The promotion offers Arnet 6Mb WIFI with Arnet Play (Video streaming service) during six months with the possibility to extend the promotion to twelve months if the application was hired online.

The Cost of Services Provided, General & Administrative Expenses and Selling Expenses, excluding Gains on disposal of PP&E, totaled P$13,242 million in 9M12, an increase of P$2,709 million, or +26% vs. 9M11. The increase is a consequence of higher commercial costs due to a higher volume of revenues, the inflationary effects in the general cost structure, and greater expenses related to the intense competition.

The cost breakdown is as follows:

- Employee benefit expenses and severance payments totaled P$2,368 million (+27% vs. 9M11), mainly affected by increases in salaries due to the new labor agreement reached at the beginning of 3Q12, the increase in the number of employees and the increase in salaries for non unionized employees. Total headcount at the end of the period totaled 16,778 employees (+3% vs. 9M11) (including temporary and eventual employees), 443 employees were incorporated in the mobile business and 90 employees in the fixed services, compared to 9M11.

- Taxes and fees with the regulatory authority reached P$1,454 million (+26% vs. 9M11), impacted mainly by a higher volume of revenues, an increase in turnover taxes, by higher bank debit and credit taxes and higher taxes with the regulatory authority.

- Interconnection costs and other telecommunication charges (includes TLRD, Roaming, Interconnection, international settlement charges and lease of circuits) amounted to P$1,214 million, +P$124 million vs. 9M11. This increase resulted from higher roaming charges partially compensated by savings from stimulating on-net traffic among mobile clients and consequently decrease third parties network usage costs.

- Commissions (Commissions paid to Agents, prepaid card commissions and others) totaled P$1,422 million (+31% vs. 9M11), net of capitalization of SAC of P$218 million (+33% vs. 9M11), mainly due to the increase in commissions paid to commercial agents associated with higher revenues from the sale of more sophisticated handsets with the aim of gaining fidelity from clients.

- Advertising amounted to P$475 million (+25% vs. 9M11), oriented towards supporting the commercial activity in mobile and Internet services and to strengthening the brands of the Telecom Group. A significant portion of this increase was also due to the Mobile Number of Portability campaign and Personal’s brand positioning efforts.

- Cost of handsets sold totaled P$1,521 million (+31% vs. 9M11), net of capitalization of SAC of P$374 million (+20% vs. 9M11), due to an increase in high-end handsets sales and a higher number of handset upgrades (+25% vs. 9M11), performed to stimulate VAS usage. These effects resulted in the increase of the average cost of handsets.

Consolidated Costs

% Revenues

On September 5^th, 2012 the Secretariat of Communications (‘SC’) notified Personal of the cancellation of the Public Auction to reassign the 850 and 1900 MHz frequency bands.

Moreover, the Minister of Federal Planning, Public Investment and Services has instructed the SC to propose the mechanisms and technical legal instruments to reassign the mentioned frequencies to ARSAT (a state owned telecommunications company), as well as to present a business plan for the exploitation of the frequencies , by itself or through third parties.

Personal will continue investing in the network to optimize its usage.

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 78% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock is comprised of preferred shares that are held by minority shareholders.

As of September 30, 2012, Telecom continued to have 984,380,978 shares outstanding.

Cash and cash equivalents

Investments

Trade receivables

Other Receivables

Total current assets

Financial Investments

Trade receivables

Property, plant and equipment

Intangible assets

Other Receivables

Total non-current assets

Total Assets

Trade payables

Deferred revenues

Financial debt

Salaries and social security payables

Income tax payables

Other taxes payables

Dividend Payable

Other liabilities

Provisions

Total current liabilities

Trade payables

Deferred revenues

Financial debt

Salaries and social security payables

Deferred income tax liabilities

Income tax payables

Other liabilities

Provisions

Total non-current liabilities

TOTAL LIABILITIES

Equity attributable to owners of the Parent

Noncontrolling interest

TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

Banks and other financial Institutions

Accrued interest

Total Current Loans

Banks and other financial institutions

Total Non Current Loans

Total Loans

Cash and cash equivalents, and Financial Investments

Net Financial Position—Cash

Revenues

Other income

Total Revenues & Other Income

Consolidated Operating Costs

Gains on disposal of PP&E

Operating income

Finance results, net

Net income before income tax expense

Income tax expense

Net income

Attributable to:

Owners of the Parent

Noncontrolling interest

Operating income before D&A

As % of Revenues

Finance Income

Interest on cash equivalents

Interest on receivables

Foreign currency exchange gains

Others

Total finance income

Finance expenses

Interest on financial debt

Interest on taxes and accounts payable

Interest on provisions

Loss on discounting of other liabilities

Foreign currency exchange losses

Others

Total finance expenses

4- Consolidated Income Statements

     Three Months Comparison

Revenues

Other income

Total Revenues & Other Income

Consolidated Operating Costs

Gains on disposal of PP&E

Operating income

Finance results, net

Net income before income tax expense

Income tax expense

Net income

Attributable to:

Owners of the Parent

Noncontrolling interest

Operating income before D&A

As % of Revenues

Fixed Services

Voice

Retail Voice

Monthly Charges

Measured Services

Others

Wholesale

Interconnection

Others

Data

Internet

Mobiles Sevices

Telecom Personal

Voice

Retail Voice

Monthly Charges

Measured Services

Roaming

Others

Wholesale

Interconnection (CPP and TLRD)

Roaming

Others

Data

Internet

Núcleo

Voice

Retail Voice

Monthly Charges

Measured Services

Roaming

Others

Wholesale

Interconnection (CPP and TLRD)

Roaming

Data

Internet

Fixed Services