Second Quarter 2012 Results - Entel

Second Quarter 2012 ResultsAugust 6, 2012RECENT EVENTSDuring May 2012, Entel paid the final dividend based on 2011 profits forCh$ 405 per share, reaching a total of Ch$ 95,792 million.Only three operators presented proposals for the 4G spectrum auction in the 2.6MHz band. The companies selected for blocks A, B and C (each block of 40MHz), with similar scores, were Entel (99.06), Claro (98.52) and Movistar(98.11). On July 30, 2012, Entel won the auction for block B for a total amountof US$ 8.8 million. Regulator should confirm this within 3Q12.During June, the Antenna Act became effective, which regulates the installationof telecommunication infrastructure, promoting mimicry or tower sharing. Thislaw imposes installation standards to defined zones. The labeled zones are:saturated (with 2 or more towers taller than 12 meters within 100 meters) andsensitive (in places such as schools, health centers and nurseries, which do notpermit towers over 12 meters within 50 meters). There are also regulations forexisting antennas and for new tower facilities.During this quarter, VTR and GTD (MVNO) launched mobile operations, whileNextel began to offer 3G services.13