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Challenges Going ForwardIn 2012, two new mobile companies with their own 3G networks,VTR and Nextel, will enter the market, causing supply and competitionto increase in the industry. Similarly, virtual mobile operators(companies who use the networks of other operators todeliver their services) will also enter the market. The Departmentof Telecommunications has awarded 22 virtual mobileoperator licenses and Virgin Mobile and Falabella Móvil havepublicly announced their intention to enter the market.Our focus remains in our customers: by understanding them,building close relationships, and providing first class service, weseek to ensure an integrated, world-class experience from endto end. All company activities are focused on this goal and weare convinced it remains the best way to meet the challenges ofcompetitive markets like the one in which we operate.In addition to the above, we have also considered the requirementto strengthen our wholesale networks provision, in thiscase by providing roaming mobile and mobile virtual networkoperator (MVNO) services. We believe a strategy correctly focusedon wholesale services can ensure part of the competitivevalue of other operators can be delivered and capturedthrough our network.In closing, I would like to offer my sincerest gratitude for theimportant support of our shareholders and the financial markets,the loyalty of our customers, and the commitment shownby Entel staff.Facing these challenges requires the firm commitment andcapability of people satisfied with their role in a company thatcreates opportunities. I dare to say our organization is wellequipped for the future. The new Entel, a business made up ofmore than 7,000 people, is a vehicle to allow us to transformour dreams of leading the market, of exploring and taking advantageof new business opportunities, of providing servicesof the highest quality, and of ensuring our customers believeand trust us, of feeling fulfilled and passionate in our work, ofbeing able to take pride in all of this and, in doing so, makingChile live better connected.9Report 2011Another challenge for 2012 will be the introduction of LTEnetworks, recently announced as 4G. Last December, the Departmentof Telecommunications launched the public tenderprocess for 2600 MHz spectrum that will allow the new technologyto be deployed, resulting in a considerable increase inbrowsing speeds on mobile devices.Entel is in a strong position to face these changes. In 2011, webecame the first operator in Latin America to implement HSPA+Dual Carrier, a new technological landmark in the evolutionof our network, providing our users with maximum downloadspeeds of up to 24 Mbps, almost double the existing speed. Thistechnology is in fact a step to pave the way for 4G networks,which we will being hearing more about in the near future.Juan José Hurtado VicuñaChairman of the Board