Vivir mejor - Entel

The benefit is provided to staff through the Entel–Chile Mutual Corporation, jointly financed by both employees through a monthly contribution of 2.66% of their basesalary, and by the company, which must contribute supplementary funds required on an annual basis as required to meet payment of compensation to a maximumof 3% of the workforce.Liabilities recorded as of December 31, 2011 and 2010, designated for post-employment benefits were Th.CLP $7,651,126 and Th.CLP $8,182,456, respectively,representing the current value of severance pay accrued on those dates after deducting the values available from the Mutual Corporation.In addition to agreements held by the parent company, the subsidiaries Entel Call Center S.A. and Cientec S.A. have agreements to cover severance pay for yearsof service in the case of redundancy, which have been designated as Severance Benefits. The total accrued by these subsidiaries for each period is Th.CLP $66,948and Th.CLP $75,356, respectively.The change in balances of post-employment obligations for the parent company is as follows:Transactions 12/31/2011Th.CLP$12/31/2010Th.CLP$Present value of obligation, initial balance 8,182,456 9,663,719Cost of current service 643,884 480,264Cost for obligation Interest 485,950 611,823Current losses (earnings) of obligation - ( 2,051,137 )Contributions paid to plan ( 1,661,164 ) ( 522,213 )Present value of obligation, final balance 7,651,126 8,182,45612/31/2011 12/31/2010187Discount rate 6.90% 6.50%Salary increment rate 1.00% 1.00%Turnover rate 6.29% 6.29%Death rate RV-2004 RV-2004Report 201120. EQUITYChanges in equity throughout 2011 and 2010 are detailed in the Statement of Changes in Shareholder Equity_CapitalThe Company maintains a series of shares without nominal value in circulation which are fully paid-in. This number of shares corresponds to the capital authorizedby the Company.ClassNo. subscribed sharesTh.CLP$No. paid-in shares No. shares with voting rights Subscribed capitalTh.CLP$Paid-in capitalTh.CLP$SINGLE 236,523,695 236,523,695 236,523,695 522,667,566 522,667,566