Pag 24 Description of the Business Activities of the Entity By December 31, 2011, Entel PCS Telecomunicaciones SA has two

o national concessions, of 30 MHz each, which allow us to provide Public Digital Mobile Service in 1,900 MHz band; both licenses were awarded through public tender processes. Using these concessions, the Company operates a 2G network (GSM / GPRS / EDGE) that covers much of the Chilean territory. Superimposed on this network and in the same spectrum, the Company operates from December 2006, under the name of 3.5G network, the first commercial Third Generation network in Latin America. This network is constantly evolving, and not only has HSDPA (High Speed Downlink Packet Access) technology, but also HSUPA (High Speed Uplink Packet Access) technology, and offers higher speeds levels than the 3.5G network, called HSPA + Dual Carrier. The 2G network supports basic voice services, VAS (Value Added Services) and data, delivering an Internet connection speed of 100 Kbps average. The 3.5G network, in addition to voice services, messaging and video calls, delivers theoretical peak download speeds of up to 22 Mbps thanks to HSPA + Dual Carrier technology, enabling mobile broadband Internet and Internet connectivity for mobile terminals.

Pag 35 Infrastructure and Technology ENTEL PCS network is divided into three main components: Access Network Voice and Data Switching Network Transport Network

Access network The access network is composed by civil infrastructure works infrastructure and electronic equipment providing customer service. The most important asset of the access network is the physical presence point where the equipment is installed. There are two networks operating in parallel to provide voice and data services. There is a network with 2G technology and another one with 3G technology. Both networks interoperate, allowing the customer to use the two networks transparently for voice and data services.

2G access network 2G network supports voice and data traffic. It is implemented with GSM / GPRS / EDGE in all of its points of presence. This network is dimensioned and configured to support the data service with average speeds of 100 kbps. In 2011, it implemented new points of presence. The new points of presence represent new locations that were not previously covered, as well as the reinforcement of the network in urban areas. 3G access network Entel's 3G network is the most advanced in the country. It supports voice and data traffic, with HSPA + Dual Carrier / HSUPA technology in all of its points of presence. These technologies enable the achievement of theoretical peak speed data transmission of 42 Mbps downstream and 7.2 Mbps upstream. The 3G network also supports the mobile broadband service, the voice telephony service for customers with 3G phone and data services for Smartphone customers. In 2011, new sites were implemented. Some of these sites were deployed on existing points of presence for 2G network. This network continues to grow primarily by the increasing traffic demand and the increase of the area of service. Voice and Data Switching Network 2G and 3G networks share a common switched network. It consists of different nodes located throughout Chile that consolidate and optimize local traffic and transport costs for voice and data transmission. During the year 2011, the Company kept expanding the network to support increasing demand for voice and data, and the main investments were aimed at increasing capacity of data transmission. This year, we will also implement the latest generation features for management of mobile broadband traffic. Transport Network The transportation network is the network that provides the interface between the access network and switching network, as well as providing the interconnection between the different nodes of the switching network. Links for the access network are mostly deployed on microwave and fiber optics, and there are also some satellite links to connect remote points of presence. 2G access network is connected to TDM. In 2010, we began a process of migration of these TDM connections to IP technology based on cost efficiency.

3G access network is fully connected with IP technology. The implementation of IP technology has provided the flexibility to make the expansions required by the increasing data traffic. The nodes of the switching network are connected through a network that interconnects the national MPLS IP voice and data services.