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Pag 24 Description of the Business Activities of the Entity

By December 31, 2011, Entel PCS Telecomunicaciones SA has two national concessions, of 30 MHz each,which allow us to provide Public Digital Mobile Service in 1,900 MHz band; both licenses were awardedthrough public tender processes.

Using these concessions, the Company operates a 2G network (GSM / GPRS / EDGE) that covers muchof the Chilean territory. Superimposed on this network and in the same spectrum, the Companyoperates from December 2006, under the name of 3.5G network, the first commercial Third Generationnetwork in Latin America. This network is constantly evolving, and not only has HSDPA (High SpeedDownlink Packet Access) technology, but also HSUPA (High Speed Uplink Packet Access) technology, andoffers 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 anInternet 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 mobileterminals.

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 equipmentproviding customer service.

The most important asset of the access network is the physical presence point where the equipment isinstalled.

There are two networks operating in parallel to provide voice and data services. There is a network with2G technology and another one with 3G technology. Both networks interoperate, allowing the customerto use the two networks transparently for voice and data services.

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2G access network

2G network supports voice and data traffic. It is implemented with GSM / GPRS / EDGE in all of its pointsof presence. This network is dimensioned and configured to support the data service with averagespeeds of 100 kbps.

In 2011, it implemented new points of presence. The new points of presence represent new locationsthat 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 theachievement of theoretical peak speed data transmission of 42 Mbps downstream and 7.2 Mbpsupstream.

The 3G network also supports the mobile broadband service, the voice telephony service for customerswith 3G phone and data services for Smartphone customers.

In 2011, new sites were implemented. Some of these sites were deployed on existing points of presencefor 2G network. This network continues to grow primarily by the increasing traffic demand and theincrease of the area of service.

Voice and Data Switching Network

2G and 3G networks share a common switched network. It consists of different nodes locatedthroughout Chile that consolidate and optimize local traffic and transport costs for voice and datatransmission.

During the year 2011, the Company kept expanding the network to support increasing demand for voiceand 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 andswitching network, as well as providing the interconnection between the different nodes of theswitching network.

Links for the access network are mostly deployed on microwave and fiber optics, and there are alsosome 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 TDMconnections to IP technology based on cost efficiency.

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3G access network is fully connected with IP technology. The implementation of IP technology hasprovided 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 nationalMPLS IP voice and data services.