Earnings Call: Q4 2020

Mar 10, 2021

Good morning. On behalf of Telecom Argentina, I would like to thank everybody for participating on this conference call. The participants of today's conference call are Roberto Nobile, Chief Executive Officer Gabriel Glatti, Chief Financial Officer Fernando Balmaceda, Director of Investor Relations and myself, Solangelo Artudeni, Manager of Investor Relations. The purpose of this call is to share with you the results of our fiscal year 2020 and Q4 ended December 31, 2020. If you have not received our press release or presentation, you can call our Investor Relations office to request the documents or download them from the Investor Relations section of our website located at www.telecom.com. Ar. This conference call and presentation is being broadcasted and can also be replaced through our investor website at institutional.telecom.com. Arinvestor. If you would like to go over some I would like to go over some Trejago information and other details of the call. We would like to clarify that during the conference call and Q and A session, we could mention certain forward looking statements about Telecom's future performance, plans, strategies and objectives. Such statements are subject to uncertainties that could cause Telecom's actual results and operations to differ materially. Such uncertainties include, but are not limited to, the effect of ongoing industry and economic regulations, possible changes in the demand for telecoms products and services, the effect of potential changes in general market and or economic conditions, In legislation and the impact of the outbreak of COVID-nineteen of the global economy and specifically on the economies of the country in which we operate as well as on our operations and financial performance. Our press release dated March 9, 2021, a copy of which was included in Form 6 K and Central SEC describe certain factors that may affect any forward looking statements that could be mentioned during this call. The company has reflected We expect the inflation adjustment adopted by Resolution 7.77 of 2018 of the Comision National de Valores, TMB, We just acknowledge that the euro expression will be applied to the annual financial statements for intermediate and special periods ending as of included December 31, 2018. Accordingly, the reported figures correspond to fiscal year 2020 included the effects of the adoption of the discretionary accounting in accordance with IAS 29. In this presentation, we will also include figures in historical values, which are easier to understand. Our press release is complemented by our earnings presentation. The audience should read the disclaimer contained in Slide 12 of the presentation. The attendance of today's conference call is described in Slide 3 and include our business and financial highlights. We will end the call with a Q and A session. Now let me pass the call to Gabriel, our CFO, who will start with the presentation. Thank you, Solange. Good morning, and welcome to everyone. Moving to Slide 4, it Shows a summary of the company figures as of December 2020. During the fiscal year 2020, telecoms revenues totaled $2,600,000,000 Revenues measured in constant pesos decreased 6.5% year to year. EBITDA totaled $1,200,000,000 implying 34.1 percent EBITDA margin, Which has been on the high side despite the challenging 2020 due to COVID-nineteen. Our mobile subscriber In Argentina amounted to $18,700,000 decreasing approximately to $228,000 when comparing with the previous quarter Due to a decline of around 540,000 in the prepaid segment, which were partially offset by an increase of more than 300 and In terms of clients in the postpaid segment, broadband and pay TV clients have maintained a number of clients during 2020, Totaling around €4,200,000 and €3,500,000 respectively. Fixed voice subscribers without considering IP telephone lines amounted to €2,900,000,000 Thanks to our successful commercial strategy focused on the bundling and upsellings of our products, We currently have 2,700,000 convergent unit customers, and 45% of our broadband customers have a mobile compactor. Slide 5 summarizes our main achievement during 2020. Our network has performed very well during last year I will continue to do so in response to the higher demand of mobile and fixed connectivity. Thanks to the investments in infrastructure done in the recent year, Telecom has equipment and systems that allow its network to perform efficiently, supporting important increases in both Internet data traffic, Mobile voice and data services combined with a very strong growth in upstream traffic. Our business is proving to be very resilient The sales ratio according to industry standards, resulting on our historical EBITDA margin of plus 30%. The company's objective is to be 100% digital. We are not only converting our systems In order to integrate all our operations, but also to make net ecosystems and platforms, leverage our connectivity, which allowed us to manage our upscale products OpEx before G and A have been strongly reduced substantially by almost high transact in real terms, thus allowing us to achieve a strong EBITDA margin. Our collections and bad debt have been normalized at historical levels. During 2020, we refinanced $737,000,000 This and carries over $200,000,000 of debt with different financial institutions. Our bond maturity in June 2021 Was changed with 2025 bond, and our all of this with Multirateras was revised. We have been on the few Argentine companies achieving such a financial performance in terms of both improving our capital structure and extending debt liabilities. On That allows us to successfully respond to the higher demand of our services during 2020. Telecom's leadership in Argentina's integrated indications market We delivered on 3 main strategic assets: broadband flow, our IPTV service and mobile. The second is the case of our brand fiber test and also megabytes for our SXBSL product, reaching 65% of both pass Most of our network technology is HDFC, which was in doses 3.1, 1 gigabyte per second and is available in our Airic Energy Network. We are also deploying redeploy To activate our corporate network. Flow is our IT video platform that has evolved into a super content aggregator, Allowing clients to access the video music gaming and other famous streaming services. We have incorporated the full digital subscription to Flow For our fiberfill clients, call flow now allows clients to enjoy cloud features without the need of a depot at home. Our brand for mobile personnel is the fastest 4 gs mobile network in the country with the best 4 gs quality terms of consistent quality, Availability is the experience and download upload scheme. In addition, we have initiated the deployment of the first series of 5 gs mobile sites in the cities of Buenos Aires and Rosario with Huawei and Nokia In Slide 7, we highlight our digital transformation project and new business initiatives. Regarding our main BSS transformation project, FANO, we have continued with our migration process. All of our prepaid customers have been migrated, and more than 10,000,000 clients are active in the CRM system. We have also completed the migration of 550,000 posted lines in February 2020. Suite is our new digital channel, front end and includes e commerce and self-service solutions, which gives our B2C customers a convergent experience. During 2020, we have launched the first releases for Yap, our versions of the platform. Our cloud foundation project To integrate the different PowerUp cloud platform with telecom processes in order to achieve additional efficiency, process automation and business flexibility. We have also implemented the payments because I hosted in the AWS cloud and uploaded electronic wallet for our FinTech initiative. During 2020, Telekop was the 1st company in the world to successfully implement SORCAM Asset Performance We sent our payment and rate management. On July 1, we have concluded the digital core implementation and post gold lead support has been done. Minidioso Personale is our e commerce platform that allows people entrepreneurs to digitalize the commercial experience of their businesses And to perform sales in a personalized way through the social networks of our choice and with integrated sponsor patients. We also began to develop a fintech business, which consists of providing mobile financial services to clients in Argentina through our subsidiary in Brazil sales. In December 2020, we obtained the first version of the platform that will allow us to provide sales letters. Finally, we have also committed the new conference call, Personal SmartCo, which provides IoT services Such as monitoring, security, digital interconnection and home automation in the design of houses, building cities and power to private companies. Slide 8 summarizes the regulatory events related to the telecommunications industry during 2020. During March 2020, the Executive Power issued a decree, which determined the temporary suspension of the disruption of fixed and mobile telephones, Internet cable TV services in the case of non payment until the end of September 2020. This degree was Debt extended until December 2020. We made due to COVID-nineteen. Our industry has rejoined Iberneton to increase the tariff of our products until the end of August 2020. On the other hand, all comp points in the industry were not required to increase salaries until August 2020. In August, we decreased 6.90.2020, extending the price increase until the end of 2020. The decree also declared ICT services as an essential public service. In December of 2020, Enacom issued 2 resolutions. Resolution number 1466, authorized price increased by 5% on all ICT services, It's effective as of January 1, 2021. We also established that any further price increase has been formed and submitted to an account For a total 60 days in advance. Resolution 1467 determine a series of basic and universal services 20 and decree 3.11-twenty. The judge also ordered the safety power and the Eniacom to obtain Moving to Slide 9, we said the price adjustment performed as of January 2021. As of January 2021, we have made the following adjustment And of the prices of our services. In mobile prices of the plant, 1 gigabyte of less than have been increased by 5%, While those with more than 1 gigabyte mobile data have been increased by 20%. Broadband, the prices of services will increase After all, equal to 25 megabytes per second, mainly fiber and light services has been rising by 10%. Prices of services, which is higher than 25 megabytes per second, increased by 20%. Oil prices of Pay TV services, including premium services Such as HBO and POX have increased by 20%. The price of the football tax subscription has increased by 25%. Prices of fixed voice facing services were increased by 5% and Argentina legal services by 20%. Slide 10 shows our product evolution in Argentina. Mobile segment postpaid subscribers have increased 4.1%, while prepaid subs have increased 4.8%, increasing our cost base market share. By Vertell, our customer base increased by 0.7% year over year, Mainly growing in the HFC and FTTH segments. Pay TV ARPU. Pay TV ARPU has grown 0.9% year over year, mostly leveraged our growth platform. Fixed voice ARPU, the reduction of prices Slide 11 shows evolution of our revenues service revenues. Service revenues totaled almost ARS294 1,000,000,000, Increasing 6.3% in real terms versus fiscal year 'nineteen. In a period where inflation reached 36 21% year over year. Our revenue breakdown as of December 2020 shows an increase in mobile revenue share And the lower share of broadband and pay TV revenues. The breakdown results are as follows: mobile revenue, 38% broadband revenue, 21% In addition, It's between 50 and 1,000 megawatts per second compared to 41% during 2019. In Slide 13, We show the evolution of our growth product and how we have been able to increase its penetration. Close our IT video platform, Showing our improvement in the network digitalization. Slide 14 is a summary of our operations in Paraguay. We consider our presence in Paraguay, Nucleo, as a driver of growth given to our strong market share. Paraguay's improving economy situation 2, nucleos' ability to finance itself in the local market and increase inflation dollars that we have seen. There are no restrictions to convert currencies local Currency in 2 D. S. Dollars. Nuclear generated €119,000,000 83,000,000 in revenues and EBITDA, respectively, During fiscal year 2020, revenue breakdown was as follows: browsing services, 43%, voice almost 20%, Data almost 10%, broadband 9%, TV service 7% and other services with approximately 11%. As of December 31, 2020, mobile customers totaled 2,200,000 clients of Visesiras Parsonales, the mobile financial service In the Safety segment, non customers total Turkish results are in personal HD60 1,000. The fixed network deployment The main cities of Paraguay has been increasing rapidly, reaching 455 Alpha Home Pass. Additionally, Nucleus Internet subscribers total was 135,000, increasing almost with 10% versus the last quarter of 2019. I will now pass the call to Fernando Balmaceda, who will go our financials part of us. Thank you so much, Yarell. Turning to Slide 15, we show the evolution of local inflation. As of December 2020, the year over year increase in inflation has been 36 on 1%. During the Q4 of the year, inflation has accelerated to 11.3%. The breakdown that we are showing shows that the share of communication services in CPI amounts to approximately 2.8%. Communication services during 2020 have increased by 7.6% according to the official national CPI Data published by the index. Slide 16 shows that during fiscal year 2020, consolidated revenues On nominal terms grew by 33%, reaching almost ARS257,300,000,000. When analyzing said figures adjusted by inflation, revenues amounted to almost ARS 301.6 billion, showing an increase of 6.5% in real terms. Service revenues showed a 33 nominal increase in a context where prices have been frozen for the most part of 2020, It may be driven by MoE revenues, which grew more than 1% in real terms when comparing fiscal year 2020 with Fiscal year 2019. EBITDA increased by 36% year on year in normal terms, Thus, generating an EBITDA margin of 34.3%. EBITDA margin in year end terms was 34.1 percent. Company performed well in real terms Well, in terms of cost controls, operating costs before the NAND increased by 9% in real terms versus Fiscal year 2019. The company has achieved an aggressive cost reduction. Slide 17 shows the company's EBITDA evolution and the impact of the reduction in operating expenses. There was a positive contribution to the EBITDA margin Due to the reduction in enhancement costs, which decreased 24% in real terms, mainly to a lower sellout. Operating efficiencies have been obtained both in programming and content costs and also due to the elimination of segments Mainly related to sports. General fees, maintenance and material expenses have been reduced Due to an optimization in the consumption of materials associated with our daily activity, commissions and advertising expenses have also been reduced. International costs increased in real terms, mainly due to the lower influence, while bad debt expenses also decreased above inflation. The final result was 160 bps increase in EBITDA in real terms when compared with fiscal year 2019. Slide 18 shows the evolution of our collections and non performing debt. Collections to digital channels have increased to 67% of our total collections And are at normal levels in terms of our collection periods. Please recall that our delays in collections was almost 30% at the beginning of the lockdown period back in March 2020. The general level of our nonperforming debt Expirisa increased during the last quarter of 2020, 1.3% as of December 2020. Slide 18 shows that the company's operating income totaled almost ARS20.30 billion. EBIT has decreased 6% in real terms. Operating margin in real terms was 7% of consolidated revenues, Very stable when compared to last year's. When concerning historical figures, the same margin has increased by 20% From 18% in fiscal year 2019. Our net loss for fiscal year 2020 was ARS5 point ARS 1,000,000,000 decreasing by 3.6% when comparing to last year's, mainly due to a reduction in income tax, which was partially offset by higher losses related to the net financial results. Slide 20 is a summary of the company's CapEx. During fiscal year 2020, CapEx amounted to more than ARS555 1,000,000,000 or an equivalent of $662,000,000 at the official FX rate. This amount is 37% lower when compared to last year's CapEx. We have almost finalized most of our adjustments and improve our infrastructure during the 1st 2 years after the merger. Our CapEx program will We are evolving according to Argentina's economic condition, network performance and customer requirements. Technical CapEx were mainly composed of installation and cost from on premise equipment or CPA. The balance was allocated network and technology and to our international operations in Paraguay and Uruguay. During the Q4 of 2020, 89 new mobile sites were deployed and the capacity and security of more than 2,000 existing sites was upgraded. Moreover, we continue to increase the capacity of our HFC access network, Mainly through segmentation and divisional barriers. Additionally, 1,800 blocks were enabled with FTTH, Fixed Access Technology. In February 2021, we have begun with the deployment of 5 gs Moi sites in Argentina, Which allows connection speeds up to 10 gigabytes per second, having a response 100 times higher than the 4 gs networks. This new technology allows the clients to connect multiple devices at the same time. Slide 21 describes our cash flow generation during 2020 when compared with the same period of 2019. As of December 2020, the operating free cash flow amounts to approximately $583,000,000 The reduction in CapEx mainly explained the additional $52,000,000 in free cash flow when compared to the previous fiscal year. EBITDA in constant U. S. Dollars remained relatively stable. Slide 22 shows our figures for fiscal year 2020 in constant measuring units. Company's revenues amounted to more than ARS301 billion, while EBITDA amounted to almost ARS103 billion. EBITDA margin was 34.1%. Our gross debt amounted to almost ARS 200,000,000,000, decreasing 3.3% when compared with December 2019. The company's cash and short term investments amounted to more than ARS 25,000,000,000 mainly composed of cash And equivalents and investments in local mutual funds and other short term investments. Net debt amounted to approximately ARS 174,000,000,000. Our net debt to EBITDA ratio was 1.7x. During 2020, the company has canceled $200,000,000 of debt and refinanced more than $770,000,000 of its financial debt. Slide 23 On our 6, 2020, Telecom has concluded an exchange offer of outstanding 6.5% coupon notes Due in 2021, holders validly tendered $362,200,000 of notes June 2021. The acceptance rate was 77.74%, High enough to demonstrate our solid trade profile and attractive proposal to portfolios. An additional amount of 130 $5,400,000 of notes through 2025, new money was raised to repay our loan with Deutsche Bank, AG, London Brands and CPPIB, Credit Investments Inc. The company finally issued $388,900,000 of new amortizing notes due 2025 With an 8.5% semiannual coupon. On September, the company successfully refinanced its loans with ISG See and IDB Invest for an amount of $329,300,000 In the case of the IFC loans, 85% of the principal to be repaid in 20202021 was extended between 24 84 months. In the case of the IBB Invest Loans, 85% of principal to be repaid in 20202021 was extended between 24 66 months. The company repaid almost $40,000,000 of the loans mentioned above, optimizing its capital structure and extending its maturities. In Slide 24, we describe our latest financing transactions. We have successfully completed 2 bonds issued in Argentina in Argentine pesos in December 2020 For an amount of almost €120,000,000 equivalent in 2 tranches and in January 2021 for an amount of approximately $100,000,000 Equivalent. Additionally, in December 2020, the company excludes an import financing for an amount of preminbis 700,000,000 equivalent to around $100,000,000 and expandable to up to renminbi $1,400,000 equivalent to $200,000,000 With the China Development Bank, or CDB. As of December 31, 2020, approximately $3,000,000 was enforced under this financing. The increase in the final amount of self financing will be subject to an insurance from the And credit insurance for SinuSure in which we're currently working on. Slide 25 Shows the breakdown of our financial debt. Total outstanding debt as of December 2020 amounted to more than $2,300,000,000 Our debt profile and capital structure has improved significantly after the exchange of our 2021 notes And the refinancing of our IFC and ADB loans. Our dollar denominated maturities for 2021 amount to approximately $150,000,000 while the rest is composed of peso denominated debt. For 20222023, 3, our debt maturities remain within the range of $500,000,000 and will then be reduced considerably until the maturity date of our 20 I will now pass the final the presentation to Solange for the final remarks. Thank you very much. Thank you, Samantha. With this, now we are more than pleased to answer any questions you may have. However, before we start, We would like to remind you how you can address your question during the Q and A session, which will be opened immediately. Please send a message through IR Telecom Argentina through the Q and A menu, identifying yourself and stating that you have a question or alternatively, We will let you know when it's your turn to speak, And we will unmute you so you can proceed with your questions. Thank you very much. The first question that we have received is from Marcelo Sandoz with JPMorgan That is said, could you please comment more on the wallet initiative? What is the current size in users? What are the features currently enabled? Additionally, yes, are the prices increases adopted by Telecom enough to sustain margins, perhaps coupled with efficiency increases. Hello, everyone. This is Roberto. Going back to the first question regarding the wallet. Today, it's a project. We have put in place an NDP Product that is already running. We are launching this application By June, I mean 2021. We already have More than $4,000,000 prepaid wallets between brackets. These are Customers that will constantly and with high frequency, they will Put money into this wallet between brackets and use it on a prepaid basis. So we are trying to leverage on prepaid. We are trying to leverage on our 2,000,000 Customers that use our Fidelity thought, what we call, Club Personal, Where we give out prices and discounts with certain shops For our major customers. So we're trying to leverage our wallet on prepaid, on dual personnel And of course, on all the transactions that we do within our own ecosystem. We have our own marketplace Where we have 1,000,000 of transactions, Gabriel mentioned Switch. Switch is a new platform, A digital platform that we put in place, and it's working, and it's already producing a lot of Synergies and new revenue streams for the company, and we're going to leverage on that. The project is in place. We're launching that in June probably. On the second question regarding If we can keep the margins either by inflation adjustment or synergies, we are looking for both things. What we are confident that we will be able to adjust our Prices by inflation, probably not Always looking backwards. We will be trying to catch up inflation. That has always been the idea, And we are confident that we will keep on doing that as long as we Are still working on synergies. The improvement in EBITDA margin last year Was fortunately done with these synergies That are part of all the plans and all the things that we are working on, trying to put The 2 big companies into 1, and we have been very successful doing that. So I assume that we will keep margins at the right level, And that will allow us to keep investing as much as Our customers' needs. Thank you, Sebastian. The following question came from John What percentage of mobile fab use over 1 gigabyte of data? And what percentage of broadband fab Have over 25 megabytes peak? The second question is, what are your plans and pace I will start with the last one, and we will Look for the right information on the first one. The loss It's due to during the pandemia, the government decided to freeze Any type of we were not able to disconnect Any customers during the pandemia. So we've been dealing with customers with more than 6 or 7 invoices due and were not we were not able to disconnect them. By the end of the year, that decree was not renewed. So we were able To work very hard on those customers trying to negotiate a payment. And for those that didn't pay, we decided to go forward with the disconnection. So the loss is due to that, It's due to the after pandemia problem. The second question regarding the inflation, the adjustment of prices, we have already talked about it. Most of our I would say more than 90% of our customer, 95% of our mobile Postpaid customers are over 1 giga, and that is the number. On the prepaid, we have like probably almost 100% are already About 1 gigahertz. So we don't see I mean, our customers are using The mobile Internet are very heavily. And that's why we were able Because of all the investments that we did before, the pandemic, we were able to keep the service running and being As long as OpenSignal and other third parties agencies are telling us that we are The best service provider, mobile service provider in Argentina. So that's the real thing. In terms of Internet, 70 more than 70% of our customers are over 20 megabytes. Those that are not over 20 megabytes, I can tell you that it is because they are on Corporate networks, probably networks that we need to upgrade through investment and that will Take longer if the conditions of Argentina take the same. Thank you, Dorado. The following question came from Pedro Osores. Juan, can you please provide more details on the CapEx plan for this year? Also, on the vertex for 5 gs rollout. Thank you for the question. We have several, I would say, plans For the CapEx of 2021. And it's the same thing that we did in 2020. We have a plan. We know exactly what to do. We have a strategy behind the plan of investments, But we need to make sure that the conditions and the payback of that investment is Right there in place at the moment of investment. So last year, we were very cautious. And Until we have the present condition that was the refinancing of the debt Of the 2021 bond, up to that moment, we were very, very cautious And trying to keep the CapEx at a very low rate. As soon as we have The perspective of the near future that was good for the company, we keep rolling the CapEx and we were able For the most part, do almost $700,000,000 in investments. That was the plan. But we if you take a look into the quarter by quarter basis, we were very cautious at the very beginning and then we accelerate at the end. This year, we are doing the same thing. We have set a minimum CapEx of maintenance. Maintenance means making sure that we can Have the CapEx for the churn, for new installations and all the turnover that we have on the CPE's Investment, as long as the maintenance the minimum CapEx that we have to do On the networks to make sure that our customers do not suffer any problems in connectivity. That CapEx is around between $350,000,000 $400,000,000 $350,000,000 probably is the right Number and on top of that, Fernando also mentioned that we have renewed The vendor financing with Embeda that turns into Nokia, we have the new financing from GTB For new equipment and we also keep and renew the vendor financing from Cisco. So We are also leveraging on our partners, technical partners to Move forward with the CapEx, but obviously, we will do that if the conditions Of the Argentine economic situation are good enough to make sure that the payback will be there. So 350,000,000 Between $350,000,000 $500,000,000 could be that minimum and maximum. And if we are going forward with the adjustment of Prices, together with the inflation, we could probably think of going a little bit higher. But we will do that as soon as we feel confident that we can keep On the 5 gs, we have launched 5 gs, 5 gs DSS, That means dynamic spectrum sharing. Our core is ready, 45%, almost 50% of our radios are already prepared for 5 gs All across our coverage. We have put in here only 10 sites On DSS, we in our plan for this year, we have more than 2 50 sites deployed on 5 gs. That investment obviously is on hold, and it will depend how do we move forward Depending on adjustment to the prices, the economic situation And also the customer base on 5 gs devices that right now is very low due to our economic situation also. Thank you, Roberto. The follow-up question came from Nicolas Tianoone. He asked, will you please comment on the current status Of the average discount abroad products, are they below the 60% we have seen last year? Thank you. Yes. The evolution of the different discount that the company provides reached a peak during last year, But by the end of the year, a decrease reaching above levels of 30%, 35% Of the customer base. That's the total situation. Today, in the range of 30%, have some type of Remember that due to the regulatory environment, the figures are not absolutely compelling, but we have a group of customers That were pushed to growth at 0. For those customers that were pushed to growth at 0.0 because they didn't pay, The company has created a campaign providing certain additional financial relief to them, and we have recovered Almost 70% approved customers to the customer base of the quarter. Following question came from Alejandra Aranda. How should we think about pricing strategy and increase during 2021? And if you could give us some guidance in terms of cost. Alejandra, I think we have talked about trying to keep prices Adjusted by inflation, always looking backwards, trying to catch up inflation. And in terms of cost, We are pushing costs at the minimum. We are confident that we will be able to sustain margins Stable, the only cost that will be difficult To keep below inflation Probably will be the labor cost. Labor cost, the government is pushing Unions to move with inflation despite the price freeze, And that is something that we need to work on and we are already working on. But that could be the only Cost that will move with inflation or just a little below inflation. The rest of the costs Are under control, and we will keep them under control. So we are working on maintaining and sustaining The margin rate. Thank you. The following question came from Gustavo Liana. 1, how do you plan to comply with the extension of Central Bank's obligation A 20 1 100 and 6, Considering the remaining maturity of Class A Note 2021. Actually, Well, regarding our maturity of the bond 2021, as we have refinanced More than 80% of the world last year. The remaining, I mean, the $100,000,000 that we have to pay this year is not reached by this Regulation in terms of Banco Santo, specifically allows payments to the debt that has been refinanced during 2020 With that condition, meaning that we can access to the more absolutely free to comply with this term. It's important to address that the only significant maturity that we have in this year is that Because the rest of the maturities are local or minor, and so we have no pressure from this regulation. Regarding our maturities in 2022, So we got an outstanding $516,000,000 that we have next year, only $140,000,000 Which is part of our term loan with our 4 banks is reached by theoretically Might be reached by this type of regulation if Banco Central decides to move it forward. And we don't think that it's going to be difficult for the company To refinance this with its core bank, because we are in that we have decreased in 2 years to $1,500,000,000 of outstanding to And also because these are the relationship banks of our business. Having said that, We are increasing our presence in the local capital markets with different type of instruments to be sure that no financial stress is needed. Also, I think it's important to recall what Fernando has mentioned is that we have Already granted a great line of our $200,000,000 purchase itself by considerations with CDB, As in a call, all the national states appealing the intention with suspended provision of the 3.60 in Nike, What's your view on price regulation going forward? The intercom, of course, Has appealed. That appeal is underway. We are confident that The injunction is still in place and in full force. So that's and we believe that we will Start taking notice of new injunctions Coming from different courts. Moving forward, as I mentioned, we are confident that we will be able To go back to the pre 6.90 degrees. We are confident that we will be able to sustain that. Thank you, Can you walk through in more detail the regulatory process of raising prices about 5% and the resolution of 14.66 How frequently will you be able to raise prices this year? Thank you for the question. Right now, the VienaCom has I will say something before that. On the appeals of Enakom against our own Ask for injection, for example. In that opinion, the comment defines that they were not able To determine prices. They have no power to define or determine Or put in place prices for the industry. That was written by the own legal department from the Macomb. Despite that, they issued several resolutions, implemented a 5% Increase in January, a 7.5% increase in February for the mobile Customers and another 5% for the 5th in March and a 2.5% Increase in the mobile for March. In the mobile, by March, we already have 15% increase Authorized by Enagome and only 10% increase in the fixed services. That and there is no According to what we know, there is no idea how Enecom will allow Further increases in prices throughout the year. I mean, there's no process already in place. There is no idea how they will do that. We believe and we are confident that we will have the right To increase prices adjusted by inflation throughout the year because of our appeal, not because of Enacom Allowing us, but just because a court will allow the industry to move forward. Just a clarification regarding the question about the discounts, I'm not sure if I Spread it out properly, the average discount today is 130% on the total customer base affected by this Thank you, Arvind. The following question came from Pedro Flores. Follow-up question, who says, how are the company's plans for expanding operations and diversifying businesses in Uruguay and Paraguay? As you have seen throughout 2020, we have invested a lot In Paraguay, we have increased our fixed network coverage. We have Move from 30,000 customers on broadband To 135,000 customers in broadband by the end of December 2020. So Our idea of expanding our businesses outside Argentina Are in place, they are committed to investing in Paraguay, which is Our operation and a very good operation, we get very high margin. And if you compare Our margins with our competitors, you will see that we are we have been very successful in that. In Uruguay, we are taking a close and very reasonable look At the possibilities, there are still some things That the government has to solve, that's the new we need to understand how the new Policy or the new legal framework or regulation for the industry will come out after Congress debating the new telecommunication law. So we are waiting to see how it come out from Congress, What an incumbent will be able to do or not, working best or not, if there is a convergence Between fixed and mobile is one thing. If that's not allowed, the value creation is different. So we will take a look, but we will wait and see also. We have the last question, Pedro Vallejo, from Florentia Labarinos. Is there any news regarding new radiolitic spectrum by from Enagome? No. There's no any We should see in the future 5 gs spectrum coming out And the remaining 4 gs spectrum coming out, we don't see that in 2021. Basically because the industry is concerned of investments and also concerned on the payback of those investments. If we take a look at the previous bid in 2014, 2015, Telecom paid more than $500,000,000 for the spectrum for 4 gs spectrum with a very clear cost Saying that, that bid was making sure that all the companies will have The free access to price determination to price Adjustment. Adjustment. And that is not occurring now. So the same government is going against The bid and what was signed and offered in the last bid. So there are things to solve. I think that the 6 90 degree is a problem right now, And I don't see new spectrum coming out very soon. It is something that the industry The industry needs a spectrum if we want to move to 5 gs and new services. But we need to make sure that the context It's good enough for new investments. Thank you, Roberto. As we have no more questions, Good morning, you all, and have a nice day.