Exhibit 99.1





Comunicaciones Celulares, S.A.



Financial statements

At December 31, 2018 and 2017 and for each of the three
years in

the period ended December 31, 2018



With report of independent auditors











Comunicaciones Celulares, S.A.



Financial
statements



At December 31, 2018 and 2017 and for the
each of the three years  in in the period ended December
 31, 2018



Content



|Report of Independent Auditors     | 1-2 
|---------------------------------- | ----
|                                   |     
|Audited financial statements:      |     
|                                   |     
|Statements of financial position   | 3   
|Statements of comprehensive income | 4   
|Statements of changes in equity    | 5   
|Statements of cash flows           | 6-7 
|Notes to financial statements      | 8-57



















Report of Independent Auditors



To the Shareholders and the Board of Directors
of

Comunicaciones Celulares, S.A.



We have audited the accompanying
financial statements of Comunicaciones Celulares, S.A., which comprise the statements of financial position as of December 31,
2018 and 2017, and the related statements of comprehensive income, changes in equity and cash flows for each of the three years
in the period ended December 31, 2018, and the related notes to the financial statements.



Management’s Responsibility
for the Financial Statements



Management is responsible for
the preparation and fair presentation of these financial statements in conformity with International Financial Reporting Standards
as issued by the International Accounting Standards Board; this includes the design, implementation and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether
due to fraud or error.



Auditor’s
Responsibility



Our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.



An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend
on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express
no such opinion.



An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.



We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.



A member firm of Ernst & Young Global Limited















To the Shareholders and the Board of Directors
of

Comunicaciones Celulares, S.A.

Page 2



Opinion



In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial position of Comunicaciones Celulares, S.A.
at December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended
December 31, 2018 then ended in conformity with International Financial Reporting Standards.



Adoption of IFRS 15, Revenue
from Contracts with Customers and IFRS 9, Financial Instruments



As discussed in Note 3 to the financial statements, the Company changed its method of accounting for revenue
recognition from contracts with customers and for the classification, measurement, recognition and impairments of financial assets
and financial liabilities as well as hedge accounting starting on January 1, 2018 due to the respective adoption of IFRS 15 “Contracts
with customers” and IFRS 9 “Financial Instruments”.



|/s/ Ernst & Young, S.A.        | 
|------------------------------ | 
|Ernst & Young, S.A.            | 
|Guatemala City, March 15, 2019 | 



A-031-2019



A member firm of Ernst & Young Global Limited















|Comunicaciones Celulares, S.A.  
|--------------------------------
|Statements of financial position
|As at December 31, 2018 and 2017



(Expressed in thousands of Quetzals)



|                                         |  | Notes |      |  | 2018 |   |            | 2017 | 
|---------------------------------------- |  | ----- | ---- |  | ---- | - | ---------- | ---- | 
|Assets                                   |  |       |      |  |      |   |            |      | 
|Current assets                           |  |       |      |  |      |   |            |      | 
|Cash                                     |  |       | 6    |  |      | Q | 1,328,190  |      | 
|Accounts receivable                      |  |       | 7    |  |      |   | 209,277    |      | 
|Accounts receivable from related parties |  |       | 8    |  |      |   | 2,697,367  |      | 
|Inventories                              |  |       | 10   |  |      |   | 5,436      |      | 
|Other assets                             |  |       | 9    |  |      |   | 34,559     |      | 
|Contract assets                          |  |       | 3    |  |      |   | 439,665    |      | 
|Other financial assets                   |  |       |      |  |      |   | 141,484    |      | 
|Total current assets                     |  |       |      |  |      |   | 4,855,978  |      | 
|                                         |  |       |      |  |      |   |            |      | 
|Non-current assets                       |  |       |      |  |      |   |            |      | 
|Property, plant and equipment            |  |       | 11   |  |      |   | 3,047,834  |      | 
|Intangible assets                        |  |       | 12   |  |      |   | 593,446    |      | 
|Accounts receivable from related parties |  |       | 8    |  |      |   | 3,393,835  |      | 
|Deferred income tax assets               |  |       | 19   |  |      |   | -          |      | 
|Contract costs                           |  |       | 3    |  |      |   | 18,966     |      | 
|Other non-current financial assets       |  |       |      |  |      |   | 1,885      |      | 
|Total assets                             |  |       |      |  |      | Q | 11,911,944 |      | 
|                                         |  |       |      |  |      |   |            |      | 
|Liabilities and equity                   |  |       |      |  |      |   |            |      | 
|Current liabilities                      |  |       |      |  |      |   |            |      | 
|Accounts payable                         |  |       | 14   |  |      | Q | 555,541    |      | 
|Accounts payable to related parties      |  |       | 8    |  |      |   | 271,675    |      | 
|Income tax payable                       |  |       | 19   |  |      |   | 44,260     |      | 
|Accrued interest                         |  |       |      |  |      |   | 171,446    |      | 
|Contract liabilities                     |  |       | 3,16 |  |      |   | 180,184    |      | 
|Other accounts payable                   |  |       | 15   |  |      |   | 42,728     |      | 
|Total current liabilities                |  |       |      |  |      |   | 1,265,834  |      | 
|                                         |  |       |      |  |      |   |            |      | 
|Non-current liabilities                  |  |       |      |  |      |   |            |      | 
|Loans                                    |  |       | 13   |  |      |   | 6,273,696  |      | 
|Provisions                               |  |       | 17   |  |      |   | 247,872    |      | 
|Deferred income tax liabilities          |  |       | 19   |  |      |   | 15,956     |      | 
|Total liabilities                        |  |       |      |  |      |   | 7,803,358  |      | 
|                                         |  |       |      |  |      |   |            |      | 
|Equity                                   |  |       |      |  |      |   |            |      | 
|Issued capital                           |  |       | 18   |  |      |   | 25,000     |      | 
|Retained earnings                        |  |       |      |  |      |   | 2,455,271  |      | 
|Legal reserve                            |  |       | 18   |  |      |   | 1,599,049  |      | 
|Other components of equity               |  |       | 18   |  |      |   | 29,266     |      | 
|Total equity                             |  |       |      |  |      |   | 4,108,586  |      | 
|Total liabilities and equity             |  |       |      |  |      | Q | 11,911,944 |      | 



The accompanying notes are integral part of the financial statements.



3







|Comunicaciones Celulares, S.A.                      
|----------------------------------------------------
|Statements of comprehensive income                  
|For the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                      |  | Notes |      |  | 2018 |   |            | 2017 (1) |  |   | 2016 (1)   |  
|------------------------------------- |  | ----- | ---- |  | ---- | - | ---------- | -------- |  | - | ---------- | -
|Airtime                               |  |       |      |  |      | Q | 6,740,527  |          |  | Q | 6,728,654  |  
|Handsets and accessories              |  |       |      |  |      |   | 585,035    |          |  |   | 213,925    |  
|Subscriptions                         |  |       |      |  |      |   | 2,755      |          |  |   | 4,070      |  
|Other income                          |  |       |      |  |      |   | 177,736    |          |  |   | 154,796    |  
|Revenue from contracts with customers |  |       |      |  |      |   | 7,506,053  |          |  |   | 7,101,445  |  
|Cost of sales                         |  |       | 20   |  |      |   | (1,131,334 | )        |  |   | (698,244   | )
|Gross profit                          |  |       |      |  |      |   | 6,374,719  |          |  |   | 6,403,201  |  
|Operating expenses                    |  |       | 21   |  |      |   | (2,833,064 | )        |  |   | (3,304,263 | )
|Other expenses                        |  |       | 22   |  |      |   | (44,244    | )        |  |   | (55,226    | )
|Operating profit                      |  |       |      |  |      |   | 3,497,411  |          |  |   | 3,043,712  |  
|Financial income                      |  |       | 23.1 |  |      |   | 473,006    |          |  |   | 283,465    |  
|Financial expenses                    |  |       | 23.2 |  |      |   | (906,141   | )        |  |   | (542,602   | )
|Profit before income tax              |  |       |      |  |      |   | 3,064,276  |          |  |   | 2,784,575  |  
|Income tax expense                    |  |       | 19   |  |      |   | (508,676   | )        |  |   | (484,931   | )
|Net profit for the year               |  |       |      |  |      |   | 2,555,600  |          |  |   | 2,299,644  |  
|Other comprehensive income            |  |       |      |  |      |   | -          |          |  |   | -          |  
|Profit for the year                   |  |       |      |  |      | Q | 2,555,600  |          |  | Q | 2,299,644  |  



| | (1) | Prior periods are not restated for the application of IFRS
15 and 9, as the Company elected the modified retrospective approach for both standards.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------



The accompanying notes are integral part of the financial statements.



4









|Comunicaciones Celulares, S.A.                      
|----------------------------------------------------
|Statements of changes in equity                     
|For the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                              |  |       |    |  |         |   |        |          |  |   |            |   |  | Other      |           |  |        |  
|----------------------------- |  | ----- | -- |  | ------- | - | ------ | -------- |  | - | ---------- | - |  | ---------- | --------- |  | ------ | -
|                              |  |       |    |  | Issued  |   |        | Retained |  |   | Legal      |   |  | components |           |  | Total  |  
|                              |  | Notes |    |  | capital |   |        | earnings |  |   | reserve    |   |  | of equity  |           |  | equity |  
|As at January 1, 2016 (1)     |  |       |    |  |         | Q | 25,000 |          |  | Q | 2,370,725  |   |  | Q          | 1,243,127 |  |        | Q
|Transfer to legal reserve     |  |       |    |  |         |   | -      |          |  |   | (122,881   | ) |  |            | 122,881   |  |        |  
|Share-based incentive plan    |  |       | 18 |  |         |   | -      |          |  |   | -          |   |  |            | -         |  |        |  
|Dividends                     |  |       | 18 |  |         |   | -      |          |  |   | (2,334,732 | ) |  |            | -         |  |        |  
|Profit for the period         |  |       |    |  |         |   | -      |          |  |   | 2,092,003  |   |  |            | -         |  |        |  
|At January 1, 2017 (1)        |  |       |    |  |         |   | 25,000 |          |  |   | 2,005,115  |   |  |            | 1,366,008 |  |        |  
|Transfer to legal reserve     |  |       | 18 |  |         |   | -      |          |  |   | (112,058   | ) |  |            | 112,058   |  |        |  
|Share-based incentive plan    |  |       | 18 |  |         |   | -      |          |  |   | -          |   |  |            | -         |  |        |  
|Dividends                     |  |       | 18 |  |         |   | -      |          |  |   | (2,129,103 | ) |  |            | -         |  |        |  
|Profit for the period         |  |       |    |  |         |   | -      |          |  |   | 2,299,644  |   |  |            | -         |  |        |  
|At January 1, 2018            |  |       |    |  |         |   | 25,000 |          |  |   | 2,063,598  |   |  |            | 1,478,066 |  |        |  
|Effect on adoption of IFRS 15 |  |       | 3  |  |         |   | -      |          |  |   | 286,170    |   |  |            | -         |  |        |  
|Effect on adoption of IFRS 9  |  |       |    |  |         |   |        |          |  |   | (30,443    | ) |  |            |           |  |        |  
|At January 1, 2018, restated  |  |       |    |  |         |   | 25,000 |          |  |   | 2,319,325  |   |  |            | 1,478,066 |  |        |  
|Transfer to legal reserve     |  |       | 18 |  |         |   | -      |          |  |   | (120,983   | ) |  |            | 120,983   |  |        |  
|Share-based incentive plan    |  |       | 18 |  |         |   | -      |          |  |   | -          |   |  |            | -         |  |        |  
|Dividends                     |  |       | 18 |  |         |   | -      |          |  |   | (2,298,671 | ) |  |            | -         |  |        |  
|Profit for the period         |  |       |    |  |         |   | -      |          |  |   | 2,555,600  |   |  |            | -         |  |        |  
|At December 31, 2018          |  |       |    |  |         | Q | 25,000 |          |  | Q | 2,455,271  |   |  | Q          | 1,599,049 |  |        | Q



| | (1) | Prior periods are not restated for the application of IFRS
15 and 9, as the Company elected the modified retrospective approach for both standards
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------



The accompanying notes are integral
part of the financial statements.



5









|Comunicaciones Celulares, S.A.                      
|----------------------------------------------------
|Statements of cash flows                            
|For the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                                                                               |  | Notes |      |  | 2018 |   |            | 2017 |  |   | 2016       |  
|---------------------------------------------------------------------------------------------- |  | ----- | ---- |  | ---- | - | ---------- | ---- |  | - | ---------- | -
|Operating activities                                                                           |  |       |      |  |      |   |            |      |  |   |            |  
|Profit before income tax                                                                       |  |       |      |  |      | Q | 3,064,276  |      |  | Q | 2,784,575  |  
|Adjustments to reconcile profit before income tax to net cash flows from operating activities: |  |       |      |  |      |   |            |      |  |   |            |  
|Net loss from disposal of property, plant and equipment                                        |  |       | 22   |  |      |   | 43,932     |      |  |   | 54,922     |  
|Depreciation and amortization                                                                  |  |       | 21   |  |      |   | 1,011,006  |      |  |   | 1,077,378  |  
|                                                                                               |  |       | 23.1 |  |      |   |            |      |  |   |            |  
|Net unrealized exchange differences                                                            |  |       | 23.2 |  |      |   | 168,254    |      |  |   | (144,577   | )
|Impairment of property, plant, equipment and intangibles                                       |  |       | 21   |  |      |   | -          |      |  |   | 75,862     |  
|Estimate of expected credit losses                                                             |  |       | 20   |  |      |   | 44,179     |      |  |   | 68,673     |  
|Share-based incentive plans                                                                    |  |       | 21   |  |      |   | 3,552      |      |  |   | 3,174      |  
|Deferred revenue                                                                               |  |       | 16   |  |      |   | (3,832,050 | )    |  |   | (3,566,458 | )
|Interest                                                                                       |  |       | 23.2 |  |      |   | 443,237    |      |  |   | 432,988    |  
|Accrued interest to ARO                                                                        |  |       | 17   |  |      |   | 1,949      |      |  |   | -          |  
|                                                                                               |  |       |      |  |      |   |            |      |  |   |            |  
|Net changes assets and liabilities                                                             |  |       |      |  |      |   |            |      |  |   |            |  
|(Increase) decrease in:                                                                        |  |       |      |  |      |   |            |      |  |   |            |  
|Accounts receivable                                                                            |  |       |      |  |      |   | 65,330     |      |  |   | (127,356   | )
|Accounts receivable from related parties                                                       |  |       |      |  |      |   | 12,059     |      |  |   | (92,508    | )
|Inventories                                                                                    |  |       |      |  |      |   | 543        |      |  |   | (2,743     | )
|Other assets                                                                                   |  |       |      |  |      |   | (8,270     | )    |  |   | (64        | )
|Other financial assets                                                                         |  |       |      |  |      |   | (12,264    | )    |  |   | (60,791    | )
|(Decrease) increase in:                                                                        |  |       |      |  |      |   |            |      |  |   |            |  
|Accounts payable                                                                               |  |       |      |  |      |   | (1,369     | )    |  |   | (193,580   | )
|Accounts payable to related parties                                                            |  |       |      |  |      |   | (32,038    | )    |  |   | 8,315      |  
|Other accounts payable                                                                         |  |       |      |  |      |   | (12,926    | )    |  |   | 23,858     |  
|Deferred revenue                                                                               |  |       | 16   |  |      |   | 3,761,534  |      |  |   | 3,602,436  |  
|Income tax paid                                                                                |  |       | 19   |  |      |   | (510,991   | )    |  |   | (478,149   | )
|Net cash flows from operating activities                                                       |  |       |      |  |      |   | 4,209,943  |      |  |   | 3,465,955  |  
|                                                                                               |  |       |      |  |      |   |            |      |  |   |            |  
|Investing activities                                                                           |  |       |      |  |      |   |            |      |  |   |            |  
|Loans granted to related parties                                                               |  |       | 8    |  |      |   | (3,480,866 | )    |  |   | (2,220,977 | )
|Loan repayment from related parties                                                            |  |       | 8    |  |      |   | 377,169    |      |  |   | 131,173    |  
|Purchase of property, plant and equipment                                                      |  |       | 11   |  |      |   | (559,421   | )    |  |   | (525,213   | )
|Purchase of intangible assets                                                                  |  |       | 12   |  |      |   | (163,995   | )    |  |   | (172,173   | )
|Cash received for the sale of assets                                                           |  |       |      |  |      |   | 2,393      |      |  |   | -          |  
|Net cash flows used in investing activities                                                    |  |       |      |  |      |   | (3,824,720 | )    |  |   | (2,787,190 | )
|                                                                                               |  |       |      |  |      |   |            |      |  |   |            |  
|Financing activities                                                                           |  |       |      |  |      |   |            |      |  |   |            |  
|Income tax withheld on dividends paid                                                          |  |       | 18.3 |  |      |   | (114,934   | )    |  |   | (106,455   | )
|Payment of dividends                                                                           |  |       | 18.3 |  |      |   | (270,231   | )    |  |   | (80,088    | )
|Loan repayments to related parties                                                             |  |       | 8    |  |      |   | (99,045    | )    |  |   | (2,110     | )
|Loans granted from related parties                                                             |  |       | 8    |  |      |   | 50,624     |      |  |   | 1,938      |  
|Interest paid                                                                                  |  |       |      |  |      |   | (423,808   | )    |  |   | (418,156   | )
|Net cash flows used in financing activities                                                    |  |       |      |  |      |   | (857,394   | )    |  |   | (604,871   | )
|(Decrease) increase net in cash                                                                |  |       |      |  |      |   | (472,171   | )    |  |   | 73,894     |  
|Cash at January 1                                                                              |  |       |      |  |      |   | 1,800,361  |      |  |   | 1,726,467  |  
|Cash at December 31                                                                            |  |       | 6    |  |      | Q | 1,328,190  |      |  | Q | 1,800,361  |  



The accompanying notes are integral part of the financial statements.



6







|Comunicaciones Celulares, S.A.                      
|----------------------------------------------------
|Statements of cash flows                            
|For the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                                                               |  | Notes |      |  | 2018 |   |           | 2017 |  |   | 2016      | 
|------------------------------------------------------------------------------ |  | ----- | ---- |  | ---- | - | --------- | ---- |  | - | --------- | 
|Transactions not requiring cash                                                |  |       |      |  |      |   |           |      |  |   |           | 
|Capitalization of asset retirement obligation cost                             |  |       | 11   |  |      | Q | 374       |      |  | Q | 20,337    | 
|Capitalization of property, plant and equipment under the financial lease mode |  |       |      |  |      |   | -         |      |  |   | -         | 
|Dividends offset with accounts receivable from related parties                 |  |       | 18.3 |  |      |   | 1,913,506 |      |  |   | 1,942,560 | 
|                                                                               |  |       |      |  |      | Q | 1,913,880 |      |  | Q | 1,962,897 | 



The accompanying notes are integral part of the financial statements.



7







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



| | 1. | Corporate information
| | -- | ---------------------



Comunicaciones Celulares, S.A. (the
“Company” or “Comcel”) was incorporated under the laws of Guatemala on November 9, 1989, for an indefinite
period in accordance with deed No. 72. The Company’s main business is the provision of telecommunication services, purchase,
sale and distribution of cellular devices and airtime under the brand Tigo.



The Company’s offices are
located in Km. 9.5 Carretera a El Salvador, building Plaza Tigo, Santa Catarina Pinula, Guatemala.



The Company is jointly controlled
by Millicom International II NV, entity located in Luxembourg, and Miffin Associates Corp., entity located in Panama.



The financial statements of the
Company for the year ended December 31, 2018, were authorized for issue by management on March 15, 2019. These financial statements
will be submitted for final approval to the Company’s shareholders’ board. Management expects them to be approved without
amendments.



| | 2. | Basis of preparation
| | -- | --------------------



| | 2.1 | Statement of compliance
| | --- | -----------------------

The financial statements of Comunicaciones
Celulares, S.A. at December 31, 2018 and 2017, have been prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).



| | 2.2 | Basis of preparation and presentation currency
| | --- | ----------------------------------------------

At December 31, 2018 and 2017, the
financial statements have been prepared on an historical cost basis.



The financial statements are presented
in thousands of Quetzals and all values are rounded to the nearest thousands, except when otherwise noted.



| | 3. | Changes in accounting policies
| | -- | ------------------------------



The accounting policies adopted
by the Company for the preparation of its financial statements as of December 31, 2018 are consistent with those that were used
for the preparation of its financial statements as of December 31, 2017 and 2016, except for the application of IFRS 9 and IFRS
15, as follows.



IFRS 15 Revenue from Contracts
with Customers

IFRS 15 establishes a five-step
model related to revenue recognition from contracts with customers. Under IFRS 15, revenue is recognized at amounts that reflect
the consideration that an entity expects to be entitled to receive in exchange for transferring goods or services to a customer.
IFRS 15 mainly affects the timing of recognition of revenue as it introduces more differences between the billing and the recognition
of the revenue. However, it does not affect the cash flows generated by the Company.



8







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



As a consequence of adopting this Standard, the Company
has identified the following impacts:



| | 1) | Some revenue is recognized earlier, as a larger portion of the total consideration received in
a bundled contract is attributable to the component delivered at contract inception (i.e. typically a subsidized handset). Therefore,
this produces a shift from service revenue (which decreases) to the benefit of Telephone and Equipment revenue. This results in
the recognition of a Contract Asset on the statement of financial position, as more revenue is recognized upfront, while the cash
will be received along the subscription period (which is usually between 12 to 36 months). Assets and liabilities are reported
as a separate line in current assets and current liabilities even if their realization period is greater than 12 months because
they are realized or settled as part of the Company’s normal operating cycle of the Company’s core business.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2) | The cost incurred to obtain a contract (mainly commissions) is now capitalized in the statement
of financial position and amortized over either the average customer retention period or the contract term, depending on the circumstances.
This results in the recognition of contract costs being capitalized under non-current assets on the statement of financial position.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3) | There are no material changes for the purpose of determining whether the Company acts as principal
or an agent in the sale of products.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------



| | 4) | The presentation of certain amounts on the statement of financial position has been changed to
reflect the terminology of IFRS 15:
| | -- | ----------------------------------------------------------------------------------------------------------------------------------



| | a. | Contract assets recognized in relation to service contracts.
| | -- | ------------------------------------------------------------

| | b. | Contract costs in relation to capitalized costs incurred to obtain a contract (mainly commissions).
| | -- | ---------------------------------------------------------------------------------------------------

| | c. | Contract liabilities in relation to service contracts were previously included in trade and other payables
| | -- | ----------------------------------------------------------------------------------------------------------



The Company has adopted the standard
using the modified retrospective method. Hence, the cumulative effect of initially applying the standard has been recognized as
an adjustment to the opening balance of retained earnings at January 1, 2018 and comparatives have not been restated in accordance
with the transitional provisions in IFRS 15. The impact on the opening balance of retained earnings at January 1, 2018 is summarized
in the table set out at the bottom of this section.



Additionally, the Company has decided
to take some of the practical expedients allowed by the standard, such as:



| | • | The Company does not adjust the transaction price for the means of a financing component whenever
the period between the transfer of a promised good or service to a customer and the associated payment is one year or less; when
the period is more than one year the significant financing component is adjusted, if it is material.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | The Company discloses in the financial statements the transaction price allocated to
                                                                   unsatisfied performance obligations only for contracts that have an original expected duration of more than one year (e.g.
                                                                   unsatisfied performance obligations for contracts that have an original duration of one year or less will not be
                                                                   disclosed).
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



9







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



| | • | The Company applies the practical expedient not to disclose the price allocated to unsatisfied
performance obligations, if billing is equal to accounting revenue.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | The Company applies the practical expedient to recognize the incremental costs of obtaining a contract
as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year
or less.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



IFRS 9 Financial Instruments

IFRS 9 addresses the classification,
measurement and recognition, and impairment of financial assets and financial liabilities as well as hedge accounting. It replaces
the parts of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets
to be classified into two measurement categories: those measured at fair value, and those measured at amortized cost. The determination
is made at initial recognition. The classification depends on the Company’s business model for managing its financial instruments
and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS
39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of
a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement,
unless this creates an accounting mismatch. A final standard on hedging (excluding macro-hedging) was issued in November 2013 which
aligned hedge accounting more closely with risk management and allows to continue hedge accounting under IAS 39. IFRS 9 also clarifies
the accounting for certain modifications and exchanges of financial liabilities measured at amortized cost.



The application of IFRS 9 did not
have an impact for the Company on classification, measurement and recognition of financial assets and financial liabilities compared
to IAS 39, but it has a limited impact on impairment of trade receivables and contracts assets (IFRS 15) as well as on amounts
due from joint ventures and related parties – with the application of the expected credit loss model instead of the current
incurred loss model. Similar to IFRS 15 adoption, the Company adopted the standard using the modified retrospective transition
method and therefore has not restated comparative periods. Hence, the cumulative effect of initially applying the standard has
been recognized as an adjustment to the opening balance of retained earnings at January 1, 2018. The impact on the opening balance
of retained earnings at January 1, 2018 is summarized in the table set out at the bottom of this section. Finally, the clarification
introduced by IFRS 9 on the accounting for certain modifications and exchanges of financial liabilities measured at amortized cost
did not have an impact for the Company.



10







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



The application of the IFRS 15 and the IFRS
9 had the following impacts on the Company’s financial position at January 1, 2018:





|                     |  | At January 1, |           |   | Effect of   |   |         | Effect of   |  |   |              |   |  | At January 1, |         |   |          
|-------------------- |  | ------------- | --------- | - | ----------- | - | ------- | ----------- |  | - | ------------ | - |  | ------------- | ------- | - | ---------
|                     |  | 2018, before  |           |   | adoption of |   |         | adoption of |  |   | Total effect |   |  | 2018, after   |         |   |          
|Financial position   |  | adoption      |           |   | IFRS15      |   |         | IFRS 9      |  |   | of adoptions |   |  | adoption      |         |   | Reference
|Assets               |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Current              |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Contract assets      |  | Q             | 178,806   |   |             | Q | 289,297 |             |  | Q | (9,534       | ) |  | Q             | 279,763 |   |          
|Accounts receivable  |  |               | 286,280   |   |             |   | -       |             |  |   | (20,909      | ) |  |               | (20,909 | ) |          
|Non-current          |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Contract costs       |  |               | -         |   |             |   | 18,367  |             |  |   | -            |   |  |               | 18,367  |   |          
|Deferred tax assets  |  |               | 11,838    |   |             |   | -       |             |  |   | -            |   |  |               | -       |   |          
|Liabilities          |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Current              |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Contract liabilities |  |               | (248,110  | ) |             |   | (1,336  | )           |  |   | -            |   |  |               | (1,336  | ) |          
|Non-current          |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Deferred income tax  |  |               | -         |   |             |   | (20,158 | )           |  |   | -            |   |  |               | (20,158 | ) |          
|Equity               |  |               |           |   |             |   |         |             |  |   |              |   |  |               |         |   |          
|Retained earnings    |  | Q             | 2,063,598 |   |             | Q | 286,170 |             |  | Q | (30,443      | ) |  | Q             | 255,727 |   |          



| | (i) | Contract assets mainly represent subsidized handsets as
more revenue is recognized upfront while the cash will be received throughout the subscription period (which is usually between
12 and 36 months). See Note 7.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | Effect of the application of the simplified approach permitted
by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | This mainly represents commissions capitalized and amortized
over the average contract term.
| | ----- | --------------------------------------------------------------------------------------------

| | (iv) | This mainly represents deferred revenue for goods and services
not yet delivered to customers that will be recognized when the goods are delivered and the services are provided to customers.
The balance also comprises the revenue from the billing of subscription fees or ‘one-time’ fees at the inception of
a contract that are deferred and will be recognized over the average customer retention period or the contract term. See Note
16
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | Tax effects of the above adjustments.
| | --- | -------------------------------------

| | (vi) | Cumulative catch-up effect.
| | ---- | ---------------------------



11







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



At January 1, 2018, there is no impact on the statement of cash
flows.



The following summarizes the impact on the statement of comprehensive
income of the adoption of the IFRS 15 and 9 as compared to previous standard and interpretations:



|                                     |  | Amounts   |            |   |             |   |          |             |  |   | Amounts       |   |  |          
|------------------------------------ |  | --------- | ---------- | - | ----------- | - | -------- | ----------- |  | - | ------------- | - |  | ---------
|                                     |  | prepared  |            |   |             |   |          |             |  |   | prepared      |   |  |          
|                                     |  | under the |            |   | Effect of   |   |          | Effect of   |  |   | under current |   |  |          
|Statement of comprehensive income    |  | previous  |            |   | adoption of |   |          | adoption of |  |   | IFRS          |   |  |          
|for the year ended December 31, 2018 |  | IFRS      |            |   | IFRS15      |   |          | IFRS 9      |  |   | adoption      |   |  | Reference
|Revenue                              |  | Q         | 7,473,475  |   |             | Q | 32,578   |             |  | Q | -             |   |  | Q        
|Cost of sales                        |  |           | (676,439   | ) |             |   | (394,998 | )           |  |   | (59,896       | ) |  |          
|Operating expenses                   |  |           | (3,228,661 | ) |             |   | 395,597  |             |  |   | -             |   |  |          
|Income tax expense                   |  | Q         | (506,396   | ) |             | Q | (2,280   | )           |  | Q | -             |   |  | Q        



| | (i) | Mainly for the change in the timing of revenue recognition due to the reallocation of revenue from
postpaid service (over time) to telephone and equipment revenue (point in time).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | Mainly for the reallocation of costs for selling devices due to change from postpaid service revenue
to telephone and equipment revenue as well as the capitalization and amortization of contract costs. It also includes the effect
of the application of the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from
initial recognition of the receivables. In operating expenses the main change is related to the relocation of subsidies expenses
to cost of sales (see change in note 21).
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | Tax effects of the above adjustments.
| | ----- | -------------------------------------



12







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                       |  | Amounts   |           |   |             |   |         |             |  |   | Amounts       |   |  |          
|-------------------------------------- |  | --------- | --------- | - | ----------- | - | ------- | ----------- |  | - | ------------- | - |  | ---------
|                                       |  | prepared  |           |   |             |   |         |             |  |   | prepared      |   |  |          
|                                       |  | under the |           |   | Effect of   |   |         | Effect of   |  |   | under current |   |  |          
|Financial position for the year ended  |  | previous  |           |   | adoption of |   |         | adoption of |  |   | IFRS          |   |  |          
|December 31, 2018                      |  | IFRS      |           |   | IFRS15      |   |         | IFRS 9      |  |   | adoption      |   |  | Reference
|Assets                                 |  |           |           |   |             |   |         |             |  |   | -             |   |  |          
|Contract assets (current)              |  | Q         | 125,409   |   |             | Q | 314,256 |             |  | Q | -             |   |  | Q        
|Contract costs (non-current)           |  |           | -         |   |             |   | 18,966  |             |  |   | -             |   |  |          
|Account receivable                     |  |           | 318,125   |   |             |   |         |             |  |   | (108,848      | ) |  |          
|Liabilities                            |  |           |           |   |             |   |         |             |  |   |               |   |  |          
|Contract liabilities (current)         |  |           | 177,594   |   |             |   | 2,590   |             |  |   | -             |   |  |          
|Income tax payable                     |  |           | 41,826    |   |             |   | 2,280   |             |  |   | -             |   |  |          
|Deferred tax liabilities (non-current) |  |           | (4,201    | ) |             |   | 20,157  |             |  |   | -             |   |  |          
|Equity                                 |  |           |           |   |             |   |         |             |  |   |               |   |  |          
|Retained profits                       |  | Q         | 2,151,647 |   |             | Q | 308,194 |             |  | Q | -             |   |  | Q        



| | (iv) | Contract asset mainly represents subsidized handsets as more revenue is recognized upfront while
the cash will be received along the subscription period (which are usually between 12 to 36 months). Throughout the period ended
December 31, 2018 no material impairment loss has been recognized.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | This mainly represents commissions capitalized and amortized over the average contract term.
| | --- | --------------------------------------------------------------------------------------------

| | (vi) | Effect of the application of the simplified approach permitted by IFRS 9, which requires expected
lifetime losses to be recognized from initial recognition of the receivables.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii) | This mainly represents deferred revenue for goods and services not yet delivered to customers that
will be recognized upon the goods are delivered and the services are provided to customers. The balance also comprises the revenue
from the billing of subscription fees or ‘one-time’ fees at the inception of a contract that are deferred and will
be recognized over the average customer retention period or the contract term.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (viii) | Represents the tax payable to Superintendence of Tax Administration for transactions carried during the year ended December
31, 2018.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------

| | (ix) | Cumulative catch-up effect and IFRS 15 effect in the current period.
| | ---- | --------------------------------------------------------------------



13







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



The application of the following
new standards or interpretations did not have an impact for the Company:



IFRS 2 Classification and measurement
of transactions of shares-based payment transactions – Amendments to IFRS 2

The IASB issued amendments to the
IFRS 2 Share-based Payment, that address three main areas: the effects of vesting conditions on the measurement of a cash-settled
share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding
tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its
classification from cash settled to equity settled.



IFRIC 22 Foreign currency transactions
and advance consideration

This IFRIC addresses foreign
currency transactions or parts of transactions where there is consideration that is denominated or priced in a foreign
currency. The interpretation provides guidance for when a single payment/receipt is made as well as for situations where
multiple payments/receipts are made. The guidance aims to reduce diversity in practice.



Annual improvements 2014–2016

These amendments impact three standards:
IFRS 1 First-time Adoption of IFRS, regarding the deletion of short term exemptions for first-time adopters regarding IFRS
7, IAS 19, and IFRS 10, effective 1 January 2018. IFRS 12 Disclosure of Interests in Other Entities regarding clarification
of the scope of the standard. These amendments should be applied retrospectively for annual periods beginning on or after 1 January
2017. IAS 28 Investments in Associates and Joint Ventures regarding measuring an associate or joint venture at fair value
effective 1 January 2018.



| | 4. | Summary of significant accounting policies
| | -- | ------------------------------------------



The following are the most significant
accounting policies adopted by the Company in the preparation of its financial statements:



| | 4.1 | Functional currency and transactions in foreign currency
| | --- | --------------------------------------------------------



| | 4.1.1 | Foreign currency
| | ----- | ----------------

The functional currency of the Company
is the Quetzal. The Company records its transactions in foreign currency, any currency other than the functional currency, at the
current exchange rate at the date of each transaction. When determining the financial position and the results of its operations,
the Company values and adjusts its monetary assets and liabilities stated in foreign currency at the current exchange rate at the
date of the statement of financial position. The exchange differences resulting from the application of these procedures are recognized
in the results of the year in which they occur.



| | 4.1.2 | Current versus non-current classification
| | ----- | -----------------------------------------

The Company presents the statement
of financial position based on current and non-current classification.



An asset is classified as current
when the Company expects to realize the asset, or has the intention of selling or consuming such asset, during its normal operating
cycle; it is held primarily for the purpose of trading; expects to realize the asset within twelve months after the reporting date;
or the asset is cash or cash equivalent, except if it is restricted and it cannot be used to cancel a liability during the following
twelve months after the reporting date. The Company classifies the rest of its assets as non-current assets.



14







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



A liability is classified as current
when the Company expects to settle the liability in its normal operating cycle; it is maintained for the purposes of trading; it
must be settled within twelve months after the reporting date; or when the Company has not an unconditional right to defer the
settlement of the liability for at least twelve months after the reporting date. The Company classifies the rest of its liabilities
as non-current liabilities.



Assets and liabilities related to
deferred income taxes are classified by the Company as non-current assets and liabilities, in all cases.



| | 4.2 | Cash
| | --- | ----

The Company holds cash in bank accounts
and does not hold any cash equivalents at December 31, 2018 or 2017. For the purposes of the statements of cash flows, cash is
presented by the Company net of bank overdrafts, if any.



| | 4.3 | Financial instruments
| | --- | ---------------------



The valuation of the financial instruments
of the Company is determined through the amortized cost or fair value, as defined below:



Amortized cost - The amortized
cost is calculated using the effective interest rate method less any impairment allowance. The calculation takes in consideration
any award or discount in the acquisition and includes transaction costs and fees that are an integral part of the effective interest
rate.



Fair value - The fair value
of a financial instrument that is negotiated in an organized financial market is determined by reference to prices quoted in this
financial market for negotiations completed at the date of the statement of financial position. For those financial instruments
for which there is no active financial market, the fair value is determined using valuation techniques. Such techniques may include
the use of recent market transactions between interested, fully informed parties who act independently; references to the fair
values of another substantially similar financial instrument; and discounted cash flows and other valuation models.



| | 4.4 | Financial assets
| | --- | ----------------



| | 4.4.1 | Recognition and initial measurement of financial assets
| | ----- | -------------------------------------------------------



Financial assets are classified,
at initial recognition, as subsequently measured at cost, fair value through, fair value through other comprehensive income, and
fair value though profit and loss.



The classification and measurement
of its financial assets at initial recognition reflects the business model in which the financial assets are managed and the characteristics
of the contractual cash flows of the financial assets.



The Company recognizes all its financial
assets initially at fair value plus the costs directly attributable to the transactions, except for financial assets valued at
fair value through changes in profit or loss, for which these costs are not considered. The Company recognizes the purchase or
sale of financial assets on the date of each transaction, which is the date on which the Company commits to purchase or sell a
financial asset.



The Company’s financial assets
include cash, accounts receivable, accounts receivable from related parties and other financial assets.



15







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



Financial assets at amortized
cost

Financial assets are measured
at amortized cost when the following conditions are met: (a) the financial asset is maintained within a business model whose
objective is to obtain contractual cash flows; and (b) the contractual terms of the financial asset establish specific dates
for the cash flows derived only from payments to principal and interest on the outstanding balance.



| | 4.4.2 | Subsequent measurement of the financial assets
| | ----- | ----------------------------------------------

The subsequent measurement of financial
assets depends on its classification as described below:



Accounts receivable, accounts receivable from related
parties and other financial assets

These financial assets are non-derivative financial assets with fixed or determined payments
that are not quoted in an active market. After their initial recognition, these financial assets are measured by the Company at
their amortized cost using the effective interest rate method less an impairment allowance. Profits or losses are recognized in
the results when the accounts receivable are derecognized or impaired, as well as through the process of amortization.



The Company maintains a provision
for expected credit losses of accounts receivable based on its historical credit loss experience.



| | 4.4.3 | Impairment of financial assets
| | ----- | ------------------------------

The Company recognizes an estimate
for expected credit losses on financial assets recorded at amortized cost in profit or loss or on financial assets recorded at
fair value through changes in other comprehensive income using the simplified approach. The simplified approach does not require
an entity to track the changes in credit risk, but, instead, requires the entity to recognize a loss allowance based on lifetime
expected credit losses (ECLs) at each reporting date. The Company has established a provision matrix that is based on its historical
loss experience, adjusted for forward looking factors specific for debtors and the economic environment.



The Company considers that a financial
asset is in default when the contractual payments are over 90 days overdue However, in certain cases, the Company may also consider
that a financial asset is in default when internal or external information indicates that it is unlikely that the Company will
receive the outstanding contractual amounts in full before taking into account any credit enhancements maintained by the Company.
A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.



| | 4.4.4 | Derecognition of financial assets
| | ----- | ---------------------------------

Financial assets are derecognized
by the Company when the rights to receive the cash flows of the financial assets expire; or, when the Company has transferred its
rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material
delay to a third party under a “pass through” arrangement and either (a) the Company has transferred substantially
all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset. No such transfer of financial assets has occurred in 2018.



| | 4.5 | Financial liabilities
| | --- | ---------------------



| | 4.5.1 | Recognition and initial measurement of financial liabilities
| | ----- | ------------------------------------------------------------

The financial liabilities are classified
as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at the date of its
initial recognition.



16







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



The Company recognizes all its financial
liabilities initially at the fair value at the date of the acceptance or contracting of the liability, reduced for, in the case
of loans and borrowings, directly attributable transaction costs.



The financial liabilities of the
Company include accounts payable, accounts payable to related parties, accrued interest and loans.



| | 4.5.2 | Subsequent measurement of financial liabilities
| | ----- | -----------------------------------------------

The subsequent measurement of the
financial liabilities depends on its classification as described below:



Accounts payable, accounts
payable to related parties, accrued interest and loans

After the initial
recognition, these financial liabilities are measured at amortized cost using the effective interest rate method. The Company
recognizes gains or losses in the income statement when the financial liability is derecognized as well as through the
accretion process.



| | 4.5.3 | Derecognition of financial liabilities
| | ----- | --------------------------------------

The financial liabilities are derecognized
by the Company when the obligation has been paid, is cancelled or expires. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized through income.



| | 4.6 | Inventories
| | --- | -----------

Inventories are valued at the
lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and the estimated costs necessary to make the sale. Cost of inventories includes
all cost derived from their acquisition, as well as other costs incurred to give them their status and current location.
Inventories in transit are recorded at the invoice cost.



| | 4.7. | Property, plant and equipment
| | ---- | -----------------------------

Property, plant and equipment are
stated initially and subsequently at its purchase cost less accumulated depreciation and impairment losses, if any. Such cost includes
the cost of replacing parts of plant and equipment when this cost is incurred, if it meets the requirement for recognition. Depreciation
and disbursements for repair and maintenance which do not meet the conditions for recognition as assets, are expensed in the year
in which they are incurred.



Depreciation is calculated under
the straight-line method over the useful life estimated for each type of asset. The residual value of the depreciable assets, the
estimated useful life and depreciation methods are annually reviewed by management and adjusted when necessary, at the end of each
financial year, and adjusted prospectively, if it is required.



A detail of estimated useful lives
is presented below:



|                           | Estimated
    useful life
|-------------------------- | -------------------------
|                           |                          
|Generators                 | 4 years                  
|Primary network            | Between 4 and 7 years    
|Towers and civil works     | Between 10 and 15 years  
|Customer premise equipment | 2 years                  
|Other network equipment    | Between 5 and 15 years   
|Buildings                  | Between 5 and 40 years   
|Other assets               | Between 1 and 5 years    



17







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



Construction and installation costs
are charged to temporary accounts and subsequently transferred to the corresponding asset accounts, once the works are completed.
These works in process include all disbursements directly related to the design, development and construction of towers or other
assets, plus the financial costs attributable to the works.



Improvements to leased properties
under operating lease agreements are depreciated under the straight-line method calculated over the term of the corresponding lease
agreements.



The estimated costs of the Company’s
obligations for dismantling and future disposal of non-financial assets installed on leased property, are capitalized to the corresponding
assets and amortized during the term of lease of the property. The amount of the depreciation of these estimated costs is recognized
in profit and loss. The amount of the corresponding provision will be reduced as the future cash disbursements are performed.



A component of property, plant and
equipment is derecognized when it is disposed or the Company does not expect future economic benefits from its use. Any loss or
gain originated from the disposal of the asset, calculated as the difference between its net carrying value and the sales proceeds,
is recognized in the results of the year in which the transaction occurs.



| | 4.8 | Intangible assets
| | --- | -----------------

Intangible assets acquired separately
are measured at initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated
amortization and accumulated impairment losses, as appropriate. Internally generated intangibles, excluding capitalized development
costs, are not capitalized and the related expenditure is recognized in profit or loss in the period in which the expenditure is
incurred. The Company currently does not have any capitalized development costs.



The useful lives of intangible assets
are defined as finite or indefinite. Intangible assets with finite lives are amortized under the straight-line method over the
estimated useful lives of the assets, which are assessed by the Company on a yearly basis. The amortization expense for intangible
assets is recognized in the income statement of the year in which they are incurred. Intangible assets with indefinite useful lives
are not amortized and on a yearly basis, or when facts or circumstances indicate that the recorded values may not be recovered,
the Company test them for impairment. If such indication exists, and the carrying value exceeds the recoverable amount, the Company
values the assets or the cash generating unit at its recoverable amount.



Gains or losses arising from disposal
of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and
are recognized in the statement of profit or loss when incurred.



| | 4.8.1 | Frequency licenses, network programs and patents
| | ----- | ------------------------------------------------

Radio frequency licenses were granted
to the Company by government entities for an initial term of between 12 and 15 years. During 2012, an extension of such licenses
for an additional term of 20 years was obtained, upon which the licenses will totally expire in 2032 and 2033. Licenses are assessed
as having finite useful lives, thus their costs are amortized under the straight-line method based on the useful life of each license.



The network programs are software
implemented by the Company for its commercial operation, it has been determined that it has a finite useful life, therefore it
is amortized under the straight-line method based on its useful life which is 5 years.



18







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



| | 4.8.2 | Indefeasible right of use
| | ----- | -------------------------

The main types of indefeasible rights
of use (IRU) and capacity agreements are:

| | • | Purchase of specified infrastructure;
| | - | -------------------------------------

| | • | Purchase of lit fiber capacity; and
| | - | -----------------------------------

| | • | Exchange of network infrastructure or lit fiber capacity.
| | - | ---------------------------------------------------------



These are either accounted for as
leases (finance or operating), service contracts, or partly as leases and partly as service contracts. Finance leases are treated
as CAPEX (capital expenditures), while operating leases and service contracts are classified as OPEX (operating expenditures).
Classification depends on an assessment of the characteristics of the arrangements.



A network capacity contract should
be accounted for as a lease if, and when:

| | • | The purchaser has an exclusive right to the capacity for a specified period and has the ability
to resell (or sub-let) the capacity; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------



| | • | The capacity is physically limited and defined; and
| | - | ---------------------------------------------------

| | • | The purchaser bears all costs related to the capacity (directly or not) including costs of operation, administration and maintenance;
and
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

| | • | The purchaser bears the risk of obsolescence during the contract term.
| | - | ----------------------------------------------------------------------



If all of these criteria are not
met, the IRU is considered a service contract and expensed as an operating expense.



If the arrangement is, or contains
a lease, the lease is classified as either an operating lease or a finance lease. A finance lease of a network infrastructure IRU
is accounted for as a tangible asset. A finance lease of a capacity IRU is accounted for as an intangible asset.



Estimated useful lives of finance
leases of capacity IRUs are between 12 and 15 years, or shorter if the estimated useful life of the underlying cable is shorter.



| | 4.9 | Impairment of non-financial assets
| | --- | ----------------------------------

Management performs a review at
each reporting date over the carrying values of its non-financial assets, with the purpose of identifying decreases in the value
when facts or circumstances indicate that the recorded values could not be recoverable. If such indication exists and the carrying
value exceeds the recoverable amount, the Company reduces the assets or cash-generating units to their recoverable value, defined
as the highest amount between its fair value and its value in use. The adjustments generated by this concept are recorded in the
results of the year in which they are determined.



The Company assesses at the end
of each reporting period if there is any indication that a loss for impairment of the value previously recognized for a non-financial
asset other than goodwill, has been reduced or no longer exists. If such indication exists, the Company reassesses the recoverable
value of the asset and, if applicable, reverses the loss increasing the asset up to its new recoverable value, which should not
exceed the net carrying value of the assets had no impairment been recognized previously.



| | 4.10 | Provisions
| | ---- | ----------

A provision is recognized
when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of
the obligation can be made. The amount of the recorded provisions is periodically evaluated and required adjustments are
recorded in the results of the year.



19







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



If the financial effect from discounting
the provisions is material, these provisions are discounted to the present value of the disbursements needed to settle the corresponding
obligations, using a pre-tax discount rate that fairly reflects, when appropriate, the time value of money and the risk specific
to the liability. Where discounting is used, increases in the provision due to the passage of time are recognized as interest expense.



| | 4.11 | Operating leases
| | ---- | ----------------



| | 4.11.1 | Company as a lessee
| | ------ | -------------------

Operating leases are those in which
the lessor substantially retains the risks and rewards over the ownership of the asset. Payments over these leases, upon the tariffs
established in the corresponding contracts, are recognized as expenses over the straight-line method throughout the term of the
lease.



| | 4.12 | Revenues from contracts with customers
| | ---- | --------------------------------------

Revenue from contracts with customers
is recognized when the control of the goods and services has been transferred to the customer for an amount that reflects the consideration
to which the Company expects to be entitled in exchange for such goods or services.



Bundled offers are considered arrangements
with multiple deliverables or elements, which can lead to the identification of separate performance obligations. Revenue is recognized
in accordance with the transfer of goods or services to customers in an amount that reflects the relative standalone selling price
of the performance obligation (e.g. sale of telecom services, revenue over time plus sale of handset, revenue at a point in time).



Principal-Agent, some arrangements
involve two or more unrelated parties that contribute to providing a specified good or service to a customer. In these instances,
the Company determines whether it has promised to provide the specified good or service itself (as a principal) or to arrange for
those specified goods or services to be provided by another party (as an agent). For example, performance obligations relating
to services provided by third-party content providers (i.e., mobile Value Added Services or “VAS”) or service providers
where the Company neither controls a right to the provider’s service nor controls the underlying service itself are presented
net because the Company is acting as an agent. The Company generally acts as a principal for other types of services where the
Company is the primary obligor of the arrangement. In cases the Group determines that it acts as a principal, revenue is recognized
in the gross amount, whereas in cases the Company acts as an agent revenue is recognized in the net amount.



| | 4.12.1 | Company’s most significant revenues streams are:
| | ------ | ------------------------------------------------



4.12.1.      a)Post-paid mobile
subscription fees are recognized over the relevant subscribed service period (recurring monthly access fees that do not vary based
on usage). The service provision is usually considered as a series of distinct services that have the same pattern of transfer
to the customer.



4.12.1       b) Prepaid scratch
/ SIM cards are services where customers purchase a specified amount of airtime or other credit in advance. Revenue is recognized
as the credit is used. Unused credit is carried in the statement of financial position as a contract liability. Upon expiration
of the validity period, the portion of the contract liability relating to the expiring credit is recognized as revenue, since there
is no longer an obligation to provide those services.



4.12.1       c)Revenues from sale
of cellular devices and accessories are recognized once control of such goods is transferred to the distributor or the final client.
That criteria is fulfilled when the customer has the ability to direct the use and obtain substantially all of the remaining benefits
from those goods.



20







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



4.12.1       d) Revenues for the
use of network and platform are recognized considering the airtime sold by the related parties.



| | 4.13 | Borrowing costs
| | ---- | ---------------

The Company capitalizes as
part of the cost of an asset, the borrowing costs directly attributable to the acquisition, construction, production or
installation of an asset that necessarily requires a term to be able for using or selling. Borrowing costs include interest,
exchange rate differences and other financial costs. Borrowing costs that do not meet the criteria for capitalization are
recorded in income in the year in which they are incurred.



| | 4.14 | Taxes
| | ---- | -----

The Company offsets its current
and deferred tax assets with current and deferred tax liabilities, respectively, if a legally enforceable right exists to set off
the amounts recognized before the same taxation authority and when it has the intention to liquidate them for the net amount or
to realize the asset and settle the liability simultaneously.



The Company recognizes income tax
and deferred income tax in relation to other components in comprehensive income.



| | 4.14.1 | Current income tax
| | ------ | ------------------

The Company calculates income tax
by applying adjustments from certain items, affected by, or subject to income tax, in conformity with current tax regulations.



The current income tax, corresponding
to the present and prior periods, is recognized by the Company as a liability if it is not settled. If the amount already paid,
which relates to present and prior periods, exceeds the amount payable for those periods, the excess is recognized as an asset.



In Guatemala a company may elect
between two tax regimes to determine their current income tax. The Company adopted the optional simplified tax regime based on
gross revenues (Régimen Opcional Simplificado sobre Ingresos de Actividades Lucrativas) for determining their current income
tax expense, which is based on a 5% rate on the gross monthly revenues up to Q30,000 and 7% for gross revenues in excess of said
amount. Additionally, computed capital income and capital gains are taxed at the rate of 10%.



| | 4.14.2 | Deferred income tax
| | ------ | -------------------

Deferred income taxes are determined
using the liability method for all temporary differences that exist between the tax basis of the assets, liabilities and net equity
and the amounts recorded for financial purposes at the date of the statement of financial position. The deferred income tax is
calculated considering the income tax expected to apply to the period in which the asset is estimated will be realized or the liability
will be settled. Assets for deferred revenues are recognized only when there is reasonable probability of its realization.



The carrying value of an asset for
deferred taxes is subject to review at the date of each statement of financial position. The Company reduces the amount of the
deferred tax asset, to the extent that it estimates that it will not have sufficient taxable earnings in the future to allow it
to realize all or part of the benefits from the deferred tax asset. Likewise, at the financial period close, the Company reconsiders
deferred tax assets that it had not previously recognized to determine if it is now probable that they will be realized and therefore,
can be recognized.



| | 4.14.3 | Value added tax
| | ------ | ---------------

Revenues from sales are recorded
by the Company net of value added tax and a liability is recognized in the statement of financial position for the related value
added tax. Expenses and assets acquired are recorded by the Company net of sales tax if the tax authorities credit these taxes
to the Company, recognizing the accumulated amount receivable in the statement of financial position. When the sales tax incurred
is not recoverable the Company includes it within the expense or asset, as applicable.



21







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



| | 4.15 | Judgments, estimates and significant accounting assumptions
| | ---- | -----------------------------------------------------------

The preparation of financial statements
of the Company requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the accompanying disclosures, as well as the disclosure of contingent liabilities. However, the uncertainty
about such judgments, estimates and assumptions could result in situations that require adjustments of relative importance over
the recorded values of the assets and liabilities on future years (note 24.2).



| | 5. | Future changes in accounting policies
| | -- | -------------------------------------



International Financial Reporting
Standards or their interpretations issued but not yet effective as of the date of issue of the Company’s financial statements
are listed below. The standards or interpretations listed are those which management believes may have an effect on the disclosures,
position or financial performance of the Company when applied on a future date. The Company intends to adopt these standards or
interpretations when they will be effective.



IFRS 16 Leases

The application of the
standard will affect primarily the accounting of the Company’s operating leases. At the reporting date, the Company has
non-cancellable operating lease commitments of Q2,138,064, see note 24. These commitments will result in the recognition of a
right of use asset and a lease liability for future payments. The application of this standard will affect the
Company’s EBITDA, net debt and leverage ratios. The change in presentation of operating lease expenses will result in a
corresponding improvement in cash flows derived from operating activities and a decline in cash flows from financing
activities. While the Company is finalizing the implementation of the new Standard, as a preliminary result, it expects to
recognize right of use assets and lease liabilities of approximately Q1,421,509. Some of the commitments may be covered by
the exemption for short-term and low-value leases and some commitments may relate to arrangements that will not qualify as
leases under IFRS 16.



According to the new Standard, the
Company shall determine the lease term including any lessee's extension or termination option that is deemed reasonably certain
as well as lessors' extension or termination option. The assessment of such options shall be performed at the commencement of a
lease. This requires judgment by the management of Millicom, which may have a significant impact on the lease liability recognized
under IFRS 16.



At transition date, the Company
will recognize lease liabilities in relation to leases which had previously been classified as operating leases under the principles
of IAS 17 Leases. These liabilities will be measured at the present value of the remaining lease payments, discounted using
the lessee’s incremental borrowing rate at January 1, 2019. The right-of-use asset will be measured at an amount equal to
the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the statement
of financial position immediately before the date of initial application.



Short-term leases with a term not
exceeding the 12 months as well as leases where the underlying asset is of low value will not be capitalized. Instead, the Company
will use the practical expedient and associated lease payments will be recognized as an expense.



Furthermore, the Company will take
the additional following decisions to adopt the standard:



| | • | Non-lease components will be capitalized (IFRS16.15)
| | - | ----------------------------------------------------

| | • | Intangible assets will be considered out of IFRS 16 scope (IFRS16.4)
| | - | --------------------------------------------------------------------



The Company will adopt the standard
using the modified retrospective approach with the cumulative effect of applying the new standard recognized in retained earnings
at 1 January 2019. Comparatives for the 2018 financial statements will not be restated.





22







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



Amendment to IFRS 9 Financial
Instruments, on prepayment features with negative compensation

This amendment confirms that when
a financial liability measured at amortized cost is modified without this resulting in de-recognition, a gain or loss should be
recognized immediately in profit or loss. The gain or loss is calculated as the difference between the original contractual cash
flows and the modified cash flows discounted at the original effective interest rate. This means that the difference cannot be
spread over the remaining life of the instrument which may be a change in practice from IAS 39.



The Company expects this amendment
to have an impact in the future on the financial statements in case of a modification of a financial liability measured at amortized
cost. The amendment is effective for annual periods beginning on January 1, 2019.



IFRIC 23 Uncertainty over
Income Tax Treatments

IFRIC 23 clarifies how the recognition
and measurement requirements of IAS 12 Income taxes, are applied where there is uncertainty over income tax treatments. The interpretation
is effective for annual periods beginning on or after 1 January 2019. Earlier application is permitted. The Company is currently
assessing the impact of this interpretation



Amendments to IAS 19 Employee
Benefits on plan amendment, curtailment or settlement

These amendments require an entity
to:



| | • | Use updated assumptions to determine current service cost and net interest for the reminder of the period after a plan amendment,
curtailment or settlement; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Recognize in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in
                                                                   a surplus, even if that surplus was not previously recognized because of the impact of the asset ceiling.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Annual improvements 2015–2017

These amendments impact four standards:
IFRS 3, Business Combinations and IFRS 11 Joint Arrangements regarding previously held interest in a joint operation. IAS 12, Income
Taxes regarding income tax consequences of payments on financial instruments classified as equity. And finally, IAS 23, Borrowing
Costs regarding eligibility for capitalization. Again, the Comapny does not expect these improvements to have a material impact
on the financial statements. These improvements have not been endorsed by the EU yet.



Amendments to IFRS 3 –
definition of a business

This amendment revises the definition
of a business. The Company does not expect these amendments to have a material impact on the financial statements. The amendment
is effective for annual periods beginning on January 1, 2020.



The Company is currently assessing
the impacts that the aforementioned amendments might on the financial statements



| | 6. | Cash
| | -- | ----



A summary of cash is presented below
at December 31:



|                                                                |  | 2018 |           |  | 2017 |  
|--------------------------------------------------------------- |  | ---- | --------- |  | ---- | -
|Cash in banks:                                                  |  |      |           |  |      |  
|In Dollars of the United States of America (“Dollars” or “US$”) |  | Q    | 947,627   |  |      | Q
|In Quetzals                                                     |  |      | 380,563   |  |      |  
|                                                                |  | Q    | 1,328,190 |  |      | Q



23







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



Cash deposited in bank accounts earns interest based
on daily rates determined by the corresponding banks.



At December 31, 2018 and 2017 no restrictions of use
of the balances in cash on banking accounts existed.



| | 7. | Accounts receivable
| | -- | -------------------



The balance of accounts receivable is presented below
at December 31:



|                                          |  | 2018 |          |   | 2017 |  
|----------------------------------------- |  | ---- | -------- | - | ---- | -
|Accounts receivable                       |  | Q    | 318,125  |   |      | Q
|Less: estimate for expected credit losses |  |      | (108,848 | ) |      |  
|Accounts receivables total                |  |      | 209,277  |   |      |  
|Contract assets                           |  |      | 439,665  |   |      |  
|                                          |  | Q    | 648,942  |   |      | Q



Accounts receivable are non-interest
bearing, their average term of collection generally extends up to 90 days from the date of the issuance of the invoice, are not
subject to any discount for early payment and are recoverable in the functional currency of the financial statements, except for
the amount of Q1,592 in 2018, which is recoverable in US$ (2017: Q69,514 (note 25).



Contract assets

The balance of Contract assets is
presented below:



|                    |  | 2018 |         |  | 2017 |  
|------------------- |  | ---- | ------- |  | ---- | -
|Accrued income      |  | Q    | 125,409 |  |      | Q
|Contract assets (a) |  |      | 314,256 |  |      |  
|                    |  | Q    | 439,665 |  |      | Q



(a)    As December
31, 2018 The Company have Contract assets for Q314,256, mainly represent subsidized handsets as more revenue is recognized upfront
while the cash will be received throughout the subscription period



A detail of the movement of the estimate for expected
credit losses is presented below:



|                                        |  | December 31 |         
|--------------------------------------- |  | ----------- | --------
|                                        |  | 2018        |         
|Balance at beginning of year            |  | Q           | 411,810 
|Allowance for the year (note 20)        |  |             | 44,179  
|Bad debts written-off                   |  |             | (368,050
|Changes on accounting policies (note 3) |  |             | 20,909  
|Balance at the end of year              |  | Q           | 108,848 



An impairment analysis is performed
on each closing date using a matrix of estimates to calculate the expected credit losses. Provisions are based on expired days
for different types of customers.



The calculation reflects the weighted
probability result, the time value of the money and a reasonable and bearable information about past events that is available at
the closing date, current conditions and forecasts of future economic conditions.



24







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



Following is the information about the credit risk exposure
in trade accounts receivable and in the Company's contractual assets using the Company’s approved provision matrix. An analysis
of the ageing of the non-impaired accounts receivable is as follows at December 31:



|                               |  |             |         |   |         |   |         | Less    |  |   | Between |   |  | Between |        |   |          |   |        |       | 
|------------------------------ |  | ----------- | ------- | - | ------- | - | ------- | ------- |  | - | ------- | - |  | ------- | ------ | - | -------- | - | ------ | ----- | 
|                               |  | Contractual |         |   |         |   |         | than 30 |  |   | 30 and  |   |  | 61 and  |        |   |          |   |        |       | 
|At December 31, 2018           |  | assets      |         |   | Current |   |         | days    |  |   | 60 days |   |  | 90 days |        |   | >91 days |   |        | Total | 
|Amount
    of assessed assets: |  |             |         |   |         |   |         |         |  |   |         |   |  |         |        |   |          |   |        |       | 
|Account receivable             |  | Q           | 323,129 |   |         | Q | 190,102 |         |  | Q | 24,933  |   |  | Q       | 10,450 |   |          | Q | 9,390  |       | 
|Accrued income                 |  |             | 125,409 |   |         |   | -       |         |  |   | -       |   |  |         | -      |   |          |   | -      |       | 
|Expected credit loss           |  |             | (8,873  | ) |         |   | (5,017  | )       |  |   | (8,681  | ) |  |         | (6,170 | ) |          |   | (6,180 | )     | 
|                               |  | Q           | 439,665 |   |         | Q | 185,085 |         |  | Q | 16,252  |   |  | Q       | 4,280  |   |          | Q | 3,210  |       | 





|Expected credit loss  (weighted
    average rate) |  |  | 3 | % |  |  | 8 | % |  |  | 29 | % |  |  | 45 | % |  |  | 65 | % |  |  | 100 | % |  |  |  | 
|------------------------------------------------- |  |  | - | - |  |  | - | - |  |  | -- | - |  |  | -- | - |  |  | -- | - |  |  | --- | - |  |  |  | 



|An analysis of the ageing of the non-impaired accounts receivable is as follows as of December 31, 2017
|-------------------------------------------------------------------------------------------------------



|     |  | Total |         |  | Current |   |         | < 30 days |  |   | 31-60 days |  |  | 61-90 days |       
|---- |  | ----- | ------- |  | ------- | - | ------- | --------- |  | - | ---------- |  |  | ---------- | ------
|2017 |  | Q     | 465,086 |  |         | Q | 353,499 |           |  | Q | 45,385     |  |  | Q          | 32,976







25







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



| | 8. | Balances and transactions with related parties
| | -- | ----------------------------------------------



A summary of the balances and transactions with related
parties is provided below at December 31:



|                                                              |  | Country     |  | Relation      |  | 2018 |            |   | 2017 |  
|------------------------------------------------------------- |  | ----------- |  | ------------- |  | ---- | ---------- | - | ---- | -
|Accounts receivable                                           |  |             |  |               |  |      |            |   |      |  
|                                                              |  |             |  |               |  |      |            |   |      |  
|Millicom International II N.V.                                |  | Luxemburg   |  | Joint control |  | Q    | 2,434,153  |   |      | Q
|Miffin Associates Corp.                                       |  | Panama      |  | Joint control |  |      | 1,990,876  |   |      |  
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala   |  | Associate     |  |      | 1,078,598  |   |      |  
|Navega.com, S.A.                                              |  | Guatemala   |  | Associate     |  |      | 537,094    |   |      |  
|Nexcel, S.A.                                                  |  | Guatemala   |  | Associate     |  |      | 24,179     |   |      |  
|Distribuidora de Comunicaciones de Occidente, S.A.            |  | Guatemala   |  | Associate     |  |      | 13,000     |   |      |  
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala   |  | Associate     |  |      | 6,553      |   |      |  
|Cloud2Nube, S.A.                                              |  | Guatemala   |  | Associate     |  |      | 3,826      |   |      |  
|Comunicaciones Corporativas, S.A.                             |  | Guatemala   |  | Associate     |  |      | 1,450      |   |      |  
|Telemóvil El Salvador, S.A. de C.V.                           |  | El Salvador |  | Associate     |  |      | 742        |   |      |  
|Telefónica Celular, S.A. de C.V.                              |  | El Salvador |  | Associate     |  |      | 657        |   |      |  
|Millicom International Cellular, S.A.                         |  | Luxemburg   |  | Associate     |  |      | 64         |   |      |  
|Distribuidora de Comunicaciones de Oriente, S.A.              |  | Guatemala   |  | Associate     |  |      | 10         |   |      |  
|Total                                                         |  |             |  |               |  |      | 6,091,202  |   |      |  
|Less: long-term portion                                       |  |             |  |               |  |      | (3,393,835 | ) |      |  
|Short-term portion                                            |  |             |  |               |  | Q    | 2,697,367  |   |      | Q



26







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)





|                                                              |  | Country     |  | Relation  |  | 2018 |         |  | 2017 |  
|------------------------------------------------------------- |  | ----------- |  | --------- |  | ---- | ------- |  | ---- | -
|Accounts payable                                              |  |             |  |           |  |      |         |  |      |  
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala   |  | Associate |  | Q    | 189,984 |  |      | Q
|Millicom International Cellular, S.A.                         |  | Luxemburg   |  | Associate |  |      | 19,794  |  |      |  
|Distribuidora de Comunicaciones de Oriente, S.A.              |  | Guatemala   |  | Associate |  |      | 15,653  |  |      |  
|Distribuidora Internacional de Comunicaciones, S.A.           |  | Guatemala   |  | Associate |  |      | 11,355  |  |      |  
|Millicom Spain, S.L.                                          |  | Spain       |  | Associate |  |      | 8,744   |  |      |  
|Industrias Masscardy, S.A.                                    |  | Guatemala   |  | Associate |  |      | 8,715   |  |      |  
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala   |  | Associate |  |      | 4,205   |  |      |  
|Molvis, S.A.                                                  |  | Guatemala   |  | Associate |  |      | 3,155   |  |      |  
|Distribuidora de Comunicaciones de Occidente, S.A.            |  | Guatemala   |  | Associate |  |      | 2,759   |  |      |  
|Inmobiliaria y Desarrolladora Empresarial de América, S.A.    |  | Guatemala   |  | Associate |  |      | 2,091   |  |      |  
|Telefónica Celular, S.A. de C.V.                              |  | Paraguay    |  | Associate |  |      | 1,874   |  |      |  
|Telemóvil El Salvador, S.A. de C.V.                           |  | El Salvador |  | Associate |  |      | 1,500   |  |      |  
|Megaprint, S.A.                                               |  | Guatemala   |  | Associate |  |      | 596     |  |      |  
|Navega.com, S.A.                                              |  | Guatemala   |  | Associate |  |      | 570     |  |      |  
|Empresa Eléctrica de Guatemala, S.A.                          |  | Guatemala   |  | Associate |  |      | 286     |  |      |  
|Cloud2Nube, S.A.                                              |  | Guatemala   |  | Associate |  |      | 220     |  |      |  
|Comercializadora Eléctrica de Guatemala, S.A.                 |  | Guatemala   |  | Associate |  |      | 130     |  |      |  
|Transportista Eléctrica Centroamericana, S A                  |  | Guatemala   |  | Associate |  |      | 42      |  |      |  
|Distribuidora Central de Comunicaciones, S.A.                 |  | Guatemala   |  | Associate |  |      | 1       |  |      |  
|Equiman, S.A.                                                 |  | Guatemala   |  | Associate |  |      | 1       |  |      |  
|Newcom Limited Bermuda                                        |  | Bermuda     |  | Associate |  |      | -       |  |      |  
|Las Azaleas, S.A.                                             |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|Nexcel, S.A.                                                  |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|Manta, S.A.                                                   |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|Porada, S.A.                                                  |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|Innovaprint, S.A.                                             |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|Innovacel, S.A.                                               |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|Maquinaria de Occidente, S.A.                                 |  | Guatemala   |  | Associate |  |      | -       |  |      |  
|                                                              |  |             |  |           |  | Q    | 271,675 |  |      | Q





27







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



A summary of the significant transactions with related parties
is presented as follows for the year ended December 31:



|                                                              |  | Country     |  | Relation  |  | 2018 |           |  | 2017 |   |           | 2016 | 
|------------------------------------------------------------- |  | ----------- |  | --------- |  | ---- | --------- |  | ---- | - | --------- | ---- | 
|Revenues:                                                     |  |             |  |           |  |      |           |  |      |   |           |      | 
|Revenues for use of network and platform                      |  |             |  |           |  |      |           |  |      |   |           |      | 
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala   |  | Associate |  | Q    | 50,597    |  |      | Q | 53,380    |      | 
|Navega.com, S.A.                                              |  | Guatemala   |  | Associate |  |      | 6,569     |  |      |   | 8,378     |      | 
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala   |  | Associate |  |      | -         |  |      |   | -         |      | 
|                                                              |  |             |  |           |  | Q    | 57,166    |  |      | Q | 61,758    |      | 
|Selling of airtime                                            |  |             |  |           |  |      |           |  |      |   |           |      | 
|Nexcel, S.A.                                                  |  | Guatemala   |  | Associate |  | Q    | 1,564,875 |  |      | Q | 1,430,727 |      | 
|Asistencia Global de Guatemala, S.A.                          |  | Guatemala   |  | Associate |  |      | -         |  |      |   | -         |      | 
|                                                              |  |             |  |           |  | Q    | 1,564,875 |  |      | Q | 1,430,727 |      | 
|Interconnection services                                      |  |             |  |           |  |      |           |  |      |   |           |      | 
|Telefónica Celular, S.A. de C.V.                              |  | Honduras    |  | Associate |  | Q    | 2,475     |  |      | Q | 2,483     |      | 
|Telemóvil El Salvador, S.A. de C.V.                           |  | El Salvador |  | Associate |  |      | 2,248     |  |      |   | 2,560     |      | 
|                                                              |  |             |  |           |  | Q    | 4,723     |  |      | Q | 5,043     |      | 
|Lease of websites                                             |  |             |  |           |  |      |           |  |      |   |           |      | 
|Navega.com, S.A.                                              |  | Guatemala   |  | Associate |  | Q    | 1,007     |  |      | Q | 985       |      | 
|                                                              |  |             |  |           |  |      |           |  |      |   |           |      | 
|Income from links, data and fixed line                        |  |             |  |           |  |      |           |  |      |   |           |      | 
|Navega.com, S.A.                                              |  | Guatemala   |  | Associate |  | Q    | 1,499     |  |      | Q | 1,801     |      | 
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala   |  | Associate |  |      | 19        |  |      |   | 20        |      | 
|                                                              |  |             |  |           |  | Q    | 1,518     |  |      | Q | 1,821     |      | 



28







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



|                                                              |  | Country     |  | Relation      |  | 2018 |         |  | 2017 |   |         | 2016 | 
|------------------------------------------------------------- |  | ----------- |  | ------------- |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|Other revenues                                                |  |             |  |               |  |      |         |  |      |   |         |      | 
|Millicom International II N.V.                                |  | Luxemburg   |  | Joint control |  | Q    | 51,880  |  |      | Q | 39,913  |      | 
|Miffin Associates Corp.                                       |  | Panama      |  | Joint control |  |      | 41,701  |  |      |   | 33,147  |      | 
|Empresa Eléctrica de Guatemala, S.A.                          |  | Guatemala   |  | Associate     |  |      | 1,691   |  |      |   | 1,595   |      | 
|Megaprint, S.A.                                               |  | Guatemala   |  | Associate     |  |      | 781     |  |      |   | 367     |      | 
|Telefónica Celular, S.A. de C.V.                              |  | Honduras    |  | Associate     |  |      | 631     |  |      |   | -       |      | 
|Telemóvil El Salvador, S.A. de C.V.                           |  | El Salvador |  | Associate     |  |      | 529     |  |      |   | -       |      | 
|Industrias Masscardy, S.A.                                    |  | Guatemala   |  | Associate     |  |      | 393     |  |      |   | 449     |      | 
|Protección Integral, S.A.                                     |  | Guatemala   |  | Associate     |  |      | 286     |  |      |   | -       |      | 
|Garda, S.A.                                                   |  | Guatemala   |  | Associate     |  |      | 120     |  |      |   | 133     |      | 
|Transportista Eléctrica Centroamericana, S.A.                 |  | Guatemala   |  | Associate     |  |      | 104     |  |      |   | -       |      | 
|Anacapri, S.A.                                                |  | Guatemala   |  | Associate     |  |      | 65      |  |      |   | 71      |      | 
|Almacenaje y Manejo de Materiales Eléctricos, S.A.            |  | Guatemala   |  | Associate     |  |      | 50      |  |      |   | 6       |      | 
|Innovaprint, S.A.                                             |  | Guatemala   |  | Associate     |  |      | 24      |  |      |   | 24      |      | 
|Las Azaleas, S.A.                                             |  | Guatemala   |  | Associate     |  |      | 12      |  |      |   | 32      |      | 
|Comercializadora Eléctrica de Guatemala, S.A.                 |  | Guatemala   |  | Associate     |  |      | 3       |  |      |   | -       |      | 
|Energica, S.A.                                                |  | Guatemala   |  | Associate     |  |      | 1       |  |      |   | 1       |      | 
|Olomega, S.A.                                                 |  | Guatemala   |  | Associate     |  |      | -       |  |      |   | 47      |      | 
|Parinacota, S.A.                                              |  | Guatemala   |  | Associate     |  |      | -       |  |      |   | 47      |      | 
|Millicom International Cellular, S.A.                         |  | Luxembourg  |  | Associate     |  |      | -       |  |      |   | -       |      | 
|                                                              |  |             |  |               |  | Q    | 98,271  |  |      | Q | 75,832  |      | 
|Expenses:                                                     |  |             |  |               |  |      |         |  |      |   |         |      | 
|Services of payroll administration (note 21.1)                |  |             |  |               |  |      |         |  |      |   |         |      | 
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala   |  | Associate     |  | Q    | 368,238 |  |      | Q | -       |      | 
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala   |  | Associate     |  |      | -       |  |      |   | 345,100 |      | 
|                                                              |  |             |  |               |  | Q    | 368,238 |  |      | Q | 345,100 |      | 
|                                                              |  |             |  |               |  |      |         |  |      |   |         |      | 
|Transmission of data and links                                |  |             |  |               |  |      |         |  |      |   |         |      | 
|Millicom Spain, S.L.                                          |  | Spain       |  | Associate     |  | Q    | 12,094  |  |      | Q | 13,113  |      | 
|                                                              |  |             |  |               |  |      |         |  |      |   |         |      | 
|Services of interconnection                                   |  |             |  |               |  |      |         |  |      |   |         |      | 
|Telefónica Celular, S.A. de C.V.                              |  | Honduras    |  | Associate     |  | Q    | 5,301   |  |      | Q | 5,191   |      | 
|Telemóvil El Salvador, S.A. de C.V.                           |  | El Salvador |  | Associate     |  |      | 3,644   |  |      |   | 3,757   |      | 
|Telefónica Celular de Bolivia, S.A.                           |  | Bolivia     |  | Associate     |  |      | -       |  |      |   | 5       |      | 
|                                                              |  |             |  |               |  | Q    | 8,945   |  |      | Q | 8,953   |      | 





29







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                                           |  | Country   |  | Relation  |  | 2018 |         |  | 2017 |   |         | 2016 | 
|---------------------------------------------------------- |  | --------- |  | --------- |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|Telecommunications services                                |  |           |  |           |  |      |         |  |      |   |         |      | 
|Navega.com, S.A.                                           |  | Guatemala |  | Associate |  | Q    | 6,105   |  |      | Q | 6,105   |      | 
|                                                           |  |           |  |           |  |      |         |  |      |   |         |      | 
|Building lease                                             |  |           |  |           |  |      |         |  |      |   |         |      | 
|Distribuidora de Comunicaciones de Occidente, S.A.         |  | Guatemala |  | Associate |  | Q    | 28,474  |  |      | Q | 27,786  |      | 
|                                                           |  |           |  |           |  |      |         |  |      |   |         |      | 
|Purchase of inventory of cell phones and cards             |  |           |  |           |  |      |         |  |      |   |         |      | 
|Servicios Especializados en Telecomunicaciones, S.A.       |  | Guatemala |  | Associate |  | Q    | 696,549 |  |      | Q | 641,946 |      | 
|                                                           |  |           |  |           |  |      |         |  |      |   |         |      | 
|Network maintenance and lease of sites                     |  |           |  |           |  |      |         |  |      |   |         |      | 
|Las Azaleas, S.A.                                          |  | Guatemala |  | Associate |  | Q    | 209,679 |  |      | Q | 206,543 |      | 
|Industrias Masscardy, S.A.                                 |  | Guatemala |  | Associate |  |      | 91,474  |  |      |   | 90,751  |      | 
|Molvis, S.A.                                               |  | Guatemala |  | Associate |  |      | 33,180  |  |      |   | 33,950  |      | 
|Equiman, S.A.                                              |  | Guatemala |  | Associate |  |      | 11,093  |  |      |   | 10,936  |      | 
|Inmobiliaria y Desarrolladora Empresarial de América, S.A. |  | Guatemala |  | Associate |  |      | 6,876   |  |      |   | 5,581   |      | 
|Innovacel, S.A.                                            |  | Guatemala |  | Associate |  |      | 2,927   |  |      |   | 2,900   |      | 
|Transportista Eléctrica Centroamericana, S.A.              |  | Guatemala |  | Associate |  |      | 438     |  |      |   | 344     |      | 
|Maquinaria de Occidente, S.A.                              |  | Guatemala |  | Associate |  |      | 245     |  |      |   | 575     |      | 
|Parinacota, S.A.                                           |  | Guatemala |  | Associate |  |      | 222     |  |      |   | 211     |      | 
|                                                           |  |           |  |           |  | Q    | 356,134 |  |      | Q | 351,791 |      | 





30







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                                              |  | Country     |  | Relation  |  | 2018 |         |  | 2017 |   |         | 2016 | 
|------------------------------------------------------------- |  | ----------- |  | --------- |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|Other services                                                |  |             |  |           |  |      |         |  |      |   |         |      | 
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala   |  | Associate |  | Q    | 45,000  |  |      | Q | 45,276  |      | 
|Empresa Eléctrica de Guatemala, S.A.                          |  | Guatemala   |  | Associate |  |      | 37,415  |  |      |   | 38,343  |      | 
|Supervisora de Occidente, S.A.                                |  | Guatemala   |  | Associate |  |      | 34,847  |  |      |   | 31,650  |      | 
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala   |  | Associate |  |      | 12,000  |  |      |   | 31,534  |      | 
|Comercializadora Eléctrica de Guatemala, S.A.                 |  | Guatemala   |  | Associate |  |      | 10,876  |  |      |   | 12,308  |      | 
|Millicom Spain, S.L.                                          |  | Spain       |  | Associate |  |      | 6,319   |  |      |   | -       |      | 
|Megaprint, S.A.                                               |  | Guatemala   |  | Associate |  |      | 6,101   |  |      |   | 5,550   |      | 
|Nexcel, S.A.                                                  |  | Guatemala   |  | Associate |  |      | 4,095   |  |      |   | 3,882   |      | 
|Navega.com, S.A.                                              |  | Guatemala   |  | Associate |  |      | 3,441   |  |      |   | 3,441   |      | 
|Cloud2Nube, S.A.                                              |  | Guatemala   |  | Associate |  |      | 2,400   |  |      |   | 2,400   |      | 
|Cualirecursos, S.A.                                           |  | Guatemala   |  | Associate |  |      | 2,395   |  |      |   | -       |      | 
|Distribuidora de Comunicaciones de Oriente, S.A.              |  | Guatemala   |  | Associate |  |      | 1,380   |  |      |   | 1,150   |      | 
|Inversiones Sochi, S.A.                                       |  | Guatemala   |  | Associate |  |      | 1,369   |  |      |   | -       |      | 
|Distribuidora Central de Comunicaciones, S.A.                 |  | Guatemala   |  | Associate |  |      | 825     |  |      |   | 2,000   |      | 
|Manta, S.A.                                                   |  | Guatemala   |  | Associate |  |      | 659     |  |      |   | 841     |      | 
|Innovaprint, S.A.                                             |  | Guatemala   |  | Associate |  |      | 392     |  |      |   | 381     |      | 
|Porada, S.A.                                                  |  | Guatemala   |  | Associate |  |      | 227     |  |      |   | 464     |      | 
|Firma de Auditoria y Asesoría Financiera, S.A.                |  | Guatemala   |  | Associate |  |      | 202     |  |      |   | 186     |      | 
|Energica, S.A.                                                |  | Guatemala   |  | Associate |  |      | 12      |  |      |   | -       |      | 
|Telemóvil El Salvador, S.A. de C.V.                           |  | El Salvador |  | Associate |  |      | 9       |  |      |   | -       |      | 
|Parinacota, S.A.                                              |  | Guatemala   |  | Associate |  |      | -       |  |      |   | 211     |      | 
|Bassett                                                       |  | Guatemala   |  | Associate |  |      | -       |  |      |   | -       |      | 
|Promociones Acertadas, S.A.                                   |  | Guatemala   |  | Associate |  |      | -       |  |      |   | -       |      | 
|                                                              |  |             |  |           |  | Q    | 169,964 |  |      | Q | 179,617 |      | 





31







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)



|                                                              |  | Country    |  | Relation      |  | 2018 |           |  | 2017 |   |           | 2016 | 
|------------------------------------------------------------- |  | ---------- |  | ------------- |  | ---- | --------- |  | ---- | - | --------- | ---- | 
|Loans granted to related parties                              |  |            |  |               |  |      |           |  |      |   |           |      | 
|Millicom International II N.V.                                |  | Luxembourg |  | Joint control |  | Q    | 1,392,991 |  |      | Q | 1,148,246 |      | 
|Miffin Associates Corp.                                       |  | Panama     |  | Joint control |  |      | 1,140,604 |  |      |   | 939,506   |      | 
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala  |  | Associate     |  |      | 756,600   |  |      |   | 64,056    |      | 
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala  |  | Associate     |  |      | 154,259   |  |      |   | 57,369    |      | 
|Distribuidora de Comunicaciones de Oriente, S.A.              |  | Guatemala  |  | Associate     |  |      | 20,000    |  |      |   | -         |      | 
|Distribuidora de Comunicaciones de Occidente, S.A.            |  | Guatemala  |  | Associate     |  |      | 15,000    |  |      |   | 11,800    |      | 
|Cloud2Nube, S.A.                                              |  | Guatemala  |  | Associate     |  |      | 1,408     |  |      |   | -         |      | 
|Navega.com, S.A.                                              |  | Guatemala  |  | Associate     |  |      | 4         |  |      |   | -         |      | 
|Distribuidora Central de Comunicaciones, S.A.                 |  | Guatemala  |  | Associate     |  |      | -         |  |      |   | -         |      | 
|                                                              |  |            |  |               |  | Q    | 3,480,866 |  |      | Q | 2,220,977 |      | 
|                                                              |  |            |  |               |  |      |           |  |      |   |           |      | 
|Loan repayments from related parties                          |  |            |  |               |  |      |           |  |      |   |           |      | 
|Millicom International II N.V.                                |  | Luxembourg |  | Joint control |  | Q    | 1,069,212 |  |      | Q | 1,049,220 |      | 
|Miffin Associates Corp.                                       |  | Panama     |  | Joint control |  |      | 877,220   |  |      |   | 862,790   |      | 
|Servicios Especializados en Telecomunicaciones, S.A.          |  | Guatemala  |  | Associate     |  |      | 209,415   |  |      |   | 1,996     |      | 
|Navega.com, S.A.                                              |  | Guatemala  |  | Associate     |  |      | 127,604   |  |      |   | 114,600   |      | 
|Distribuidora de Comunicaciones de Oriente, S.A.              |  | Guatemala  |  | Associate     |  |      | 20,000    |  |      |   | -         |      | 
|Distribuidora de Comunicaciones de Occidente, S.A.            |  | Guatemala  |  | Associate     |  |      | 8,800     |  |      |   | 5,000     |      | 
|Servicios Innovadores de Comunicación y Entretenimiento, S.A. |  | Guatemala  |  | Associate     |  |      | 8,085     |  |      |   | 5,127     |      | 
|Cloud2Nube, S.A.                                              |  | Guatemala  |  | Associate     |  |      | 2,165     |  |      |   | 3,600     |      | 
|Comunicaciones Corporativas, S.A.                             |  | Guatemala  |  | Associate     |  |      | 1,100     |  |      |   | 850       |      | 
|Distribuidora Central de Comunicaciones, S.A.                 |  | Guatemala  |  | Associate     |  |      | -         |  |      |   | -         |      | 
|                                                              |  |            |  |               |  | Q    | 2,323,601 |  |      | Q | 2,043,183 |      | 





32







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016



(Expressed in thousands of Quetzals)





|                                                               |  | Country   |  | Relation  |  | 2018 |        |  | 2017 |   |       | 2016 | 
|-------------------------------------------------------------- |  | --------- |  | --------- |  | ---- | ------ |  | ---- | - | ----- | ---- | 
|Loans granted by related parties                               |  |           |  |           |  |      |        |  |      |   |       |      | 
|Newcom Limited Bermuda Servicios Innovadores de Comunicación y |  | Bermuda   |  | Associate |  | Q    | 36,699 |  |      | Q | -     |      | 
|Entretenimiento, S.A. Servicios Especializados en              |  | Guatemala |  | Associate |  |      | 12,333 |  |      |   | 792   |      | 
|Telecomunicaciones, S.A. Distribuidora Central de              |  | Guatemala |  | Associate |  |      | 1,558  |  |      |   | 291   |      | 
|Comunicaciones, S.A.                                           |  | Guatemala |  | Associate |  |      | 16     |  |      |   | 403   |      | 
|Navega.com, S.A.                                               |  | Guatemala |  | Associate |  |      | 12     |  |      |   | -     |      | 
|Distribuidora de Comunicaciones de Oriente, S.A.               |  | Guatemala |  | Associate |  |      | 6      |  |      |   | -     |      | 
|Cloud2Nube, S.A.                                               |  | Guatemala |  | Associate |  |      | -      |  |      |   | 452   |      | 
|                                                               |  |           |  |           |  | Q    | 50,624 |  |      | Q | 1,938 |      | 
|Loan repayments to related parties                             |  |           |  |           |  |      |        |  |      |   |       |      | 
|Newcom Limited Bermuda Distribuidora Internacional de          |  | Bermuda   |  | Associate |  | Q    | 50,344 |  |      | Q | -     |      | 
|Comunicaciones, S.A. Servicios Innovadores de Comunicación y   |  | Guatemala |  | Associate |  |      | 34,776 |  |      |   |       |      | 
|Entretenimiento, S.A. Servicios Especializados en              |  | Guatemala |  | Associate |  |      | 12,331 |  |      |   | 793   |      | 
|Telecomunicaciones, S.A. Distribuidora Central de              |  | Guatemala |  | Associate |  |      | 1,558  |  |      |   | 291   |      | 
|Comunicaciones, S.A.                                           |  | Guatemala |  | Associate |  |      | 18     |  |      |   | 574   |      | 
|Navega.com, S.A.                                               |  | Guatemala |  | Associate |  |      | 12     |  |      |   | -     |      | 
|Distribuidora de Comunicaciones de Oriente, S.A.               |  | Guatemala |  | Associate |  |      | 6      |  |      |   | -     |      | 
|Cloud2Nube, S.A.                                               |  | Guatemala |  | Associate |  |      | -      |  |      |   | 452   |      | 
|                                                               |  |           |  |           |  | Q    | 99,045 |  |      | Q | 2,110 |      | 



Terms and conditions of transactions
with related parties

The sales and purchases of goods
and services between related parties are carried out at the prices and terms previously agreed between the parties. The accounts
receivable and payable from and to related parties are unsecured and do not generate interest, except for the loans granted to
Millicom International II N.V. and Miffin Associates Corp, which accrue interest of 2.88% annually at market rates as mentioned
below. The maturity terms for accounts receivable and accounts payable from or to related parties extend up to 60 days from the
corresponding invoices’ issue date, are not subject to any discount for early payment and are recoverable or payable in the
functional currency of the financial statements, except for the balances indicated on note 25, risk of exchange rate section. During
the years that ended on December 31, 2018 and 2017, the Company has not recorded any impairment over the accounts receivable from
related parties.



33







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



The loans received from or granted
to related parties without interest or with interest at a different market rate are initially registered at their fair value, considering
an interest rate of market for similar loans at the start of the loan, as stated by IFRS 9, 5.1.1. The difference between the amount
of the loan and its fair value is recognized in equity as another component of the equity. At December 31, 2018 and 2017, loans
received from (and granted to) related parties are payable or collectible at demand and classified as current assets or liabilities,
except those granted to Millicom International II N.V. and Miffin Associates Corp., which are long term and accrue interest at
a market interest rate as detailed below:



|Interests over granted loans   |  | Country   |  | Relation      |  | 2018 |        |  | 2017 |   |        | 2016 | 
|------------------------------ |  | --------- |  | ------------- |  | ---- | ------ |  | ---- | - | ------ | ---- | 
|                               |  |           |  |               |  |      |        |  |      |   |        |      | 
|Millicom International II N.V. |  | Luxemburg |  | Joint control |  | Q    | 51,880 |  |      | Q | 39,913 |      | 
|Miffin Associates Corp.        |  | Panama    |  | Joint control |  |      | 41,701 |  |      |   | 33,147 |      | 
|                               |  |           |  |               |  | Q    | 93,581 |  |      | Q | 73,060 |      | 



| | 9. | Other assets
| | -- | ------------



|                       |  | 2018 |        |  | 2017 |  
|---------------------- |  | ---- | ------ |  | ---- | -
|                       |  |      |        |  |      |  
|Prepayments            |  | Q    | 32,251 |  |      | Q
|Prepayments to vendors |  |      | 1,532  |  |      |  
|Value added tax        |  |      | 776    |  |      |  
|                       |  | Q    | 34,559 |  |      | Q



| | 10. | Inventories
| | --- | -----------



|                          |  | 2018 |       |  | 2017 |  
|------------------------- |  | ---- | ----- |  | ---- | -
|At cost:                  |  |      |       |  |      |  
|Cell phones and equipment |  | Q    | 5,436 |  |      | Q



No adjustments were made during the years ended on December
31, 2018 and 2017 regarding to the valuation of inventories at net realizable value.



34







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 11. | Property, plant and equipment
| | --- | -----------------------------



A summary of the property, plant and equipment and accumulated
depreciation for the year ended on December 31, 2018, is presented below:



|                                          |  | Balance at |            |  |               |   |         |             |  |   |            |   |  | Balance at |         
|----------------------------------------- |  | ---------- | ---------- |  | ------------- | - | ------- | ----------- |  | - | ---------- | - |  | ---------- | --------
|                                          |  | 12-31-2017 |            |  | Additions (a) |   |         | Retirements |  |   | Transfers  |   |  | 12-31-2018 |         
|Cost:                                     |  |            |            |  |               |   |         |             |  |   |            |   |  |            |         
|Generators                                |  | Q          | 241,160    |  |               | Q | 17,659  |             |  | Q | (6,958     | ) |  | Q          | 1,889   
|Primary network                           |  |            | 1,036,621  |  |               |   | 46,927  |             |  |   | (116,085   | ) |  |            | 25,181  
|Towers and civil works                    |  |            | 2,981,306  |  |               |   | 96,766  |             |  |   | (37,903    | ) |  |            | (3,366  
|Customer premise equipment                |  |            | 30,399     |  |               |   | 7,885   |             |  |   | (11,743    | ) |  |            | 386     
|Other network equipment                   |  |            | 4,850,749  |  |               |   | 234,547 |             |  |   | (1,014,930 | ) |  |            | 32,581  
|Buildings                                 |  |            | 248,838    |  |               |   | 6,230   |             |  |   | (5,376     | ) |  |            | (349    
|Other assets                              |  |            | 811,234    |  |               |   | 67,237  |             |  |   | (105,238   | ) |  |            | 42,965  
|Work in process                           |  |            | 187,573    |  |               |   | 82,544  |             |  |   | (209       | ) |  |            | (111,516
|Parts                                     |  |            | 11,782     |  |               |   | -       |             |  |   | (2,685     | ) |  |            | (5,338  
|Financial lease – other network equipment |  |            | 7,478      |  |               |   | -       |             |  |   | -          |   |  |            | -       
|                                          |  |            | 10,407,140 |  |               |   | 559,795 |             |  |   | (1,301,127 | ) |  |            | (17,567 
|Accumulated depreciation:                 |  |            |            |  |               |   |         |             |  |   |            |   |  |            |         
|Generators                                |  |            | 215,302    |  |               |   | 12,572  |             |  |   | (6,950     | ) |  |            | 99      
|Primary network                           |  |            | 693,533    |  |               |   | 85,960  |             |  |   | (109,227   | ) |  |            | (17,766 
|Towers and civil works                    |  |            | 1,767,049  |  |               |   | 251,332 |             |  |   | (29,827    | ) |  |            | (3,132  
|Customer premise equipment                |  |            | 25,104     |  |               |   | 8,636   |             |  |   | (11,743    | ) |  |            | 226     
|Other network equipment                   |  |            | 3,372,282  |  |               |   | 392,099 |             |  |   | (994,211   | ) |  |            | (14,493 
|Financial lease – other network equipment |  |            | 987        |  |               |   | 623     |             |  |   | -          |   |  |            | -       
|Buildings                                 |  |            | 162,509    |  |               |   | 17,161  |             |  |   | (4,977     | ) |  |            | (47     
|Other assets                              |  |            | 559,351    |  |               |   | 85,635  |             |  |   | (102,403   | ) |  |            | 30,995  
|                                          |  | Q          | 6,796,117  |  |               | Q | 854,018 |             |  | Q | (1,259,338 | ) |  | Q          | (4,118  



| | (a) | Q374 corresponds to the capitalization of the costs of
the asset retirement obligation (note 17).
| | --- | -------------------------------------------------------------------------------------------------





35







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



|                                          |  | Balance
    at
12-31-2017 |           |  | Additions (a) |   |   | Transfers |  |   | Balance at
12-31-2018 | 
|----------------------------------------- |  | ------------------------- | --------- |  | ------------- | - | - | --------- |  | - | --------------------- | 
|Estimated impairment:                     |  |                           |           |  |               |   |   |           |  |   |                       | 
|Generators                                |  | Q                         | 1,001     |  |               | Q | - |           |  | Q | -                     | 
|Primary network                           |  |                           | 17,094    |  |               |   | - |           |  |   | -                     | 
|Towers and civil works                    |  |                           | 515       |  |               |   | - |           |  |   | -                     | 
|Financial lease – Other network equipment |  |                           | 157,125   |  |               |   | - |           |  |   | -                     | 
|Buildings                                 |  |                           | 7,171     |  |               |   | - |           |  |   | -                     | 
|Other assets                              |  |                           | 30,822    |  |               |   | - |           |  |   | -                     | 
|                                          |  |                           | 213,728   |  |               | Q | - |           |  | Q | -                     | 
|Net book value                            |  | Q                         | 3,397,295 |  |               |   |   |           |  |   |                       | 





36







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



A summary of the property, plant and equipment and accumulated
depreciation for the year ended on December 31, 2017, is presented below:



|                           |  |            |            |  |               |   |         |             |  |   |            |   |  | Reclassification |          |   |            |  
|-------------------------- |  | ---------- | ---------- |  | ------------- | - | ------- | ----------- |  | - | ---------- | - |  | ---------------- | -------- | - | ---------- | -
|                           |  | Balance at |            |  |               |   |         |             |  |   |            |   |  | between          |          |   | Balance at |  
|                           |  | 12-31-2016 |            |  | Additions (a) |   |         | Retirements |  |   | Transfers  |   |  | accounts         |          |   | 12-31-2017 |  
|Cost:                      |  |            |            |  |               |   |         |             |  |   |            |   |  |                  |          |   |            |  
|Generators                 |  | Q          | 242,502    |  |               | Q | 17,136  |             |  | Q | (18,478    | ) |  | Q                | -        |   |            | Q
|Primary network            |  |            | 1,304,591  |  |               |   | 52,656  |             |  |   | (406,616   | ) |  |                  | 85,990   |   |            |  
|Towers and civil works     |  |            | 2,904,908  |  |               |   | 95,602  |             |  |   | (33,885    | ) |  |                  | 14,681   |   |            |  
|Customer premise equipment |  |            | 23,368     |  |               |   | 7,786   |             |  |   | (702       | ) |  |                  | (53      | ) |            |  
|Other network equipment    |  |            | 5,029,856  |  |               |   | 262,740 |             |  |   | (542,574   | ) |  |                  | 100,727  |   |            |  
|Buildings                  |  |            | 244,200    |  |               |   | 10,243  |             |  |   | (5,326     | ) |  |                  | (279     | ) |            |  
|Other assets               |  |            | 716,693    |  |               |   | 99,376  |             |  |   | (27,908    | ) |  |                  | 23,073   |   |            |  
|Work in process            |  |            | 421,827    |  |               |   | -       |             |  |   | (387       | ) |  |                  | (233,867 | ) |            |  
|Parts                      |  |            | 3,014      |  |               |   | 11      |             |  |   | -          |   |  |                  | 8,757    |   |            |  
|Financial lease – other    |  |            |            |  |               |   |         |             |  |   |            |   |  |                  |          |   |            |  
|network equipment          |  |            | 7,478      |  |               |   | -       |             |  |   | -          |   |  |                  | -        |   |            |  
|                           |  |            | 10,898,437 |  |               |   | 545,550 |             |  |   | (1,035,876 | ) |  |                  | (971     | ) |            |  
|                           |  |            |            |  |               |   |         |             |  |   |            |   |  |                  |          |   |            |  
|Accumulated depreciation:  |  |            |            |  |               |   |         |             |  |   |            |   |  |                  |          |   |            |  
|Generators                 |  |            | 220,040    |  |               |   | 12,760  |             |  |   | (17,498    | ) |  |                  | -        |   |            |  
|Primary network            |  |            | 967,272    |  |               |   | 108,985 |             |  |   | (387,091   | ) |  |                  | -        |   |            |  
|Towers and civil works     |  |            | 1,537,362  |  |               |   | 239,221 |             |  |   | (12,009    | ) |  |                  | -        |   |            |  
|Customer premise equipment |  |            | 18,954     |  |               |   | 6,853   |             |  |   | (703       | ) |  |                  | -        |   |            |  
|Other network equipment    |  |            | 3,472,047  |  |               |   | 439,226 |             |  |   | (531,504   | ) |  |                  | -        |   |            |  
|Financial lease – other    |  |            |            |  |               |   |         |             |  |   |            |   |  |                  |          |   |            |  
|network equipment          |  |            | 364        |  |               |   | 623     |             |  |   | -          |   |  |                  | -        |   |            |  
|Buildings                  |  |            | 139,803    |  |               |   | 27,006  |             |  |   | (4,300     | ) |  |                  | -        |   |            |  
|Other assets               |  |            | 485,171    |  |               |   | 101,356 |             |  |   | (27,849    | ) |  |                  | -        |   |            |  
|                           |  | Q          | 6,841,013  |  |               | Q | 936,030 |             |  | Q | (980,954   | ) |  | Q                | -        |   |            | Q



| | (a) | Q20,337 correspond to the capitalization of asset retirement
obligation costs (note 17).
| | --- | ----------------------------------------------------------------------------------------





37







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



|                                          |  | Balance at |           |  |               |   |        |           |  |   | Balance at | 
|----------------------------------------- |  | ---------- | --------- |  | ------------- | - | ------ | --------- |  | - | ---------- | 
|                                          |  | 12-31-2016 |           |  | Additions (a) |   |        | Transfers |  |   | 12-31-2017 | 
|Estimated impairment:                     |  |            |           |  |               |   |        |           |  |   |            | 
|Generators                                |  | Q          | 1,014     |  |               | Q | (13    | )         |  | Q | -          | 
|Primary network                           |  |            | 12,721    |  |               |   | 4,373  |           |  |   | -          | 
|Towers and civil works                    |  |            | 118       |  |               |   | 397    |           |  |   | -          | 
|Customer Premise Equipment                |  |            | 692       |  |               |   | (692   | )         |  |   | -          | 
|Financial lease – Other network equipment |  |            | 85,969    |  |               |   | 71,156 |           |  |   | -          | 
|Buildings                                 |  |            | 6,942     |  |               |   | 229    |           |  |   | -          | 
|Other assets                              |  |            | 30,421    |  |               |   | 401    |           |  |   | -          | 
|                                          |  |            | 137,877   |  |               | Q | 75,851 |           |  | Q | -          | 
|Net book value                            |  | Q          | 3,919,547 |  |               |   |        |           |  |   |            | 



| | (a) | During December 2017, a fixed asset impairment analysis
was performed in connection to the assets related to the five-year contract with the Government of Guatemala for the provision
of surveillance services that ended on July 2016 and management concluded to recognize an additional impairment of Q75,851 (note
21). At December 31, 2017, fixed assets related with this contract have been completely impaired.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





38







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



A summary of property, plant and equipment and accumulated
depreciation for the year ended December 31, 2016 is presented as follows:



|                                          |  | Balance at |            |  |               |   |         |             |  |   |           |   |  | Balance at |         
|----------------------------------------- |  | ---------- | ---------- |  | ------------- | - | ------- | ----------- |  | - | --------- | - |  | ---------- | --------
|                                          |  | 12-31-2015 |            |  | Additions (a) |   |         | Retirements |  |   | Transfers |   |  | 12-31-2016 |         
|Cost:                                     |  |            |            |  |               |   |         |             |  |   |           |   |  |            |         
|Generators                                |  | Q          | 231,713    |  |               | Q | 10,401  |             |  | Q | -         |   |  | Q          | 388     
|Primary network                           |  |            | 1,226,253  |  |               |   | 41,920  |             |  |   | (370      | ) |  |            | 36,788  
|Towers and civil works                    |  |            | 2,730,870  |  |               |   | 177,662 |             |  |   | (1,824    | ) |  |            | (1,800  
|Customer Premise Equipment                |  |            | 16,848     |  |               |   | 6,479   |             |  |   | (4        | ) |  |            | 45      
|Other network equipment                   |  |            | 4,606,546  |  |               |   | 306,917 |             |  |   | (72,196   | ) |  |            | 188,589 
|Buildings                                 |  |            | 203,545    |  |               |   | 28,424  |             |  |   | -         |   |  |            | 12,231  
|Other assets                              |  |            | 599,177    |  |               |   | 66,659  |             |  |   | (9,299    | ) |  |            | 60,156  
|Work in process                           |  |            | 609,480    |  |               |   | 111,792 |             |  |   | (796      | ) |  |            | (298,649
|Parts                                     |  |            | 762        |  |               |   | -       |             |  |   | -         |   |  |            | 2,252   
|Financial lease – other network equipment |  |            | -          |  |               |   | 7,478   |             |  |   | -         |   |  |            | -       
|                                          |  |            | 10,225,194 |  |               |   | 757,732 |             |  |   | (84,489   | ) |  |            | -       
|                                          |  |            |            |  |               |   |         |             |  |   |           |   |  |            |         
|Accumulated depreciation                  |  |            |            |  |               |   |         |             |  |   |           |   |  |            |         
|Generators                                |  |            | 206,577    |  |               |   | 13,463  |             |  |   | -         |   |  |            | -       
|Primary network                           |  |            | 856,319    |  |               |   | 111,016 |             |  |   | (314      | ) |  |            | 251     
|Towers and civil work                     |  |            | 1,310,348  |  |               |   | 227,861 |             |  |   | (596      | ) |  |            | (251    
|Equipment installed on clients            |  |            | 14,737     |  |               |   | 4,221   |             |  |   | (4        | ) |  |            | -       
|Another network equipment                 |  |            | 3,085,571  |  |               |   | 455,903 |             |  |   | (69,621   | ) |  |            | 194     
|Financial lease – other network equipment |  |            | -          |  |               |   | 364     |             |  |   | -         |   |  |            | -       
|Other network equipment                   |  |            |            |  |               |   |         |             |  |   |           |   |  |            |         
|Buildings                                 |  |            | 110,740    |  |               |   | 28,812  |             |  |   | -         |   |  |            | 251     
|Other assets                              |  |            | 395,773    |  |               |   | 98,945  |             |  |   | (9,102    | ) |  |            | (445    
|                                          |  | Q          | 5,980,065  |  |               | Q | 940,585 |             |  | Q | (79,637   | ) |  | Q          | -       



| | (a) | Q50,126 correspond to the capitalization of asset retirement
obligation cost.
| | --- | -----------------------------------------------------------------------------





39







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



|                                           |  | Balance at |           |  |               |   |         |           |  |   | Balance at | 
|------------------------------------------ |  | ---------- | --------- |  | ------------- | - | ------- | --------- |  | - | ---------- | 
|                                           |  | 12-31-2015 |           |  | Additions (a) |   |         | Transfers |  |   | 12-31-2016 | 
|Estimated impairment                       |  |            |           |  |               |   |         |           |  |   |            | 
|Generators                                 |  | Q          | -         |  |               | Q | 1,014   |           |  | Q | -          | 
|Primary network                            |  |            | -         |  |               |   | 12,721  |           |  |   | -          | 
|Towers and civil works                     |  |            | -         |  |               |   | 118     |           |  |   | -          | 
|Customer Premise Equipment                 |  |            | -         |  |               |   | 692     |           |  |   | -          | 
|Financial lease  – Other network equipment |  |            | -         |  |               |   | 85,969  |           |  |   | -          | 
|Generators                                 |  |            | -         |  |               |   | 6,942   |           |  |   | -          | 
|Primary network                            |  |            | -         |  |               |   | 30,421  |           |  |   | -          | 
|                                           |  |            | -         |  |               | Q | 137,877 |           |  | Q | -          | 
|Net book value                             |  | Q          | 4,245,129 |  |               |   |         |           |  |   |            | 



| | (a) | During December 2016, a fixed asset impairment analysis
was performed in connection with the five-year contract agreement with the Government of Guatemala and management concluded that
an impairment amounting to Q137,877 (note 21) was required. At December 31, 2016, the net carrying value considered recoverable,
after the impairment, amounted to Q114 million. The recoverable amount of the fixed assets associated with this project has been
determined through the calculation of the value in use, using cash flow forecasts based on budgets approved by management, which
covered the term of five years. The expectation of income for the projected years was based on surveillance services for private
customers, municipalities and the expansion in the small and medium entities customer base. The discount rates after taxes applied
to the cash flow forecast was of 14.9%.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





40







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 12. | Intangible assets
| | --- | -----------------



A summary of intangible assets and their accumulated
depreciation for the year ended on December 31, 2018, is presented as follows:



|                                |  | Balance at |           |  |           |   |         |             |  |   |           |   |  | Balance at |       
|------------------------------- |  | ---------- | --------- |  | --------- | - | ------- | ----------- |  | - | --------- | - |  | ---------- | ------
|                                |  | 12-31-2017 |           |  | Additions |   |         | Withdrawals |  |   | Transfers |   |  | 12-31-2018 |       
|Cost:                           |  |            |           |  |           |   |         |             |  |   |           |   |  |            |       
|Network programs                |  | Q          | 1,215,933 |  |           | Q | 132,902 |             |  | Q | (133,214  | ) |  | Q          | 17,553
|Licenses                        |  |            | 449,548   |  |           |   | -       |             |  |   | -         |   |  |            | -     
|Other intangible assets         |  |            | 704       |  |           |   | 18      |             |  |   | -         |   |  |            | -     
|Intangible in process           |  |            | 12        |  |           |   | -       |             |  |   | -         |   |  |            | 14    
|Irrevocable right of use – IRU  |  |            | 107,983   |  |           |   | 31,075  |             |  |   | -         |   |  |            | -     
|                                |  |            | 1,774,180 |  |           |   | 163,995 |             |  |   | (133,214  | ) |  |            | 17,567
|Accumulated amortization:       |  |            |           |  |           |   |         |             |  |   |           |   |  |            |       
|Network programs                |  |            |           |  |           |   |         |             |  |   |           |   |  |            |       
|Licenses                        |  |            | 872,830   |  |           |   | 138,112 |             |  |   | (128,678  | ) |  |            | 4,118 
|Other intangible assets         |  |            | 281,835   |  |           |   | 11,137  |             |  |   | -         |   |  |            | -     
|Irrevocable rights of use – IRU |  |            | 189       |  |           |   | 144     |             |  |   | -         |   |  |            | -     
|                                |  |            | 41,353    |  |           |   | 7,595   |             |  |   | -         |   |  |            | -     
|                                |  |            | 1,196,207 |  |           |   | 156,988 |             |  |   | (128,678  | ) |  |            | 4,118 
|Estimated impairment:           |  |            |           |  |           |   |         |             |  |   |           |   |  |            |       
|Network programs                |  |            | 447       |  |           |   | -       |             |  |   | -         |   |  |            | -     
|                                |  |            | 447       |  |           | Q | -       |             |  | Q | -         |   |  | Q          | -     
|Net book value                  |  | Q          | 577,526   |  |           |   |         |             |  |   |           |   |  |            |       





41







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



A summary of intangible assets and their accumulated
depreciation for the year ended on December 31, 2017, is presented as follows:



|                               |  |            |           |  |               |   |         |             |  |   |           |   |  | Reclassification |     |  |            |  
|------------------------------ |  | ---------- | --------- |  | ------------- | - | ------- | ----------- |  | - | --------- | - |  | ---------------- | --- |  | ---------- | -
|                               |  | Balance at |           |  |               |   |         |             |  |   |           |   |  | between          |     |  | Balance at |  
|                               |  | 12-31-2016 |           |  | Additions (a) |   |         | Withdrawals |  |   | Transfers |   |  | accounts         |     |  | 12-31-2017 |  
|Cost:                          |  |            |           |  |               |   |         |             |  |   |           |   |  |                  |     |  |            |  
|Network programs               |  | Q          | 1,070,820 |  |               | Q | 144,164 |             |  | Q | (10       | ) |  | Q                | 971 |  |            | Q
|Licenses                       |  |            | 449,548   |  |               |   | -       |             |  |   | -         |   |  |                  | -   |  |            |  
|Other intangible assets        |  |            | 700       |  |               |   | 4       |             |  |   | -         |   |  |                  | -   |  |            |  
|Irrevocable right of use – IRU |  |            | 79,978    |  |               |   | 28,005  |             |  |   | -         |   |  |                  | -   |  |            |  
|                               |  |            | 1,601,046 |  |               |   | 172,173 |             |  |   | (10       | ) |  |                  | 971 |  |            |  
|Accumulated                    |  |            |           |  |               |   |         |             |  |   |           |   |  |                  |     |  |            |  
|amortization:                  |  |            |           |  |               |   |         |             |  |   |           |   |  |                  |     |  |            |  
|Network programs               |  |            |           |  |               |   |         |             |  |   |           |   |  |                  |     |  |            |  
|Licenses                       |  |            | 748,334   |  |               |   | 124,531 |             |  |   | (10       | ) |  |                  | -   |  |            |  
|Other intangible assets        |  |            | 270,699   |  |               |   | 11,139  |             |  |   | -         |   |  |                  | -   |  |            |  
|Irrevocable rights of use IRU  |  |            | 47        |  |               |   | 142     |             |  |   | -         |   |  |                  | -   |  |            |  
|                               |  |            | 35,817    |  |               |   | 5,536   |             |  |   | -         |   |  |                  | -   |  |            |  
|                               |  |            | 1,054,897 |  |               |   | 141,348 |             |  |   | (10       | ) |  |                  | -   |  |            |  
|Estimated impairment:          |  |            |           |  |               |   |         |             |  |   |           |   |  |                  |     |  |            |  
|Network programs               |  |            | 436       |  |               |   | 11      |             |  |   | -         |   |  |                  | -   |  |            |  
|                               |  |            | 436       |  |               | Q | 11      |             |  | Q | -         |   |  | Q                | -   |  |            | Q
|Net book value                 |  | Q          | 545,713   |  |               |   |         |             |  |   |           |   |  |                  |     |  |            |  



| | (a) | During December 2017, an intangible asset impairment analysis
was performed for the five-year contract agreement with the Government of Guatemala and management concluded that an impairment
of Q11 (note 21) must be recognized. Intangible assets related with this contract are completely impaired.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





42







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



A summary of intangible assets and their accumulated
depreciation for the year ended on December 31, 2016 is presented as follows:



|                               |  | Balance at |           |  |           |   |         |           |  |   | Balance at |  
|------------------------------ |  | ---------- | --------- |  | --------- | - | ------- | --------- |  | - | ---------- | -
|                               |  | 12-31-2015 |           |  | Additions |   |         | Transfers |  |   | 12-31-2016 |  
|Cost:                          |  |            |           |  |           |   |         |           |  |   |            |  
|Network programs               |  | Q          | 846,972   |  |           | Q | 223,836 |           |  | Q | 12         |  
|Licenses                       |  |            | 415,211   |  |           |   | 34,349  |           |  |   | (12        | )
|Other intangible assets        |  |            | -         |  |           |   | 700     |           |  |   | -          |  
|Irrevocable right of use – IRU |  |            | 69,467    |  |           |   | 10,511  |           |  |   | -          |  
|                               |  |            | 1,331,650 |  |           |   | 269,396 |           |  |   | -          |  
|Accumulated amortization       |  |            |           |  |           |   |         |           |  |   |            |  
|Network programs               |  |            | 653,646   |  |           |   | 94,688  |           |  |   | -          |  
|Licenses                       |  |            | 260,239   |  |           |   | 10,460  |           |  |   | -          |  
|Other intangible assets        |  |            | -         |  |           |   | 47      |           |  |   | -          |  
|Irrevocable Right of Use – IRU |  |            | 32,231    |  |           |   | 3,586   |           |  |   | -          |  
|                               |  |            | 946,116   |  |           |   | 108,781 |           |  |   | -          |  
|Estimated impairment           |  |            |           |  |           |   |         |           |  |   |            |  
|Network programs               |  |            | -         |  |           |   | 436     |           |  |   | -          |  
|                               |  |            | -         |  |           | Q | 436     |           |  | Q | -          |  
|Net book value                 |  | Q          | 385,534   |  |           |   |         |           |  |   |            |  



| | (a) | On December 2016, an intangible asset impairment analysis
was performed for the five-year contract agreement with the Government of Guatemala and management concluded that an impairment
of Q436 (note 21) must be recognized.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





43







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 13. | Loans
| | --- | -----



Loan balances are as follows at December 31:



|                           |  | 2018 |           |  | 2017 |  
|-------------------------- |  | ---- | --------- |  | ---- | -
|In US$                     |  |      |           |  |      |  
|Credit Suisse AG (a)       |  | Q    | 6,099,376 |  |      | Q
|In Quetzals                |  |      |           |  |      |  
|Banco Industrial, S.A. (b) |  |      | 174,320   |  |      |  
|Long-term loans payable    |  | Q    | 6,273,696 |  |      | Q



| | (a) | On January 2014, the Company obtained a loan with Credit
Suisse AG, Cayman Island Branch. Loan proceeds were funded by a bond issuance by Comcel Trust. The bonds were guaranteed by Comcel
and listed on the Luxembourg Stock Exchange.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The maturity of this debt is 10
years at 6.875% fixed annual interest. Interest is payable bi-annually and the principal is payable upon maturity. The debt was
used to pay off loans in effect at December 31, 2014, to continue with the capital investments, and for working capital. At December
31, 2018 and 2017, the total debt includes the discount granted when contracted, which is being amortized over the term of the
loan.



| | (b) | Loan contracted in Quetzals on May 4, 2015, for Q174,320
for a term of 120 months. This loan accrues an annual fixed interest rate of 7.20%, which is payable monthly to Banco Industrial,
S.A., a banking institution of Guatemala. The principal is due at maturity.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The bank loan movement is as follows
at December 31:



|                              |  | 2018 |           |  | 2017 |  
|----------------------------- |  | ---- | --------- |  | ---- | -
|Beginning balance             |  | Q    | 5,947,545 |  |      | Q
|Currency exchange differences |  |      | 326,151   |  |      |  
|                              |  | Q    | 6,273,696 |  |      | Q



A summary of the maturity of the long-term loans payable
is as follows:



|                     |  | 2018 |          
|-------------------- |  | ---- | ---------
|At December 31, 2024 |  | Q    | 6,099,376
|At May 4, 2025       |  |      | 174,320  
|                     |  | Q    | 6,273,696



These loans agreement contains
various covenants requiring compliance by the Company. These covenants include certain quantitative limits on future borrowings,
periodic financial statement reporting requirements, and other general terms and conditions.



At December 31, 2018 and 2017 and
the Company was in compliance with all of the restrictive financial covenants contained within such agreement.



44







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 14. | Accounts payable
| | --- | ----------------



|                  |  | At December 31 |        
|----------------- |  | -------------- | -------
|                  |  | 2018           |        
|Local suppliers   |  | Q              | 282,349
|Foreign suppliers |  |                | 273,192
|                  |  | Q              | 555,541



The due dates for accounts payable
extend up to 60 days from the corresponding documents or invoices’ issue dates, are not subject to any discount for early
payment and do not generate interest; local suppliers are payable in the functional currency of the financial statements and foreign
suppliers, in US$.



| | 15. | Other accounts payable
| | --- | ----------------------



|                                  |  | At December 31 |       
|--------------------------------- |  | -------------- | ------
|                                  |  | 2018           |       
|Withholding tax payable           |  | Q              | 5,612 
|Obligations for financial leasing |  |                | 5,397 
|Value added tax                   |  |                | -     
|Other liabilities                 |  |                | 31,719
|                                  |  | Q              | 42,728



The other accounts payable do not
generate interest, are not subject to any discount for early payment, have a normal due date of 60 days after the invoice date
and are payable in the functional currency of the financial statements.



| | 16. | Contract liabilities
| | --- | --------------------



|                     |  | At December 31 |        
|-------------------- |  | -------------- | -------
|                     |  | 2018           |        
|Deferred revenue     |  | Q              | 177,594
|Contract liabilities |  |                | 2,590  
|                     |  | Q              | 180,184



A summary of the annual movement of the contract liabilities
account is shown below:



|                                      |  | At December 31 |           
|------------------------------------- |  | -------------- | ----------
|                                      |  | 2018           |           
|Balances at the beginning of the year |  | Q              | 248,110   
|Contract liabilities                  |  |                | 2,590     
|Deferred revenue during year          |  |                | 3,761,534 
|Recognized in profit and loss         |  |                | (3,832,050
|Balance at year end                   |  | Q              | 180,184   



45







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 17. | Provisions
| | --- | ----------



The provisions for long-term retirement of assets are comprised
at December 31 follows:



|                                          |  | 2018 |         |   | 2017 |   |         | 2016 | 
|----------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- | 
|Balance at beginning of year              |  | Q    | 258,900 |   |      | Q | 235,698 |      | 
|Addition of new sites (note 11)           |  |      | 374     |   |      |   | 25,750  |      | 
|Sites’ write-off                          |  |      | (1,252  | ) |      |   | (2,548  | )    | 
|Interest                                  |  |      | 1,949   |   |      |   | -       |      | 
|Decrease in the provision for rate change |  |      | (12,099 | ) |      |   | -       |      | 
|Balance at end of year                    |  | Q    | 247,872 |   |      | Q | 258,900 |      | 



The provision for asset retirement
is created when the Company signs a lease contract for a property where the cell site will be installed, if the contract specifies
that the property has to be subsequently returned as it was initially delivered to the Company.



In determining the fair value of
the provision, assumptions and estimates are made in relation to discount rates, the expected cost to dismantle and remove the
equipment from the site and the expected timing of those costs. The Company estimates that the costs will be realized during 15
years’ time, the related contract term, and calculates the provision using the discounted free cash flows method using a
discount rate of 9.84% (2017: 8.43%).



| | 18. | Equity
| | --- | ------



| | 18.1 | Issue capital
| | ---- | -------------

The capital at December 31, 2018
and 2017 was comprised of 500 common shares with a nominal value of Q50 each, equivalent to Q25,000. These shares are fully subscribed
and paid.



| | 18.2 | Legal reserve
| | ---- | -------------

Upon articles 36 and 37 of the Commerce
Code of Guatemala and its reforms by decree 18-2017, every corporation must annually separate five per cent (5%) of the net income
of each year to increase the legal reserve. This reserve cannot be distributed in any way among the shareholders, until the liquidation
of the corporation. However, it can be convert the excess amount into capital when it exceeds the fifteen percent (15%) of the
capital at the closing of the immediate preceding year, without prejudice of continue reserving the annual five per cent (5%) previously
mentioned.



| | 18.3 | Dividends declared
| | ---- | ------------------

During the years ended on
December 31, 2018 and 2017, the Company declared dividends amounting to Q2,298,671 (including Q114,934 that were withheld
from the shareholders as income tax) and Q2,129,103 (including Q106,455 that were withheld from shareholders as income tax),
equivalent to Q4,597 and Q4,258 per share, respectively. From the declared dividends in 2018, Q1,913,506 were compensated
with accounts receivable from related parties and Q270,231 paid in cash (in 2017, Q1,942,560 were compensated with accounts
receivable from related parties and Q.80,088 paid in cash).



| | 18.4 | Other components of the equity
| | ---- | ------------------------------



| | 18.4.1 | Shared-based incentive plan
| | ------ | ---------------------------

There are two types of plans applicable
to Comcel, sponsored by Millicom International Cellular, S.A., a deferred share plan and a future performance share plan.





46







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



These long-term incentives awards
consist of a three-year deferred award and a performance share award plans. All issued shares are shares of Millicom International
Cellular, S.A. (or MIC SA - one of the ultimate shareholders of the Company), and not of the Company itself, the cost of which
is registered as an employee benefit in profit and losses with a credit to an equity reserve.



The fair value of equity-settled
shares granted is estimated at the date of the grant using the market prices of MIC shares on that date.



For the deferred share plan, participants
are granted shares based on past performance with 16.5% of the shares vesting on January 1 of each year 1 and 2, and the remaining
67% on January 1 of the third year. The vesting is conditional to the participant remaining employed by Comcel at each vesting
date.



Under the performance share plan,
shares granted vest at the end of the term of three years, subject to performance conditions, 62.5% based on the absolute total
shareholder return (TSR) and 37.5% based on actual versus budgeted EBITDA – CAPEX – Changes on the working capital
(“Free cash flow”). As the TSR represents a market condition, the fair value of the shares in the performance share
plan share plan requires consideration of potential adjustments for future market-based conditions grant date.



For that, a specific valuation has
been made at grant date on the probability of TSR being met (and to which extent) and the expected pay-out based upon leaving conditions.



The free cash flow (FCF) condition
is a non-market measure, which has been considered jointly with the estimation of exit and is initially based on a probability
of achievement of 100%. The reference share price for the 2018 Performance Share Plan is the same price per share as the deferred
share plan.



According to IFRS 2 requirements,
during the year ended on December 31, 2018 and 2017, the Company recognized in profit and loss Q3,552 and Q3,174 (note 21), respectively,
related to the compensation to employees based on shares, with a credit to the equity account “other equity components”
as of such dates.



| | 19. | Income tax
| | --- | ----------



The Company is subject to income
tax and, thus, annually prepares and submits its corresponding income tax return to the tax authorities. For the fiscal years ended
on December 31, 2018 and 2017, the Company adopted the optional simplified tax regime based on gross revenues (Régimen Opcional
Simplificado sobre Ingresos de Actividades Lucrativas) for determining their current income tax expense, which is based on a 5%
rate on the gross monthly revenues up to Q.30,000 and 7% for gross revenues in excess of said amount. Additionally, computed capital
income and capital gains are taxed at the rate of 10%.



The principal components of expense
for income tax for the years ended December 31:



|                                                             |  | 2018 |         |  | 2017 |   |         | 2016 | 
|------------------------------------------------------------ |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|Current tax                                                  |  |      |         |  |      |   |         |      | 
|Income tax                                                   |  | Q    | 501,040 |  |      | Q | 487,095 |      | 
|Deferred income tax                                          |  |      |         |  |      |   |         |      | 
|Recognition and reversion of temporary differences           |  |      | 7,636   |  |      |   | (2,164  | )    | 
|Income tax reported in the statement of comprehensive income |  | Q    | 508,676 |  |      | Q | 484,931 |      | 



47







|Comunicaciones Celulares, S.A.                                                               
|---------------------------------------------------------------------------------------------
|Notes to financial statements                                                                
|As
    of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



The calculation of current income tax for the years ended
December 31, calculated using the optional simplified tax regime based on gross revenues, is presented below:



|                                                                  |  | 2018 |           |   | 2017 |   |           | 2016 | 
|----------------------------------------------------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- | 
|Revenues                                                          |  | Q    | 7,506,053 |   |      | Q | 7,101,445 |      | 
|Adjustments to reconcile accounting revenue to tax based revenue: |  |      |           |   |      |   |           |      | 
|Sales commissions                                                 |  |      | (283,463  | ) |      |   | (284,890  | )    | 
|Taxable exchange gains                                            |  |      | 3,291     |   |      |   | 118,893   |      | 
|Deferred revenue                                                  |  |      | (72,527   | ) |      |   | 37,407    |      | 
|Accrued income                                                    |  |      | (11,382   | ) |      |   | (6,495    | )    | 
|Other, net                                                        |  |      | 15,745    |   |      |   | (7,865    | )    | 
|Tax profit of the year                                            |  |      | 7,157,717 |   |      |   | 6,958,495 |      | 
|Income tax rate                                                   |  |      | 7         | % |      |   | 7         | %    | 
|Current income tax                                                |  | Q    | 501,040   |   |      | Q | 487,095   |      | 



The annual movement of the current income tax liability
for the years ended December 31:



|                                        |  | 2018 |          |   | 2017 |   |          | 2016 | 
|--------------------------------------- |  | ---- | -------- | - | ---- | - | -------- | ---- | 
|Income tax payable at beginning of year |  | Q    | 54,211   |   |      | Q | 45,265   |      | 
|Current income tax expense              |  |      | 501,040  |   |      |   | 487,095  |      | 
|Less income tax paid during year        |  |      | (510,991 | ) |      |   | (478,149 | )    | 
|Income tax payable at end of year       |  | Q    | 44,260   |   |      | Q | 54,211   |      | 



Income tax returns for the fiscal
years ended on December 31, 2015, 2016, 2017 and 2018 might be reviewed by tax authorities. According the Tax Code, the right of
the fiscal authorities to revise the income tax returns expires after 4 years counted from the date in which the return was submitted.



The determination of the effective
rate was for the years ended December 31:



|                        |  | 2018 |           |   | 2017 |   |           | 2016 | 
|----------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- | 
|Revenues                |  | Q    | 7,506,053 |   |      | Q | 7,101,445 |      | 
|Current income tax rate |  |      | 7         | % |      |   | 7         | %    | 
|Subtotal                |  |      | 525,424   |   |      |   | 497,101   |      | 
|Sales commissions       |  |      | (19,842   | ) |      |   | (19,942   | )    | 
|Taxable exchange gains  |  |      | 230       |   |      |   | 8,323     |      | 
|Other                   |  |      | 2,864     |   |      |   | (551      | )    | 
|Income tax for the year |  | Q    | 508,676   |   |      | Q | 484,931   |      | 





48







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



The components of deferred income tax assets and liabilities
are shown below:



|                                                              |  | Statement
    of financial position |         |   | Statement
    of Comprehensive Income |  
|------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ------------------------------------- | -
|                                                              |  | December 31                         |         |   | Year ended
    on December 31         |  
|                                                              |  | 2018                                |         |   | 2017                                  |  
|Deferred income tax assets:                                   |  |                                     |         |   |                                       |  
|Deferred revenue                                              |  | Q                                   | 12,613  |   |                                       | Q
|Total deferred income tax assets                              |  |                                     | 12,613  |   |                                       |  
|                                                              |  |                                     |         |   |                                       |  
|Deferred income tax liability:                                |  |                                     |         |   |                                       |  
|Laptops revenue                                               |  |                                     | 150     |   |                                       |  
|Contractual assets                                            |  |                                     | 1,841   |   |                                       |  
|Contractual assets (effect of the adoption of IFRS 15 note 3) |  |                                     | 20,158  |   |                                       |  
|Accrued income                                                |  |                                     | 6,420   |   |                                       |  
|Total liabilities for deferred income tax                     |  |                                     | 28,569  |   |                                       |  
|                                                              |  |                                     |         |   |                                       |  
|Income tax loss (gain)                                        |  |                                     | -       |   |                                       |  
|Deferred income tax, net                                      |  | Q                                   | (15,956 | ) |                                       | Q





49







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



The annual movement of the asset for deferred income
tax, net is presented below:



|                                                                         |  | 2018 |         |   | 2017 |   |        | 2016 | 
|------------------------------------------------------------------------ |  | ---- | ------- | - | ---- | - | ------ | ---- | 
|                                                                         |  |      |         |   |      |   |        |      | 
|Net deferred income tax asset at the beginning of the year               |  | Q    | 11,838  |   |      | Q | 9,674  |      | 
|Tax income (expense) recognized in the statement of comprehensive income |  |      | (7,636  | ) |      |   | 2,164  |      | 
|Tax effect of the adoption of IFRS 15 (note 3)                           |  |      | (20,158 | ) |      |   | -      |      | 
|Net deferred income tax (liability) asset at year end                    |  | Q    | (15,956 | ) |      | Q | 11,838 |      | 



At December 31, 2018 and 2017, the
Company has no temporary deductible differences, tax losses or credits for which it has not recognized a deferred income tax asset
in its statement of financial position.



There is no potential consequence
for the Company related with the income tax that could affect the declaration or payment of dividends to its shareholders at December
31, 2018 and 2017.



| | 20. | Cost of sales
| | --- | -------------



The costs at December 31, are presented below:



|                                            |  | 2018 |           |  | 2017 |   |         | 2016 | 
|------------------------------------------- |  | ---- | --------- |  | ---- | - | ------- | ---- | 
|                                            |  |      |           |  |      |   |         |      | 
|Telephones and accessories                  |  | Q    | 566,077   |  |      | Q | 190,846 |      | 
|Airtime                                     |  |      | 506,426   |  |      |   | 425,846 |      | 
|Estimate of expected credit losses (note 7) |  |      | 44,179    |  |      |   | 68,673  |      | 
|Other costs                                 |  |      | 14,652    |  |      |   | 12,879  |      | 
|                                            |  | Q    | 1,131,334 |  |      | Q | 698,244 |      | 



50







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 21. | Operating expenses
| | --- | ------------------



A summary of the operating expenses for the year ended
December 31, is presented below:



|                                                                             |  | 2018 |           |  | 2017 |   |           | 2016 | 
|---------------------------------------------------------------------------- |  | ---- | --------- |  | ---- | - | --------- | ---- | 
|                                                                             |  |      |           |  |      |   |           |      | 
|Depreciation and amortization (notes 11 and 12)                              |  | Q    | 1,011,006 |  |      | Q | 1,077,378 |      | 
|Expenses related to network sites                                            |  |      | 569,455   |  |      |   | 594,377   |      | 
|Expenses by subcontracted personnel (note 21.1)                              |  |      | 402,323   |  |      |   | 381,954   |      | 
|Commissions                                                                  |  |      | 374,469   |  |      |   | 357,355   |      | 
|General expenses                                                             |  |      | 222,626   |  |      |   | 193,018   |      | 
|External services                                                            |  |      | 128,060   |  |      |   | 139,377   |      | 
|Subsidies                                                                    |  |      | 79,108    |  |      |   | 437,237   |      | 
|Marketing expenses                                                           |  |      | 25,400    |  |      |   | 28,146    |      | 
|Rental and leasing                                                           |  |      | 17,065    |  |      |   | 16,385    |      | 
|Share-based incentive plans (note 18.4.1)                                    |  |      | 3,552     |  |      |   | 3,174     |      | 
|Impairment of property, plant and equipment and intangible (notes 11 and 12) |  |      | -         |  |      |   | 75,862    |      | 
|                                                                             |  | Q    | 2,833,064 |  |      | Q | 3,304,263 |      | 



| | 21.1 | Expenses by subcontracted personnel
| | ---- | -----------------------------------



A summary of the subcontracted personnel expenses for
the year ended December 31, is presented below:



|                                  |  | 2018 |         |  | 2017 |   |         | 2016 | 
|--------------------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|                                  |  |      |         |  |      |   |         |      | 
|Personnel costs (note 8)          |  | Q    | 368,238 |  |      | Q | 345,100 |      | 
|Travel and accommodation expenses |  |      | 23,784  |  |      |   | 25,434  |      | 
|Training and recruitment          |  |      | 8,885   |  |      |   | 9,243   |      | 
|Insurance                         |  |      | 1,416   |  |      |   | 2,177   |      | 
|                                  |  | Q    | 402,323 |  |      | Q | 381,954 |      | 



| | 22. | Other expenses
| | --- | --------------



A summary of other expenses for the year ended December
31, is presented below



|                                                                          |  | 2018 |        |  | 2017 |   |        | 2016 | 
|------------------------------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- | 
|                                                                          |  |      |        |  |      |   |        |      | 
|Net loss on disposal on property, plant and equipment and intangibles (a) |  | Q    | 43,932 |  |      | Q | 54,922 |      | 
|Other expenses                                                            |  |      | 312    |  |      |   | 304    |      | 
|                                                                          |  | Q    | 44,244 |  |      | Q | 55,226 |      | 



| | (a) | The cash received for the sales of property, plant and
equipment and intangible as of December 31, 2018 was Q2,393.
| | --- | -------------------------------------------------------------------------------------------------------------------



51







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



| | 23. | Financial income and expenses
| | --- | -----------------------------



| | 23.1 | Financial income
| | ---- | ----------------



A summary of the financial income for the year ended December 31,
is presented below:



|                                         |  | 2018 |         |  | 2017 |   |         | 2016 | 
|---------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|                                         |  |      |         |  |      |   |         |      | 
|Unrealized currency exchange differences |  | Q    | 267,499 |  |      | Q | 179,208 |      | 
|Financial interests                      |  |      | 127,171 |  |      |   | 92,851  |      | 
|Realized currency exchange differences   |  |      | 78,336  |  |      |   | 11,406  |      | 
|                                         |  | Q    | 473,006 |  |      | Q | 283,465 |      | 



| | 23.2 | Financial expenses
| | ---- | ------------------



A summary of the financial expenses for the year ended
December 31, is presented below:



|                                         |  | 2018 |         |  | 2017 |   |         | 2016 | 
|---------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- | 
|                                         |  |      |         |  |      |   |         |      | 
|Interest                                 |  | Q    | 443,237 |  |      | Q | 432,988 |      | 
|Realized currency exchange differences   |  |      | 435,753 |  |      |   | 37,090  |      | 
|Unrealized currency exchange differences |  |      | 18,408  |  |      |   | 34,631  |      | 
|Other financial expenses                 |  |      | 8,743   |  |      |   | 37,893  |      | 
|                                         |  | Q    | 906,141 |  |      | Q | 542,602 |      | 



| | 24. | Commitments, contingencies and litigations
| | --- | ------------------------------------------



| | 24.1 | Commitments
| | ---- | -----------



Operating leases – The
Company as lessee

The Company has subscribed several
operating lease contracts as lessee over certain installations used as warehouses, offices and websites. The terms of lease are
extended up to five years with renewal at their expiration dates, based on prior agreement between the interested parties. These
contracts do not impose any restriction of use to the Company.



The total of minimum future payments
under the leases, derived from the non-cancelable operating lease contracts in place at December 31, 2018 and 2017 will be satisfied
on the following terms:



|                                            |  | 2018 |           |  | 2017 |  
|------------------------------------------- |  | ---- | --------- |  | ---- | -
|                                            |  |      |           |  |      |  
|One year                                    |  | Q    | 257,397   |  |      | Q
|More than one year and less than five years |  |      | 1,080,540 |  |      |  
|More than five years                        |  |      | 800,127   |  |      |  
|                                            |  | Q    | 2,138,064 |  |      | Q



| | 24.2 | Contingencies and litigations
| | ---- | -----------------------------

At the date of issuance of these financial statements,
management has become aware of the following contingencies and litigations:





| | · | For the tax periods of 2005 and 2006, the Superintendence
of Fiscal Administration initiated a process against Comcel for the omission of the withholding of the income tax to non-resident
for a total of Q13,093 plus fines and charges. The likelihood of loss according to the Company’s legal advisors is remote.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



52







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)





| | · | During
the tax period of 2007, the Superintendence of Fiscal Administration initiated a process against Comcel for the omission of the
withholding of the income tax to non-resident for a total of Q11,930 plus fines and interests. The likelihood of loss according
to the Company’s legal specialists is remote.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | The
Superintendence of Fiscal Administration has considered adjustments to the tax of Fiscal Stamps and Special Sealed Paper for Protocols
for the payment of dividends through coupons for Q46,971 plus fines and interest. The likelihood of loss according to the Company’s
legal specialists is remote.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



At December 31, 2018 and 2017, the Company has not created
a reserve to cover any potential disbursement derived from these litigations, given that it considers that it has sufficient defenses
to obtain a positive result on these procedures and no cash disbursements will be required.



On October 21, 2015, Millicom reported
to the law enforcement authorities in the United States of America and Sweden certain potential improper payments on behalf of
the Tigo Guatemala group (including Comcel). This matter is being supervised by a Special Committee of the Board of Directors of
Millicom (as disclosed on October 21, 2015, Millicom press release), instead of the Company.



On May 4, 2016, Millicom received
notification from the Swedish prosecutor that his preliminary investigation was discontinued under jurisdictional grounds. On Tuesday,
April 24, 2018, Millicom received a notification from the Department of Justice of the United States of America informing the decision
to close this investigation



On July 14, 2017, the International
Commission Against Impunity in Guatemala (CICIG) offered a press conference to inform that an investigation was being performed
over alleged illegal campaign financing, which included a competitor of Comcel. Additionally, CICIG indicated that, in view of
the declaration made by the competitor, which contained allegations about administrative proceedings initiated by Comcel against
such competitor several years ago, the investigation would include Comcel.



On November 23, 2017, the CICIG,
together with the Public Prosecutor of Guatemala, executed a search warrant at Comcel’s offices, located at KM 9.5 Carretera
a El Salvador Plaza Tigo, related to the investigations mentioned above. The authorities requested the disbursements made by Tigo
Companies in Guatemala (including Comcel) during the periods beginning in 2012 through 2017. The Company has complied with the
requirement and, at the date of the issuance of these financial statements, no additional requests or notifications have been received
by the Company from the aforementioned authorities. These proceedings are in an early state of the investigation and the authorities
could request further information. The case has been declared under reservation by the authorities, therefore management can only
be aware of the updates until the authorities make a new requirement or communication, if any.



| | 25. | Financial instruments risk management and objectives
| | --- | ----------------------------------------------------



The principal financial liabilities
of the Company include accounts payable, accounts payable to related parties, accrued interest and loans. The primary purpose of
these financial liabilities is to finance the operations of the Company. The Company’s principal financial assets include,
cash, accounts receivable, accounts receivable from related parties and other financial assets.



The principal risks that could have
an effect of relative importance over these financial instruments are the market risk, liquidity risk and credit risk. The Company
with management support and the Board of Directors, controls and manages these risks.



53







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



The Board of Directors revises and agrees the policies
for the management of these risks, which are summarized below:





| | · | Market
risk
| | - | -----------

Market risk is the risk that
the fair value or future cash flows of a financial instrument will fluctuate as consequence of changes of the market prices.
The market risk includes: the risk of interest rate, the foreign currency risk and other price risks such as equity price and
commodity risk.



Management considers that the Company
is exposed to the interest rate risk and the foreign currency risk.





| | · | Interest
rate risk
| | - | ------------------

The interest rate risk is
the risk that the fair value of future flows of cash of a financial instrument will fluctuate as a consequence of the changes
of the rates in the market interest. The exposure of the Company to such risk basically refers to the long-term obligations
with variable interest rate.



The Company eliminated the exposure
of this market risk when contracting loans at a fixed rate of 6.875% and 7.20% (see Note 13).





| | · | Exchange
rate risk
| | - | ------------------

The exchange rate risk
represents the risk that the fair value of the future cash flows of financial instruments will fluctuate as a consequence of
changes in the exchange rates of foreign currency. The exposure of the Company to the risk of changes in the foreign exchange
rate is related mainly to its operating activities, i.e., when its revenues or expenses are reported in a different currency
than the Company’s local currency.



At December 31, 2018 and 2017,
the foreign reference exchange rates are established by the Central Bank of Guatemala, based on the market rates and demand.
At December 31, 2018 and 2017, the reference exchange rates were of Q 7.73695 and Q 7.34477 per US$1.00, respectively. At
March 15 2019, date in which the management of the Company approved the financial statements, the exchange rate was
for Q 7.69214 per US$1.00.



The risk of exchange rate depends
on the net financial position in foreign currency at the date of the financial statements. On the next page is a summary of the
financial assets and liabilities denominated in foreign currency in US$.



|                                                |  | December 31 |         
|----------------------------------------------- |  | ----------- | --------
|                                                |  | 2018        |         
|Financial assets in foreign currency:           |  |             |         
|Cash (note 6)                                   |  | US$         | 122,481 
|Accounts receivable (note 7)                    |  |             | 206     
|Accounts receivable to related parties (note 8) |  |             | 575,624 
|                                                |  |             | 698,311 
|Financial liabilities in foreign currency:      |  |             |         
|Loans (note 13)                                 |  |             | (779,000
|Accounts payable (note 14)                      |  |             | (31,983 
|Accounts payable to related parties (note 8)    |  |             | (4,125  
|                                                |  |             | (815,108
|Excess of liabilities over financial assets     |  | US$         | (116,797



54







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



Sensitivity analysis

The effect of change in the
exchange rates of +5% / +5% in 2018 (+ 0.5% / - 0.5% in 2017) over assets and liabilities denominated in foreign currency at
December 31, 2018 and 2017, assuming the remaining variations are kept constant, would result in the recognition of a foreign
exchange rate profit or loss of Q 6,236 in 2018 (Q 2,420 in 2017).



Credit risk

Credit risk is the risk that arises
from the possibility that a counterparty is unable to comply with its obligation, which results in a financial loss for the Company.
The Company is exposed to the risk of credit of the operating activities (mainly, accounts receivable, accounts receivable from
related parties and other financial instruments) and financial activities, including deposits with banks and financial institutions.



The Company’s management
does not believe there are significant risks of non-performance by these counterparties. The Company’s management has taken
steps to diversify the banks with whom the Company operates and is managing the allocation of deposits across banks so that the
Company’s counterparty risk with a given bank stays within limits which have been set based on each bank credit rating to
avoid any significant exposure to a specific party.



A large portion of revenues comprises
prepaid airtime. For customers for whom telecom services are not prepaid, the Company follows risk control procedures to assess
the credit quality of the customer, considering its financial position, past experience and other factors.



Accounts receivable are mainly
derived from balances due from other telecom operators or commercial customers. Credit checks are being performed for commercial
customers. The Company maintains an allowance for impairment of accounts receivable based on the expected credit loss of all accounts
receivable.



As the Company has a number of
dispersed customers, there is no significant concentration of credit risk with respect to accounts receivable.



The maximum exposure to credit
risk at the date of the financial statements is the carrying value for each class of financial asset.



Liquidity risk

The liquidity risk is the risk
in which an entity finds difficulty to comply with the obligations associated with financial liabilities to be liquidated
through the delivery of cash or another financial assets. The Company provides daily follow-up to its liquidity position,
maintaining liquid assets higher than liquid liabilities, considering the expected conversion to cash of its financial
assets, and completes periodical projections of cash flows with the purpose of proactively managing its cash flows.





55







|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial statements                                                            
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



The following chart summarizes the maturity of the financial
liabilities of the Company:



|                                    |  |         |         |  |              |   |         | More than 5  |  |   |           | 
|----------------------------------- |  | ------- | ------- |  | ------------ | - | ------- | ------------ |  | - | --------- | 
|                                    |  |         |         |  |              |   |         | years and    |  |   |           | 
|                                    |  |         |         |  | From 3 to 12 |   |         | less than 10 |  |   |           | 
|                                    |  | Current |         |  | months       |   |         | years        |  |   | Total     | 
|At December 31, 2018:               |  |         |         |  |              |   |         |              |  |   |           | 
|Current liabilities                 |  |         |         |  |              |   |         |              |  |   |           | 
|Accounts payable                    |  | Q       | 255,549 |  |              | Q | 299,992 |              |  | Q | -         | 
|Accounts payable to related parties |  |         | -       |  |              |   | 271,675 |              |  |   | -         | 
|Income tax payable                  |  |         | -       |  |              |   | 44,260  |              |  |   | -         | 
|Accrued interest                    |  |         | -       |  |              |   | 171,446 |              |  |   | -         | 
|Other accounts payable              |  |         | 18,441  |  |              |   | 24,287  |              |  |   | -         | 
|Non-current liabilities             |  |         |         |  |              |   |         |              |  |   |           | 
|Loans                               |  |         | -       |  |              |   | -       |              |  |   | 6,273,696 | 
|                                    |  | Q       | 273,990 |  |              | Q | 811,660 |              |  | Q | 6,273,696 | 



|                                    |  |         |         |  |              |   |         | More than 5 |  |   |           | 
|----------------------------------- |  | ------- | ------- |  | ------------ | - | ------- | ----------- |  | - | --------- | 
|                                    |  |         |         |  |              |   |         | and less    |  |   |           | 
|                                    |  |         |         |  | From 3 to 12 |   |         | than 10     |  |   |           | 
|                                    |  | Current |         |  | months       |   |         | years       |  |   | Total     | 
|At December 31, 2017:               |  |         |         |  |              |   |         |             |  |   |           | 
|Current liabilities                 |  |         |         |  |              |   |         |             |  |   |           | 
|Accounts payable                    |  | Q       | 251,595 |  |              | Q | 291,055 |             |  | Q | -         | 
|Accounts payable to related parties |  |         | -       |  |              |   | 318,137 |             |  |   | -         | 
|Income tax payable                  |  |         | -       |  |              |   | 54,211  |             |  |   | -         | 
|Accrued interests                   |  |         | -       |  |              |   | 162,705 |             |  |   | -         | 
|Other accounts payable              |  |         | 24,903  |  |              |   | 30,404  |             |  |   | -         | 
|Non-current liabilities             |  |         |         |  |              |   |         |             |  |   |           | 
|Loans                               |  |         | -       |  |              |   | -       |             |  |   | 5,947,545 | 
|                                    |  | Q       | 276,498 |  |              | Q | 856,512 |             |  | Q | 5,947,545 | 



| | 26. | Capital management
| | --- | ------------------



The primary objective of the Company’s
capital management is to ensure that it maintains a strong credit ratio and healthy capital ratios to support its business and
maximize profits.



The Company manages its capital
structure and timely requests any adjustments by its shareholders to the extent necessary due to changes in economic conditions.
To maintain or adjust the capital structure, the Company may request shareholders to adjust previously agreed dividends, capital
returns, or increase capital contributions if necessary.



| | 27. | Financial instruments – information about fair values
| | --- | -----------------------------------------------------



The primary financial instruments
of the Company consist of cash and accounts receivable, accounts receivable form related parties, other financial assets, accounts
payable, accounts payable from related parties, accrued interest and loans.



The fair value of all financial
assets and all financial liabilities, except for debt and financing, approximate their carrying value largely due to the short-term
maturities of these instruments. The fair values of other debt and financing have been estimated by the Company’s management
based on discounted future cash flows at market interest rates (level 2).



56









|Comunicaciones Celulares, S.A.                                                           
|-----------------------------------------------------------------------------------------
|Notes to financial
    statements                                                        
|As of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016

(Expressed in thousands of Quetzals)



Below is a comparison of the debt’s carrying amount
and the fair value at December 31:



|      |  | Carrying value |           |  | Fair value |  
|----- |  | -------------- | --------- |  | ---------- | -
|      |  | 2018           |           |  | 2017       |  
|Loans |  | Q              | 6,273,696 |  |            | Q



Fair value estimates are made on
the date of the financial statements, based on relevant market information and on information related to the financial instruments.



The nature of these estimates is
subjective and involves uncertain aspects and management’s judgment, therefore these amounts are not determined with absolute
precision. Consequently, should there be changes in the assumptions on which these estimates are based they could differ from the
final results.



Fair value hierarchy

The Company uses the following hierarchy
to determine and disclose the fair value of financial instruments by valuation technique:



Level 1: Quoted prices (or adjusted)
in active markets for identical financial assets and liabilities.



Level 2: Techniques that use
different inputs to the quoted prices included in the same, observable for the assets or liabilities, whether directly or
indirectly.



Level 3: Techniques that use inputs
with significant effect over the reasonable value not based on data of observable market.



| | 28. | Events after the date of the financial position statement
| | --- | ---------------------------------------------------------



The Company
has no knowledge of any subsequent events since December 31, 2018 and up to the date of approval of these financial statements
that might have an impact or might require additional disclosures to them.



****





57