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As filed with the Securities and Exchange Commission on April 24, 2017







UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549



FORM 20-F





Annual Report Pursuant
to Section 13 or 15(d)

of the Securities Exchange Act of 1934

for the fiscal year ended December 31, 2016

Commission file number: 1-16269



AMÉRICA
MÓVIL, S.A.B. DE C.V.

(exact name of registrant as specified in its charter)





America Mobile

(translation of
registrants name into English)

United Mexican States

(jurisdiction of incorporation)

Lago Zurich
245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Delegación Miguel Hidalgo, 11529, Mexico City,

México

(address of principal executive offices)

Daniela Lecuona Torras, Telephone: (5255) 2581-4449, E-mail: daniela.lecuona@americamovil.com

Facsimile: (5255) 2581-4422, Lago Zurich 245, Plaza Carso / Edificio Telcel, Piso 16, Colonia Ampliación Granada, Delegación

Miguel Hidalgo,

11529, Mexico
City, México

(name, telephone, e-mail and/or facsimile number and address of company contact
person)

Securities registered pursuant to Section 12(b) of the Act:



|                             |  |                                           
|---------------------------- |  | ------------------------------------------
|Title of each class:         |  | Name of each exchange on which registered:
|A Shares, without par value  |  | New York Stock Exchange                   
|L Shares, without par value  |  | New York Stock Exchange                   
|5.625% Notes Due 2017        |  | New York Stock Exchange                   
|5.000% Senior Notes Due 2019 |  | New York Stock Exchange                   
|5.000% Senior Notes Due 2020 |  | New York Stock Exchange                   
|3.125% Senior Notes Due 2022 |  | New York Stock Exchange                   
|6.375% Notes Due 2035        |  | New York Stock Exchange                   
|6.125% Notes Due 2037        |  | New York Stock Exchange                   
|6.125% Senior Notes Due 2040 |  | New York Stock Exchange                   
|4.375% Senior Notes Due 2042 |  | New York Stock Exchange                   

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

The number of outstanding shares of each of the registrants classes of capital or common stock as of December 31, 2016:



|               |  |          
|-------------- |  | ---------
|20,635 million |  | AA Shares
|592 million    |  | A Shares 
|44,571 million |  | L Shares 



Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.☒Yes☐No

If this report is an annual or
transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.☐Yes☒No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the
past 90 days.☒Yes☐No

Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).☒Yes☐No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated
filer  ☒                    Accelerated filer  ☐ Non-accelerated filer  ☐                    Emerging growth
company  ☐





Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:



|              |  |                                                                                                         |  |          
|------------- |  | ------------------------------------------------------------------------------------------------------- |  | ---------
|U.S. GAAP   ☐ |  | International Financial Reporting Standards as issuedby the International Accounting Standards Board  ☒ |  | Other   ☐

If other has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow.    Item 17☐Item 18☐

If this is an annual report, indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).☐Yes☒No

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.☐





| | The term new or revised financial accounting standard refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------









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LOGO







2016 ANNUAL REPORT ON FORM 20-F



---

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TABLE OF CONTENTS

(See Form 20-F
Cross Reference Guide on page 134)



|                                                                       |  |  |     | 
|---------------------------------------------------------------------- |  |  | --- | 
|Selected Financial Data                                                |  |  | 1   | 
|Part I: Information On
 The Company                                    |  |  | 4   | 
|About América
Móvil                                                    |  |  | 5   | 
|Our Networks                                                           |  |  | 12  | 
|Our Competitors                                                        |  |  | 14  | 
|Marketing, Sales and Distribution, Customer Services                   |  |  | 16  | 
|Acquisitions, Other Investments and Divestitures                       |  |  | 17  | 
|Part II: Operating and
 Financial Review And Prospects                 |  |  | 18  | 
|Overview                                                               |  |  | 19  | 
|Results of Operations                                                  |  |  | 22  | 
|Liquidity and Capital Resources                                        |  |  | 41  | 
|Critical Accounting Policies and
Estimates                             |  |  | 47  | 
|Part III: Risk Factors                                                 |  |  | 51  | 
|Part IV: Share Ownership
 and Trading                                  |  |  | 64  | 
|Major Shareholders                                                     |  |  | 65  | 
|Related Party Transactions                                             |  |  | 67  | 
|Dividends                                                              |  |  | 68  | 
|Trading Markets                                                        |  |  | 69  | 
|Bylaws                                                                 |  |  | 73  | 
|Depositary Shares                                                      |  |  | 80  | 
|Purchases of Equity Securities by the Issuer and
Affiliated Purchasers |  |  | 81  | 
|Taxation of Shares and ADSs                                            |  |  | 83  | 
|Part V: Corporate Governance                                           |  |  | 89  | 
|Management                                                             |  |  | 90  | 
|Management Compensation                                                |  |  | 97  | 
|Corporate Governance                                                   |  |  | 98  | 
|Controls And Procedures                                                |  |  | 101 | 
|Code of Ethics                                                         |  |  | 104 | 
|Part VI:
Regulation                                                    |  |  | 105 | 
|Regulation                                                             |  |  | 106 | 
|Part VII: Additional Information                                       |  |  | 125 | 
|Employees                                                              |  |  | 126 | 
|Legal Proceedings                                                      |  |  | 127 | 
|Principal Accountant Fees and
Services                                 |  |  | 128 | 
|Exchange Rates                                                         |  |  | 129 | 
|Additional Information                                                 |  |  | 130 | 
|Forward-Looking Statements                                             |  |  | 131 | 
|Glossary                                                               |  |  | 132 | 
|Form 20-F Cross
 Reference Guide                                       |  |  | 134 | 
|Signatures                                                             |  |  | 136 | 
|Part VIII: Consolidated
 Financial Statements                          |  |  | 137 | 



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LOGO

|                       
|-----------------------
|SELECTED
FINANCIAL DATA





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Selected Financial Data





SELECTED
FINANCIAL DATA

We prepared our consolidated financial statements included in this annual report in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board (IFRS). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial
statements.

We present our financial statements in Mexican pesos. This annual report contains translations of various peso amounts into U.S. dollars at specified
rates solely for your convenience. You should not construe these translations as representations that the peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise
indicated, we have translated U.S. dollar amounts from pesos at the exchange rate of Ps.20.7314 to U.S.$1.00, which was the rate reported by Banco de México for December 30, 2016, as published in the Official Gazette of the
Federation (Diario Oficial de la Federación, or Official Gazette).

We have not included earnings or dividends on a per American Depositary
Share (ADS) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares.



|                                                          |  |                                                                    |         |  |                                                            |     |         |      |  |     |         |  |  |      |         |  |      |     |         |  |  |      |        | 
|--------------------------------------------------------- |  | ------------------------------------------------------------------ | ------- |  | ---------------------------------------------------------- | --- | ------- | ---- |  | --- | ------- |  |  | ---- | ------- |  | ---- | --- | ------- |  |  | ---- | ------ | 
|                                                          |  | For the year ended December 31,(1)                                 |        
|                                                          |  | 2012                                                               |         |  | 2013                                                       |     |         | 2014 |  |     | 2015    |  |  | 2016 |         |  | 2016 |    
|                                                          |  | (in millions of Mexican pesos, except share and per share amounts) |         |  | (millions ofU.S. dollars,except shareand per shareamounts) |    
|Income Statement Data:                                    |  |                                                                    |         |  |                                                            |     |         |      |  |     |         |  |  |      |         |  |      |     |         |  |  |      |        | 
|Operating revenues                                        |  | Ps.                                                                | 775,070 |  |                                                            | Ps. | 786,101 |      |  | Ps. | 848,580 |  |  | Ps.  | 893,738 |  |      | Ps. | 975,412 |  |  | U.S. | 47,050 | 
|Operating costs and expenses                              |  |                                                                    | 613,920 |  |                                                            |     | 631,843 |      |  |     | 692,026 |  |  |      | 752,325 |  |      |     | 865,802 |  |  |      | 41,762 | 
|Depreciation and amortization                             |  |                                                                    | 103,585 |  |                                                            |     | 101,535 |      |  |     | 114,994 |  |  |      | 125,715 |  |      |     | 148,526 |  |  |      | 7,164  | 
|Operating income                                          |  |                                                                    | 161,150 |  |                                                            |     | 154,258 |      |  |     | 156,554 |  |  |      | 141,413 |  |      |     | 109,610 |  |  |      | 5,288  | 
|Net profit for the year                                   |  | Ps.                                                                | 91,649  |  |                                                            | Ps. | 74,974  |      |  | Ps. | 47,498  |  |  | Ps.  | 36,961  |  |      | Ps. | 12,079  |  |  | U.S. | 582    | 
|Net profit attributable for the year to:                  |  |                                                                    |         |  |                                                            |     |         |      |  |     |         |  |  |      |         |  |      |     |         |  |  |      |        | 
|Equity holders of the parent                              |  | Ps.                                                                | 90,988  |  |                                                            | Ps. | 74,625  |      |  | Ps. | 46,146  |  |  | Ps.  | 35,055  |  |      | Ps. | 8,650   |  |  | U.S. | 417    | 
|Non-controlling
interests                                 |  |                                                                    | 661     |  |                                                            |     | 349     |      |  |     | 1,352   |  |  |      | 1,906   |  |      |     | 3,429   |  |  |      | 165    | 
|Net profit for the year                                   |  | Ps.                                                                | 91,649  |  |                                                            | Ps. | 74,974  |      |  | Ps. | 47,498  |  |  | Ps.  | 36,961  |  |      | Ps. | 12,079  |  |  | U.S. | 582    | 
|Earnings per share:                                       |  |                                                                    |         |  |                                                            |     |         |      |  |     |         |  |  |      |         |  |      |     |         |  |  |      |        | 
|Basic                                                     |  | Ps.                                                                | 1.19    |  |                                                            | Ps. | 1.02    |      |  | Ps. | 0.67    |  |  | Ps.  | 0.52    |  |      | Ps. | 0.13    |  |  | U.S. | 0.01   | 
|Diluted                                                   |  | Ps.                                                                | 1.19    |  |                                                            | Ps. | 1.02    |      |  | Ps. | 0.67    |  |  | Ps.  | 0.52    |  |      | Ps. | 0.13    |  |  | U.S. | 0.01   | 
|Dividends declared per share(2)                           |  | Ps.                                                                | 0.20    |  |                                                            | Ps. | 0.22    |      |  | Ps. | 0.24    |  |  | Ps.  | 0.26    |  |      | Ps. | 0.28    |  |  | U.S. | 0.01   | 
|Weighted average number of shares outstanding (millions): |  |                                                                    |         |  |                                                            |     |         |      |  |     |         |  |  |      |         |  |      |     |         |  |  |      |        | 
|Basic                                                     |  |                                                                    | 76,111  |  |                                                            |     | 72,866  |      |  |     | 69,254  |  |  |      | 66,869  |  |      |     | 65,693  |  |  |      | 65,693 | 
|Diluted                                                   |  |                                                                    | 76,111  |  |                                                            |     | 72,866  |      |  |     | 69,254  |  |  |      | 66,869  |  |      |     | 65,693  |  |  |      | 65,693 | 



|(1) | As of December 31, 2016, we owned 51.0% of the total outstanding shares of Telekom Austria AG (Telekom Austria or TKA). We began consolidating Telekom Austria from July 1, 2014. Prior
to July 1, 2014, we accounted for Telekom Austria using the equity method, which affects the comparability of our results for 2012 through 2016. See Note 12 to our consolidated financial statements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Figures for each year provided represent the annual dividend declared at the general shareholders meeting that year. For information on dividends paid per share translated into U.S. dollars, see Share
Ownership and TradingDividends under Part IV of this annual report.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



2



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Selected Financial Data





|                                                      |  |                                                                    |         |  |                                                                |     |           |      |  |     |           |  |  |      |           |  |      |     |           |  |  |      |        | 
|----------------------------------------------------- |  | ------------------------------------------------------------------ | ------- |  | -------------------------------------------------------------- | --- | --------- | ---- |  | --- | --------- |  |  | ---- | --------- |  | ---- | --- | --------- |  |  | ---- | ------ | 
|                                                      |  | As of December 31,                                                 |        
|                                                      |  | 2012                                                               |         |  | 2013                                                           |     |           | 2014 |  |     | 2015      |  |  | 2016 |           |  | 2016 |    
|                                                      |  | (in millions of Mexican pesos, except share and per share amounts) |         |  | (millions of
U.S. dollars, except
share and per share
amounts) |    
|Balance Sheet Data:                                   |  |                                                                    |         |  |                                                                |     |           |      |  |     |           |  |  |      |           |  |      |     |           |  |  |      |        | 
|Property, plant and equipment, net                    |  | Ps.                                                                | 500,434 |  |                                                                | Ps. | 501,107   |      |  | Ps. | 588,106   |  |  | Ps.  | 573,529   |  |      | Ps. | 701,190   |  |  | U.S. | 33,823 | 
|Total assets                                          |  |                                                                    | 987,685 |  |                                                                |     | 1,025,592 |      |  |     | 1,278,357 |  |  |      | 1,296,487 |  |      |     | 1,515,042 |  |  |      | 73,081 | 
|Short-term debt and current portion of long-term debt |  |                                                                    | 13,622  |  |                                                                |     | 25,841    |      |  |     | 57,806    |  |  |      | 119,590   |  |      |     | 82,607    |  |  |      | 3,985  | 
|Long-term debt                                        |  |                                                                    | 404,048 |  |                                                                |     | 464,478   |      |  |     | 545,949   |  |  |      | 563,627   |  |      |     | 625,194   |  |  |      | 30,157 | 
|Capital stock                                         |  |                                                                    | 96,415  |  |                                                                |     | 96,392    |      |  |     | 96,383    |  |  |      | 96,338    |  |      |     | 96,338    |  |  |      | 4,647  | 
|Total equity                                          |  |                                                                    | 254,848 |  |                                                                |     | 210,301   |      |  |     | 234,639   |  |  |      | 160,854   |  |      |     | 271,024   |  |  |      | 13,075 | 
|Number of outstanding shares (millions):              |  |                                                                    |         |  |                                                                |     |           |      |  |     |           |  |  |      |           |  |      |     |           |  |  |      |        | 
|AA Shares                                             |  |                                                                    | 23,424  |  |                                                                |     | 23,424    |      |  |     | 23,384    |  |  |      | 23,384    |  |      |     | 20,635    |  |  |      |        | 
|A Shares                                              |  |                                                                    | 712     |  |                                                                |     | 681       |      |  |     | 649       |  |  |      | 625       |  |      |     | 592       |  |  |      |        | 
|L Shares                                              |  |                                                                    | 51,703  |  |                                                                |     | 46,370    |      |  |     | 44,120    |  |  |      | 41,990    |  |      |     | 44,571    |  |  |      |        | 
|Ratio of Earnings to Fixed Charges(1)                 |  |                                                                    | 5.4     |  |                                                                |     | 3.9       |      |  |     | 3.5       |  |  |      | 2.5       |  |      |     | 1.6       |  |  |      |        | 



|(1) | Earnings, for this purpose, consist of profit before income tax, plus interest expense, interest implicit in operating leases and current period amortization of interest capitalized in prior periods, minus equity
interest in net income of associates, during the year.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



3



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LOGO

|                                  
|----------------------------------
|PART I:
INFORMATION ON THE COMPANY





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Information On The Company





ABOUT
AMÉRICA MÓVIL

HISTORY AND CORPORATE INFORMATION

América Móvil, S.A.B. de C.V. (América Móvil, we or the Company) is a sociedad
anónima bursátil de capital variable organized under the laws of Mexico. We were established in September 2000 when Teléfonos de México, S.A.B. de C.V. (Telmex), a fixed-line
Mexican telecommunications operator privatized in 1990, spun off to us its wireless operations in Mexico and other countries. We have made significant acquisitions throughout Latin America, the United States, the Caribbean and Europe, and we have
also expanded our businesses organically. In 2010, we acquired control of Telmex and Telmex Internacional, S.A.B. de C.V. (currently, Telmex Internacional, S.A. de C.V., or Telmex Internacional) in a series of public tender offers.

Our principal executive offices are located at Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Delegación Miguel Hidalgo,
11529, Mexico City, México. Our telephone number at this location is (5255) 2581-4449.

BUSINESS OVERVIEW

We provide telecommunications services in 25 countries. We are the leading telecommunications services provider in Latin America ranking first in wireless, fixed-line,
broadband and Pay TV services based on the number of revenue generating units (RGUs). Our largest operations are in Mexico and Brazil, which together account for over half of our total RGUs and where we have the largest market share
based on RGUs. We also have major wireless, fixed or Pay TV operations in 16 other countries in the Americas and seven countries in Central and Eastern Europe as of December 31, 2016. For a list of our principal subsidiaries, see Note 2 a) to
our consolidated financial statements and Additional InformationExhibit 8.1 under Part VII of this annual report.

We intend to build on our
position as leaders in integrated telecommunications services in Latin America and the Caribbean, and to grow in other parts of the world, by continuing to expand our subscriber base through the development of our existing businesses and strategic
acquisitions when opportunities arise. We have developed world-class integrated telecommunications platforms to offer our customers new services and enhanced communications solutions with higher data speed transmissions at lower prices. We continue
investing in our networks to increase coverage and implement new technologies to optimize our network capabilities. See Operating and Financial Review and ProspectsOverview under Part II of this annual report for a discussion on
the seasonality of our business.



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Information On The Company



The following map illustrates the geographic diversity of our operations and certain key performance indicators (KPIs) as of December 31, 2016.

LOGO



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Information On The Company



KEY PERFORMANCE INDICATORS

We have identified
certain KPIs that help measure the performance of our operations. The table of our KPIs below includes the number of our wireless subscribers and our fixed RGUs, which together make up the total RGUs, in the countries where we operate. Wireless
subscribers consist of the number of prepaid and postpaid subscribers to our wireless services. Fixed RGUs consist of fixed voice, fixed data and Pay TV units (which include customers of our Pay TV services and, separately, of certain other digital
services). The figures below reflect total wireless subscribers and fixed RGUs of all our consolidated subsidiaries, without adjustments to reflect our equity interest, in the following geographic segments:



| |  |  | Mexico Wireless;
| | - |  | ----------------



| |  |  | Mexico Fixed;
| | - |  | -------------



| |  |  | Brazil;
| | - |  | -------



| |  |  | Colombia;
| | - |  | ---------



| |  |  | Southern Cone (Argentina, Chile, Paraguay and Uruguay);
| | - |  | -------------------------------------------------------



| |  |  | Andean Region (Ecuador and Peru);
| | - |  | ---------------------------------



| |  |  | Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama);
| | - |  | -------------------------------------------------------------------------------------



| |  |  | the Caribbean (the Dominican Republic and Puerto Rico);
| | - |  | -------------------------------------------------------



| |  |  | the United States; and
| | - |  | ----------------------



| |  |  | Europe (Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia).
| | - |  | -----------------------------------------------------------------------------



|                           |  |                    |         |  |      |  |         |      |  |  |         | 
|-------------------------- |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                           |  | As of December 31, |        
|                           |  | 2014               |         |  | 2015 |  |         | 2016 | 
|                           |  | (in thousands)     |        
|Wireless Subscribers:      |  |                    |         |  |      |  |         |      |  |  |         | 
|Mexico Wireless            |  |                    | 71,463  |  |      |  | 73,697  |      |  |  | 72,953  | 
|Brazil                     |  |                    | 71,107  |  |      |  | 65,978  |      |  |  | 60,171  | 
|Colombia                   |  |                    | 29,775  |  |      |  | 28,973  |      |  |  | 28,954  | 
|Southern Cone              |  |                    | 27,754  |  |      |  | 29,186  |      |  |  | 30,377  | 
|Andean Region              |  |                    | 24,270  |  |      |  | 20,743  |      |  |  | 20,801  | 
|Central America            |  |                    | 13,973  |  |      |  | 15,317  |      |  |  | 15,085  | 
|Caribbean                  |  |                    | 5,092   |  |      |  | 5,261   |      |  |  | 5,453   | 
|United States              |  |                    | 26,006  |  |      |  | 25,668  |      |  |  | 26,070  | 
|Europe                     |  |                    | 20,008  |  |      |  | 20,711  |      |  |  | 20,708  | 
|Total Wireless
Subscribers |  |                    | 289,448 |  |      |  | 285,534 |      |  |  | 280,572 | 
|Fixed RGUs:                |  |                    |         |  |      |  |         |      |  |  |         | 
|Mexico Fixed               |  |                    | 22,250  |  |      |  | 21,735  |      |  |  | 22,178  | 
|Brazil                     |  |                    | 36,096  |  |      |  | 36,627  |      |  |  | 36,716  | 
|Colombia                   |  |                    | 5,307   |  |      |  | 5,801   |      |  |  | 6,304   | 
|Southern Cone              |  |                    | 1,826   |  |      |  | 1,819   |      |  |  | 1,942   | 
|Andean Region              |  |                    | 1,576   |  |      |  | 1,727   |      |  |  | 1,820   | 
|Central America            |  |                    | 4,606   |  |      |  | 4,950   |      |  |  | 5,392   | 
|Caribbean                  |  |                    | 2,347   |  |      |  | 2,511   |      |  |  | 2,663   | 
|Europe                     |  |                    | 4,402   |  |      |  | 5,642   |      |  |  | 5,900   | 
|Total Fixed RGUs           |  |                    | 78,410  |  |      |  | 80,812  |      |  |  | 82,915  | 
|Total RGUs                 |  |                    | 367,858 |  |      |  | 366,346 |      |  |  | 363,487 | 



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Information On The Company



PRINCIPAL BRANDS

We operate in all of our
geographic segments under the Claro brand name, except in Mexico, the United States and Europe, where we do business under the brand names listed below.



|              |                  |                                                |                              |                                                           
|------------- | ---------------- | ---------------------------------------------- | ---------------------------- | ----------------------------------------------------------
|Country       |                  | Principal Brands                               |                              | Services and Products                                     
|              |                  |                                               
|Mexico        |                  | Telcel                                         |                              | Wireless voice
Wireless data                              
|              | Telmex
Infinitum |                                                | Fixed voice Fixed data      
|United States |                  | TracFone                                       |                              | Wireless voice                                            
|              | Straight Talk    |                                                | Wireless data               
|              |                  |                                               
|Europe        |                  | A1, Mobitel, Vipnet,
Velcom, Si.mobil, One.Vip |                              | Wireless voice
Wireless data Fixed voice
Fixed data Pay TV
|              | Vip
mobile       |                                                | Wireless voice
Wireless data



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Information On The Company



SERVICES AND PRODUCTS

We offer a wide range of
services and products that vary by market, including wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and IT services, Pay TV and
over-the-top (OTT) services.

Wireless
Operations

In 2016, our wireless voice and data operations generated revenues of Ps.499.2 billion, representing 51.1% of our consolidated revenues.
As of December 31, 2016, our wireless operations represented approximately 77.2% of our total RGUs, compared to 77.9% as of December 31, 2015.

Voice and Data

Our wireless subsidiaries provide voice communication services across the countries in which they operate. We
offer international roaming services to our wireless subscribers through a network of cellular service providers with which our wireless subsidiaries have entered into international roaming agreements around the world, and who provide GSM, 3G and 4G-LTE roaming services.

Our wireless voice services are offered under a variety of plans to meet the needs of different market
segments. In addition, we often bundle wireless data communications services together with wireless voice services. Our wireless subsidiaries had approximately 280.6 million wireless voice and data subscribers as of December 31, 2016.

The voice and data plans are either postpaid, where the customer is billed monthly for the previous month, or prepaid, where the customer pays in
advance for a specified volume of use over a specified period. As of December 31, 2016, the composition of our wireless voice and data subscribers is approximately 74.0% prepaid and 26.0% postpaid.

Prepaid customers typically generate lower levels of usage and are often unable or unwilling or financially ineligible to purchase postpaid plans. Our prepaid plans have
been instrumental to increase wireless penetration in Latin America and Eastern Europe to reach levels similar to those of developed markets. Additionally, prepaid plans entail little to no risk of
non-payment, as well as lower customer acquisition costs and billing expenses, compared to the average postpaid plan.

In
general, our average rates per minute of wireless voice are very competitive for both prepaid and postpaid plans. The rates in 2016 declined an average of 23.3%, at constant exchange rates relative to 2015. In addition, the plans we offer our retail
customers include selective discounts and promotions that reduce the reference rates our customers pay.

Value-Added Services

As part of our wireless data business, our subsidiaries offer value-added services that include Internet access, messaging and other wireless
entertainment and corporate services through GSM/EDGE, 3G and 4G LTE networks. Internet services include roaming capability and wireless Internet connectivity for feature phones, smartphones, tablets and laptops, including data transmission, e-mail services, instant messaging, content streaming and interactive applications. For example, in Mexico, our website (www.claroideas.com), under Radiomóvil Dipsa, S.A. de C.V. (Telcel), offers
a wide range of services and content such as video, music, games and other applications, which our subscribers can access from mobile devices.



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In addition, we offer other wireless services, including wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network (VPN) services, video calls and Personal Communications Service (PCS).

Fixed Operations

In 2016, our fixed voice,
data, broadband and IT solutions had revenues of Ps.221.6 billion, representing 22.7% of our consolidated revenues. As of December 31, 2016, our fixed operations represented approximately 22.8% of our total RGUs, compared to 22.1% as of
December 31, 2015.

Voice

Our
fixed voice services include local, domestic and international long-distance and public telephone services, under a variety of plans to meet the needs of different market segments, specifically tailored to our residential and corporate clients.

Data

We offer data services, including
data centers, data administration and hosting services to our residential and corporate clients under a variety of plans.

Broadband

We provide residential broadband access through hybrid fiber-coaxial (HFC) or fiber-optic cable. These services are typically bundled
with voice services and are competitively priced as a function of the desired or available speed. As a complement to these services, we offer a number of products such as home networking and smart home services.

IT Solutions

Our subsidiaries provide a
number of different IT solutions for small businesses and large corporations. We also provide specific solutions to the industrial, financial, government and tourism sectors, among others.

Pay TV

We offer Pay TV through cable and
satellite TV subscriptions to both retail and corporate customers under a variety of plans. As of December 31, 2016, we had approximately 22.1 million Pay TV RGUs, an increase of approximately 0.4 million Pay TV RGUs from the prior
year.

Our largest Pay TV market is in Brazil, where we are the leading provider of Pay TV services. We offer satellite Pay TV services through direct-to-home (DTH) technology through our Embratel Tvsat Telecomunicações S.A. (Claro TV) brand and cable TV through our Net
Serviços brand. We offer these services through individual subscription plans as well as in bundled packages of services, along with broadband, fixed voice and wireless services. In addition to our Brazilian operations, our Colombian
operations are now offering quadruple-play services, combining Pay TV services, broadband, fixed-line and wireless services.

Equipment,
Accessories and Computer Sales

Equipment, accessories and computer sales revenues primarily include revenues from the sale of handsets, accessories and
other equipment.

Other Services

Other
services include revenues from other businesses, such as telephone directories, call center services, wireless security services, advertising, media and software development services.



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OTT Services

We sell video, audio and other
media content that is delivered through the internet directly from the content provider to the viewer or end user. Our most important service is ClaroVideo, an on-demand internet streaming video provider with
more than 34,000 content titles sold across all the Latin American and Caribbean markets in which we operate. We sometimes offer bundled packages of ClaroVideo with other services. Additionally, we offer customers unlimited access to ClaroVideo for
a fixed monthly subscription fee.

Services and Products by Country

The following table is a summary of the services rendered and products produced as of December 31, 2016 in the countries in which we operate.



|                   |  |  |  |                                                  |  |  |  |                                                  |  |  |  |        |  |  |  |                
|------------------ |  |  |  | ------------------------------------------------ |  |  |  | ------------------------------------------------ |  |  |  | ------ |  |  |  | ---------------
|                   |  |  |  | Wireless Voice,
Data and Value
Added Services(1) |  |  |  | Fixed Voice,
Broadband, Data
and IT 
Services(2) |  |  |  | Pay TV |  |  |  | OTT
Services(3)
|Argentina          |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  |        |  |  |  | ✓              
|Austria            |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Belarus            |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  |                
|Brazil             |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Bulgaria           |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  |                
|Chile              |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Colombia           |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Costa Rica         |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Croatia            |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  |                
|Dominican Republic |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Ecuador            |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|El Salvador        |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Guatemala          |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Honduras           |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Macedonia          |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  |                
|Mexico             |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  |        |  |  |  | ✓(4)           
|Nicaragua          |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Panama             |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Paraguay           |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Peru               |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Puerto Rico        |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  | ✓              
|Serbia             |  |  |  | ✓                                                |  |  |  |                                                  |  |  |  |        |  |  |  |                
|Slovenia           |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  | ✓      |  |  |  |                
|Uruguay            |  |  |  | ✓                                                |  |  |  | ✓                                                |  |  |  |        |  |  |  | ✓              
|United States      |  |  |  | ✓                                                |  |  |  |                                                  |  |  |  |        |  |  |  |                



|(1) | Includes voice communication and international roaming services, interconnection and termination services, SMS, MMS, e-mail, mobile browsing, entertainment and gaming
applications.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Includes local calls, national and international long distance.
|--- | ---------------------------------------------------------------

|(3) | Includes ClaroVideo and ClaroMúsica.
|--- | ------------------------------------

|(4) | Services provided by non-concessionaire subsidiaries.
|--- | -----------------------------------------------------



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OUR NETWORKS

Our
networks are one of our main competitive advantages. Today, we own and operate one of the largest integrated platforms based on our covered population across 17 countries in Latin America and are in the process of expanding our network in Europe.

Infrastructure

For the year ended
December 31, 2016, our capital expenditures totaled Ps.155.0 billion, which allowed us to increase the coverage of our networks, to expand their capacity and to upgrade our systems to operate with the latest technologies. With fully
convergent platforms, we are able to widely deliver high-quality voice, video and data products. See Note 10 to our consolidated financial statements for description of our property, plant and equipment.

As of December 31, 2016, the main components of our infrastructure were comprised of:



| |  |  | Base stations:196,159 (of which approximately 62% are equipped with 3G and 4G capabilities).
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | Fiber-optic network:More than 727 thousand km. Our network passed approximately 68 million homes as of December 31, 2016.
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | Submarine cable system:Capacity of more than 168 thousand km in submarine cable, including the AMX-1 submarine cable that extends 17,500 km and connects the United
States to Central and South America throughout 12 landing points and provides international connectivity to all of our subsidiaries in these geographic areas.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Satellites:Nine. Star One S.A. (Star One) has the most extensive satellite system in Latin America with a fleet that covers the United States, Mexico, Central America and South America. We use these
satellites to supply capacity for DTH services for Claro TV throughout Brazil and in other DTH operations, as well as cellular backhaul, video broadcast and corporate data networks. In 2016, we launched the Star One D1 Satellite, a new fourth
generation satellite that will provide new band capacities covering Brazil and the rest of Latin America.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Data centers:21. We use our data centers to manage a number of cloud solutions such as Infrastructure as a Service (IAAS), Software as a Service (SAAS), security solutions and unified
communications.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In the United States, we do not own any wireless telecommunications facilities or hold any wireless spectrum licenses. Instead, we
purchase airtime through agreements with wireless service providers and resell airtime to customers. Through these agreements, we have a nationwide virtual network, covering almost all areas in which wireless services are available.

Technology

Our primary wireless networks use
GSM/EDGE, 3G and 4G LTE technologies, which we offer in most of the countries where we operate. We aim to increase the speed of transmission of our data services and have been expanding our 3G and 4G LTE coverage.

We transmit wireless calls and data through radio frequencies that we use under spectrum licenses. Spectrum is a limited resource and, as a result, we may face spectrum
and capacity constraints on our wireless network. We continue to invest significant capital in expanding our network capacity and reach and to address spectrum and capacity constraints on a market-by-market basis. In 2016, we spent Ps.9.4 billion on the acquisition of spectrum licenses, mainly in Mexico, Peru and Paraguay.



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The table below presents a summary of our covered population in the countries where we operate as of December 31, 2016:



|                   |  |  |  |                       |  |  |  |                           |  |  |  |    
|------------------ |  |  |  | --------------------- |  |  |  | ------------------------- |  |  |  | ---
|                   |  |  |  | Generation Technology
|                   |  |  |  | GSM                   |  |  |  | UMTS                      |  |  |  | LTE
|                   |  |  |  |                       |  |  |  | (% of covered population) |  |  |  |    
|Argentina          |  |  |  | 98                    |  |  |  | 90                        |  |  |  | 45 
|Austria            |  |  |  | 100                   |  |  |  | 92                        |  |  |  | 88 
|Belarus            |  |  |  | 99                    |  |  |  | 100                       |  |  |  |   
|Brazil             |  |  |  | 92                    |  |  |  | 81                        |  |  |  | 45 
|Bulgaria           |  |  |  | 100                   |  |  |  | 100                       |  |  |  | 78 
|Chile              |  |  |  | 97                    |  |  |  | 87                        |  |  |  | 61 
|Colombia           |  |  |  | 91                    |  |  |  | 74                        |  |  |  | 42 
|Costa Rica         |  |  |  | 69                    |  |  |  | 75                        |  |  |  | 19 
|Croatia            |  |  |  | 99                    |  |  |  | 99                        |  |  |  | 82 
|Dominican Republic |  |  |  | 96                    |  |  |  | 99                        |  |  |  | 79 
|Ecuador            |  |  |  | 96                    |  |  |  | 71                        |  |  |  | 17 
|El Salvador        |  |  |  | 91                    |  |  |  | 69                        |  |  |  |   
|Guatemala          |  |  |  | 89                    |  |  |  | 61                        |  |  |  | 1  
|Honduras           |  |  |  | 78                    |  |  |  | 60                        |  |  |  | 18 
|Macedonia          |  |  |  | 99                    |  |  |  | 98                        |  |  |  | 95 
|Mexico             |  |  |  | 93                    |  |  |  | 89                        |  |  |  | 58 
|Nicaragua          |  |  |  | 82                    |  |  |  | 75                        |  |  |  | 4  
|Panama             |  |  |  | 79                    |  |  |  | 79                        |  |  |  | 38 
|Paraguay           |  |  |  | 75                    |  |  |  | 66                        |  |  |  |   
|Peru               |  |  |  | 76                    |  |  |  | 56                        |  |  |  | 39 
|Puerto Rico        |  |  |  | 78                    |  |  |  | 81                        |  |  |  | 75 
|Serbia             |  |  |  | 99                    |  |  |  | 95                        |  |  |  | 79 
|Slovenia           |  |  |  | 99                    |  |  |  | 99                        |  |  |  | 99 
|Uruguay            |  |  |  | 91                    |  |  |  | 86                        |  |  |  | 50 



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OUR
COMPETITORS

We operate in an intensely competitive industry. The effects of competition on our subsidiaries depend, in part, on the business strategies
of their competitors, regulatory developments and the general economic and business climate in the countries in which they operate, including demand growth, interest rates, inflation and exchange rates. The effects could include loss of market share
and pressure to reduce rates. See Regulation under Part VI and Risk Factors under Part III of this annual report.

The table below presents
our major competitors in each of our geographic segments as of December 31, 2016.



|                                                                       |  |                                                                                                                                                                      
|---------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mexico                                                                
|Wireless Voice, Wireless Data and Value-Added Services                 |  | AT&T, Teléfonica (Movistar), Axtel, Quickly Phone, Telecomunicaciones 360 (Elektra), Virgin Mobile, Teligentia (Cierto), Lycamobile, Coppel Móvil, Maz Tiempo,
Ekofon
|Fixed Voice, Fixed Broadband, Fixed Data,
IT Services and OTT Services |  | AT&T, Alestra, Grupo Televisa (IZZI), Axtel, Megacable, Cablecom México, Maxcom, Megacable Comunicaciones de México, Telecable, Totalplay, GTM, Marcatel             
|Brazil                                                                
|Wireless Voice, Wireless Data and Value-Added Services                 |  | Teléfonica Brasil (Vivo), TIM Celular, Oi, Algar Telecom, Sercomtel, Nextel                                                                                          
|Fixed Voice, Fixed Broadband, Fixed Data
and IT Services               |  | Oi, Algar Telecom, Telefónica Brasil (Vivo)                                                                                                                          
|Pay TV and OTT Services                                                |  | Sky Brasil, Telefónica Brasil (Vivo), Oi                                                                                                                             
|Colombia                                                              
|Wireless Voice, Wireless Data and Value-Added Services                 |  | Telefónica Colombia (Movistar), Colombia Móvil (Tigo), Virgin Mobile Colombia                                                                                        
|Fixed Voice                                                            |  | Telefónica Colombia (Movistar), Colombia Móvil (Tigo), Empresa de Telecomunicaciones de Bogotá (ETB), UNE Telecomunicaciones, Empresas Municipales de
Cali (Emcali)  
|Fixed Broadband, Fixed Data
and IT Services, Pay TV, OTT Services      |  | Telefónica Colombia, Empresa Telecomunicaciones de Bogotá (ETB), UNE Telecomunicaciones, DirecTV Colombia, Empresas Municipales de Cali (Emcali)                     
|Southern Cone                                                         
|Wireless Voice, Wireless Data and Value-Added Services                 |  | Telefónica (Movistar), Telecom Argentina, Nextel Argentina, Entel, WOM,
Millicom (Tigo), ANTEL, Virgin Mobile Chile, Personal, VTR GlobalCom, Tigo Paraguay          
|Fixed Voice, Fixed Broadband, Fixed Data and IT
Services               |  | Telefónica, Telecom Argentina, Telecentro Argentina, Entel, VTR GlobalCom, TelsurDirecTV Latin America, COPACO, Tigo Paraguay, ANTEL                                 
|Pay TV and OTT Services                                                |  | DirecTV Chile, Telefónica (Movistar Chile), VTR GlobalCom, Tigo Paraguay                                                                                             
|Andean Region                                                         
|Wireless Voice, Wireless Data and Value-Added Services                 |  | Telefónica (Movistar), Entel Perú, CNT (Ecuador)                                                                                                                     
|Fixed Voice, Fixed Broadband, Fixed Data and
IT Services               |  | CNT, Grupo TV Cable (Setel), Telefónica (Movistar)                                                                                                                   
|Pay TV and OTT Services                                                |  | CNT, Grupo TVCable, Telefónica (Movistar TV), DirecTV                                                                                                                



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|                                                         |  |                                                                                                                                                                                                             
|-------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Central America                                         
|Wireless Voice, Wireless Data and Value-Added Services   |  | Millicom (Tigo), Telefónica (Movistar), Digicel, Honducel, ICE (Kolbi), Cable & Wireless (Panamá)                                                                                                           
|Fixed Voice, Fixed Broadband, Fixed Data
and IT Services |  | Millicom (Tigo), Hondutel, ICE (Kolbi), Telefónica (Movistar), Cabletica (Costa Rica), Cable & Wireless (Panamá), Cable Color (Honduras)                                                                    
|Pay TV and OTT Services                                  |  | Millicom (Tigo), Sky, Telefónica, ICE (Kolbi), Cable & Wireless (Panamá), Cable Color (Honduras), Cabletica (Costa Rica)                                                                                    
|U.S.                                                    
|Wireless Voice, Wireless Data and Value-Added Services   |  | Verizon, AT&T, T-Mobile, Sprint, U.S. Cellular                                                                                                                                                              
|Caribbean                                               
|Wireless Voice, Wireless Data and Value-Added Services   |  | Altice (Orange), Tricom, AT&T, Sprint, T-Mobile, PR Wireless (Open Mobile), Viva Dominicana                                                                                                                 
|Fixed Voice, Fixed Broadband, Fixed Data and IT
Services |  | Altice (Orange), Tricom, AT&T, Liberty Cablevision, WorldNet                                                                                                                                                
|Pay TV and OTT Services                                  |  | Tricom, Aster, Wind, Sky, Liberty Cablevision, DirecTV Puerto Rico, Dish Network                                                                                                                            
|Europe                                                  
|Wireless Voice                                           |  | T-Mobile, Hutchison Drei, Mobile TeleSystems, CJSC (life:), Bulgarian Telecommunications Company (VivaCom), Telenor, Hrvatski Telekom,
Tele2, Telekom Srbija, Telekom Slovenije, Telemach                   
|Wireless Data and Value-Added Services                   |  | T-Mobile, Hutchison Drei, Mobile TeleSystems (MTS), Bulgarian Telecommunications Company (VivaCom), Telenor, Hrvatski Telekom, Tele2,
Telekom Srbija, Telekom Slovenije, Telemach                           
|Fixed Voice, Fixed Broadband, Fixed Data and IT
Services |  | Tele2, UPC Austria, Mobile TeleSystems, CJSC (life:), Bulgarian Telecommunications Company (VivaCom), Bulsatcom, Hrvatski Telekom, T-Mobile,
Telekabel, Telekom Srbija, Telenor, Telekom Sloveniej, Telemach



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MARKETING,
SALES AND DISTRIBUTION, CUSTOMER SERVICES

Marketing

We advertise our services and products through different channels with consistent and distinct branding and targeted marketing. We advertise via print, radio,
television, digital media, sports event sponsorships and other outdoor advertising campaigns. In 2016, our efforts were mainly focused on promoting our 4G LTE services, leveraging on the speeds and quality of our networks and our fixed bundled
offers, which compete on broadband speeds and premium content.

We build upon the strength of our well-recognized brand names to increase consumer awareness and
customer loyalty. Building brand recognition is crucial for our business, and we have managed to position our brands as those of a premium carrier in most countries where we operate. For example, in 2016, Claro was the highest-ranked telecom brand
in Latin America, according to Brand Finance, and BrandZ ranked Telcel as the second-most valuable national brand in Mexico. In the same year, BrandZ also named Telcel and Telmex as the highest and third-highest recognized telecom brands,
respectively, in Mexico and listed Claro, Telcel and Telmex as three of the top four highest-ranked telecom brands in Latin America. In addition, a 2016 study by Austrian Brand Monitor found that A1, the brand name behind Telekom Austria, ranked
number one in the Austrian telecommunications market for brand awareness as well as for brand perception as a premium brand.

Sales and
Distribution

Our extensive sales and distribution channels help us attract new customers and develop new business opportunities. We primarily sell our
services and products through a network of retailers and service centers for retail customers and a dedicated sales force for corporate customers with more than 320,000 points of sale and almost 2,700 customer service centers. Our subsidiaries also
sell their services and products online.

Customer Services

We give priority to providing our customers with quality customer care and support, with approximately 57,000 employees dedicated to customer service. We focus our
efforts on constantly improving our customers experience by leveraging our commercial offerings and our sales and distribution networks. Customers may make inquiries by calling a toll-free telephone number, accessing our subsidiaries web
sites and social media accounts or visiting one of the customer sales and service centers located throughout the countries we serve.



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ACQUISITIONS, OTHER INVESTMENTS AND DIVESTITURES

Geographic diversification has been a key to our financial success, as it has provided for greater stability in our cash flow and profitability and has contributed to
our strong credit ratings. In recent years, we have been evaluating the expansion of our operations to regions outside of Latin America. We believe that Europe and other areas beyond Latin America present opportunities for investment in the
telecommunications sector that could benefit us and our shareholders over the long term. We continue to seek investment opportunities in telecommunications and related companies worldwide, including markets where we are already present, and we often
have several possible acquisitions under consideration. We can give no assurance as to the extent, timing or cost of such investments. We may pursue opportunities in Latin America or in other areas in the world. Some of the assets that we acquire
may require significant funding for capital expenditures. We continue to make incremental acquisitions in areas that we consider accretive to our existing operations. For additional information on our acquisitions and investments, see Note 12 to our
consolidated financial statements.



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LOGO

|                                                     
|-----------------------------------------------------
|PART II:
OPERATING AND FINANCIAL REVIEW AND PROSPECTS





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Operating and Financial Review and Prospects





OVERVIEW

INTRODUCTION

Segments

We have operations in 25 countries, which are aggregated for financial reporting purposes into ten reportable segments. Our operations in Mexico are presented in two
segmentsMexico Wireless and Mexico Fixed, which consist principally of Telcel and Telmex, respectively. Our headquarters operations are allocated to the Mexico Wireless segment. Financial information about our segments is presented in
Note 22 to our audited consolidated financial statements.

The factors that drive our financial performance differ in the various countries where we operate,
including subscriber acquisition costs, the competitive landscape, the regulatory environment, economic factors and interconnection rates, among others. Accordingly, our results of operations in each period reflect a combination of these effects on
our different segments.

Constant Currency Presentation

Our financial statements are presented in Mexican pesos, but our operations outside Mexico account for a significant portion of our revenues. Currency variations between
the Mexican peso and the currencies of our non-Mexican subsidiaries, especially the Euro, U.S. dollar, Brazilian real, Colombian peso and Argentine peso, affect our results of operations as reported in Mexican
pesos. In the following discussion regarding our operating results, we include a discussion of the change in the different components of our revenues between periods at constant exchange rates, i.e., using the same exchange rate to translate the
local-currency results of our non-Mexican operations for both periods. We believe that this additional information helps investors better understand the performance of our
non-Mexican operations and their contribution to our consolidated results.

Effects of Exchange
Rates

Our results of operations are affected by changes in currency exchange rates. As discussed above, currency variations between the Mexican peso and
the currencies of our non-Mexican subsidiaries, especially the Euro, U.S. dollar, Brazilian real, Colombian peso and Argentine peso, affect our results of operations as reported in Mexican pesos. In 2016, the
Mexican peso was generally weaker against our other operating currencies than in 2015, which tended to increase the reported amounts in Mexican pesos attributable to our non-Mexican operations.

In addition, we recognize foreign exchange gains and losses attributable to changes in the value of our operating currencies, particularly the Mexican peso and Brazilian
real, against the currencies in which our indebtedness and accounts payable are denominated, especially the U.S. dollar. Appreciation of our operating currencies generally results in foreign exchange gains, while depreciation of these currencies
generally results in foreign exchange losses. Changes in exchange rates also affect the fair value of derivative financial instruments that we use to manage our currency-risk exposure, which are generally not accounted for as hedging instruments. In
2016, the Mexican peso weakened against the currencies in which a portion of our indebtedness is denominated, and we recorded net foreign exchange losses of Ps.40.4 billion. We also recorded net fair value losses on derivatives of
Ps.9.6 billion, reflecting the effect of



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a weakened British pound and other currencies on certain derivative positions we use to offset
exchange risk on our indebtedness. In 2015, the Mexican peso weakened against the currencies of our indebtedness, and we recorded net foreign exchange losses of Ps.79.0 billion, partially offset by net fair value gains on derivatives of
Ps.15.1 billion. See Note 7 to our audited consolidated financial statements.

Effects of Regulation

We operate in a regulated industry. Our results of operations and financial condition have been, and will continue to be, affected by regulatory actions and changes. In
recent periods, for example, regulators have imposed or sought to impose decreases in, or the elimination of, interconnection rates. We have offset lower interconnection revenues by attracting new customers with lower prices and new data services to
increase traffic, but this may change. Significant regulatory developments are presented in more detail in Regulation under Part VI and Risk Factors under Part III of this annual report.

Effect of Consolidating Telekom Austria

As of
December 31, 2016, we owned 51.0% of the total outstanding shares of Telekom Austria. We began consolidating Telekom Austria from July 1, 2014. Prior to July 1, 2014, we accounted for Telekom Austria using the equity method. The
consolidation of Telekom Austria affected the comparability of our results for 2015 and 2014.

COMPOSITION OF OPERATING REVENUES

In 2016, our total operating revenues consisted of: wireless voice revenues (24.8% of total operating revenues), fixed voice revenues (9.8%), wireless
data revenues (26.3%), fixed data revenues (12.9%), Pay TV revenues (8.0%), equipment, accessories and computer sales revenues (14.7%) and other services (3.5%).

Revenues from wireless and fixed voice services primarily include charges from monthly subscriptions and usage charges billed to other service providers for calls
completed on our network. The primary drivers of revenues from monthly subscription charges are the number of total RGUs and the prices of our service packages. The primary driver of revenues from usage charges (airtime, international and
long-distance calls and interconnection costs) is traffic as calculated by the number of total RGUs and their average usage.

Revenues from wireless and fixed data
services primarily include charges for data, cloud, internet and OTT services and the usage from our data centers. In addition, revenues from value-added services and IT solutions to corporate clients contribute to our results for wireless and fixed
data services, respectively. Revenues from IT solutions to our corporate clients mainly consist of revenues from installing and leasing dedicated links and revenues from VPN services.

Pay TV revenues consist primarily of charges from subscription services, additional programming, including on-demand programming
and advertising.

Equipment, accessories and computer sales revenues primarily include revenues from the sale of handsets, accessories and other equipment such as
office equipment, household appliances and electronics. Most of our sales in handsets are driven by the number of new customers. The pricing of handsets is not geared primarily towards making a profit from handset sales, because it also takes into
account the service revenues that are expected to result when the handset is used.



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Other services primarily include revenues from other businesses, such as advertising and news
companies, entertainment content distribution, telephone directories, call center services, wireless security services, network infrastructure services and a software development company.

Seasonality of our Business

Our business is
subject to a certain degree of seasonality, characterized by a higher number of new customers during the fourth quarter of each year. We believe this seasonality is mainly driven by the Christmas shopping season. Revenue also tends to decrease
during the months of August and September, when family expenses shift towards school supplies and child care in many of the countries in which we operate, mainly Mexico.

General Trends Affecting Operating Results

Our
results of operations in 2016 reflected several continuing long-term trends, including:



| |  |  | intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as generally declining customer prices;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | changes in the telecommunications regulatory environment;
| | - |  | ---------------------------------------------------------



| |  |  | growing demand for data services over fixed and wireless networks, as well as for smartphones and devices with data service capabilities;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------



| |  |  | declining demand for voice services;
| | - |  | ------------------------------------



| |  |  | growing operating costs reflecting, among other things, higher costs for Pay TV and data services content and licenses, customer care services, as well as managing larger and more complex networks; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | overall macroeconomic conditions and foreign exchange volatility in the countries in which we operate.
| | - |  | ------------------------------------------------------------------------------------------------------

These trends are
broadly characteristic of our businesses in all regions in recent years, and they have affected comparable telecommunications providers as well.

Other recent trends
affecting our performance included:



| |  |  | the effects of Mexicos regulatory measures; and
| | - |  | ------------------------------------------------



| |  |  | the impact of the depreciation of the Mexican peso against the U.S. dollar, the Euro, the Brazilian real and the Colombian peso.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------



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RESULTS OF OPERATIONS

CONSOLIDATED RESULTS OF OPERATIONS FOR 2016 AND 2015

Operating Revenues

Total operating revenues for
2016 increased by 9.1%, or Ps.81.7 billion, over 2015. At constant exchange rates, total operating revenues for 2016 increased by 2.1% over 2015. This increase principally reflects increases in revenues from our wireless data, fixed data and
Pay TV operations, which were partially offset by a decrease in revenues from our wireless voice and fixed voice operations.

Wireless VoiceWireless
voice revenues for 2016 decreased by 5.4%, or Ps.13.8 billion, over 2015. At constant exchange rates, wireless voice revenues for 2016 decreased by 12.7% over 2015. This decrease principally reflects reductions in the price per minute for
calls, traffic in international and domestic long-distance calls and the reduction of interconnection rates in other jurisdictions where we operate, particularly in Brazil, Colombia, Argentina and Europe.

Fixed VoiceFixed voice revenues for 2016 decreased by 0.2%, or Ps.0.2 billion, over 2015. At constant exchange rates, fixed voice revenues for 2016
decreased by 7.0% over 2015. This decrease principally reflects reduced traffic in long-distance calls, which was driven by the growing use of wireless technology and increased regulation affecting our fixed voice markets in Mexico, Colombia and
Brazil.

Wireless DataWireless data revenues for 2016 increased by 13.3%, or Ps.30.2 billion, over 2015. At constant exchange rates, wireless data
revenues for 2016 increased by 7.3% over 2015. This increase principally reflects increased use of wireless data services, such as media and content downloading, web browsing, content streaming and machine-to-machine services, which was driven in part by the increased use of social networking websites and content downloading on tablets and notebooks.

Fixed DataFixed data revenues for 2016 increased by 15.6%, or Ps.17.0 billion, over 2015. At constant exchange rates, fixed data revenues for 2016
increased by 7.4% over 2015. This increase principally reflects the growth in residential broadband services and corporate data services, such as cloud, dedicated links and data center services.

Pay TVPay TV revenues for 2016 increased by 18.5%, or Ps.12.2 billion, over 2015. At constant exchange rates, Pay TV revenues for 2016 increased by
5.6% over 2015. This increase principally reflects growth in the subscriber base and higher revenues driven by the cross-marketing of bundled packages and new TV channel packages, particularly in Brazil, Colombia, Peru, Central America and the
Caribbean.

Equipment, Accessories and Computer SalesEquipment, accessories and computer sales revenues for 2016 increased by 23.8%, or
Ps.27.6 billion, over 2015. At constant exchange rates, revenues from equipment, accessories and computer sales for 2016 increased by 20.4% over 2015. This increase principally reflects increases in sales of
higher-end smartphones, feature phones and other data-enabled devices, handsets, tablets and electronic household appliances, which were driven by new commercial plans and promotions among postpaid and prepaid
subscribers such as handset financing plans.

Other ServicesRevenues from other services for 2016 increased by 35.8%, or Ps.8.6 billion, over 2015.
At constant exchange rates, revenues from other services for 2016 increased by 23.8% over 2015. This increase principally reflects increases in revenues from advertising and media services, online content, wireless security services, telephone
directories and call center services.



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Operating Costs and Expenses

Cost of Sales and ServicesCost of sales and services for 2016 increased by 15.4%, or Ps.64.8 billion, over 2015, representing 49.7% of operating
revenues for 2016, as compared to 47.0% of operating revenues for 2015. At constant exchange rates, cost of sales and services for 2016 increased by 7.0% over 2015.

Cost of sales was Ps.172.5 billion for 2016, an increase of 18.6% from Ps.145.5 billion in 2015. This increase principally reflects the impact from a
depreciation of the Mexican peso and other Latin American currencies against the U.S. dollar, and higher sales of smartphones to subscribers in all countries in which we operate, which was partially offset by a decrease in the costs associated with
handset subsidies on financing plans we offer to acquire and retain subscribers.

Cost of services was Ps.312.6 billion for 2016, an increase of 13.8% from
Ps.274.8 billion in 2015. This increase principally reflects an increase in network services payments to third-party U.S. operators and costs related to our Pay TV operations, network maintenance and labor, as well as an increase in rental and
leasing costs associated with third-party mobile-site infrastructure.

Commercial, Administrative and General ExpensesCommercial, administrative and
general expenses for 2016 increased by 13.3%, or Ps.26.7 billion, over 2015. As a percentage of operating revenues, commercial, administrative and general expenses were 23.4% for 2016, as compared to 22.5% for 2015. At constant exchange rates,
commercial, administrative and general expenses for 2016 increased by 5.9% over 2015. This increase principally reflects higher advertising costs, as we seek to expand our subscriber base, and higher customer service costs, including increases in
the number of customer service centers, back office call centers and employees, as we seek to provide better customer care and quality of service.

Telcel and
Telmex, like other Mexican companies, are required by law to pay their employees, in addition to their agreed compensation and benefits, profit sharing in an aggregate amount equal to 10.0% of each entitys taxable income. Our subsidiaries in
Ecuador and Peru are also required to pay employee profit sharing at rates of 15.0% and 10.0% of taxable income, respectively. We account for these profit sharing contributions under commercial, administrative and general expenses.

Other ExpensesOther expenses for 2016 decreased by 17.5%, or Ps.0.9 billion, over 2015 reflecting unusually high regulatory charges in Brazil in 2015.

Depreciation and AmortizationDepreciation and amortization for 2016 increased by 18.1%, or Ps.22.8 billion, over 2015. As a percentage of
operating revenues, depreciation and amortization was 15.2% for 2016, as compared to 14.1% for 2015. At constant exchange rates, depreciation and amortization for 2016 increased by 8.5% over 2015. This increase stems, for the most part, from higher
capital investments in Argentina, Colombia, Austria and Mexico.

Operating Income

Operating income for 2016 decreased by 22.5%, or Ps.31.8 billion, over 2015. Operating margin (operating income as a percentage of operating revenues) was 11.2% for
2016, as compared to 15.8% for 2015.

Non-Operating Items

Net Interest ExpenseNet interest expense (interest expense less interest income) for 2016 increased by 12.6%, or Ps.3.3 billion, over 2015. This
increase principally reflects higher interest expenses due to the appreciation of some of the currencies in which our indebtedness is denominated, particularly the U.S. dollar.



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Foreign Currency Exchange Loss, NetWe recorded a net foreign currency exchange loss
of Ps.40.4 billion for 2016, compared to our net foreign currency exchange loss of Ps.79.0 billion for 2015. This loss in both periods principally reflects the appreciation of some of the currencies in which our indebtedness is
denominated, particularly the U.S. dollar.

Valuation of Derivatives, Interest Cost from Labor Obligations and Other Financial Items, NetThe changes in
valuation of derivatives, interest cost from labor obligations and other financial items, net, represented a loss of Ps.16.2 billion for 2016, compared to a gain of Ps.21.5 billion for 2015. The net loss in 2016 principally relates to
market value losses on derivatives positions we use to offset exchange risk on indebtedness, particularly in connection with the British pound, and increased interest cost recognized on labor obligations, which were partially offset by increased
dividends from KPN.

Equity Interest in Net Income of Associated CompaniesOur share of the net income of associated companies accounted for under the
equity method was Ps.0.2 billion in 2016, as compared to a loss of Ps.1.4 billion for 2015. This increase principally reflects the derecognition of the equity method investment in KPN, which we reclassified as an available-for-sale
security in June 2015.

Income TaxOur income tax expense for 2016 decreased by 40.6%, or Ps.7.8 billion, over 2015. This decrease was
principally due to net foreign currency exchange losses as a result of the depreciation of the Mexican peso against the currencies in which a portion of our debt is denominated.

Our effective corporate income tax rate as a percentage of profit before income tax was 48.6% for 2016, compared to 34.2% for 2015. This rate differed from the Mexican
statutory rate of 30% and changed year over year principally as a result of an increase in tax inflationary effects and derivatives.

Net
Profit

We recorded a net profit of Ps.12.1 billion for 2016, a decrease of 67.3%, or Ps.24.9 billion, over 2015.

CONSOLIDATED RESULTS OF OPERATIONS FOR 2015 AND 2014

Operating Revenues

Total operating revenues for
2015 increased by 5.3%, or Ps.45.2 billion, over 2014. At constant exchange rates, total operating revenues for 2015 increased by 5.9% over 2014, or 1.8% excluding the effects of consolidating Telekom Austria. This increase principally reflects
increases in revenues from our wireless data and fixed data operations, partially offset by a decrease in revenues from our wireless voice, fixed voice and Pay TV operations.

Wireless VoiceWireless voice revenues for 2015 decreased by 0.8%, or Ps.2.1 billion, over 2014. At constant exchange rates, wireless voice revenues for
2015 decreased by 3.3% over 2014, or 10.3% excluding the effects of consolidating Telekom Austria. This decrease principally reflects reductions in the price per minute for calls, decreases in international and long-distance traffic, as well as the
effects from the elimination of interconnection rates and national roaming charges in Mexico and the reduction of interconnection rates in other jurisdictions where we operate, including, principally, Colombia, Ecuador and Brazil.

Fixed VoiceFixed voice revenues for 2015 decreased by 14.4%, or Ps.16.0 billion, over 2014. At constant exchange rates, fixed voice revenues for 2015
decreased by 11.8% from 2014, or 12.3% excluding the effects of consolidating Telekom Austria. This decrease principally reflects reduced traffic, principally in



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long-distance calls, in part explained by the growing use of wireless technology, and the effects
of regulatory changes in some of the countries where we operate, such as in Mexico and Colombia.

Wireless DataWireless data revenues for 2015 increased
by 17.7%, or Ps.34.1 billion, over 2014. At constant exchange rates, wireless data revenues for 2015 increased by 14.9% over 2014, or 12.1% excluding the effects of consolidating Telekom Austria. This increase principally reflects increased use
of services, such as media and content downloading, web browsing, content streaming and machine-to-machine services, driven in part by the increased use of social
networking websites and content downloading on tablets and notebooks.

Fixed DataFixed data revenues for 2015 increased by 9.3%, or Ps.9.3 billion,
over 2014. At constant exchange rates, fixed data revenues for 2015 increased by 14.7% over 2014, or 8.3% excluding the effects of consolidating Telekom Austria. This increase principally reflects growth in residential broadband services, driven by
higher quality services with greater coverage and the growth of corporate data services, such as cloud, dedicated links, leasing and data center services.

Pay
TVPay TV revenues for 2015 decreased by 4.1%, or Ps.2.8 billion, over 2014. At constant exchange rates, Pay TV revenues for 2015 increased by 9.0% over 2014, or 7.8% excluding the effects of consolidating Telekom Austria. This
increase primarily reflects growth in fixed RGUs and increased revenues, driven by new plans and channel packages that integrate multiple services, particularly in Brazil, Colombia, Peru and Ecuador.

Equipment, Accessories and Computer SalesRevenues from equipment, accessories and computer sales for 2015 increased by 21.0%, or Ps.20.1 billion, over
2014. At constant exchange rates, revenues from equipment, accessories and computer sales for 2015 increased by 20.3% over 2014, or 17.7% excluding the effects of consolidating Telekom Austria. This increase principally reflects an increase in sales
of higher-end smartphones, feature phones and other data-enabled devices, as well as an increase in handset, tablet and electronics sales, driven by new commercial plans and promotions among postpaid and
prepaid subscribers.

Other ServicesRevenues from other services for 2015 increased by 11.9%, or Ps.2.6 billion, over 2014. At constant exchange
rates, revenues from other services for 2015 increased by 12.2% over 2014, or 10.1% excluding the effects of consolidating Telekom Austria. This increase principally reflects an increase in revenues from advertising, online content, wireless
security services, telephone directories and call center services.

Operating Costs and Expenses

Cost of Sales and ServicesCost of sales and services for 2015 increased by 8.7%, or Ps.33.6 billion, over 2014, representing 47.0% of operating
revenues for 2015 compared to 45.6% of operating revenues for 2014. At constant exchange rates, cost of sales and services for 2015 increased by 7.6% over 2014, or 3.5% excluding the effects of consolidating Telekom Austria.

Cost of sales was Ps.145.5 billion for 2015, an increase of 12.2% from Ps.129.6 billion in 2014. Excluding the effects of consolidating Telekom Austria, cost
of sales was Ps.137.3 billion for 2015 and Ps.125.1 billion for 2014. This increase primarily reflects the increase in sales of smartphones to subscribers in all countries in which we operate, and an increase in the subsidies we provide in
order to acquire and retain subscribers and to incentivize prepaid subscribers to switch to postpaid plans.



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Cost of services was Ps.274.8 billion for 2015, an increase of 6.9% from
Ps.257.1 billion in 2014. Excluding the effects of consolidating Telekom Austria, cost of services was Ps.251.7 billion for 2015 and Ps.246.9 billion for 2014. This increase primarily reflects an increase in costs related to our Pay
TV business, increased royalty payments and an increase in leasing, network maintenance and labor costs.

Commercial, Administrative and General
ExpensesCommercial, administrative and general expenses for 2015 increased by 8.5%, or Ps.15.8 billion, over 2014. As a percentage of operating revenues, commercial, administrative and general expenses for 2015 and 2014 were 22.5% and
21.9%, respectively. At constant exchange rates, commercial, administrative and general expenses for 2015 increased by 10.5% over 2014, or 8.7% excluding the effects of consolidating Telekom Austria. This increase primarily reflects increased
expenses related to higher customer service costs, including increases in the number of customer service centers and employees, as we seek to provide better customer care and quality of service.

Telcel and Telmex, like other Mexican companies, are required by law to pay their employees, in addition to their agreed compensation and benefits, profit sharing in an
aggregate amount equal to 10.0% of each entitys taxable income. Our subsidiaries in Ecuador and Peru are also required to pay employee profit sharing at rates of 15.0% and 10.0%, respectively, of taxable income. We account for these amounts
under commercial, administrative and general expenses.

Other ExpensesOther expenses for 2015 increased by 4.8%, or Ps.0.2 billion, over 2014
principally as a result of the consolidation of Telekom Austria.

Depreciation and AmortizationDepreciation and amortization for 2015 increased by 9.3%,
or Ps.10.7 billion, over 2014. As a percentage of operating revenues, depreciation and amortization for 2015 increased slightly to 14.1% compared to 13.6% for 2014. This increase primarily reflects the consolidation of Telekom Austria. At
constant exchange rates, depreciation and amortization for 2015 increased by 13.4%, or 6.1% excluding the effects of consolidating Telekom Austria. This increase primarily reflects capital expenditures made in recent years in connection with two new
satellites placed into orbit in Brazil.

Operating Income

Operating income for 2015 decreased by 9.7%, or Ps.15.1 billion, from 2014. Operating margin (operating income as a percentage of operating revenues) for 2015 was
15.8%, compared to 18.4% for 2014. Excluding the effects of consolidating Telekom Austria, operating income for 2015 decreased by 13.1% and operating margin decreased by 2.7%, due principally to higher subscriber acquisition costs, network
maintenance and customer service, as well as the growth of lower-margin businesses, such as TracFone Wireless, Inc. (TracFone), and greater depreciation and amortization charges.

Non-Operating Items

Net Interest ExpenseNet interest expense (interest expense less interest income) for 2015 increased by Ps.1.9 billion, or 7.7%, over 2014, or 3.4%
excluding the effects of consolidating Telekom Austria, attributable to the appreciation of some of the currencies in which our indebtedness is denominated, particularly the U.S. dollar, and an increase in our net debt.



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Foreign Currency Exchange Loss, NetWe recorded a net foreign currency exchange loss
of Ps.79.0 billion for 2015, compared to a net foreign currency exchange loss of Ps.28.6 billion for 2014. Excluding the effects of consolidating Telekom Austria, net foreign currency exchange losses more than doubled when compared to
2014, principally attributable to the appreciation of some of the currencies in which our indebtedness is denominated, particularly the U.S. dollar.

Valuation of
Derivatives, Interest Cost from Labor Obligations and Other Financial Items, NetThe changes in valuation of derivatives, interest cost from labor obligations and other financial items, net, represented a gain of Ps.21.5 billion for
2015, compared to a loss of Ps.10.2 billion for 2014. The net gain in 2015 principally related to market value gain on derivatives positions we used to offset exchange rate risk on our dollar-denominated indebtedness and recognition of gain
when the accounting for our investment in KPN changed from the equity method to securities available-for-sale.

Equity Interest in Net Losses of Associated CompaniesOur share of the net losses of associated companies accounted for under the equity method was
Ps.1.4 billion in 2015 and Ps.6.1 billion in 2014. Our results from equity-method investees for 2015 principally reflect our interest in KPN through June 2015 and our equity interest in Telekom Austria for the first six months of 2014.

Income TaxOur income tax expenses for 2015 decreased by 51.7% over 2014. This was principally due to increases in our deductible net foreign currency
exchange losses as a result of the depreciation of the Mexican peso against the currencies in which a portion of our debt is denominated.

Our effective corporate
income tax rate as a percentage of profit before income tax was 34.2% for 2015, compared to 45.5% for 2014. This rate differed from the Mexican statutory rate of 30.0% and changed year over year principally as a result of a decrease in both pre-tax income and the equity interest in net loss of associated companies between periods, and the gain on derecognition of the equity method investment in KPN in 2015.

Net Profit

We recorded a net profit of
Ps.37.0 billion for 2015, a decrease of 22.2%, or Ps.10.5 billion, over 2014. Excluding the effects of consolidating Telekom Austria, net profit in 2015 decreased by 34.5% compared to 2014. This decrease reflects our foreign exchange
losses, greater depreciation and amortization charges.

SEGMENT RESULTS OF OPERATIONS

We discuss below the operating results of each reportable segment. Note 22 to our audited consolidated financial statements describes how we translate the financial
statements of our non-Mexican subsidiaries. Exchange rate changes between the Mexican peso and the currencies in which our subsidiaries do business affect our reported results in Mexican pesos and the
comparability of reported results between periods.

The following table sets forth the exchange rates used to translate the results of our significant non-Mexican operations, as expressed in Mexican pesos per foreign currency unit, and the change from the rate used in the prior period indicated. The U.S. dollar is our functional currency in several of the
countries or territories in which we operate in addition to the United States, including Ecuador, Puerto Rico, Panama and El Salvador.



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|               |  |                                                                 |  |          |  |       |   |          |  |      |         |  |  |  |  |       |   |  |         |  |  |  |  |  | 
|-------------- |  | --------------------------------------------------------------- |  | -------- |  | ----- | - | -------- |  | ---- | ------- |  |  |  |  | ----- | - |  | ------- |  |  |  |  |  | 
|               |  | Mexican pesos per foreign currency unit(average for the period)
|               |  | 2014                                                            |  | % Change |  | 2015  |   | % Change |  | 2016
|Brazilian real |  | 5.6574                                                          |  |          |  | (15.0 | ) |          |  |      | 4.8068  |  |  |  |  | 12.1  |   |  | 5.3868 
|Colombian peso |  | 0.0067                                                          |  |          |  | (13.4 | ) |          |  |      | 0.0058  |  |  |  |  | 5.3   |   |  | 0.0061 
|Argentine peso |  | 1.6406                                                          |  |          |  | 4.5   |   |          |  |      | 1.7152  |  |  |  |  | (26.4 | ) |  | 1.2632 
|U.S. dollar    |  | 13.2969                                                         |  |          |  | 19.2  |   |          |  |      | 15.8504 |  |  |  |  | 17.7  |   |  | 18.6529
|Euro           |  | 17.6507                                                         |  |          |  | (1.5  | ) |          |  |      | 17.3886 |  |  |  |  | 18.7  |   |  | 20.6334

The tables below set forth operating revenues and operating income for each of our segments for the periods indicated.



|                |  |                               |         |   |                                     |  |       |                               |  |     |                                   |  |  |  |       |  
|--------------- |  | ----------------------------- | ------- | - | ----------------------------------- |  | ----- | ----------------------------- |  | --- | --------------------------------- |  |  |  | ----- | -
|                |  | Year ended December 31, 2016  |        
|                |  | Operating revenues            |         |   | Operating income                    | 
|                |  | (in millions ofMexican pesos) |         |   | (as a % of totaloperating revenues) |  |       | (in millions ofMexican pesos) |  |     | (as a % of totaloperating income) | 
|Mexico Wireless |  | Ps.                           | 203,567 |   |                                     |  | 20.9  | %                             |  | Ps. | 48,220                            |  |  |  | 44.0  | %
|Mexico Fixed    |  |                               | 102,216 |   |                                     |  | 10.5  |                               |  |     | 12,276                            |  |  |  | 11.2  |  
|Brazil          |  |                               | 197,357 |   |                                     |  | 20.2  |                               |  |     | 6,325                             |  |  |  | 5.8   |  
|Colombia        |  |                               | 67,589  |   |                                     |  | 6.9   |                               |  |     | 11,210                            |  |  |  | 10.2  |  
|Southern Cone   |  |                               | 72,330  |   |                                     |  | 7.4   |                               |  |     | 8,317                             |  |  |  | 7.6   |  
|Andean Region   |  |                               | 56,131  |   |                                     |  | 5.8   |                               |  |     | 6,087                             |  |  |  | 5.6   |  
|Central America |  |                               | 42,421  |   |                                     |  | 4.3   |                               |  |     | 3,831                             |  |  |  | 3.5   |  
|United States   |  |                               | 140,856 |   |                                     |  | 14.4  |                               |  |     | 1,221                             |  |  |  | 1.1   |  
|Caribbean       |  |                               | 36,498  |   |                                     |  | 3.7   |                               |  |     | 6,143                             |  |  |  | 5.6   |  
|Europe          |  |                               | 86,979  |   |                                     |  | 8.9   |                               |  |     | 5,389                             |  |  |  | 4.9   |  
|Eliminations    |  |                               | (30,532 | ) |                                     |  | (3.0  | )                             |  |     | 591                               |  |  |  | 0.5   |  
|Total           |  | Ps.                           | 975,412 |   |                                     |  | 100.0 | %                             |  | Ps. | 109,610                           |  |  |  | 100.0 | %



|                |  |                               |         |   |                                     |  |       |                               |  |     |                                   |  |  |  |       |  
|--------------- |  | ----------------------------- | ------- | - | ----------------------------------- |  | ----- | ----------------------------- |  | --- | --------------------------------- |  |  |  | ----- | -
|                |  | Year ended December 31, 2015  |        
|                |  | Operating revenues            |         |   | Operating income                    | 
|                |  | (in millions ofMexican pesos) |         |   | (as a % of totaloperating revenues) |  |       | (in millions ofMexican pesos) |  |     | (as a % of totaloperating income) | 
|Mexico Wireless |  | Ps.                           | 204,825 |   |                                     |  | 22.9  | %                             |  | Ps. | 70,726                            |  |  |  | 50.0  | %
|Mexico Fixed    |  |                               | 101,078 |   |                                     |  | 11.3  |                               |  |     | 15,947                            |  |  |  | 11.3  |  
|Brazil          |  |                               | 178,174 |   |                                     |  | 19.9  |                               |  |     | 10,879                            |  |  |  | 7.7   |  
|Colombia        |  |                               | 66,137  |   |                                     |  | 7.4   |                               |  |     | 13,362                            |  |  |  | 9.4   |  
|Southern Cone   |  |                               | 68,948  |   |                                     |  | 7.7   |                               |  |     | 9,185                             |  |  |  | 6.5   |  
|Andean Region   |  |                               | 51,959  |   |                                     |  | 5.8   |                               |  |     | 7,853                             |  |  |  | 5.6   |  
|Central America |  |                               | 34,752  |   |                                     |  | 3.9   |                               |  |     | 1,750                             |  |  |  | 1.2   |  
|United States   |  |                               | 110,654 |   |                                     |  | 12.4  |                               |  |     | 1,294                             |  |  |  | 0.9   |  
|Caribbean       |  |                               | 29,658  |   |                                     |  | 3.3   |                               |  |     | 3,891                             |  |  |  | 2.8   |  
|Europe          |  |                               | 72,681  |   |                                     |  | 8.1   |                               |  |     | 6,205                             |  |  |  | 4.4   |  
|Eliminations    |  |                               | (25,128 | ) |                                     |  | (2.7  | )                             |  |     | 321                               |  |  |  | 0.2   |  
|Total           |  | Ps.                           | 893,738 |   |                                     |  | 100.0 | %                             |  | Ps. | 141,413                           |  |  |  | 100.0 | %



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|                |  |                               |         |   |                                     |  |       |                               |  |     |                                         |   |  |  |       |  
|--------------- |  | ----------------------------- | ------- | - | ----------------------------------- |  | ----- | ----------------------------- |  | --- | --------------------------------------- | - |  |  | ----- | -
|                |  | Year ended December 31, 2014  |        
|                |  | Operating revenues            |         |   | Operating income (loss)             | 
|                |  | (in millions ofMexican pesos) |         |   | (as a % of totaloperating revenues) |  |       | (in millions ofMexican pesos) |  |     | (as a % of totaloperatingincome (loss)) |  
|Mexico Wireless |  | Ps.                           | 195,710 |   |                                     |  | 23.1  | %                             |  | Ps. | 73,462                                  |   |  |  | 46.9  | %
|Mexico Fixed    |  |                               | 107,518 |   |                                     |  | 12.7  |                               |  |     | 22,284                                  |   |  |  | 14.3  |  
|Brazil          |  |                               | 204,647 |   |                                     |  | 24.1  |                               |  |     | 12,669                                  |   |  |  | 8.1   |  
|Colombia        |  |                               | 75,992  |   |                                     |  | 9.0   |                               |  |     | 17,669                                  |   |  |  | 11.3  |  
|Southern Cone   |  |                               | 56,532  |   |                                     |  | 6.7   |                               |  |     | 6,593                                   |   |  |  | 4.2   |  
|Andean Region   |  |                               | 47,802  |   |                                     |  | 5.6   |                               |  |     | 12,132                                  |   |  |  | 7.7   |  
|Central America |  |                               | 27,023  |   |                                     |  | 3.2   |                               |  |     | (212                                    | ) |  |  | (0.1  | )
|United States   |  |                               | 91,097  |   |                                     |  | 10.7  |                               |  |     | 1,520                                   |   |  |  | 1.0   |  
|Caribbean       |  |                               | 25,842  |   |                                     |  | 3.0   |                               |  |     | 4,923                                   |   |  |  | 3.1   |  
|Europe          |  |                               | 37,710  |   |                                     |  | 4.4   |                               |  |     | 5,229                                   |   |  |  | 3.3   |  
|Eliminations    |  |                               | (21,293 | ) |                                     |  | (2.5  | )                             |  |     | 285                                     |   |  |  | 0.2   |  
|Total           |  | Ps.                           | 848,580 |   |                                     |  | 100.0 | %                             |  | Ps. | 156,554                                 |   |  |  | 100.0 | %

Interperiod Segment Comparisons

The following discussion addresses the financial performance of each of our reportable segments, first by comparing results for 2016 and 2015 and then by comparing
results for 2015 and 2014. In the period-to-period comparisons for each segment, we include percentage changes in operating revenues, percentage changes in operating
income and operating margin (operating income as a percentage of operating revenues), in each case calculated based on the segment financial information presented in Note 22 to our audited consolidated financial statements, which is prepared in
accordance with IFRS. Each reportable segment includes all income, cost and expense eliminations that occurred between subsidiaries within the reportable segment. The Mexico Wireless segment also includes corporate income, costs and expenses.

Comparisons in the following discussion are calculated using figures in Mexican pesos. We also include percentage changes in adjusted segment operating revenues,
adjusted segment operating income and adjusted operating margin (adjusted operating income as a percentage of adjusted operating revenues). The adjustments eliminate (i) certain intersegment transactions, (ii) for our non-Mexican segments, the effects of exchange rate changes and (iii) for the Mexican Wireless segment only, revenues and costs of group corporate activities and other businesses that are allocated to the Mexico
Wireless segment.



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2016 COMPARED TO 2015

Mexico Wireless

The number of net prepaid
wireless subscribers for 2016 decreased by 2.5% over 2015, and the number of net postpaid wireless subscribers decreased by 7.0%, resulting in a decrease in the total net number of wireless subscribers in Mexico of 1.0%, or 74 thousand, to
approximately 73 million as of December 31, 2016.

Segment operating revenues for 2016 decreased by 0.6% over 2015. Adjusted segment operating revenues for
2016 decreased by 3.2% over 2015. This decrease was principally due to a decrease in wireless voice revenues by 37.9% in 2016 over 2015, reflecting a reduction in the average wireless rates per user. The decrease in segment operating revenues was
partially offset by an increase in wireless data revenues of 0.8% in 2016 over 2015, principally due to the increased use of value-added services by our wireless subscribers, including activity from messaging, content downloading, mobile
applications and social media, and an increase in revenues from service plans offering higher data capacity.

Segment operating income for 2016 decreased by 31.8%
over 2015. Adjusted segment operating income for 2016 decreased by 29.3% over 2015. Segment operating margin was 23.7% in 2016, as compared to 34.5% in 2015. Adjusted segment operating margin for this segment was 28.9% in 2016 and 39.5% in 2015. The
decrease in operating margin in 2016 was due principally to higher costs related to mobile site infrastructure rentals, interconnection and other Dollar-denominated costs, such as roaming charges and licensing fees.

Mexico Fixed

The number of fixed voice RGUs in
Mexico for 2016 increased by 0.1% over 2015, and the number of broadband RGUs in Mexico increased by 4.9%, resulting in an increase in total fixed RGUs in Mexico of 2.0% to approximately 22.2 million as of December 31, 2016 over 2015.

Segment operating revenues for 2016 increased by 1.1% over 2015. Adjusted segment operating revenues for 2016 decreased by 0.3% over 2015. This decrease was principally
due to a fall in fixed voice revenues of 10.9% in 2016 over 2015, reflecting RGU disconnections and a fall in long-distance calls. The decrease in segment operating revenues was partially offset by an increase in fixed data revenues of 3.2% in 2016
over 2015, principally due to higher revenues from broadband and corporate network services.

Segment operating income for 2016 decreased by 23.0% over 2015.
Adjusted segment operating income for 2016 decreased by 38.5% over 2015. Segment operating margin was 12.0% in 2016 and 15.8% in 2015. Adjusted segment operating margin for this segment was 8.3% in 2016 and 13.4% in 2015. The decrease in the segment
operating margin for 2016 was principally due to increases in costs associated with customer service and service quality improvements as well as network maintenance.



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Brazil

The number of net prepaid wireless subscribers for 2016 decreased by 15.1% over 2015, and the number of net postpaid wireless subscribers increased by 10.0%, resulting
in a decrease in the total net number of wireless subscribers in Brazil of 8.8%, or 5.8 million over 2015, to approximately 60.2 million as of December 31, 2016. The number of fixed voice RGUs for 2016 decreased by 2.9% over 2015, the
number of broadband RGUs increased by 5.4%, and the number of Pay TV RGUs increased by 0.1%, resulting in an increase in total fixed RGUs in Brazil of 0.2% to approximately 36.7 million as of December 31, 2016.

Segment operating revenues for 2016 increased by 10.8% over 2015. Adjusted segment operating revenues for 2016 decreased by 1.1% over 2015. This decrease in segment
operating revenues was principally due to a fall in wireless data, wireless voice and fixed voice revenues of 4.9%, 11.6% and 6.1%, respectively, in 2016 over 2015, driven by RGU disconnections and lower traffic reflecting lower disposable income
caused by an overall economic downturn in the country. The decrease in wireless and fixed voice revenues was also affected by a 30.0% reduction in interconnection revenues. The decrease in segment operating revenues was partially offset by higher
fixed data and Pay TV revenues of 10.3% and 3.6%, respectively, in 2016 over 2015. Fixed data revenues increased principally due to an increase in broadband RGUs and corporate network services, and Pay TV revenues increased as a result of an
increase in the purchase of additional services, such as video-on-demand and bundled packages.

Segment operating income for 2016 decreased by 41.9% over 2015. Adjusted segment operating income for 2016 decreased by 54.1% over 2015. Segment operating margin was
3.2% in 2016 and 6.1% in 2015. Adjusted segment operating margin was 2.3% in 2016 and 4.9% in 2015. The decrease in segment operating margin for 2016 was principally due to higher marketing, subscriber acquisition and customer service costs related
to the ongoing integration of our three Brazilian subsidiaries as well as the reduction in the estimated useful life of television set-up boxes from five years to three years.

Colombia

In 2016, the number of net prepaid
wireless subscribers decreased by 2.3%, and the number of net postpaid wireless subscribers increased by 8.6%, resulting in a decrease in the total net number of wireless subscribers in Colombia of 0.1%, or 19 thousand, to approximately
29 million as of December 31, 2016. In 2016, the number of fixed voice RGUs increased by 12.1%, the number of broadband RGUs increased by 11.3% and the number of Pay TV RGUs increased by 4.0%, resulting in an increase in total fixed RGUs
in Colombia of 8.7% to approximately 6.3 million as of December 31, 2016.

Segment operating revenues for 2016 increased by 2.2% over 2015. Adjusted
operating revenues for 2016 decreased by 3.1% over 2015. This decrease was principally due to a reduction of 26.7% in wireless voice revenues, driven by more competitive commercial offerings in response to pricing pressure from competitors. The
decrease was partially offset by increases in fixed data revenues, wireless data revenues, fixed voice revenues and Pay TV revenues, which increased by 9.7%, 18.3%, 15.0% and 17.0%, respectively, in 2016, principally due to an increase in sales of
bundled packages of wireless services, higher demand for data plans and an increase in subscribers for internet services.

Segment operating income for 2016
decreased by 16.1% over 2015. Adjusted segment operating income for 2016 decreased by 16.7% over 2015. Segment operating margin was 16.6% in 2016 and 20.2% in 2015.



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Adjusted segment operating margin was 20.5% in 2016 and 23.8% in 2015. The decrease in segment
operating margin for 2016 was driven by higher costs related to infrastructure rentals, content licensing, maintenance of our networks and an increase in bad debt expense.

Southern ConeArgentina, Chile, Paraguay and Uruguay

In 2016, the number of net prepaid wireless subscribers increased by 5.6%, and the number of net postpaid wireless subscribers increased by 1.3%, resulting in an
increase in the total net number of wireless subscribers in our Southern Cone segment of 4.1%, or 1.2 million, to approximately 30.4 million as of December 31, 2016. In 2016, the number of fixed voice RGUs increased by 5.7%, the
number of broadband RGUs increased by 14.9%, and the number of Pay TV RGUs increased by 2.8%, resulting in an increase in total fixed RGUs in our Southern Cone segment of 6.8% to approximately 1.9 million as of December 31, 2016.

Segment operating revenues for 2016 increased by 4.9% over 2015, reflecting an aggregate increase of 0.2% in Argentina, Paraguay and Uruguay and an increase of 16.1% in
Chile. Adjusted segment operating revenues for 2016 increased by 23.9% over 2015, reflecting an aggregate increase of 32.1% in Argentina, Paraguay and Uruguay and an increase of 1.6% in Chile. The increase in operating revenues primarily reflects
higher inflation rates in Argentina. It was also driven by higher data usage, such as wireless data, purchased in bundled service packages in Argentina and Chile. For this segment, we analyze results in Argentina, Paraguay and Uruguay in terms of
the Argentine peso, because Argentina accounts for the major portion of the operations in these three countries.

Segment operating income for 2016 decreased by 9.5%
over 2015, reflecting a decrease in operating income of 7.9% in Argentina, Paraguay and Uruguay and a decrease in operating loss of 2.3% in Chile. Adjusted segment operating income for 2016 increased by 40.7% over 2015, reflecting an increase in
adjusted operating income of 25.7% in Argentina, Paraguay and Uruguay and a decrease in adjusted operating loss by 13.5% in Chile.

Segment operating margin was
11.5% in 2016 and 13.3% in 2015. This decrease reflects a negative operating margin of 18.0% in Chile, partially offset by an aggregate positive operating margin of 26.0% in Argentina, Paraguay and Uruguay. Adjusted segment operating margin was
17.0% in 2016, compared to 15.0% in 2015, and reflects a higher margin in Chile, as a result of our cost-saving program, partially offset by a lower margin in Argentina, caused by an increase in the costs of handsets and the full year amortization
of our license, purchased in 2015.

Andean RegionEcuador and Peru

In 2016, the number of net prepaid wireless subscribers increased by 0.6%, and the number of net postpaid wireless subscribers decreased by 0.5%, resulting in an
increase in the total net number of wireless subscribers in our Andean Region segment of 0.3%, or 58 thousand, to approximately 20.8 million as of December 31, 2016. In 2016, the number of fixed voice RGUs decreased by 0.2%, the
number of broadband RGUs increased by 17.8% and the number of Pay TV RGUs increased by 0.7%, resulting in an increase in total fixed RGUs in our Andean Region segment of 5.4% to approximately 1.8 million as of December 31, 2016.



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Segment operating revenues for 2016 increased by 8.0% over 2015, reflecting operating revenue
increases of 5.5% in Ecuador and 10.2% in Peru. Adjusted segment operating revenues for 2016 decreased by 5.5%, reflecting a decrease of 10.3% in Ecuador and a decrease of 0.9% in Peru. This decrease in operating revenues reflects a decrease in
revenues from our wireless and fixed voice operations, driven by an increase in tax obligations in Ecuador and aggressive price reductions in Peru, which were partially offset by higher revenues from wireless data and higher revenues from fixed
data, especially broadband and corporate data services.

Segment operating income for 2016 decreased by 22.5% over 2015, reflecting an increase in operating income
of 24.5% in Ecuador and a decrease of 68.3% in Peru. Adjusted segment operating income for 2016 decreased by 24.2%, reflecting an increase of 5.8% in Ecuador and a decrease of 70.9% in Peru. Segment operating margin was 10.8% in 2016, reflecting
operating margins of 27.5% in Ecuador and 4.2% in Peru, and was 15.1% in 2015. Adjusted segment operating margin was 15.1% in 2016, reflecting adjusted operating margins of 27.5% in Ecuador and 4.2% in Peru, and was 18.8% in 2015. The results of
operations were impacted in 2016 by increases in customer service, marketing and sales costs, as well as direct taxes in Ecuador, and higher interconnection costs and postpaid subscriber acquisition costs driven by a more aggressively competitive
environment in Peru.

Central AmericaGuatemala, El Salvador, Honduras, Nicaragua, Panama and Costa Rica

In 2016, the number of net prepaid wireless subscribers decreased by 2.0%, and the number of net postpaid wireless subscribers increased by 1.5%, resulting in a decrease
in the total net number of wireless subscribers in our Central America segment of 1.5%, or approximately 231 thousand, to approximately 15.1 million as of December 31, 2016. In 2016, the number of fixed voice RGUs increased by 0.4%,
the number of broadband RGUs increased by 19.1% and the number of Pay TV RGUs increased by 3.0%, resulting in an increase in total fixed RGUs in our Central America segment of 8.9% to approximately 5.3 million as of December 31, 2016.

Segment operating revenues for 2016 increased by 22.1% over 2015. Adjusted segment operating revenues for 2016 increased by 3.9% over 2015. This increase in segment
operating revenues was driven principally by higher wireless data, fixed data and Pay TV revenues in Central America, which was partially offset by decreases in wireless voice and fixed voice in Guatemala, El Salvador, Honduras, Nicaragua and Costa
Rica and decreases in wireless voice and Pay TV in Panama. For this purpose, we analyze adjusted segment results in U.S. dollars because it is the functional currency in our operations in El Salvador and Panama and the currencies in Costa Rica,
Guatemala, Honduras and Nicaragua are relatively stable against the U.S. dollar.

Segment operating income and adjusted segment operating income increased by
approximately ten times in 2016 over 2015. Segment operating margin was 9.0% for 2016 and 5.0% for 2015. Adjusted segment operating margin was 9.6% for 2016 and 5.4% in 2015. The results of operations in the segment in 2016 were impacted by lower
costs related to maintenance, customer service and customer acquisition.



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CaribbeanDominican Republic and Puerto Rico

In 2016, the number of net prepaid wireless subscribers increased by 2.2%, and the number of net postpaid wireless subscribers increased by 6.7%, resulting in an
increase in the total net number of wireless subscribers in our Caribbean segment of 3.6%, or approximately 192 thousand, to approximately 5.4 million as of December 31, 2016. In 2016, the number of fixed voice RGUs increased by 2.8%,
the number of broadband RGUs increased by 8.3% and the number of Pay TV RGUs increased 14.2%, resulting in an increase in total fixed RGUs in our Caribbean segment of 6.0% to approximately 2.7 million as of December 31, 2016.

Segment operating revenues for 2016 increased by 23.1% over 2015. Adjusted segment operating revenues for 2016 increased by 0.1% over 2015. This increase in operating
revenues was principally due to an increase in segment wireless data revenues and an increase in Pay TV revenues in the Dominican Republic, which was partially offset by lower revenues from wireless and fixed-voice services in Puerto Rico. We
analyze segment results in U.S. dollars because it is the functional currency in our operations in Puerto Rico, and the currency in the Dominican Republic is relatively stable against the U.S. dollar.

Segment operating income for 2016 increased by 57.9% over 2015. Adjusted segment operating income for 2016 increased by 0.9% over 2015. Segment operating margin was
16.8% in 2016 and 13.1% in 2015. Adjusted segment operating margin was 17.2% in 2016 and 17.1% in 2015. This increase in segment operating income and operating margin for 2016 resulted from our cost-savings programs, which was partially offset by
increased expenses in connection with our pension obligations in Puerto Rico.

United States

In 2016, the number of net prepaid wireless subscribers increased by 1.6%, or approximately 401 thousand, to approximately 26.1 million total net wireless
subscribers in the United States as of December 31, 2016.

Segment operating revenues for 2016 increased by 27.3% over 2015. Adjusted segment operating revenues
for 2016 increased by 7.9% over 2015. This increase in operating revenues reflects higher wireless voice and data usage and revenues driven by the success of existing unlimited data plans, principally those offered by Straight Talk.

Segment operating income for 2016 decreased by 5.6% over 2015. Adjusted segment operating income for 2016 increased by 4.2% over 2015. Segment operating margin was 0.9%
in 2016 and 1.2% in 2015. Adjusted segment operating margin was 7.6% in 2016 and 7.8% in 2015. This decrease in segment operating margin for 2016 was principally due to increased payments to third-party network operators for voice and data, as a
result of higher usage of unlimited plans.

Europe

In 2016, the number of net prepaid wireless subscribers decreased by 4.3%, and the number of net postpaid wireless subscribers increased by 1.7%, resulting in a decrease
in the total net number of wireless subscribers in our Europe segment of approximately 3 thousand to approximately 20.7 million as of December 31, 2016. In 2016, the number of fixed voice RGUs decreased by 3.5%, the number of
broadband RGUs increased by 5.9% and the number of Pay TV RGUs increased by 18.3%, resulting in an increase in total fixed RGUs in our Europe segment of 4.6% to approximately 5.9 million as of December 31, 2016.



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Segment operating revenues for 2016 increased by 19.7% over 2015. Adjusted segment operating
revenues for 2016 increased by 2.1% over 2015. This increase in operating revenues was principally due to higher revenues in wireless and fixed data, driven by our acquisitions in Macedonia, Bulgaria and Slovenia during the second half of 2015,
which were partially offset by lower revenues from wireless and fixed voice services following recent regulations in Austria blocking roaming charges. We analyze segment results in euros because it is the functional currency in our operations in
Europe.

Segment operating income for 2016 decreased by 13.2% over 2015. Adjusted segment operating income for 2016 decreased by 24.4% over 2015. Segment operating
margin was 6.2% in 2016 and 8.5% in 2015. Adjusted segment operating margin was 6.2% in 2016 and 8.4% in 2015. The decrease in segment operating income and operating margin for 2016 reflects increases in costs related to advertising and subscriber
acquisition and a non-cash revisions for future pension liabilities in Austria.

2015 COMPARED TO
2014

Mexico Wireless

The number
of net prepaid wireless subscribers for 2015 increased by 1.6% over 2014, and the number of net postpaid wireless subscribers increased by 12.8%, resulting in an increase in the total net number of wireless subscribers in Mexico of 3.1%, or
2.2 million, to approximately 73.7 million as of December 31, 2015.

Segment operating revenues for 2015 increased by 4.7% over 2014. Adjusted segment
operating revenues for 2015 increased by 2.4% over 2014. This increase was primarily due to an increase in value-added services revenues. Wireless voice revenues for 2015 decreased by 17.4% over 2014, reflecting primarily the effect from the
elimination of domestic roaming charges and termination charges. Wireless data revenues increased by 7.9% in 2015, primarily due to the increased use of value-added services by our wireless subscribers, including activity from messaging, content
downloading, mobile applications and social media, and an increase in revenues from service plans offering higher data capacity.

Segment operating income for 2015
decreased by 3.7% over 2014. Adjusted operating income for 2015 decreased by 7.3% over 2014. Segment operating margin was 34.5% in 2015 and 37.5% in 2014. Adjusted operating margin for this segment was 39.5% in 2015 and 43.7% in 2014. The decrease
in operating margin in 2015 was due primarily to certain negative effects from the changes in Mexican regulation and to costs related to network maintenance and expansion, as well as network capacity to absorb higher bandwidth usage and customer
service.

Mexico Fixed

The number of fixed
RGUs in Mexico for 2015 decreased by 1.2% over 2014, and the number of broadband RGUs in Mexico decreased by 4.0%, resulting in a decrease in total fixed RGUs in Mexico of 2.3% to approximately 21.7 million as of December 31, 2015 over
2014. The decrease in broadband RGUs was driven primarily by a change in recognition of fixed RGUs, which now excludes those fixed RGUs that maintain a 60-day or more delinquent account.

Segment operating revenues for 2015 decreased by 6.0% over 2014. Adjusted segment operating revenues for 2015 decreased by 4.9% over 2014. This decrease was primarily
due to the elimination of charges for domestic long-distance calls in January 2015. Fixed voice revenues for 2015 decreased by 18.8% over 2014,



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reflecting reductions in the overall number of fixed-lines, national and international
long-distance rates and usage. Fixed data revenues for 2015 increased by 5.4% over 2014, reflecting an increase in revenues from broadband and corporate network services.

Segment operating income for 2015 decreased by 28.4% over 2014. Adjusted segment operating income for 2015 decreased by 29.6% over 2014. Segment operating margin was
15.8% in 2015 and 20.7% in 2014. Adjusted operating margin for this segment was 14.1% in 2015 and 19.1% in 2014. The decrease in the segment operating margin for 2015 was primarily due to increases in costs associated with customer service and
service quality improvements as well as network maintenance.

Brazil

The number of net prepaid wireless subscribers for 2015 decreased by 11.0% over 2014, and the number of net postpaid wireless subscribers increased by 6.4%, resulting in
a decrease in the total net number of wireless subscribers in Brazil of 7.2%, or 5.1 million over 2014, to approximately 66.0 million as of December 31, 2015. In 2015, the number of fixed voice RGUs increased by 3.2%, the number of
broadband RGUs increased by 7.7%, and the number of Pay TV RGUs decreased by 2.7%, resulting in an increase in total fixed RGUs in Brazil of 1.5% to approximately 36.6 million as of December 31, 2015.

Segment operating revenues for 2015 decreased by 12.9% over 2014. Adjusted segment operating revenues for 2015 increased by 1.8% over 2014. This increase was primarily
due to higher wireless and fixed data as well as Pay TV revenues. Wireless data revenues for 2015 increased by 23.2% and fixed data revenues for 2015 increased by 9.6%, principally due to higher customer usages of media and content-downloading data
and of value-added services, such as SMS messaging and web browsing, as well as, in the case of fixed data, an increase in the fixed RGU base. Pay TV revenues for 2015 increased by 7.3% as a result of an increase in the purchase of additional
services, such as video-on-demand and bundled packages. Wireless and fixed voice revenues decreased by 18.4% and 7.4%, respectively, in 2015 over 2014. The principal
factors underlying the decrease in revenues were the reduction of interconnection rates and reduced long-distance and fixed-to-mobile charges. The decrease in fixed
voice revenues is primarily attributable to decreases in revenues from local services and the reduction of interconnection rates and domestic long-distance calls.

Segment operating income for 2015 decreased by 14.1% over 2014. Adjusted segment operating income for 2015 increased by 2.5% over 2014. Segment operating margin was 6.1%
in 2015 and 6.2% in 2014. Adjusted segment operating margin was 4.9% in 2015 and 4.9% in 2014. The decrease in segment operating margin for 2015 was primarily due to higher subscriber acquisitions, customer service and call centers costs, as well as
higher advertising, rent and marketing costs associated with the integration of our various Brazilian brands.

Colombia

In 2015, the number of net prepaid wireless subscribers decreased by 3.4%, and the number of net postpaid wireless subscribers increased by 0.1%, resulting in a decrease
in the total net number of wireless subscribers in Colombia of 2.7%, or 0.8 million, to approximately 29.0 million as of December 31, 2015. In 2015, the number of fixed voice RGUs increased by 12.7%, the number of broadband RGUs
increased by 15.5% and the number of Pay TV RGUs increased by 2.3%, resulting in an increase in total fixed RGUs in Colombia of 9.3% to approximately 5.8 million as of December 31, 2015.



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Segment operating revenues for 2015 decreased by 13.0% over 2014. Adjusted operating revenues for
2015 decreased by 0.5% over 2014. This decrease was primarily due to lower wireless interconnection rates, airtime use by wireless prepaid subscribers and, in the case of postpaid wireless subscribers, a decrease in subscription plan fees. Fixed and
wireless data revenues increased by 10.8% and 20.6%, respectively, in 2015, primarily due to an increase in sales of bundled packages of wireless services, higher demand for data plans and an increase in subscribers for internet services. Fixed
voice revenues increased by 9.8% and wireless voice revenues decreased by 21.8% in 2015. Pay TV revenues for 2015 increased by 16.5% as a result of an increase in the number of subscribers.

Segment operating income for 2015 decreased by 24.4% over 2014. Adjusted segment operating income for 2015 decreased by 10.1% over 2014. Segment operating margin was
20.2% in 2015 and 23.3% in 2014. Adjusted segment operating margin was 23.8% in 2015 and 26.3% in 2014. The decrease in segment operating margin for 2015 was primarily due to higher advertising, lease, maintenance and customer service costs,
customer acquisition costs and costs related to TV content.

Southern ConeArgentina, Chile, Paraguay and Uruguay

In 2015, the number of net prepaid wireless subscribers decreased by 5.6%, and the number of net postpaid wireless subscribers increased by 4.5%, resulting in an
increase in the total net number of wireless subscribers in our Southern Cone segment of 5.2%, or 1.4 million, to approximately 29.2 million as of December 31, 2015. In 2015, the number of fixed voice RGUs increased by 2.0%, the
number of broadband RGUs increased by 8.5% and the number of Pay TV RGUs decreased by 6.5%, resulting in a decrease in total fixed RGUs in our Southern Cone segment of 0.4% to approximately 1.8 million as of December 31, 2015.

Segment operating revenues for 2015 increased by 22.0% over 2014, reflecting an increase of 28.1% in Argentina, Paraguay and Uruguay and an increase of 6.3% in Chile.
Adjusted segment operating revenues for 2015 increased by 16.7% over 2014, reflecting an increase of 22.5% in Argentina, Paraguay and Uruguay and an increase of 2.3% in Chile. The increase in operating revenues was driven primarily in Chile and
Argentina from higher data usage, such as data purchased in bundled service packages. For this segment, we analyze results in Argentina, Paraguay and Uruguay in terms of the Argentine peso, because Argentina accounts for the major portion of the
operations in these three countries.

Segment operating income for 2015 increased by 39.3% over 2014, reflecting an increase in operating income of 31.8% in
Argentina, Paraguay and Uruguay and an increase in operating loss of 17.6% in Chile. Adjusted segment operating income for 2015 increased by 32.6% over 2014, reflecting an increase in adjusted operating income of 26.2% in Argentina, Paraguay and
Uruguay and an increase in adjusted operating loss by 13.2% in Chile.

Segment operating margin was 13.3% in 2015 and 11.7% in 2014. This increase reflects an
operating margin of 28.2% in Argentina, Paraguay and Uruguay, which was partially offset by a negative operating margin of 21.4% in Chile. Adjusted segment operating margin was 15.0% in 2015, compared to 13.2% in 2014, and reflects an adjusted
operating margin of 28.1% in Argentina, Paraguay and Uruguay, partially offset by a negative operating margin of 21.4% in Chile. Results of operations in this segment during 2015 are partially explained by cost efficiencies related to maintenance,
commercial leases for customer services centers, stores and mobile sites.



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Andean RegionEcuador and Peru

In 2015, the number of net prepaid wireless subscribers decreased by 21.0%, and the number of net postpaid wireless subscribers increased by 3.7%, resulting in a
decrease in the total net number of wireless subscribers in our Andean Region segment of 14.5%, or 3.5 million, to approximately 20.7 million as of December 31, 2015. In 2015, the number of fixed voice RGUs increased by 7.7%, the
number of broadband RGUs increased by 19.8%, and the number of Pay TV RGUs increased by 1.4%, resulting in an increase in total fixed RGUs in our Andean Region segment of 9.6% to approximately 1.7 million as of December 31, 2015.

Segment operating revenues for 2015 increased by 8.7% over 2014, reflecting operating revenue increases of 10.6% in Ecuador and 6.7% in Peru. Adjusted segment operating
revenues for 2015 decreased by 3.2%, reflecting a decrease of 7.1% in Ecuador and an increase of 0.5% in Peru. This decrease in operating revenues reflected, in both Ecuador and Peru, decreases in revenues from our wireless and fixed voice
operations, especially prepaid voice plans, despite higher revenues from wireless data and postpaid voice plans, broadband and corporate data services.

Segment
operating income for 2015 decreased by 35.3% over 2014, reflecting a decrease in operating income of 24.1% in Ecuador and a decrease of 35.2% in Peru. Adjusted segment operating income for 2015 decreased by 37.0%, reflecting a decrease of 35.4% in
Ecuador and a decrease of 38.9% in Peru. Segment operating margin was 15.1% in 2015, reflecting operating margins of 23.3% in Ecuador and 14.4% in Peru, and was 25.4% in 2014. Adjusted segment operating margin was 18.6% in 2015, reflecting adjusted
operating margins of 23.6% in Ecuador and 14.4% in Peru, and was 28.7% in 2014. Results of operations in all countries in this segment in 2015 were impacted by increases in customer service, marketing, sales costs, and subsidies in Ecuador, and
higher postpaid subscriber acquisition costs driven by a more aggressively competitive environment in Peru.

Central
AmericaGuatemala, El Salvador, Honduras, Nicaragua, Panama and Costa Rica

In 2015, the number of net prepaid wireless subscribers increased by
8.7%, and the number of net postpaid wireless subscribers increased by 15.7%, resulting in increase in the total net number of wireless subscribers in our Central America segment of 9.6%, or 1.3 million, to approximately 15.3 million as of
December 31, 2015. In 2015, the number of fixed voice RGUs decreased by 0.5%, the number of broadband RGUs increased by 43.7% and the number of Pay TV RGUs increased by 6.7%, resulting in an increase in total fixed RGUs in our Central America
segment of 7.5% to approximately 4.9 million as of December 31, 2015.

Segment operating revenues for 2015 increased by 28.6% over 2014. Adjusted segment
operating revenues for 2015 increased by 7.6% over 2014. This increase was driven primarily by increased revenues from wireless and fixed voice services and Pay TV in each country other than El Salvador, and increased revenues from wireless and
fixed data services in each country, other than Nicaragua and El Salvador, partially offset by declining fixed voice usage and prices per minute for calls in El Salvador and Guatemala. For this purpose, we analyze adjusted segment results in U.S.
dollars because it is the functional currency in our operations in El Salvador and Panama and the currencies in Costa Rica, Guatemala, Honduras and Nicaragua are relatively stable against the U.S. dollar.

Segment operating income and adjusted segment operating income increased by approximately ten times in 2015 over 2014. Segment operating margin was 5.0% for 2015,
compared to a negative operating margin of 0.8% for 2014. Adjusted segment operating margin was 5.4% for 2015, compared to a negative operating



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margin of 0.6% for 2014. Results of operations in all countries in the segment in 2015 were
impacted by the increase in operating income, lower maintenance, customer service and acquisition costs associated with increasing our network capacity, quality and coverage in each country.

CaribbeanDominican Republic and Puerto Rico

In 2015, the number of net prepaid wireless subscribers increased by 0.9%, and the number of net postpaid wireless subscribers increased by 9.0%, resulting in an
increase in the total net number of wireless subscribers in our Caribbean segment of 3.3%, or approximately 200 thousand, to approximately 5.3 million as of December 31, 2015. In 2015, the number of fixed voice RGUs increased by 2.5%,
the number of broadband RGUs increased by 9.0% and the number of Pay TV RGUs increased 24.6%, resulting in an increase in total fixed RGUs in our Caribbean segment of 7.0% to approximately 2.5 million as of December 31, 2015.

Segment operating revenues for 2015 increased by 14.8% over 2014. Adjusted segment operating revenues for 2015 decreased by 3.7% over 2014. This decrease was primarily
due to lower revenues from wireless and fixed-voice services in Puerto Rico, which was partially offset by an increase in wireless data revenues in the Dominican Republic. We analyze segment results in U.S. dollars because it is the functional
currency in our operations in Puerto Rico, and the currency in the Dominican Republic is relatively stable against the U.S. dollar.

Segment operating income for
2015 decreased by 21.0% over 2014. Adjusted segment operating income for 2015 decreased by 36.5% over 2014. Segment operating margin was 13.1% in 2015 and 19.1% in 2014. Adjusted segment operating margin was 12.6% in 2015 and 19.0% in 2014. The
decrease in segment operating income and operating margin for 2015 reflected an increase in costs associated with accrued liabilities, principally our pension obligations in Puerto Rico, as well as costs associated with human resources, network
maintenance and subscriber acquisitions.

United States

In 2015, the number of net prepaid wireless subscribers decreased by 1.3%, or approximately 300 thousand, to approximately 25.7 million total net wireless
subscribers in the United States as of December 31, 2015.

Segment operating revenues for 2015 increased by 21.5% over 2014. Adjusted segment operating revenues
for 2015 increased by 1.9% over 2014. This increase reflected higher wireless voice and data usage and revenues driven by the success of existing plans, principally those offered by Straight Talk, which often include unlimited data plans. Wireless
data services increased by 2.5% during 2015 and currently represent 39.7% of segment revenues.

Segment operating income for 2015 decreased by 14.9% over 2014.
Adjusted segment operating income for 2015 decreased by 10.8% over 2014. Segment operating margin was 1.2% in 2015 and 1.7% in 2014. Adjusted segment operating margin was 7.8% in 2015 and 8.9% in 2014. This decrease in segment operating margin for
2015 was primarily due to increased payments to third-party network operators for minutes and megabytes, as well as higher voice and data usages from unlimited plans.



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Europe

In 2015, the number of net prepaid wireless subscribers increased by 0.2%, and the number of net postpaid wireless subscribers increased by 4.9%, resulting in an
increase in the total net number of wireless subscribers in our Europe segment of 3.5%, or approximately 700 thousand, to approximately 20.7 million as of December 31, 2015. In 2015, the number of fixed voice RGUs increased by 9.9%,
the number of broadband RGUs increased by 28.4% and the number of Pay TV RGUs increased by 93.7%, resulting in an increase in total fixed RGUs in our Europe segment of 28.2% to approximately 5.6 million as of December 31, 2015.

Segment operating income for 2015 was Ps.6.2 billion. Segment operating margin and adjusted segment operating margin for 2015 were 8.5% and 13.9%, respectively. We
began consolidating Telekom Austria in July 2014.



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LIQUIDITY AND CAPITAL RESOURCES

Funding Requirements

We generate substantial
cash flows from our operations. On a consolidated basis, our cash flows from operating activities were Ps.235.8 billion in 2016 compared to Ps.163.7 billion in 2015. Our cash and cash equivalents amounted to Ps.23.2 billion at
December 31, 2016 compared to Ps.45.2 billion at December 31, 2015. We believe our working capital is sufficient for our present requirements. We use the cash that we generate from our operations and from borrowings principally for
the following purposes:



| |  |  | We make substantial capital expenditures to continue expanding and improving our networks in each country in which we operate. Our capital expenditures on plant, property and equipment and acquisition or renewal of
licenses were Ps.155.0 billion in 2016, Ps.151.6 billion in 2015 and Ps.145.6 billion in 2014. The amount of these capital expenditures varies significantly from year to year, depending on acquisition opportunities, concession renewal
schedules and needs for more spectrum. We have budgeted capital expenditures for 2017 of approximately U.S.$6.6 billion (Ps.137.1 billion).
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In some years, we have made substantial expenditures on acquisitions.
| | - |  | ---------------------------------------------------------------------



| |  |  | We must pay interest on our indebtedness and repay principal when due. As of December 31, 2016, we had approximately Ps.82.6 billion of principal and amortization due in 2017.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We pay regular dividends. We paid Ps.13.8 billion in dividends in 2016 and Ps.37.4 billion in 2015. Our shareholders approved on April 5, 2017 the payment of a Ps.0.30 ordinary dividend per share in two
installments in 2017. Shareholders entitled to the dividend will have an option to receive it in cash, as L Shares or a combination thereof. See Share Ownership and TradingDividends under Part IV in this annual report.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We regularly repurchase our own shares. We spent Ps.7.0 billion repurchasing our own shares in the open market in 2016 and Ps.34.4 billion in 2015. Our shareholders have authorized additional repurchases, and
as of March 31, 2017, we have spent Ps.0.3 billion repurchasing our shares in the open market in 2017, but whether we will continue to do so will depend on our operating cash flow and on various other considerations, including market
prices and our other capital requirements.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Off-balance Sheet Arrangements

As of December 31, 2016, we had no off-balance sheet arrangements that require disclosure under applicable
SEC regulations.



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Contractual Obligations

The following table summarizes certain contractual obligations as of December 31, 2016. Many of our obligations are denominated in currencies other than Mexican
pesos, and in particular our purchase obligations and approximately 31.2% of our debt are denominated in U.S. dollars. The table does not include accounts payable, pension liabilities, interest payments or payments under derivatives contracts. See
Note 16 to our consolidated financial statements.



|                                                             |  |                               |         |  |                 |     |         |           |  |     |           |  |  |               |         |  |  |     |         | 
|------------------------------------------------------------ |  | ----------------------------- | ------- |  | --------------- | --- | ------- | --------- |  | --- | --------- |  |  | ------------- | ------- |  |  | --- | ------- | 
|                                                             |  | Payments Due by Period        |        
|                                                             |  | Total                         |         |  | Less than1 year |     |         | 1-3 years |  |     | 4-5 years |  |  | After 5 years |        
|                                                             |  | (in millionsof Mexican pesos) |        
|Contractual obligations as of
December 31, 2016:             |  |                               |         |  |                 |     |         |           |  |     |           |  |  |               |         |  |  |     |         | 
|Equipment leases, real estate leases and mobile site
rentals |  | Ps.                           | 99,282  |  |                 | Ps. | 13,027  |           |  | Ps. | 23,513    |  |  | Ps.           | 20,673  |  |  | Ps. | 42,069  | 
|Short-term debt                                              |  |                               | 82,607  |  |                 |     | 82,607  |           |  |     |          |  |  |               |        |  |  |     |        | 
|Long-term debt                                               |  |                               | 625,194 |  |                 |     |        |           |  |     | 201,572   |  |  |               | 150,297 |  |  |     | 273,325 | 
|Purchase obligations                                         |  |                               | 113,303 |  |                 |     | 24,388  |           |  |     | 89,915    |  |  |               |        |  |  |     |        | 
|Total                                                        |  | Ps.                           | 920,386 |  |                 | Ps. | 120,022 |           |  | Ps. | 314,000   |  |  | Ps.           | 170,970 |  |  | Ps. | 315,394 | 

Other than the amounts in the table above, we had no other outstanding material purchase commitments as of December 31, 2016. We
enter into a number of supply, advertising and other contracts in the ordinary course of business, but those contracts are not material to our liquidity.

Borrowings

In addition to cash flows generated from operations, we rely on a combination of borrowings from a range of different
sources, including the international capital markets, capital markets in Mexico and other countries where we operate, international and local banks, equipment suppliers and export credit agencies. We seek to maintain access to diverse sources of
funding. In managing our funding, we generally seek to keep our leverage, as measured by the ratio of net debt to EBITDA, at a level that is consistent with maintaining the ratings given to our debt by the principal credit rating agencies. Our total
consolidated indebtedness as of December 31, 2016 was Ps.707.8 billion, of which Ps.82.6 billion was short-term debt (including the current portion of long-term debt), compared to Ps.683.2 billion as of December 31, 2015.

Management defines net debt as total debt minus cash and cash equivalents, minus marketable securities or other short-term investments. As of December 31,
2016, we had net debt of Ps.629.7 billion, compared to Ps.581.7 billion as of December 31, 2015, which represented an increase of Ps.48 billion in net debt. This increase principally reflects the devaluation of the Mexican peso
against the currencies in which a portion of our debt is denominated, partially offset by the repayment in 2016 of our debt obligations as they matured by the equivalent of Ps.70.1 billion.

Without taking into account the effects of derivative financial instruments that we use to manage our interest rate and currency risk, approximately 87.6% of our
indebtedness at December 31, 2016 was denominated in currencies other than Mexican pesos (approximately 35.6% of such non-Mexican peso debt in U.S. dollars and 64.4% in other currencies), and
approximately 2.1% of our consolidated debt obligations bore interest at floating rates. After the effects of derivative transactions, approximately 39.0% of our total debt as of December 31, 2016 was denominated in U.S. dollars.



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The weighted average cost of all our third-party debt at December 31, 2016 (excluding
commissions and reimbursement of certain lenders for Mexican taxes withheld) was approximately 4.2% per annum.

Our major categories of indebtedness at
December 31, 2016 are summarized in the table below. The amounts are based on book values in our financial statements under IFRS and may differ from the principal amount. See also Note 14 to our consolidated financial statements.



|                                                      |  |     |         | 
|----------------------------------------------------- |  | --- | ------- | 
|Debt                                                  | 
|(millions of Mexican pesos)                           | 
|Denominated in U.S. dollars:                          |  |     |         | 
|Bank loans                                            |  | Ps. | 14,930  | 
|5.625% Notes due 2017                                 |  |     | 12,089  | 
|5.000% Senior Notes due 2019                          |  |     | 15,549  | 
|5.500% Senior Notes due 2019                          |  |     | 7,824   | 
|5.000% Senior Notes due 2020                          |  |     | 44,050  | 
|3.125% Senior Notes due 2022                          |  |     | 33,170  | 
|6.375% Notes due 2035                                 |  |     | 20,344  | 
|6.125% Notes due 2037                                 |  |     | 7,654   | 
|6.125% Senior Notes due 2040                          |  |     | 41,463  | 
|4.375% Senior Notes due 2042                          |  |     | 23,841  | 
|Total                                                 |  | Ps. | 220,914 | 
|Denominated in Mexican pesos:                         |  |     |         | 
|Bank loans                                            |  | Ps. | 15,111  | 
|Domestic senior notes (certificados
bursátiles)       |  |     | 21,044  | 
|6.000% Senior Notes due 2019                          |  |     | 10,000  | 
|6.45% Senior Notes due 2022                           |  |     | 22,500  | 
|7.125% Senior Notes due 2024                          |  |     | 11,000  | 
|8.46% Senior Notes due 2036                           |  |     | 7,872   | 
|Total                                                 |  | Ps. | 87,527  | 
|Denominated in euro:                                  |  |     |         | 
|Bank loans                                            |  | Ps. | 491     | 
|3.75% Senior Notes due 2017                           |  |     | 21,803  | 
|4.25% Senior Notes due 2017                           |  |     | 10,962  | 
|1.00% Senior Notes due 2018                           |  |     | 13,082  | 
|4.125% Senior Notes due 2019                          |  |     | 21,803  | 
|0.00% Exchangeable Bonds due 2020                     |  |     | 61,961  | 
|3.00% Senior Notes due 2021                           |  |     | 21,803  | 
|3.125% Senior Notes due 2021                          |  |     | 17,399  | 
|4.75% Senior Notes due 2022                           |  |     | 16,352  | 
|4.00% Senior Notes due 2022                           |  |     | 18,068  | 
|3.259% Senior Notes due 2023                          |  |     | 16,352  | 
|3.50% Senior Notes due 2023                           |  |     | 7,048   | 
|1.50% Senior Notes due 2024                           |  |     | 18,533  | 
|1.50% Senior Notes due 2026                           |  |     | 10,902  | 
|2.125% Senior Notes due 2028                          |  |     | 14,172  | 
|Euro NC5 (Euro Series A) Capital Securities due 2073  |  |     | 19,623  | 
|Euro NC10 (Euro Series B) Capital Securities due 2073 |  |     | 11,992  | 
|Total                                                 |  | Ps. | 302,346 | 



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|                                                           |  |     |         |  
|---------------------------------------------------------- |  | --- | ------- | -
|Debt                                                       | 
|(millions of Mexican pesos)                                | 
|Denominated in pounds sterling:                            |  |     |         |  
|5.000% Senior Notes due 2026                               |  | Ps. | 12,791  |  
|5.750% Senior Notes due 2030                               |  |     | 16,629  |  
|4.948% Senior Notes due 2033                               |  |     | 7,675   |  
|4.375% Senior Notes due 2041                               |  |     | 19,187  |  
|GBP NC7 Capital Securities due 2073                        |  |     | 14,070  |  
|Total                                                      |  | Ps. | 70,352  |  
|Denominated in Swiss francs:                               |  |     |         |  
|2.000% Senior Notes due 2017                               |  | Ps. | 5,493   |  
|1.125% Senior Notes due 2018                               |  |     | 11,190  |  
|Total                                                      |  | Ps. | 16,683  |  
|Denominated in Japanese yen                                |  | Ps. | 2,307   |  
|Denominated in Chilean pesos                               |  |     | 4,206   |  
|Denominated in Brazilian reals                             |  |     | 3,467   |  
|Total debt                                                 |  | Ps. | 707,801 |  
|Less short-term debt and current portion of long-term debt |  |     | (82,607 | )
|Total long-term
debt                                       |  | Ps. | 625,194 |  
|Equity:                                                    |  |     |         |  
|Capital stock                                              |  | Ps. | 96,338  |  
|Total retained earnings                                    |  |     | 157,715 |  
|Other comprehensive income (loss) items                    |  |     | 45,138  |  
|Non-controlling
interest                                   |  |     | 62,109  |  
|Total Equity                                               |  | Ps. | 271,024 |  
|Total capitalization (total
long-term debt plus equity)    |  | Ps. | 896,218 |  



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Additional information about certain categories of our indebtedness is provided below:



| |  |  | Mexican peso-denominated international notes. Our 8.46% senior notes due 2036 are denominated in Mexican pesos, but all amounts in respect of the notes are payable in U.S. dollars, unless a holder of notes
elects to receive payment in Mexican pesos in accordance with certain specified procedures.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Mexican peso-denominated domestic notes. Our domestic senior notes (certificados bursátiles) sold in the Mexican capital markets have varying maturities, ranging from 2017 through
2037. Some bear interest at fixed rates, and others at variable rates based on TIIE (a Mexican interbank rate).
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Global peso notes program. The Global peso notes program was established in November 2012. Since its establishment, we have issued peso-denominated notes that can be distributed and traded on a seamless basis in
Mexico and internationally. The notes are registered with the SEC in the United States and with the CNBV in Mexico.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | International notes. We have outstanding debt securities in the international markets denominated in U.S. dollars, pounds sterling and euros. We have also issued debt securities in the local markets in
Switzerland and Japan.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Hybrid notes. In September 2013, we issued three series of Capital Securities maturing in 2073: two series denominated in euros and totaling
1,450 million, and one series denominated in pounds sterling in the amount of £550 million. The Capital Securities are subject to redemption at our option at varying dates
beginning in 2018 and 2023 for the euro-denominated series and beginning in 2020 for the sterling-denominated series.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In January
2013, Telekom Austria issued 600 million aggregate principal amount of its subordinated bonds. The interest rate on the bonds is 5.625% for the first five years and resets every five years
beginning in 2018. The bonds have no specified maturity date but may be redeemed at our option at par, in whole but not in part, on any interest reset date beginning in 2018. Under IFRS, we are required to classify the bonds as equity, because of
their indefinite maturity, but we intend to redeem them in accordance with their terms at a time we deem convenient.

Both our and Telekom
Austrias hybrid notes are deeply subordinated, and when they were issued the principal rating agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred
to as 50.0% equity credit).



| |  |  | Bank loans. At December 31, 2016, we had approximately Ps.33.9 billion outstanding under a number of bank
facilities bearing interest at fixed and variable rates. We also have two revolving syndicated facilitiesone for U.S.$2.5 billion expiring in 2019 and one for the Euro equivalent of U.S.$2.0 billion (the Euro Facility)
expiring in May 2021. Loans under the facilities bear interest at variable rates based on LIBOR and EURIBOR, respectively. Both facilities include covenants that limit our ability to incur secured debt, to effect a merger in which the surviving
entity would not be América Móvil, or to sell substantially all of our assets. In addition, the Dollar and Euro
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | Facilities require us to maintain a consolidated ratio of debt to EBITDA not greater than 4.0 to 1.0 and a consolidated ratio of EBITDA to interest expense not less than 2.5 to 1.0. As of the date of this annual report, we are in
compliance with these covenants. Telekom Austria also has a revolving syndicated facility for 1.0 billion (the TKA Facility) expiring in 2019. The TKA Facility bears interest at
EURIBOR plus 0.375% and includes covenants that limit Telekom Austrias ability to incur secured debt, effect certain mergers or sell substantially all of its assets and our ability to transfer control over, or reduced our share ownership in,
Telekom Austria.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | KPNs Mandatory Exchangeable Bonds.In September 2015, we issued 750 million principal amount of our mandatory exchangeable
bonds. These may be settled in cash, at our option, or exchanged into ordinary shares of KPN. The interest rate on the bonds is 5.5% per year, payable quarterly in arrears, in addition to additional interest corresponding to 85% of the gross cash
dividends and distributions received by holders of the underlying KPN shares. The reference exchange price of the underlying shares was set at 3.33 per share and capped at a maximum of 4.25 per share. We have placed 224.7 million KPN ordinary shares in an irrevocable trust in favor of the bonds trustee to cover the exchange at the bonds maturity. As a result, we
have derecognized a portion of our investment in KPN corresponding to those shares placed in the trust and do not recognize the bonds within our long-term obligations.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Options involving KPN and TKA shares. The Company has entered into certain option contracts related to shares that are or have been a strategic investment for the Company. These options include a sale of call
options related to our KPN shares with a five-year exercise period and the sale of a cash-settled put option related to TKA shares that will expire in August 2023. See Note 7 to our audited consolidated financial statements.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Some of the public securities issued by América Móvil in international and Mexican capital markets are guaranteed by Telcel. As of December 31, 2016,
we had, on an unconsolidated basis, unsecured and unsubordinated indebtedness of approximately Ps.613.2 billion (U.S.$29.6 billion) excluding guarantees of subsidiaries indebtedness. As of December 31, 2016, our subsidiaries had
indebtedness (excluding guarantees of indebtedness of us and our other subsidiaries) of approximately Ps.94.6 billion (U.S.$4.6 billion).

Risk Management

We regularly assess our interest rate and currency exchange exposures in order to determine how to manage the risk
associated with these exposures. We have indebtedness denominated in currencies other than the currency of our operating environments, and we have expenses for operations and for capital expenditures in a variety of currencies. We use cross-currency
swaps and forwards to adjust the resulting exchange rate exposures. We do not use derivatives to hedge the exchange rate exposures that arise from having operations in different countries.

We also use interest rate swaps from time to time to adjust our exposure to variable interest rates or to reduce our costs of financing. Our practices vary from time to
time depending on our judgment of the level of risk, expectations as to exchange or interest rate movements and the costs of using derivative financial instruments. We may stop using derivative financial instruments or modify our practices at any
time.

As of December 31, 2016, we had derivatives positions with an aggregate net fair value loss of Ps.16.7 billion, which are described in Note 7 to our
audited consolidated financial statements. For additional information see Note 2 x) to our audited consolidated financial statements.



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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Use of Estimates in Certain Accounting Policies

In preparing our financial statements, we make estimates concerning a variety of matters. Some of these matters are highly uncertain, and our estimates involve judgments
we make based on the information available to us. In the discussion below, we have identified several of these matters for which our financial presentation would be materially affected if either (i) we used different estimates that we could
reasonably have used or (ii) in the future, we change our estimates in response to changes that are reasonably likely to occur.

The discussion addresses only
those estimates that we consider most important based on the degree of uncertainty and the likelihood of a material impact if we used a different estimate. There are many other areas in which we use estimates about uncertain matters, but the
reasonably likely effect of changed or different estimates is not material to our financial presentation.

Fair Value of Financial Assets
and Liabilities

We have substantial financial assets and liabilities that we recognize at their fair value, which is an estimate of the amount at which
the instrument could be exchanged in a current transaction between willing parties. The methodologies and assumptions we use to estimate an instruments fair value depend on the type of instrument and include (i) recognizing cash and cash
equivalents, trade receivables, trade payables and other current liabilities at close to their carrying amount, (ii) recognizing quoted instruments at their market price quotations, without any deduction for transaction costs, for financial
instruments such as available for sale marketable securities and certain debt instruments on the reporting date, (iii) recognizing unquoted instruments, such as loans from banks and obligations under financial leases, by discounting future cash
flows using rates for similar instruments and (iv) applying various valuation techniques, such as present value calculations, to derivative instruments. Using different methodologies or assumptions to estimate the fair value of our financial
assets and liabilities could materially impact our reported financial results.

The Company maintains investments in available-for-sale securities that are valued at market prices obtained from the stock exchange where these shares are listed. At each reporting date, the Company evaluates whether an impairment exists
on its available-for-sale securities. This analysis first involves an evaluation of the objective measures of impairment as described in IAS 39. The Company
will then evaluate whether the loss recognized in other comprehensive income on its available for sale securities is either prolonged or significant. As of December 31, 2016, the Company has not observed an objective measure of impairment
on its available-for-sale securities, nor have unrealized losses on its
available-for-sale securities been considered either significant or prolonged.

Estimated Useful Lives of Plant, Property and Equipment

We estimate the useful lives of particular classes of plant, property and
equipment in order to determine the amount of depreciation expense to be recorded in each period. Depreciation expense is a significant element of our costs and expenses, amounting in 2016 to Ps.127.7 billion, or 14.7% of our operating costs
and expenses. See Note 10 to our audited consolidated financial statements.



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We currently depreciate most of our property, plant and equipment based on an estimated useful
life determined upon the expected particular conditions of operations and maintenance in each of the countries in which we operate. The estimates are based on our historical experience with similar assets, anticipated technological changes and other
factors, taking into account the practices of other telecommunications companies. We review estimated useful lives each year to determine whether they should be changed, and at times we have changed them for particular classes of assets. We may
shorten the estimated useful life of an asset class in response to technological changes, changes in the market or other developments, which would result in higher depreciation expense.

Impairment of Long-Lived Assets

We have large
amounts of long-lived assets, including property, plant and equipment, intangible assets, investments in associates and goodwill, on our balance sheet. Under IFRS, we are required to test long-lived assets for impairment when circumstances indicate
a potential impairment or, in some cases, at least on an annual basis. The impairment analysis for long-lived assets requires us to estimate the recovery value of the asset, which is the greater of its fair value (minus any disposal costs) and its
value in use. To estimate the fair value of a long-lived asset, we typically take into account recent market transactions or, if no such transactions can be identified, we use a valuation model that requires the making of certain assumptions and
estimates. Similarly, to estimate the value in use of long-lived assets, we typically make various assumptions about the future prospects for the business to which the asset relates, consider market factors specific to that business and estimate
discounted future cash flows to be generated by that business. Based on this impairment analysis, including all assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets, we
determine whether we need to recognize an impairment to reduce the carrying value of the asset as stated on our balance sheet. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be
affected by a variety of factors, including external factors, such as industry and economic trends, and internal factors, such as changes in our business strategy and our internal forecasts. Different assumptions and estimates could materially
impact our reported financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net income and result in lower asset values on our balance sheet.
Conversely, less conservative assumptions could result in lower or no impairment charges, higher net income and higher asset values. See Note 2 y.4) to our audited consolidated financial statements.

Deferred Income Taxes

We are required to
estimate our income taxes in each of the jurisdictions in which we operate. This process involves the jurisdiction-by-jurisdiction estimation of actual current tax
exposure and the assessment of temporary differences resulting from the differing treatment of certain items, such as accruals and amortization, for tax and financial reporting purposes, as well as net operating loss carry forwards and other tax
credits. These items result in deferred tax assets and liabilities, which are included in our consolidated balance sheets. We must assess, in the course of our tax planning procedures, the fiscal year of the reversal of our deferred tax assets and
liabilities, and if there will be future taxable profits in those periods to support the recognition of the deferred tax assets. Significant management judgment is required in determining our provisions for income taxes, deferred tax assets and
liabilities. The analysis is based on



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Operating and Financial Review and Prospects



estimates of taxable income in the jurisdictions in which the group operates and the period over
which the deferred tax assets and liabilities will be recoverable or settled. If actual results differ from these estimates, or if we adjust these estimates in future periods, our financial position and results of operations may be materially
affected.

We record deferred tax assets based on the amount that we believe is more likely than not to be realized. In assessing the future realization of deferred
tax assets, we consider future taxable income and ongoing tax planning strategies. In the event that our estimates of projected future taxable income and benefits from tax planning strategies are lowered, or changes in current tax regulations are
enacted that would impose restrictions on the timing or the extent of our ability to utilize the tax benefits of net operating loss carry forwards in the future, an adjustment to the recorded amount of deferred tax assets would be made, with a
related charge to income.

Accruals

Accruals are recorded when, at the end of the period, we have a present obligation as a result of past events, whose settlement requires an outflow of resources that is
considered probable and can be measured reliably. This obligation may be legal or constructive, arising from, but not limited to, regulation, contracts, common practice or public commitments, which have created a valid expectation for third parties
that we will assume certain responsibilities. The amount recorded is the best estimation performed by our management in respect of the expenditure that will be required to settle the obligations, considering all the information available at the date
of our financial statements, including the opinion of external experts, such as legal advisors or consultants. Accruals are adjusted to account for changes in circumstances for ongoing matters and the establishment of additional accruals for new
matters.

If we are unable to reliably measure the obligation, no accrual is recorded and information is then presented in the notes to our consolidated financial
statements. Because of the inherent uncertainties in this estimation, actual expenditures may be different from the originally estimated amount recognized.

Labor Obligations

We recognize liabilities on our balance sheet and expenses in our income statement to reflect our obligations
related to our post-retirement seniority premiums, pension and retirement plans in the countries in which we operate and offer defined contribution and benefit pension plans. The amounts we recognize are determined on an actuarial basis that
involves many estimates and assumptions for post-retirement pension and termination benefits in accordance with IFRS.

We use estimates in four specific areas that
have a significant effect on these amounts: (i) the rate of return we assume our labor obligation plans will achieve on their investments, (ii) the rate of increase in salaries that we assume we will observe in future years, (iii) the
discount rates that we use to calculate the present value of our future obligations and (iv) the expected rate of inflation. The assumptions we have applied are identified in Note 17 to our audited consolidated financial statements. These
estimates are determined based on actuarial studies performed by independent experts using the projected unit-credit method.



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Allowance for Bad Debts

We maintain an allowance for bad debts for estimated losses resulting from the failure of customers, distributors and cellular operators to make required payments. We
base these estimates on the individual conditions of each of the markets in which we operate that may impact the collectability of accounts. In particular, in making these estimates, we take into account (i) with respect to accounts with
customers, the number of days since the calls were made, (ii) with respect to accounts with distributors, the number of days invoices are overdue and (iii) with respect to accounts with operators, both the number of days since the calls
were made and any disputes with respect to such calls. The amount of loss, if any, that we actually experience with respect to these accounts may differ from the amount of the allowance maintained in connection with them.



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LOGO

|                      
|----------------------
|PART III:
RISK FACTORS





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Risk Factors



RISKS RELATING TO OUR OPERATIONS

Competition in the telecommunications industry is intense and could adversely affect the revenues and profitability of our operations

Our businesses face substantial competition. We expect that competition will intensify in the future as a result of the entry of new competitors, the development of new
technologies, products and services and convergence. We also expect consolidation in the telecommunications industry, as companies respond to the need for cost reduction and additional spectrum. This trend may result in larger competitors with
greater financial, technical, promotional and other resources to compete with our businesses.

Among other things, our competitors could:



| |  |  | provide increased handset subsidies;
| | - |  | ------------------------------------



| |  |  | offer higher commissions to retailers;
| | - |  | --------------------------------------



| |  |  | provide free airtime or other services (such as internet access);
| | - |  | -----------------------------------------------------------------



| |  |  | offer services at lower costs through double, triple and quadruple play packages or other pricing strategies;
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | expand their networks faster; or
| | - |  | --------------------------------



| |  |  | develop and deploy improved technologies faster.
| | - |  | ------------------------------------------------

Competition can lead us to increase advertising and promotional
spending and to reduce prices for services and handsets. These developments may lead to lower operating margins, greater choices for customers, possible consumer confusion and increasing movement of customers among competitors, which may make it
difficult for us to retain or add new customers. The cost of adding new customers may also continue to increase, reducing profitability even if customer growth continues.

Our ability to compete successfully will depend on our coverage, the quality of our network and service, our rates, customer service, effective marketing, our success in
selling double, triple and quadruple play packages and our ability to anticipate and respond to various competitive factors affecting the telecommunications industry, including new services and technologies, changes in consumer preferences,
demographic trends, economic conditions and discount pricing strategies by competitors. If we are unable to respond to competition and compensate for declining prices by adding new customers, increasing usage and offering new services, our revenues
and profitability could decline.

Governmental or regulatory actions could adversely affect our operations

Our operations are subject to extensive government regulation and can be adversely affected by changes in law, regulation or regulatory policy. The licensing,
construction, operation, sale, resale and interconnection arrangements of telecommunications systems in Latin America and elsewhere are regulated to varying degrees by government or regulatory authorities. Any of these authorities having
jurisdiction over our businesses could adopt or change regulations or take other actions that could adversely affect our operations. In particular, the regulation of prices that operators may charge for their services could have a material adverse
effect by reducing our profit margins. See Regulation under Part VI, Legal Proceedings under Part VII and Note 16 to our audited consolidated financial statements included in this annual report.



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In addition, changes in political administrations could lead to the adoption of policies concerning competition and taxation of communications services. For example,
over the last four years, Mexico developed a new legal framework that aims to promote competition and investment in the telecommunications sector by imposing asymmetric regulation upon economic agents deemed preponderant. In other
countries, we could also face policies such as preferences for local over foreign ownership of communications licenses and assets or for government over private ownership, which could make it more cumbersome or impossible for us to continue to
develop our businesses. Restrictions such as those described above could result in our incurring losses of revenues and require capital investments, all of which could materially adversely affect our businesses and results of operations.

Our failure to meet or maintain quality of service goals and standards could result in fines and other adverse consequences

The terms of the concessions under which our subsidiaries operate require them to meet certain service quality goals, including, for example, minimum call completion
rates, maximum busy circuits rates, operator availability and responsiveness to repair requests. Failure to meet service quality obligations in the past has resulted in the imposition of material fines by regulatory entities. We are also subject to
and may be subject to additional claims by customers, including class actions, seeking remedies for service problems. Our ability to comply with these obligations in the future may be affected by factors beyond our control and, accordingly, we
cannot assure that we will be able to comply with them.

Dominant and related carrier regulations could adversely affect our business by
limiting our ability to pursue competitive and profitable strategies

Our regulators are authorized to impose specific requirements as to rates (including
termination rates), quality of service, access to active or passive infrastructure and information, among other matters, on operators that are determined to have substantial market power in a specific market. We cannot predict what steps regulatory
authorities might take in response to determinations regarding substantial market power in the countries in which we operate. However, adverse determinations against our subsidiaries could result in material restrictions on our operations. We may
also face additional regulatory restrictions and scrutiny as a result of our provision of combined services.

If dominant carrier regulations are imposed on our
business in the future, they could likely reduce our flexibility to adopt competitive market policies and impose specific tariff requirements or other special regulations on us, such as additional requirements regarding disclosure of information or
quality of service. Any such new regulation could have a material adverse effect on our operations.

Changes in the regulatory framework
for telecommunications services in Mexico may have a material adverse effect on our business and results of operations

The Mexican legal framework for
the regulation of telecommunications and broadcasting services has changed, beginning with constitutional amendments in 2013, implementing legislation in 2014, and the establishment in 2014 of a new regulator, the Federal Telecommunications
Institute (Instituto Federal de Telecomunicaciones, or the IFT). The IFT determined in 2014 that our operating subsidiaries in Mexico are part of an economic interest group that is a preponderant economic
agent in the Mexican telecommunications sector, and based on this determination the IFT has imposed extensive asymmetric



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regulations on our Mexican fixed-line and wireless businesses. The asymmetric regulations took effect in 2015 and were amended in 2017, when the IFT added new
requirements, including the functional separation of certain assets used to provide local loop unbundling services. For further information, see Regulation under Part III of this annual report. The IFT measures have adversely affected
the results of our Mexican operations, and we expect that those effects will continue, but their long-term impact remains uncertain.

We
must continue to acquire additional radio spectrum capacity and upgrade our existing networks in order to expand our customer base and maintain the quality of our wireless services

Licensed radio spectrum is essential to our growth and the quality of our wireless services, not only for our global system for mobile communications (GSM),
universal mobile telecommunications systems (UMTS) and long-term evolution (LTE) networks, but also for the deployment of new generation networks to offer improved data and value-added services. We obtain most of our radio
spectrum through auctions conducted by governments of the countries in which we operate. Participation in spectrum auctions in most of these countries requires prior government authorization, and we may be subject to caps on our ability to acquire
additional spectrum. Our inability to acquire additional radio spectrum capacity could affect our ability to compete successfully because it could result in, among other things, a decrease in the quality of our network and service and in our ability
to meet the demands of our customers.

In the event we are unable to acquire additional radio spectrum capacity, we can increase the density of our network by
building more cell and switch sites, but such measures are costly and would be subject to local restrictions and approvals, and they would not meet our needs as effectively.

In addition, the continual maintenance and upgrading of our wireless networks is critical to expanding our coverage, increasing our capacity to absorb higher bandwidth
usage and adapting to new technologies, as well as offering more specialized services to our customers.

We have concessions and licenses
for fixed terms, and the government may revoke or terminate them as well as reacquire the assets under our concession under various circumstances, some of which are beyond our control

Our concessions and licenses have specified terms, ranging typically from five to 20 years, and are generally subject to renewal upon payment of a fee, but renewal is
not assured. The loss of, or failure to renew, any one concession could have a material adverse effect on our business and results of operations. Our ability to renew concessions and the terms of renewal are subject to a number of factors beyond our
control, including the prevalent regulatory and political environment at the time of renewal. Fees are typically established at the time of renewal. As a condition for renewal, we may be required to agree to new and stricter terms and service
requirements. In some of the jurisdictions where we operate and under certain circumstances, we may be required to transfer certain assets covered by some of our concessions to the government pursuant to valuation methodologies that vary in each
jurisdiction. It is uncertain whether reversion would ever be applied and how reversion provisions would be interpreted in practice.



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In addition, the regulatory authorities in the jurisdictions in which we operate can revoke our concessions under certain circumstances. In Mexico, for example, the
Federal Law on Telecommunications and Broadcasting gives the government the right to expropriate our concessions or to take over the management of our networks, facilities and personnel in cases of imminent danger to national security, internal
peace or the national economy, natural disasters and public unrest. See Regulation under Part VI of this annual report.

We
continue to look for acquisition opportunities, and any future acquisitions and related financing could have a material effect on our business, results of operations and financial condition

We continue to look for investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often
have several possible acquisitions under consideration. Any future acquisitions, and related financing and acquired indebtedness, could have a material effect on our business, results of operations and financial condition, but we cannot provide
assurances that we will complete any of them. In addition, we may incur significant costs and expenses as we integrate these companies in our systems, controls and networks.

We are subject to significant litigation

Some
of our subsidiaries are subject to significant litigation that, if determined adversely to our interests, may have a material adverse effect on our business, results of operations, financial condition or prospects. Our significant litigation is
described in Regulation under Part VI and in Note 16 to our audited consolidated financial statements included in this annual report.

We are contesting significant tax assessments

We and some of our subsidiaries have been notified of tax assessments for significant
amounts by the tax authorities of the countries in which we operate, especially in Brazil, Mexico and Ecuador. The tax assessments relate to, among other things, alleged improper deductions and underpayments. We are contesting these tax assessments
in several administrative and legal proceedings, and our challenges are at various stages. If determined adversely to us, these proceedings may have a material adverse effect on our business, results of operations, financial condition or prospects.
In addition, in some jurisdictions, challenges to tax assessments require the posting of a bond or security for the contested amount, which may reduce our flexibility in operating our business. Our significant tax assessments are described in
Note 16 to our audited consolidated financial statements included in this annual report.

Our failure to comply with anti-corruption,
anti-bribery and anti-money laundering laws could harm our reputation, subject us to substantial fines and adversely affect our business

We operate in
multiple jurisdictions and are subject to complex regulatory frameworks with increased enforcement activities worldwide. Our governance and compliance processes, which include the review of internal controls over financial reporting, may not prevent
future breaches of legal, accounting or governance standards and regulations. We may be subject to breaches of our code of ethics, anti-corruption policies and business conduct protocols and to instances of fraudulent behavior, corrupt practices and
dishonesty by our employees, contractors or other agents. Our failure to comply with applicable laws and other standards could harm our reputation, subject us to substantial fines, sanctions or penalties and adversely affect our business and ability
to access financial markets.



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A system failure could cause delays or interruptions of service, which could have an adverse effect on our operations

We need to continue to provide our subscribers with a reliable service over our network. Some of the risks to our network and infrastructure include the following:



| |  |  | physical damage to access lines and fixed networks;
| | - |  | ---------------------------------------------------



| |  |  | power surges or outages;
| | - |  | ------------------------



| |  |  | natural disasters;
| | - |  | ------------------



| |  |  | malicious actions, such as theft or misuse of customer data;
| | - |  | ------------------------------------------------------------



| |  |  | limitations on the use of our radio bases;
| | - |  | ------------------------------------------



| |  |  | software defects;
| | - |  | -----------------



| |  |  | human error; and
| | - |  | ----------------



| |  |  | disruptions beyond our control.
| | - |  | -------------------------------

In Brazil, for example, our satellite operations may be affected if we experience a
delay in launching new satellites to replace those currently in use when they reach the end of their operational lives. Such delay may occur because of, among other reasons, construction delays, unavailability of launch vehicles and/or launch
failures.

We have instituted measures to reduce these risks. However, there is no assurance that any measures we implement will be effective in preventing system
failures under all circumstances. System failures may cause interruptions in services or reduced capacity for our customers, either of which may have an adverse effect on our operations due to, for example, increased expenses, potential legal
liability, loss of existing and potential subscribers, reduced user traffic, decreased revenues and reputational harm.

Cyber-attacks or
other breaches of network or information technology security could have an adverse effect on our business

Cyber-attacks or other breaches of network or
information technology security may cause equipment failures or disruptions to our operations. Our inability to operate our fixed-line or wireless networks as a result of such events, even for a limited period of time, may result in significant
expenses or loss of market share to other communications providers. In addition, the potential liabilities associated with these events could exceed the insurance coverage we maintain.

Cyber-attacks, which include the use of malware, computer viruses and other means for disruption or unauthorized access to companies, have increased in frequency, scope
and potential harm in recent years. The preventive actions we take to reduce the risk of cyber incidents and protect our information technology and networks may be insufficient to repel a major cyber-attack in the future. The costs associated with a
major cyber-attack on us could include increased expenditures on cyber security measures, litigation, damage to our reputation, lost revenues from business interruption and the loss of existing customers and business partners. In addition, if we
fail to prevent the theft of valuable information such as financial data and sensitive information about us, or if we fail to protect the privacy of customer and employee confidential data against breaches of network or information technology
security, it could result in damage



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to our reputation, which could adversely impact customer and investor confidence. Any of these occurrences could result in a material adverse effect on our results of
operations and financial condition.

If our churn rate increases, our business could be negatively affected

The cost of acquiring a new subscriber is much higher than the cost of maintaining an existing subscriber. Accordingly, subscriber deactivations, or churn,
could have a material negative impact on our operating income, even if we are able to obtain one new subscriber for each lost subscriber. A substantial majority of our subscribers are prepaid, and we do not have long-term contracts with them. Our
weighted monthly average churn rate on a consolidated basis was 3.9% for the year ended December 31, 2015 and 4.2% for the year ended December 31, 2016. If we experience an increase in our churn rate, our ability to achieve revenue growth
could be materially impacted. In addition, a decline in general economic conditions could lead to an increase in churn, particularly among our prepaid subscribers.

We rely on key suppliers and vendors to provide equipment that we need to operate our business

We rely upon various key suppliers and vendors to provide us with handsets, network equipment or services, which we need to expand and operate our business. If these
suppliers or vendors fail to provide equipment or service to us on a timely basis, we could experience disruptions, which could have an adverse effect on our revenues and results of operations. In addition, we might be unable to satisfy requirements
under our concessions.

Our ability to pay dividends and repay debt depends on our subsidiaries ability to transfer income and
dividends to us

We are a holding company with no significant assets other than the shares of our subsidiaries and our holdings of cash and cash
equivalents. Our ability to pay dividends and repay debt depends on the continued transfer to us of dividends and other income from our subsidiaries. The ability of our subsidiaries to pay dividends and make other transfers to us may be limited by
various regulatory, contractual and legal constraints that affect them.

We may fail to realize the benefits anticipated from acquisitions,
divestments and significant investments we make from time to time

The business growth opportunities, revenue benefits, cost savings and other benefits we
anticipated to result from our acquisitions, divestments and significant investments may not be achieved as expected, or may be delayed. Our divestments, like the spin-off of our Mexican tower business, may
also adversely affect our prospects. For example, we may be unable to fully implement our business plans and strategies for the combined businesses due to regulatory limitations, and we may face regulatory restrictions in our provision of combined
services in some of the countries in which we operate. To the extent that we incur higher integration costs or achieve lower revenue benefits or fewer cost savings than expected, or if we are required to recognize impairments of acquired assets,
investments or goodwill, our results of operations and financial condition may suffer.



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RISKS RELATING TO THE TELECOMMUNICATIONS INDUSTRY GENERALLY

Changes in the telecommunications industry could affect our future financial performance

The telecommunications industry continues to experience significant changes as new technologies are developed that offer subscribers an array of choices for their
communications needs. These changes include, among others, regulatory changes, evolving industry standards, ongoing improvements in the capacity and quality of digital technology, shorter development cycles for new products and changes in end-user needs and preferences. There is uncertainty as to the pace and extent of growth in subscriber demand, and as to the extent to which prices for airtime, broadband access, Pay TV and fixed-line rental may
continue to decline. Our ability to compete in the delivery of high-quality internet and broadband services is particularly important, given the increasing contribution of revenues from data services to our overall growth. If we are unable to meet
future advances in competing technologies on a timely basis or at an acceptable cost, we could lose subscribers to our competitors. In general, the development of new services in our industry requires us to anticipate and respond to the varied and
continually changing demands of our subscribers. It also requires significant capital expenditure, including investment in the continual maintenance and upgrading of our networks, in order to expand coverage, increase our capacity to absorb higher
bandwidth usage and adapt to new technologies. We may not be able to accurately predict technological trends or the success of new services in the market. In addition, there could be legal or regulatory restraints to our introduction of new
services. If these services fail to gain acceptance in the marketplace, or if costs associated with implementation and completion of the introduction of these services materially increase, our ability to retain and attract subscribers could be
adversely affected. This is true across many of the services we provide, including wireless and cable technology.

The intellectual
property used by us, our suppliers or service providers may infringe on intellectual property rights owned by others

Some of our products and services
use intellectual property that we own or license from others. We also provide content we receive from content producers and distributors, such as ringtones, text games, video games, video, including TV programs and movies, wallpapers or
screensavers, and we outsource services to service providers, including billing and customer care functions, that incorporate or utilize intellectual property. We and some of our suppliers, content distributors and service providers have received,
and may receive in the future, assertions and claims from third parties that the content, products or software utilized by us or our suppliers, content producers and distributors and service providers infringe on the patents or other intellectual
property rights of these third parties. These claims could require us or an infringing supplier, content distributor or service provider to cease engaging in certain activities, including selling, offering and providing the relevant products and
services. Such claims and assertions also could subject us to costly litigation and significant liabilities for damages or royalty payments, or require us to cease certain activities or prevent us from selling certain products or services.



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Concerns about health risks relating to the use of wireless handsets and base stations may adversely affect our business

Portable communications devices have been alleged to pose health risks, including cancer, due to radio frequency emissions. Lawsuits have been filed in the United States
against certain participants in the wireless industry alleging various adverse health consequences as a result of wireless phone usage, and our subsidiaries may be subject to similar litigation in the future. Research and studies are ongoing, and
there can be no assurance that further research and studies will not demonstrate a link between radio frequency emissions and health concerns. Any negative findings in these studies could adversely affect the use of wireless technology and, as a
result, our future financial performance.

Developments in the telecommunications sector have resulted, and may result, in substantial
write-downs of the carrying value of certain of our assets

Where the circumstances require, we review the carrying value of each of our assets,
subsidiaries and investments in associates to assess whether those carrying values can be supported by the future discounted cash flows expected to be derived from such assets. Whenever we consider that due to changes in the economic, regulatory,
business or political environment, our goodwill, investments in associates, intangible assets or fixed assets may be impaired, we consider the necessity of performing certain valuation tests, which may result in impairment charges. The recognition
of impairments of tangible, intangible and financial assets could adversely affect our results of operations. See Critical Accounting Policies and EstimatesImpairment of Long-Lived Assets under Part II of this annual report.

RISKS RELATING TO OUR CONTROLLING SHAREHOLDERS, CAPITAL STRUCTURE AND TRANSACTIONS WITH AFFILIATES

Members of one family may be deemed to control us

Based on reports of beneficial ownership of our shares filed with the SEC, Carlos Slim Helú, a member of our Board of Directors, together with his sons and
daughters (together, the Slim Family), including his two sons, Carlos Slim Domit and Patrick Slim Domit, who serve as the Chairman and Vice Chairman of our Board of Directors, respectively, may be deemed to control us. The Slim Family
may be able to elect a majority of the members of our Board of Directors and to determine the outcome of other actions requiring a vote of our shareholders, except in very limited cases that require a vote of the holders of L Shares. The interests
of the Slim Family may diverge from the interests of our other investors.

We have significant transactions with affiliates

We engage in various transactions with Telesites, S.A.B. de C.V. (Telesites) and certain subsidiaries of Grupo Carso, S.A.B. de C.V. (Grupo
Carso) and Grupo Financiero Inbursa, S.A.B. de C.V. (Grupo Financiero Inbursa), all which may be deemed for certain purposes to be under common control with América Móvil. Many of these transactions occur in the
ordinary course of business. Transactions with affiliates may create the potential for conflicts of interest.

We also make investments together with related
parties, sell investments to related parties and buy investments from related parties. For more information about our transactions with affiliates, see Related Party Transactions under Part IV of this annual report.



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Our bylaws restrict transfers of shares in some circumstances

Our bylaws provide that any acquisition or transfer of more than 10.0% of our capital stock by any person or group of persons acting together requires the approval of
our Board of Directors. You may not acquire or transfer more than 10.0% of our capital stock without the approval of our Board of Directors.

The protections afforded to minority shareholders in Mexico are different from those in the United States

Under Mexican law, the protections afforded to minority shareholders are different from those in the United States. In particular, the law concerning fiduciary duties of
directors is not as fully developed as in other jurisdictions, the procedure for class actions is different, and there are different procedural requirements for bringing shareholder lawsuits. As a result, in practice it may be more difficult for
minority shareholders of América Móvil to enforce their rights against us or our directors or controlling shareholders than it would be for shareholders of a company incorporated in another jurisdiction, such as the United States.

Holders of L Shares and L Share ADSs have limited voting rights

Our bylaws provide that holders of L Shares are not permitted to vote, except on such limited matters as, among others, the transformation or merger of América
Móvil or the cancellation of registration of the L Shares with the Mexican Securities Registry (Registro Nacional de Valores, or RNV) maintained by the CNBV or any stock exchange on which they are listed. If you hold L
Shares or L Share ADSs, you will not be able to vote on most matters, including the declaration of dividends, which are subject to a shareholder vote in accordance with our bylaws.

Holders of ADSs are not entitled to attend shareholders meetings, and they may only vote through the depositary

Under our bylaws, a shareholder is required to deposit its shares with a custodian in order to attend a shareholders meeting. A holder of ADSs will not be able to
meet this requirement and, accordingly, is not entitled to attend shareholders meetings. A holder of ADSs is entitled to instruct the depositary as to how to vote the shares represented by ADSs, in accordance with procedures provided for in
the deposit agreements, but a holder of ADSs will not be able to vote its shares directly at a shareholders meeting or to appoint a proxy to do so.

Mexican law and our bylaws restrict the ability of non-Mexican shareholders to invoke the protection of their governments with respect to their rights as shareholders

As required by Mexican law, our bylaws provide that non-Mexican shareholders shall be considered as Mexicans with respect to
their ownership interests in América Móvil and shall be deemed to have agreed not to invoke the protection of their governments under certain circumstances. Under this provision, a non-Mexican
shareholder is deemed to have agreed not to invoke the protection of his own government by asking such government to interpose a diplomatic claim against the Mexican government with respect to the shareholders rights as a shareholder, but is
not deemed to have waived any other rights it may have, including any rights under U.S. federal securities laws, with respect to its investment in América Móvil. If you invoke such governmental protection in violation of this
provision, your shares could be forfeited to the Mexican government.



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Our bylaws may only be enforced in Mexico

Our
bylaws provide that legal actions relating to the execution, interpretation or performance of the bylaws may be brought only in Mexican courts. As a result, it may be difficult for non-Mexican shareholders to
enforce their shareholder rights pursuant to the bylaws.

It may be difficult to enforce civil liabilities against us or our directors,
officers and controlling persons

América Móvil is organized under the laws of Mexico, with its principal place of business in Mexico City,
and most of our directors, officers and controlling persons reside outside the United States. In addition, all or a substantial portion of our assets and their assets are located outside of the United States. As a result, it may be difficult for
investors to effect service of process within the United States on such persons or to enforce judgments against them, including in any action based on civil liabilities under U.S. federal securities laws. There is doubt as to the enforceability
against such persons in Mexico, whether in original actions or in actions to judgments of U.S. courts, of liabilities based solely on U.S. federal securities laws.

You may not be entitled to participate in future preemptive rights offerings

Under Mexican law, if we issue new shares for cash as part of certain capital increases, we must grant our shareholders the right to purchase a sufficient number of
shares to maintain their existing ownership percentage in América Móvil. Rights to purchase shares in these circumstances are known as preemptive rights. Our shareholders do not have preemptive rights in certain circumstances such as
mergers, convertible debentures, public offers and placement of repurchased shares. We may not be legally permitted to allow holders of ADSs or holders of L Shares or A Shares in the United States to exercise any preemptive rights in any future
capital increase unless we file a registration statement with the U.S. Securities and Exchange Commission (the SEC) with respect to that future issuance of shares. At the time of any future capital increase, we will evaluate the costs
and potential liabilities associated with filing a registration statement with the SEC and any other factors that we consider important to determine whether we will file such a registration statement.

We cannot assure you that we will file a registration statement with the SEC to allow holders of ADSs or U.S. holders of L Shares or A Shares to participate in a
preemptive rights offering. As a result, the equity interest of such holders in América Móvil may be diluted proportionately. In addition, under current Mexican law, it is not practicable for the depositary to sell preemptive rights
and distribute the proceeds from such sales to ADS holders.

RISKS RELATING TO DEVELOPMENTS IN MEXICO AND OTHER COUNTRIES

Economic, political and social conditions in Latin America, the United States, the Caribbean and Europe may adversely affect our business

Our financial performance may be significantly affected by general economic, political and social conditions in the markets where we operate. Many
countries in Latin America and the Caribbean, including Mexico, Brazil and Argentina, have suffered significant economic, political and social crises in the past, and these events may occur again in the future. We cannot predict whether changes in
political administrations will result in changes in governmental policy and whether such changes will affect our business. Factors related to economic, political and social conditions that could affect our performance include:



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| |  |  | significant governmental influence over local economies;
| | - |  | --------------------------------------------------------



| |  |  | substantial fluctuations in economic growth;
| | - |  | --------------------------------------------



| |  |  | high levels of inflation;
| | - |  | -------------------------



| |  |  | changes in currency values;
| | - |  | ---------------------------



| |  |  | exchange controls or restrictions on expatriation of earnings;
| | - |  | --------------------------------------------------------------



| |  |  | high domestic interest rates;
| | - |  | -----------------------------



| |  |  | price controls;
| | - |  | ---------------



| |  |  | changes in governmental economic or tax policies;
| | - |  | -------------------------------------------------



| |  |  | imposition of trade barriers;
| | - |  | -----------------------------



| |  |  | unexpected changes in regulation; and
| | - |  | -------------------------------------



| |  |  | overall political, social and economic instability.
| | - |  | ---------------------------------------------------

Adverse economic, political and social conditions in Latin America,
the United States, the Caribbean or in Europe may inhibit demand for telecommunication services and create uncertainty regarding our operating environment or may affect our ability to renew our licenses and concessions, to maintain or increase our
market share or profitability and may have an adverse impact on future acquisition efforts, which could have a material adverse effect on our company.

Our business
may be especially affected by conditions in Mexico and Brazil, two of our largest markets. In Mexico, for example, economic conditions are strongly impacted by those of the United States. Following the U.S. elections in November 2016 and the change
in the U.S. administration, there is uncertainty regarding future U.S. policies with respect to matters of importance to Mexico and its economy, particularly including trade and migration. Changes in U.S. policy could have an adverse effect on the
Mexican economy. Additionally, in Brazil, our results of operations were adversely affected by weak economic conditions in Brazil in 2015 and 2016, and may be so affected again in the future.

Changes in exchange rates could adversely affect our financial condition and results of operations

We are affected by fluctuations in the value of the currencies in which we conduct operations compared to the currencies in which our indebtedness is denominated. Such
changes result in exchange losses or gains on our net indebtedness and accounts payable. In 2016, we reported net foreign exchange losses of Ps.40.4 billion.

In addition, currency fluctuations between the Mexican peso and the currencies of our non-Mexican subsidiaries affect our results
as reported in Mexican pesos. Currency fluctuations are expected to continue to affect our financial income and expense.



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Major devaluation or depreciation of the currencies in which we conduct operations could cause governments to impose exchange controls that
would interfere with or limit our ability to transfer funds between us and our subsidiaries

Major devaluation or depreciation of the currencies in which
we conduct operations may result in disruption of the international foreign exchange markets and may limit our ability to transfer or to convert such currencies into U.S. dollars and other currencies for the purpose of making timely payments of
interest and principal on our indebtedness. For example, although the Mexican government does not currently restrict, and for many years has not restricted, the right or ability of Mexican or foreign persons or entities to convert Mexican pesos into
U.S. dollars or to transfer other currencies out of Mexico, it could institute restrictive exchange rate policies in the future. Similarly, the Brazilian government may impose temporary restrictions on the conversion of Brazilian reals into foreign
currencies and on the remittance to foreign investors of proceeds from investments in Brazil whenever there is a serious imbalance in Brazils balance of payments or a reason to foresee a serious imbalance. The Argentine peso has experienced
significant devaluation over the last decade, and since the beginning of 2001 until President Mauricio Macri assumed office, the government has adopted restrictions on access to the foreign exchange market and the transfer of foreign currency
outside Argentina, some of which are still in effect. The Argentine government could impose further exchange controls or restrictions on the movement of capital and take other measures in the future in response to capital flight or a significant
depreciation of the Argentine peso.

Developments in other countries may affect the market price of our securities and adversely affect our
ability to raise additional financing

The market value of securities of Mexican companies is, to varying degrees, affected by economic and market
conditions in other countries, including the United States, the European Union (the EU) and emerging market countries. Although economic conditions in such countries may differ significantly from economic conditions in Mexico,
investors reactions to developments in any of these other countries may have an adverse effect on the market value of securities of Mexican issuers. Crises in the United States, the EU and emerging market countries may diminish investor
interest in securities of Mexican issuers. This could materially and adversely affect the market price of our securities, and could also make it more difficult for us to access the capital markets and finance our operations in the future on
acceptable terms or at all.



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LOGO

|                                    
|------------------------------------
|PART IV:
SHARE OWNERSHIP AND TRADING





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Share Ownership and Trading







MAJOR SHAREHOLDERS

The following table sets forth our capital structure as of March 31, 2017.



|                         |  |                             |        |  |                    |  |       |                                    |  |  |       |  
|------------------------ |  | --------------------------- | ------ |  | ------------------ |  | ----- | ---------------------------------- |  |  | ----- | -
|Series                   |  | Number of
Shares
(millions) |        |  | Percent of
Capital |  |       | Combined
A Shares
and AA
Shares(1) | 
|L Shares (no par value)  |  |                             | 44,559 |  |                    |  | 67.7  | %                                  |  |  |      |  
|AA Shares (no par value) |  |                             | 20,635 |  |                    |  | 31.4  | %                                  |  |  | 97.3  | %
|A Shares (no par value)  |  |                             | 583    |  |                    |  | 0.9   | %                                  |  |  | 2.7   | %
|Total                    |  |                             | 65,777 |  |                    |  | 100.0 | %                                  |  |  | 100.0 | %



|(1) | The AA Shares and A Shares of América Móvil, together, are entitled to elect a majority of our directors. Holders of L Shares are entitled to limited voting rights under our bylaws. See
BylawsVoting Rights under this Part IV.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

According to reports of beneficial ownership of our shares filed with the SEC, the Slim
Family may be deemed to control us through their interests in a Mexican trust that holds AA Shares and L Shares for their benefit (the Family Trust), their interest in Inversora Carso, S.A. de C.V., including its subsidiary Control
Empresarial de Capitales, S.A. de C.V. (CEC) and their direct ownership of our shares. See ManagementDirectors and ManagementExecutive Committee under Part V and Related Party Transactions under this
Part IV of this annual report.

The following table identifies owners of more than 5.0% of any series of our shares as of March 31, 2017. Except as described in
the table below and the accompanying notes, we are not aware of any holder of more than 5.0% of any series of our shares. Figures below do not include L Shares that would be held by each shareholder upon conversion of AA Shares or A Shares, as
provided for under our bylaws. See BylawsShare Capital under this Part IV and Management CompensationShare Ownership of Directors and Senior Management under Part V of this annual report.



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|                   |  |                         |        |  |                     |  |      |  
|------------------ |  | ----------------------- | ------ |  | ------------------- |  | ---- | -
|Shareholder        |  | Shares
Owned
(millions) |        |  | Percent
of
Class(1) | 
|AA Shares:         |  |                         |        |  |                     |  |      |  
|Family
Trust(2)    |  |                         | 10,894 |  |                     |  | 52.8 | %
|Inversora
Carso(3) |  |                         | 4,381  |  |                     |  | 21.2 | %
|Carlos Slim Helú   |  |                         | 1,879  |  |                     |  | 9.1  | %
|L Shares:          |  |                         |        |  |                     |  |      |  
|Inversora
Carso(3) |  |                         | 6,020  |  |                     |  | 13.5 | %
|Family
Trust(2)    |  |                         | 5,998  |  |                     |  | 13.5 | %
|Carlos Slim Helú   |  |                         | 3,072  |  |                     |  | 6.9  | %



|(1) | Percentage figures are based on the number of shares outstanding as of March 31, 2017.
|--- | --------------------------------------------------------------------------------------

|(2) | The Family Trust is a Mexican trust that holds AA Shares and L Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim
Helú, directly own an aggregate of 3,558 million AA Shares and 9,570 million L Shares representing 17.2% and 21.5%, respectively, of each series. According to beneficial ownership reports filed with the SEC, none of these members of
the Slim Family, other than Carlos Slim Helú, individually directly own more than 5.0% of any class of our shares.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Formerly known as Inmobiliaria Carso. Includes shares owned by subsidiaries of Inversora Carso. Based on beneficial ownership reports filed with the SEC, Inversora Carso is a Mexican sociedad anónima de
capital variable and may be deemed to be controlled by the Slim Family.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

As of March 31, 2017, 15.4% of the outstanding L Shares were
represented by L Share ADSs, each representing the right to receive 20 L Shares, and 99.9% of the L Share ADSs were held by 7,743 registered holders with addresses in the United States. As of such date, 33.2% of the A Shares were held in the form of
A Share ADSs, each representing the right to receive 20 A Shares, and 99.8% of the A Share ADSs were held by 3,438 registered holders with addresses in the United States. Each A Share may be exchanged at the option of the holder for one L Share.

We have no information concerning the number of holdings or holders with registered addresses in the United States that hold:



| |  |  | AA Shares;
| | - |  | ----------



| |  |  | A Shares not represented by ADSs; or
| | - |  | ------------------------------------



| |  |  | L Shares not represented by ADSs.
| | - |  | ---------------------------------



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RELATED PARTY TRANSACTIONS

Our subsidiaries purchase materials or services from a variety of companies that may be deemed for certain purposes to be under common control with us, including
Telesites, Grupo Carso and Grupo Financiero Inbursa and their respective subsidiaries. These services include insurance and banking services provided by Grupo Financiero Inbursa and its subsidiaries. In addition, we sell products in Mexico through
the Sanborns and Sears Operadora México, S.A. de C.V. (Sears) store chains. Some of our subsidiaries also purchase network construction services and materials from subsidiaries of Grupo Carso. Our subsidiaries purchase these
materials and services on terms no less favorable than they could obtain from unaffiliated parties, and would have access to other sources if our related parties ceased to provide them on competitive terms.

We lease space on telecommunications towers owed by Telesites, which we spun off in December 2015. We and Telesites have entered into an agreement providing for site
usage fees, annual price escalations and fixed annual charges that permit us to install a pre-determined amount of equipment at the sites and provide for incremental fee payments if capacity use is exceeded.
The principal economic terms of the agreement conform to the reference terms published by Telesites and approved by IFT.

Notes 6 and 17 to our audited consolidated
financial statements included in this annual report provides additional information about our related party transactions.



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DIVIDENDS

We
regularly pay cash dividends on our shares. The table below sets forth the nominal amount of dividends paid per share on each date indicated, in Mexican pesos and translated into U.S. dollars at the exchange rate on each of the respective payment
dates.



|                   |  |                 |      |  |                   |       |        | 
|------------------ |  | --------------- | ---- |  | ----------------- | ----- | ------ | 
|Payment Date       |  | Pesos per
Share |      |  | Dollars per
Share |      
|November 14, 2016  |  | Ps.             | 0.14 |  |                   | U.S.$ | 0.0068 | 
|July 15, 2016      |  | Ps.             | 0.14 |  |                   | U.S.$ | 0.0076 | 
|November 13, 2015  |  | Ps.             | 0.13 |  |                   | U.S.$ | 0.0078 | 
|September 25, 2015 |  | Ps.             | 0.30 |  |                   | U.S.$ | 0.0177 | 
|July 17, 2015      |  | Ps.             | 0.13 |  |                   | U.S.$ | 0.0082 | 
|November 14, 2014  |  | Ps.             | 0.12 |  |                   | U.S.$ | 0.0082 | 
|July 18, 2014      |  | Ps.             | 0.12 |  |                   | U.S.$ | 0.0082 | 
|November 15, 2013  |  | Ps.             | 0.11 |  |                   | U.S.$ | 0.0084 | 
|July 19, 2013      |  | Ps.             | 0.11 |  |                   | U.S.$ | 0.0084 | 

For the November 2016 dividend, we offered shareholders an option to receive the dividend in cash, as Series L shares or a combination
thereof. Holders of 50.3% of our outstanding shares elected to receive shares, resulting in delivery of 397,909,031 additional L shares.

On April 5, 2017, our
shareholders approved a dividend of Ps.0.30 per share, payable in two equal installments in July and November 2017. Shareholders entitled to the dividend will have an option to receive it in cash, as Series L shares or a combination thereof.

The declaration, amount and payment of dividends by América Móvil is determined by majority vote of the holders of AA Shares and A Shares, generally on the
recommendation of the Board of Directors, and depends on our results of operations, financial condition, cash requirements, future prospects and other factors considered relevant by the holders of AA Shares and A Shares.

Our bylaws provide that holders of AA Shares, A Shares and L Shares participate equally on a per-share basis in dividend payments
and other distributions, subject to certain preferential dividend rights of holders of L Shares. See BylawsDividend Rights and BylawsPreferential Rights of L Shares under this Part IV.



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TRADING MARKETS

Our
shares and ADSs are listed or quoted on the following markets:



|             |  |                                                                                                      
|------------ |  | -----------------------------------------------------------------------------------------------------
|L
Shares     |  | Mexican Stock ExchangeMexico City
Mercado de Valores Latinoamericanos en Euros (Latibex)Madrid(1)
|L Share ADSs |  | New York Stock ExchangeNew York                                                                     
|A Shares     |  | Mexican Stock ExchangeMexico City                                                                   
|A Share ADSs |  | New York Stock ExchangeNew York(2)                                                                  



| | (1 | )     L Shares are in the process of being delisted from the Latibex. We expect the delisting process to be completed       during the second quarter of 2017.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | A Share ADSs were delisted from the NASDAQ and listed on the NYSE as of December 13, 2016.
| | --- | ------------------------------------------------------------------------------------------



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The following table sets forth reported high and low sales prices for the L Shares on the Mexican
Stock Exchange and the reported high and low sales prices for the L Share ADSs on the NYSE.



|                         |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|------------------------ |  | --------------------------- | ----- |  | ------------------------------ | --- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                         |  | Mexican Stock Exchange      |       |  | NYSE                           |    
|                         |  | High                        |       |  | Low                            |     |       | High |  |       | Low   | 
|                         |  | (Mexican pesos per L Share) |       |  | (U.S. dollars per L Share ADS) |    
|Annual highs and lows    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2012                     |  | Ps.                         | 18.35 |  |                                | Ps. | 14.79 |      |  | U.S.$ | 28.28 |  |  | U.S.$ | 22.19 | 
|2013                     |  |                             | 16.19 |  |                                |     | 11.60 |      |  |       | 25.62 |  |  |       | 18.47 | 
|2014                     |  |                             | 17.51 |  |                                |     | 12.43 |      |  |       | 26.38 |  |  |       | 19.17 | 
|2015                     |  |                             | 16.44 |  |                                |     | 11.96 |      |  |       | 23.58 |  |  |       | 14.06 | 
|2016                     |  |                             | 13.91 |  |                                |     | 10.40 |      |  |       | 15.95 |  |  |       | 11.02 | 
|Quarterly highs and lows |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2015:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|First quarter            |  | Ps.                         | 16.37 |  |                                | Ps. | 15.20 |      |  | U.S.$ | 23.58 |  |  | U.S.$ | 19.52 | 
|Second quarter           |  |                             | 16.25 |  |                                |     | 14.70 |      |  |       | 22.27 |  |  |       | 20.10 | 
|Third quarter            |  |                             | 15.86 |  |                                |     | 13.31 |      |  |       | 21.11 |  |  |       | 16.43 | 
|Fourth quarter           |  |                             | 14.09 |  |                                |     | 11.96 |      |  |       | 17.92 |  |  |       | 14.06 | 
|2016:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|First quarter            |  | Ps.                         | 13.53 |  |                                | Ps. | 10.92 |      |  | U.S.$ | 15.55 |  |  | U.S.$ | 12.16 | 
|Second quarter           |  |                             | 13.91 |  |                                |     | 10.77 |      |  |       | 15.95 |  |  |       | 11.31 | 
|Third quarter            |  |                             | 11.97 |  |                                |     | 10.40 |      |  |       | 12.92 |  |  |       | 11.02 | 
|Fourth quarter           |  |                             | 13.36 |  |                                |     | 10.87 |      |  |       | 13.52 |  |  |       | 11.02 | 
|2017:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|First quarter            |  | Ps.                         | 13.96 |  |                                | Ps. | 12.31 |      |  | U.S.$ | 14.62 |  |  | U.S.$ | 12.16 | 
|Monthly highs and lows   |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2016:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|October                  |  | Ps.                         | 12.84 |  |                                | Ps. | 10.87 |      |  | U.S.$ | 13.44 |  |  | U.S.$ | 11.42 | 
|November                 |  |                             | 12.81 |  |                                |     | 11.50 |      |  |       | 13.52 |  |  |       | 11.02 | 
|December                 |  |                             | 13.36 |  |                                |     | 12.09 |      |  |       | 13.09 |  |  |       | 11.72 | 
|2017:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|January                  |  | Ps.                         | 14.10 |  |                                | Ps. | 12.95 |      |  | U.S.$ | 13.27 |  |  | U.S.$ | 12.24 | 
|February                 |  |                             | 13.30 |  |                                |     | 12.56 |      |  |       | 13.06 |  |  |       | 12.16 | 
|March                    |  |                             | 13.76 |  |                                |     | 12.31 |      |  |       | 14.62 |  |  |       | 12.50 | 
|April (through April
19) |  |                             | 13.76 |  |                                |     | 13.30 |      |  |       | 14.75 |  |  |       | 14.15 | 



Source: Bloomberg



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The following table sets forth reported high and low sales prices for the A Shares on the Mexican
Stock Exchange and the reported high and low sales prices for the A Share ADSs on the NASDAQ from 2012 until 2016 when the shares were delisted from the NASDAQ.



|                         |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|------------------------ |  | --------------------------- | ----- |  | ------------------------------ | --- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                         |  | Mexican Stock Exchange      |       |  | NASDAQ                         |    
|                         |  | High                        |       |  | Low                            |     |       | High |  |       | Low   | 
|                         |  | (Mexican pesos per A Share) |       |  | (U.S. dollars per A Share ADS) |    
|Annual highs and lows    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2012                     |  | Ps.                         | 18.46 |  |                                | Ps. | 14.01 |      |  | U.S.$ | 28.08 |  |  | U.S.$ | 21.13 | 
|2013                     |  |                             | 16.00 |  |                                |     | 11.60 |      |  |       | 25.55 |  |  |       | 18.56 | 
|2014                     |  |                             | 17.61 |  |                                |     | 12.50 |      |  |       | 26.46 |  |  |       | 19.16 | 
|2015                     |  |                             | 16.14 |  |                                |     | 11.91 |      |  |       | 23.52 |  |  |       | 13.99 | 
|2016                     |  |                             | 13.91 |  |                                |     | 10.71 |      |  |       | 15.93 |  |  |       | 10.83 | 
|Quarterly highs and lows |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2015:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|First quarter            |  | Ps.                         | 16.60 |  |                                | Ps. | 15.01 |      |  | U.S.$ | 23.52 |  |  | U.S.$ | 19.50 | 
|Second quarter           |  |                             | 16.14 |  |                                |     | 14.35 |      |  |       | 22.10 |  |  |       | 20.02 | 
|Third quarter            |  |                             | 15.78 |  |                                |     | 13.30 |      |  |       | 21.08 |  |  |       | 16.36 | 
|Fourth quarter           |  |                             | 14.02 |  |                                |     | 11.91 |      |  |       | 17.93 |  |  |       | 13.99 | 
|2016:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|First quarter            |  | Ps.                         | 13.50 |  |                                | Ps. | 11.28 |      |  | U.S.$ | 15.71 |  |  | U.S.$ | 12.07 | 
|Second quarter           |  |                             | 13.91 |  |                                |     | 10.97 |      |  |       | 15.93 |  |  |       | 11.34 | 
|Third quarter            |  |                             | 11.83 |  |                                |     | 10.71 |      |  |       | 12.92 |  |  |       | 11.03 | 
|Fourth
quarter(1)        |  |                             | 13.41 |  |                                |     | 10.82 |      |  |       | 13.18 |  |  |       | 10.83 | 
|Monthly highs and lows   |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2016:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|October                  |  | Ps.                         | 12.45 |  |                                | Ps. | 10.82 |      |  | U.S.$ | 13.18 |  |  | U.S.$ | 11.00 | 
|November                 |  |                             | 12.40 |  |                                |     | 11.50 |      |  |       | 13.10 |  |  |       | 10.83 | 
|December(1)              |  |                             | 13.41 |  |                                |     | 12.25 |      |  |       | 13.02 |  |  |       | 11.57 | 



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|                         |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|------------------------ |  | --------------------------- | ----- |  | ------------------------------ | --- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                         |  | Mexican Stock Exchange      |       |  | NYSE                           |    
|                         |  | High                        |       |  | Low                            |     |       | High |  |       | Low   | 
|                         |  | (Mexican pesos per A Share) |       |  | (U.S. dollars per A Share ADS) |    
|Quarterly highs and lows |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2017:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|First quarter            |  | Ps.                         | 14.00 |  |                                | Ps. | 12.02 |      |  | U.S.$ | 14.46 |  |  | U.S.$ | 11.89 | 
|Monthly highs and lows   |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|2017:                    |  |                             |       |  |                                |     |       |      |  |       |       |  |  |       |       | 
|January                  |  | Ps.                         | 14.00 |  |                                | Ps. | 12.77 |      |  | U.S.$ | 13.38 |  |  | U.S.$ | 11.85 | 
|February                 |  |                             | 13.39 |  |                                |     | 12.51 |      |  |       | 13.19 |  |  |       | 12.05 | 
|March                    |  |                             | 13.36 |  |                                |     | 12.02 |      |  |       | 14.46 |  |  |       | 12.28 | 
|April (through April
19) |  |                             | 13.70 |  |                                |     | 12.90 |      |  |       | 14.64 |  |  |       | 14.02 | 



Source: Bloomberg

|(1) | Includes sales prices for the A share ADSs before and after December 13, 2016, when they were delisted from the NASDAQ and listed on the NYSE.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------



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BYLAWS

Set forth
below is a brief summary of certain significant provisions in our bylaws, as amended and restated from time to time, and Mexican law. This description does not purport to be complete and is qualified by reference to our bylaws, an English
translation of which has been filed with the SEC as an exhibit and is incorporated by reference to this annual report. For a description of the provisions of our bylaws relating to our Board of Directors, Executive and Audit and Corporate Practices
Committees and External Auditor, see Management under Part V of this annual report.

Organization and Register

América Móvil is a sociedad anónima bursátil de capital variable organized in Mexico under the Mexican General Corporations Law
(Ley General de Sociedades Mercantiles) and the Mexican Securities Market Law (Ley del Mercado de Valores). It was registered in the Public Registry of Commerce of Mexico City on October 13, 2000 under the number 263,770.

Corporate Purpose

Our main corporate purpose,
as set out in Article Three of our bylaws, is to promote, incorporate, organize, exploit, acquire and participate in the capital stock or assets of all types of civil or commercial companies, partnerships and industrial, commercial, service or other
entities, whether domestic or foreign, and to participate in the management or liquidation thereof.

Share Capital

Our capital stock comprises AA Shares, without par value, A Shares, without par value, and L Shares, without par value. All of the outstanding shares are fully paid and non-assessable.

Holders of AA Shares and A Shares have full voting rights. Holders of L Shares may vote only in limited
circumstances as described under Voting Rights under this Part IV. The rights of holders of all series of capital stock are identical except for the voting rights and the limitations on
non-Mexican ownership of AA Shares. Any changes in the rights of the holders of a series of capital stock must be approved by a majority of the holders of that series. The AA Shares, which must always
represent at least 51.0% of the combined AA Shares and A Shares, may be owned only by holders that qualify as Mexican investors as defined in the Foreign Investment Law (Ley de Inversión Extranjera) and our bylaws. See
Limitations on Share Ownership under this Part IV.

Each AA Share or A Share may be exchanged at the option of the holder for one L Share, provided
that the AA Shares may never represent less than 20.0% of our outstanding capital stock or less than 51.0% of our combined AA Shares and A Shares.

Voting Rights

Each AA Share and A Share entitles the holder thereof to one vote at any meeting of our shareholders. Each L Share
entitles the holder to one vote at any meeting at which holders of L Shares are entitled to vote. Holders of L Shares are entitled to vote to elect only two members of the Board of Directors and the corresponding alternate directors, as well as on
the following matters:



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| |  |  | our transformation from one type of company to another;
| | - |  | -------------------------------------------------------



| |  |  | any merger involving us;
| | - |  | ------------------------



| |  |  | the extension of our authorized corporate life;
| | - |  | -----------------------------------------------



| |  |  | our voluntary dissolution;
| | - |  | --------------------------



| |  |  | any change in our corporate purpose;
| | - |  | ------------------------------------



| |  |  | any transaction that represents 20.0% or more of the Companys consolidated assets;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | any change in our state of incorporation;
| | - |  | -----------------------------------------



| |  |  | removal of our shares from listing on the Mexican Stock Exchange or any foreign stock exchange; and
| | - |  | ---------------------------------------------------------------------------------------------------



| |  |  | any action that would prejudice the rights of holders of L Shares.
| | - |  | ------------------------------------------------------------------

A resolution on any of the specified matters requires
the affirmative vote of both a majority of all outstanding shares and a majority of the AA Shares and the A Shares voting together.

Under Mexican law, holders of
shares of any series are also entitled to vote as a class on any action that would prejudice the rights of holders of shares of such series, and a holder of shares of such series would be entitled to judicial relief against any such action taken
without such a vote. There are no other procedures for determining whether a proposed shareholder action requires a class vote, and Mexican law does not provide extensive guidance on the criteria to be applied in making such a determination.

Shareholders Meetings

General
shareholders meetings may be ordinary meetings or extraordinary meetings. Extraordinary general meetings are those called to consider certain matters specified in Article 182 of the Mexican General Corporations Law, including, principally,
amendments of the bylaws, liquidation, merger and transformation from one type of company to another, as well as to consider the removal of our shares from listing on the Mexican Stock Exchange or any foreign stock exchange. General meetings called
to consider all other matters are ordinary meetings. The two directors elected by the holders of L Shares are elected at a special meeting of holders of L Shares. All other matters on which holders of L Shares are entitled to vote would be
considered at an extraordinary general meeting.

A special meeting of the holders of L Shares must be held each year for the election or reelection of directors. An
ordinary general meeting of the holders of AA Shares and A Shares must be held each year to consider the approval of the financial statements for the preceding fiscal year, to elect or reelect directors and to determine the allocation of the profits
of the preceding year. Transactions that represent 20.0% or more of our consolidated assets in any fiscal year must be approved by an ordinary general shareholder meeting of all shareholders, including holders of L Shares.

The quorum for an ordinary general meeting of the AA Shares and A Shares is 50.0% of such shares, and action may be taken by a majority of the shares present. If a
quorum is not available, a second meeting may be called at which action may be taken by a majority of the AA Shares and A Shares present, regardless of the number of such shares. Special meetings of holders of L Shares are governed by the same rules
applicable to ordinary general meetings of holders of AA Shares and A Shares. The quorum for an extraordinary general meeting at which holders of L Shares may not vote is 75.0% of the AA Shares and A



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Shares, and the quorum for an extraordinary general meeting at which holders of L Shares are
entitled to vote is 75.0% of the outstanding capital stock. If a quorum is not available in either case, a second meeting may be called and action may be taken, provided a majority of the shares entitled to vote is present. Whether on first or
second call, actions at an extraordinary general meeting may be taken by a majority vote of the AA Shares and A Shares outstanding and, on matters which holders of L Shares are entitled to vote, a majority vote of all the capital stock.

Holders of 20.0% of our outstanding capital stock may have any shareholder action set aside by filing a complaint with a court of law within 15 days after the close of
the meeting at which such action was taken and showing that the challenged action violates Mexican law or our bylaws. In addition, any holder of our capital stock may bring an action at any time within five years challenging any shareholder action.
Relief under these provisions is only available to holders:



| |  |  | who were entitled to vote on, or whose rights as shareholders were adversely affected by, the challenged shareholder action; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------



| |  |  | whose shares were not represented when the action was taken or, if represented, were voted against it.
| | - |  | ------------------------------------------------------------------------------------------------------

Shareholders meetings may be called by the Board of Directors, its chairman, its corporate secretary, the Chairman of the Audit and Corporate Practices Committee
or a court. The Chairman of the Board of Directors or the Chairman of the Audit and Corporate Practices Committee may be required to call a meeting of shareholders by the holders of 10.0% of the outstanding capital stock. Notice of meetings must be
published in the Official Gazette or a newspaper of general circulation in Mexico City at least 15 days prior to the meeting.

Under our bylaws, a shareholder is
required to deposit its shares with a custodian in order to attend a shareholders meeting. A holder of ADSs will not be able to meet this requirement, and accordingly is not entitled to attend shareholders meetings. A holder of ADSs is
entitled to instruct the depositary as to how to vote the shares represented by ADSs, in accordance with procedures provided for in the deposit agreements. However, a holder of ADSs will not be able to vote its shares directly at a
shareholders meeting or to appoint a proxy to do so.

Dividend Rights

At the annual ordinary general meeting of holders of AA Shares and A Shares, the Board of Directors submits our financial statements for the previous fiscal year,
together with a report thereon by the Board, to the holders of AA Shares and A Shares for approval. The holders of AA Shares and A Shares, once they have approved the financial statements, determine the allocation of our net profits for the
preceding year. They are required by law to allocate 5.0% of such net profits to a legal reserve, which is not thereafter available for distribution except as a stock dividend, until the amount of the legal reserve equals 20.0% of our capital stock.
The remainder of net profits is available for distribution.

All shares outstanding at the time a dividend or other distribution is declared are entitled to
participate in such dividend or other distribution, subject to certain preferential rights of the L Shares. See Preferential Rights of L Shares under this Part IV.



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Preferential Rights of L Shares

Holders of L Shares are entitled to receive a cumulative preferred annual dividend of 5% of their paid-in capital (valor teórico) before any dividends are
payable in respect of any other class of América Móvil capital stock. If we pay dividends with respect to any fiscal year in addition to the L Share preferred dividend, such dividends must be allocated:



| |  |  | first, to the payment of dividends with respect to the A Share and AA Shares, in an equal amount per share, up to the amount of the L Share preferred dividend, and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | second, to the payment of dividends with respect to all classes of América Móvil shares such that the dividend per share is equal.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------

Upon our liquidation, holders of L Shares will be entitled to a liquidation preference equal to:



| |  |  | accrued but unpaid L Share preferred dividends, plus
| | - |  | ----------------------------------------------------



| |  |  | 5% of their paid-in capital (valor teórico) (representing the capital attributable to such shares as set forth in our bylaws) before any distribution is made in respect of our other capital stock in
accordance with Article 113 of the Mexican General Corporations Law.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Following payment in full of any such amount, holders of AA Shares and A
Shares are entitled to receive, if available, an amount per share equal to the liquidation preference paid per L Share. Following payment in full of the foregoing amounts, all shareholders share equally, on a
per-share basis, in any remaining amounts payable in respect of our capital stock.

Limitation on
Capital Increases

Our bylaws require that any capital increase be represented by new shares of each series in proportion to the number of shares of each
series outstanding.

Preemptive Rights

In
the event of a capital increase, except in certain circumstances such as mergers, convertible debentures, public offers and placement of repurchased shares, a holder of existing shares of a given series has a preferential right to subscribe for a
sufficient number of shares of the same series to maintain the holders existing proportionate holdings of shares of that series. Preemptive rights must be exercised within the next 15 calendar days following the publication of notice of the
capital increase in the Official Gazette and a newspaper of general circulation in Mexico City. Under Mexican law, preemptive rights cannot be traded separately from the corresponding shares that give rise to such rights. As a result, there is no
trading market for the rights in connection with a capital increase. Holders of ADSs may exercise preemptive rights only through the depositary. We are not required to take steps that may be necessary to make this possible.

Limitations on Share Ownership

Our bylaws
provide that at least 20.0% of our capital stock must consist of AA Shares. Our bylaws also provide that A Shares and L Shares together cannot represent more than 80.0% of our capital stock. AA Shares can only be held or acquired by:



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| |  |  | Mexican citizens;
| | - |  | -----------------



| |  |  | Mexican corporations whose capital stock is held completely by Mexican citizens;
| | - |  | --------------------------------------------------------------------------------



| |  |  | Mexican corporations in which at least 51.0% of the capital stock may only be held or acquired by (i) Mexican citizens or (ii) Mexican corporations;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Mexican credit and insurance companies;
| | - |  | ---------------------------------------



| |  |  | Mexican investment companies operating under the Investment Companies Law (Ley de Sociedades de Inversión) and Mexican institutional investors as defined in the Mexican Securities Market Law; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Trusts expressly permitted to acquire AA Shares in accordance with Mexican law and in which (i) the majority of the trustees rights are held by Mexican citizens, corporations whose capital stock is held by
Mexican citizens in its majority, and Mexican credit, insurance and investment companies or (ii) the AA Shares controlled by the trust represent a minority of the outstanding AA Shares and are voted in the same manner as the majority of the
outstanding AA Shares.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

If a foreign government or state acquires our AA Shares, such shares would immediately be rendered without effect or value.

Non-Mexican investors cannot hold AA Shares except through trusts that effectively neutralize their votes.

Our bylaws include a provision called a foreign exclusion clause. Under the foreign exclusion clause, ownership of our shares is restricted to holders that qualify as
Mexican investors under Mexican law. The foreign exclusion clause does not apply to the L Shares, and under transitional provisions adopted by our shareholders, it does not limit foreign ownership of A Shares outstanding as of the date of the
shareholders meeting approving the amendment.

Restrictions on Certain Transactions

Our bylaws provide that any transfer of more than 10.0% of the combined A Shares and AA Shares, effected in one or more transactions by any person or group of persons
acting in concert, requires prior approval by our Board of Directors. If the Board of Directors denies such approval, however, Mexican law and our bylaws require it to designate an alternate transferee, who must pay market price for the shares as
quoted on the Mexican Stock Exchange.

Restrictions on Deregistration in Mexico

Our shares are registered with the RNV maintained by the CNBV, as required under the Mexican Securities Market Law and regulations issued by the CNBV.

If we wish to cancel our registration, or if it is cancelled by the CNBV, we are required to conduct a public offer to purchase all of the outstanding shares prior to
such cancellation. Such offer shall be addressed exclusively to those persons other than the members of the controlling group of shareholders, who were shareholders or holders of other securities representing such shares (i) as of the date set
forth by the CNBV, if the registration is cancelled by resolution thereof or (ii) as of the date of the resolution adopted by the general extraordinary shareholders meeting, if the registration is cancelled voluntarily.

Our bylaws provide that if, after the public offer is concluded, there are still outstanding shares held by the general public, América Móvil will be
required to create a trust for a period of six months, into which we will



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be required to contribute funds in an amount sufficient to purchase, at the same price as the
offer price, the number of outstanding shares held by the general public that did not participate in the offer.

Unless the CNBV authorizes otherwise, upon the prior
approval of the Board of Directors, which must take into account the opinion of the audit and corporate practices committee, the offer price will be the higher of: (i) the average of the closing price during the previous 30 days on which the
shares may have been quoted or (ii) the book value of the shares in accordance with the most recent quarterly report submitted to the CNBV and to the Mexican Stock Exchange.

The voluntary cancellation of the registration shall be subject to (i) the prior authorization of the CNBV and (ii) the authorization of not less than 95.0% of
the outstanding capital stock in a general extraordinary shareholders meeting.

Tender Offer Requirement

Our bylaws provide that any purchasers or group of purchasers that obtain or increase a significant participation (i.e., 30.0% or more) in our capital stock without
conducting a previous public offer, in accordance with the applicable rules issued by the CNBV, will not have the right to exercise the corporate rights of their shares, and we will not register such shares in the share registry book.

Other Provisions

Variable capital. We
are permitted to issue shares constituting fixed capital and shares constituting variable capital. All of our outstanding shares of capital stock constitute fixed capital. The issuance of variable capital shares, unlike the issuance of fixed capital
shares, does not require an amendment of the bylaws, although it does require a majority vote of the AA Shares and the A Shares.

Forfeiture of shares. As
required by Mexican law, our bylaws provide that any non-Mexican person who at the time of incorporation or at any time thereafter acquires an interest or participation in our capital shall be considered, by
virtue thereof, as Mexican in respect thereof and shall be deemed to have agreed not to invoke the protection of his own government, under penalty, in case of breach of such agreement, of forfeiture to the nation of such interest or participation.
Under this provision, a non-Mexican shareholder is deemed to have agreed not to invoke the protection of his own government by asking such government to interpose a diplomatic claim against the Mexican
government with respect to the shareholders rights as a shareholder, but is not deemed to have waived any other rights it may have, including any rights under U.S. federal securities laws, with respect to its investment in América
Móvil. If the shareholder invokes such governmental protection in violation of this agreement, its shares could be forfeited to the Mexican government. Mexican law requires that such a provision be included in the bylaws of all Mexican
corporations unless such bylaws prohibit ownership of shares by non-Mexican persons.

Exclusive jurisdiction. Our
bylaws provide that legal actions relating to the execution, interpretation or performance of the bylaws shall be brought only in Mexican courts.

Duration.
Our existence under the bylaws continues indefinitely.

Purchase of our own shares. According to the bylaws, we may repurchase our shares on the Mexican Stock
Exchange at any time at the then-prevailing market price. Any such repurchase must conform to guidelines established by the Board of Directors, and the amount available to repurchase shares must be approved by



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the general ordinary shareholders meeting. The economic and voting rights corresponding to
repurchased shares may not be exercised during the period in which we own such shares, and such shares are not deemed to be outstanding for purposes of calculating any quorum or vote at any shareholders meeting during such period.

Conflict of interest. A shareholder that votes on a business transaction in which its interest conflicts with our interests may be liable for damages, but only if
the transaction would not have been approved without its vote.

Appraisal rights. Whenever shareholders approve a change of corporate purposes, change of
nationality of the corporation or transformation from one type of company to another, any shareholder entitled to vote on such change that has voted against it may withdraw from América Móvil and receive the book value attributable to
its shares, provided it exercises its right within 15 days following the adjournment of the meeting at which the change was approved.

Rights of Shareholders

The protections afforded
to minority shareholders under Mexican law are different from those in the United States and many other jurisdictions. The substantive law concerning fiduciary duties of directors has not been the subject of extensive judicial interpretation in
Mexico, unlike states in the United States where duties of care and loyalty elaborated by judicial decisions help to shape the rights of minority shareholders. Mexican civil procedure does not contemplate class actions, which in U.S. courts permit
shareholders to bring actions on behalf of other shareholders. Shareholders cannot challenge corporate action taken at a shareholders meeting unless they meet certain procedural requirements, as described above under Shareholders
Meetings.

As a result of these factors, in practice it may be more difficult for our minority shareholders to enforce rights against us or our directors or
controlling shareholders than it would be for shareholders of a U.S. company.

In addition, under U.S. federal securities laws, as a foreign private issuer, we are
exempt from certain rules that apply to domestic U.S. issuers with equity securities registered under the Exchange Act, including the proxy solicitation rules and the rules requiring disclosure of share ownership by directors, officers and certain
shareholders. We are also exempt from many corporate governance requirements of the NYSE. For a comparison of our corporate governance policies and the corporate governance requirements of the NYSE, see Corporate Governance under Part V
of this annual report.

Enforceability of Civil Liabilities

We are organized under the laws of Mexico, and most of our directors, officers and controlling persons reside outside of the United States. In addition, all or a
substantial portion of our assets and their assets are located in Mexico. As a result, it may be difficult for investors to effect service of process within the United States on such persons. It may also be difficult to enforce against them, either
inside or outside the United States, judgments obtained against them in U.S. courts, or to enforce in U.S. courts judgments obtained against them in courts in jurisdictions outside of the United States, in any action based on civil liabilities under
U.S. federal securities laws. There is doubt as to the enforceability against such persons in Mexico, whether in original actions or in actions to enforce judgments of U.S. courts, of liabilities based solely on U.S. federal securities laws.



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DEPOSITARY SHARES

American Depositary Shares

Citibank, N.A. (the Depositary) serves as the depositary for our ADSs. ADS holders are
required to pay various fees to the Depositary, and the Depositary may refuse to provide any service for which a fee is assessed until the applicable fee has been paid.

ADS holders are required to pay the Depositary amounts in respect of expenses incurred by the Depositary or its agents on behalf of ADS holders, including expenses
arising from (i) taxes or other governmental charges, (ii) registration fees payable to us that may be applicable to the transfer of shares upon deposits to or withdrawals from the ADS program, (iii) cable, telex and facsimile
transmission, (iv) conversion of foreign currency into U.S. dollars, (v) compliance with exchange control regulations and other regulatory requirements or (vi) servicing of the ADSs or the shares underlying ADSs. The Depositary may
decide in its sole discretion to seek payment either by billing holders or by deducting the fee from one or more cash dividends or other cash distributions.

ADS
holders are also required to pay additional fees for certain services provided by the Depositary, as set forth in the table below.



|                                                                                                                         |  |                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------
|Depositary service                                                                                                       |  | Fee payable by ADS holders                                                                                           
|Issuance and delivery of ADSs, including in connection with
share distributions, purchase rights, sales and stock splits |  | Up to U.S.$5.00 per 100 ADSs (or portion thereof)                                                                    
|Cash distributions                                                                                                       |  | Up to U.S.$5.00 per 100 ADSs (or portion thereof)                                                                    
|Surrender, withdrawal or cancellation                                                                                    |  | Up to U.S.$5.00 per 100 ADSs (or portion thereof)                                                                    
|Share distributions other than ADSs or rights to purchase
additional ADSs (i.e., spin-off shares)                        |  | Up to U.S.$5.00 per 100 ADSs (or portion thereof)                                                                    
|ADS services                                                                                                             |  | Up to U.S.$5.00 per 100 ADSs (or portion thereof) held on the applicable record date(s) established by the Depositary

Payments by the Depositary

The Depositary reimburses us for certain expenses we incur in connection with the ADR program, subject to a ceiling agreed between us and the Depositary from time to
time. These reimbursable expenses currently include legal and accounting fees, listing fees, investor relations expenses and fees payable to service providers for the distribution of material to ADR holders. During the year ended December 31,
2016, the Depositary did not pay us for any reimbursable expenses.





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PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

We periodically repurchase our L Shares and A Shares on the open market using funds authorized by our shareholders specifically for the repurchase of L Shares and A
Shares by us at our discretion. In the annual ordinary shareholders meeting held on April 5, 2017, our shareholders authorized an allocation of Ps.3.0 billion to repurchase L Shares and A Shares from April 2017 to April 2018.

The following tables set out information concerning purchases of our L Shares and A Shares by us and our affiliated purchasers in 2016. We did not repurchase our L
Shares or A Shares other than through the share repurchase program.



|               |  |                                      |  |                                |  |                                                                                   |  |                                                                                                     |       |  |  |  |  |             |  |  |  |  |                | 
|-------------- |  | ------------------------------------ |  | ------------------------------ |  | --------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------- | ----- |  |  |  |  | ----------- |  |  |  |  | -------------- | 
|Period         |  | Total Number ofL Shares Purchased(1) |  | Average Price Paid
per L Share |  | Total Number of
L Share Purchased as
Part of Publicly Announced
Plans or Programs |  | Approximate Mexican PesoValue of L Shares that 
May Yet Be Purchased Under
the Plans or
Programs(2)
|January 2016   |  |                                      |  | 64,068,937                     |  |                                                                                   |  |                                                                                                     | 11.70 |  |  |  |  | 50,167,100  |  |  |  |  | 17,357,072,743 | 
|February 2016  |  |                                      |  | 76,840,133                     |  |                                                                                   |  |                                                                                                     | 12.29 |  |  |  |  | 71,840,133  |  |  |  |  | 16,473,963,356 | 
|March 2016     |  |                                      |  | 51,990,000                     |  |                                                                                   |  |                                                                                                     | 13.18 |  |  |  |  | 51,990,000  |  |  |  |  | 15,792,570,193 | 
|April 2016     |  |                                      |  | 99,054,600                     |  |                                                                                   |  |                                                                                                     | 13.06 |  |  |  |  | 87,944,000  |  |  |  |  | 26,638,505,168 | 
|May 2016       |  |                                      |  | 100,179,765                    |  |                                                                                   |  |                                                                                                     | 11.69 |  |  |  |  | 86,000,000  |  |  |  |  | 25,639,036,336 | 
|June 2016      |  |                                      |  | 85,010,000                     |  |                                                                                   |  |                                                                                                     | 11.32 |  |  |  |  | 85,010,000  |  |  |  |  | 24,682,035,598 | 
|July 2016      |  |                                      |  | 48,000,000                     |  |                                                                                   |  |                                                                                                     | 11.33 |  |  |  |  | 43,000,000  |  |  |  |  | 24,194,150,571 | 
|August 2016    |  |                                      |  | 91,596,206                     |  |                                                                                   |  |                                                                                                     | 11.08 |  |  |  |  | 23,454,558  |  |  |  |  | 23,936,051,855 | 
|September 2016 |  |                                      |  | 20,500,000                     |  |                                                                                   |  |                                                                                                     | 11.16 |  |  |  |  | 20,500,000  |  |  |  |  | 23,708,680,570 | 
|October 2016   |  |                                      |  | 18,500,000                     |  |                                                                                   |  |                                                                                                     | 11.28 |  |  |  |  | 18,500,000  |  |  |  |  | 23,501,134,176 | 
|November 2016  |  |                                      |  | 10,000,000                     |  |                                                                                   |  |                                                                                                     | 12.12 |  |  |  |  | 10,000,000  |  |  |  |  | 23,380,649,551 | 
|December 2016  |  |                                      |  | 47,862,598                     |  |                                                                                   |  |                                                                                                     | 12.88 |  |  |  |  | 47,862,598  |  |  |  |  | 22,761,260,580 | 
|Total          |  |                                      |  | 713,602,239                    |  |                                                                                   |  |                                                                                                     |       |  |  |  |  | 596,268,389 |  |  |  |  |                | 



|(1) | This includes purchases by us and our affiliated purchasers in 2016.
|--- | --------------------------------------------------------------------

|(2) | This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------



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|               |  |                                        |  |                                |  |                                                                                   |  |                                                                                                    |       |  |  |  |  |           |  |  |  |  |                | 
|-------------- |  | -------------------------------------- |  | ------------------------------ |  | --------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------- | ----- |  |  |  |  | --------- |  |  |  |  | -------------- | 
|Period         |  | Total Number of
A Shares 
Purchased(1) |  | Average Price Paid
per A Share |  | Total Number of
A Shares Purchased as
Part of Publicly AnnouncedPlans or Programs |  | Approximate Mexican Peso
Value of A Shares that May
Yet Be Purchased Underthe Plans or
Programs(2)
|January 2016   |  |                                        |  | 2,832,900                      |  |                                                                                   |  |                                                                                                    | 12.27 |  |  |  |  | 2,832,900 |  |  |  |  | 17,357,072,743 | 
|February 2016  |  |                                        |  | 159,867                        |  |                                                                                   |  |                                                                                                    | 12.57 |  |  |  |  | 159,867   |  |  |  |  | 16,473,963,356 | 
|March 2016     |  |                                        |  |                               |  |                                                                                   |  |                                                                                                    |      |  |  |  |  |          |  |  |  |  | 15,792,570,193 | 
|April 2016     |  |                                        |  | 56,000                         |  |                                                                                   |  |                                                                                                    | 12.04 |  |  |  |  | 56,000    |  |  |  |  | 26,638,505,168 | 
|May 2016       |  |                                        |  |                               |  |                                                                                   |  |                                                                                                    |      |  |  |  |  |          |  |  |  |  | 25,639,036,336 | 
|June 2016      |  |                                        |  |                               |  |                                                                                   |  |                                                                                                    |      |  |  |  |  |          |  |  |  |  | 24,682,035,598 | 
|July 2016      |  |                                        |  | 27,484                         |  |                                                                                   |  |                                                                                                    | 11.28 |  |  |  |  | 27,484    |  |  |  |  | 24,194,150,571 | 
|August 2016    |  |                                        |  | 586,636                        |  |                                                                                   |  |                                                                                                    | 10.85 |  |  |  |  | 55,442    |  |  |  |  | 23,936,051,855 | 
|September 2016 |  |                                        |  |                               |  |                                                                                   |  |                                                                                                    |      |  |  |  |  |          |  |  |  |  | 23,708,680,570 | 
|October 2016   |  |                                        |  |                               |  |                                                                                   |  |                                                                                                    |      |  |  |  |  |          |  |  |  |  | 23,501,134,176 | 
|November 2016  |  |                                        |  |                               |  |                                                                                   |  |                                                                                                    |      |  |  |  |  |          |  |  |  |  | 23,380,649,551 | 
|December 2016  |  |                                        |  | 508,949                        |  |                                                                                   |  |                                                                                                    | 12.97 |  |  |  |  | 508,949   |  |  |  |  | 22,761,260,580 | 
|Total          |  |                                        |  | 4,171,836                      |  |                                                                                   |  |                                                                                                    |       |  |  |  |  | 3,640,642 |  |  |  |  |                | 



|(1) | This includes purchases by us and our affiliated purchasers in 2016.
|--- | --------------------------------------------------------------------

|(2) | This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------



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TAXATION OF SHARES AND ADSs

The following summary contains a description of certain Mexican federal and U.S. federal income tax consequences of the acquisition, ownership and disposition of L
Shares, A Shares, L Share ADSs or A Share ADSs, but it does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a decision to purchase, hold or sell shares or ADSs.

The Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion and the protocols thereto between the United States and Mexico currently in
force (together, the Tax Treaty). The United States and Mexico have also entered into an agreement concerning the exchange of information with respect to tax matters.

This discussion does not constitute, and should not be considered as, legal or tax advice to holders. The discussion is for general information purposes only and is
based upon the federal tax laws of Mexico (including the Mexican Income Tax Law (Ley del Impuesto sobre la Renta) and the Mexican Federal Tax Code) and the United States as in effect on the date of this annual report (including the Tax
Treaty), which are subject to change, and such changes may have retroactive effects. Holders of shares or ADSs should consult their own tax advisors as to the Mexican, U.S. or other tax consequences of the purchase, ownership and disposition of
shares or ADSs, including, in particular, the effect of any foreign, state or local tax laws.

MEXICAN TAX CONSIDERATIONS

The following is a general summary of the principal consequences under the Mexican Income Tax Law and the rules and regulations thereunder, as currently in effect, of an
investment in shares or ADSs by a holder that is not a resident of Mexico and that will not hold shares or ADSs or a beneficial interest therein in connection with the conduct of a trade or business through a permanent establishment in Mexico (a
nonresident holder).

For purposes of Mexican taxation, the definition of residence is highly technical and residence arises in several situations.
Generally, an individual is a resident of Mexico if he or she has established his or her home or center of vital interests in Mexico, and a corporation is considered a resident if it has its place of effective management in Mexico. However, any
determination of residence should take into account the particular situation of each person or legal entity.

If a legal entity or an individual is deemed to have a
permanent establishment in Mexico for Mexican tax purposes, all income attributable to that permanent establishment will be subject to Mexican income taxes, in accordance with applicable tax laws.



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This summary does not purport to be a comprehensive description of all the Mexican tax
considerations that may be relevant to a decision to purchase, own or dispose of the shares. In particular, this summary (i) does not describe any tax consequences arising under the laws of any state, locality, municipality or taxing
jurisdiction other than certain federal laws of Mexico and (ii) does not address all of the Mexican tax consequences that may be applicable to specific holders of the shares, including a holder:



| | a. | whose shares were not acquired through the Mexican Stock Exchange or other markets authorized by the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) or the
Mexican Federal Tax Code;
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b. | of shares or ADSs that control us;
| | -- | ----------------------------------



| | c. | that holds 10.0% or more of our shares;
| | -- | ---------------------------------------



| | d. | that is part of a group of persons for purposes of Mexican law that controls us (or holds 10.0% or more of our shares); or
| | -- | --------------------------------------------------------------------------------------------------------------------------



| | e. | that is a resident of Mexico or is a corporation resident in a tax haven (as defined by the Mexican Income Tax Law).
| | -- | --------------------------------------------------------------------------------------------------------------------

Tax Treaties

Provisions of the Tax Treaty that may affect the taxation of certain U.S. holders (as defined below) are summarized
below.

The Mexican Income Tax Law has established procedural requirements for a nonresident holder to be entitled to benefits under any of the tax treaties to which
Mexico is a party, including on dispositions and dividends. These procedural requirements include, among others, the obligation to (i) prove tax treaty residence, (ii) file tax calculations made by an authorized certified public accountant
or an informational tax statement, as the case may be, and (iii) appoint representatives in Mexico for taxation purposes. Parties related to the issuer may be subject to additional procedural requirements.

Payment of Dividends

Dividends, either in cash
or in kind, paid with respect to the L Shares, A Shares, L Share ADSs or A Share ADSs will generally be subject to a 10.0% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated
before 2014). Nonresident holders could be subject to a lower tax rate, to the extent that they are eligible for benefits under an income tax treaty to which Mexico is a party.

Taxation of Dispositions

The tax rate on income
realized by a nonresident holder from a disposition of shares through the Mexican Stock Exchange is generally 10.0%, which is applied to the net gain realized on the disposition. This tax is payable through withholding made by intermediaries.
However, such withholding does not apply to a nonresident holder who certifies that the holder is resident in a country with which Mexico has entered into an income tax treaty.



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The sale or other transfer or disposition of shares not carried out through the Mexican Stock
Exchange and not held in the form of ADSs will be subject to a 25% tax rate in Mexico, which is applicable to the gross proceeds realized from the sale. Alternatively, a nonresident holder may, subject to certain requirements, elect to pay taxes on
the net gain realized from the sale of shares at a rate of 35%.

The sale or disposition of ADSs through securities exchanges or markets recognized under the Mexican
federal tax code (which includes the NYSE and Latibex) by non-residents who are residents of a country with which Mexico has entered into an income tax treaty is not subject to income tax in Mexico under the
current tax rules. The tax treatment of such transfer of ADSs by non-residents who are also not residents of a country with which Mexico has entered into an income tax treaty is not clear under the current
Mexican tax rules.

Pursuant to the Tax Treaty, gains realized by a U.S. resident that is eligible to receive benefits pursuant to the Tax Treaty from the sale or
other disposition of shares or ADSs, even if the sale or disposition is not carried out under the circumstances described in the preceding paragraphs, will not be subject to Mexican income tax, provided that the gains are not attributable to a
permanent establishment or a fixed base in Mexico, and further provided that such U.S. holder owned less than 25% of the shares representing our capital stock (including ADSs), directly or indirectly, during
the12-month period preceding such disposition. U.S. residents should consult their own tax advisors as to their possible eligibility under the Tax Treaty.

Gains and gross proceeds realized by other nonresident holders that are eligible to receive benefits pursuant to other income tax treaties to which Mexico is a party may
be exempt from Mexican income tax, in whole or in part. Non-U.S. holders should consult their own tax advisors as to their possible eligibility under such treaties.

Other Mexican Taxes

A nonresident holder
generally will not be liable for estate, inheritance or similar taxes with respect to its holdings of shares or ADSs; provided, however, that gratuitous transfers of shares or ADSs may, in certain circumstances, result in the imposition of a Mexican
tax upon the recipient. There are no Mexican stamp, issue registration or similar taxes payable by a nonresident holder with respect to shares or ADSs.

U.S. Federal Income Tax Considerations

The following is a summary of certain U.S. federal income tax consequences to U.S. holders (as
defined below) of the acquisition, ownership and disposition of shares or ADSs. The summary does not purport to be a comprehensive description of all of the tax consequences of the acquisition, ownership or disposition of shares or ADSs. The summary
applies only to U.S. holders that will hold their shares or ADSs as capital assets and does not apply to special classes of U.S. holders, such as dealers in securities or currencies, holders with a functional currency other than the U.S. dollar,
holders of 10.0% or more of our voting shares (whether held directly or through ADSs or both), tax-exempt organizations, banks, insurance companies or other financial institutions, holders liable for the
alternative minimum tax, securities traders electing to account for their investment in their shares or ADSs on a mark-to-market basis, entities that are treated for
U.S. federal income tax purposes as partnerships or other pass-through entities or equity holders therein and persons holding their shares or ADSs in a hedging transaction or as part of a straddle or conversion transaction.



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For purposes of this discussion, a U.S. holder is a holder of shares or ADSs that is:



| |  |  | a citizen or resident of the United States of America,
| | - |  | ------------------------------------------------------



| |  |  | a corporation (or other entity taxable as a corporation) organized under the laws of the United States of America or any state thereof or
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------



| |  |  | otherwise subject to U.S. federal income taxation on a net income basis with respect to the shares or ADSs.
| | - |  | -----------------------------------------------------------------------------------------------------------

Each U.S.
holder should consult such holders own tax advisor concerning the overall tax consequences to it of the ownership or disposition of shares or ADSs that may arise under foreign, state and local laws.

Treatment of ADSs

In general, a U.S. holder of
ADSs will be treated as the owner of the shares represented by those ADSs for U.S. federal income tax purposes. Deposits or withdrawals of shares by U.S. holders in exchange for ADSs will not result in the realization of gain or loss for U.S.
federal income tax purposes. U.S. holders that withdraw any shares should consult their own tax advisors regarding the treatment of any foreign currency gain or loss on any pesos received in respect of such shares.

Taxation of Distributions

In general, a U.S.
holder will treat the gross amount of distributions we pay, without reduction for Mexican withholding tax, as dividend income for U.S. federal income tax purposes to the extent of our current and accumulated earnings and profits. Because we do not
expect to maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that distributions paid to U.S. holders generally will be reported as dividends. In general, the gross amount of any dividends will
be includible in the gross income of a U.S. holder as ordinary income on the day on which the dividends are received by the U.S. holder, in the case of shares, or by the depositary, in the case of ADSs.

Dividends will be paid in pesos and will be includible in the income of a U.S. holder in a U.S. dollar amount calculated by reference to the exchange rate in effect on
the date that they are received by the U.S. holder, in the case of shares, or by the depositary, in the case of ADSs (regardless of whether such pesos are in fact converted into U.S. dollars on such date). If such dividends are converted into U.S.
dollars on the date of such receipt, a U.S. holder generally should not be required to recognize foreign currency gain or loss in respect of the dividends. U.S. holders should consult their own tax advisors regarding the treatment of foreign
currency gain or loss, if any, on any pesos received by a U.S. holder or depositary that are converted into U.S. dollars on a date subsequent to receipt. Dividends paid by us will not be eligible for the dividends-received deduction allowed to
corporations under the U.S. Internal Revenue Code of 1986, as amended (the Code).

The amount of Mexican tax withheld generally will give rise to a
foreign tax credit or deduction for U.S. federal income tax purposes. Dividends generally will constitute passive category income for purposes of the foreign tax credit (or in the case of certain U.S. holders, general category
income). The foreign tax credit rules are complex. U.S. holders should consult their own tax advisors with respect to the implications of those rules for their investments in our shares or ADSs.



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Subject to certain exceptions for short-term and hedged positions, the U.S. dollar amount of
dividends received by an individual with respect to the shares or ADSs will be subject to taxation at reduced rates if the dividends are qualified dividends. Dividends paid on the shares or ADSs will be treated as qualified dividends if
(i) (A) the shares or ADSs are readily tradable on an established securities market in the United States or (B) we are eligible for the benefits of a comprehensive tax treaty with the United States which the U.S. Treasury determines
is satisfactory for purposes of this provision and which includes an exchange of information program, and (ii) we were not, in the year prior to the year in which the dividend was paid, and are not, in the year in which the dividend is paid, a
passive foreign investment company (PFIC). The ADSs are listed on the NYSE, and will qualify as readily tradable on an established securities market in the United States so long as they are so listed. In addition, the U.S. Treasury has
determined that the Tax Treaty meets the requirements for reduced rates of taxation, and we believe we are eligible for the benefits of the Tax Treaty. Based on our audited consolidated financial statements and relevant market and shareholder data,
we believe that we were not treated as a PFIC for U.S. federal income tax purposes with respect to the 2015 or 2016 taxable year. In addition, based on our audited consolidated financial statements and our current expectations regarding the value
and nature of our assets, the sources and nature of our income and relevant market and shareholder data, we do not anticipate becoming a PFIC for our 2017 taxable year. Holders of shares or ADSs should consult their own tax advisors regarding the
availability of the reduced dividend tax rate in the light of their own particular circumstances.

Distributions of additional shares or ADSs to U.S. holders with
respect to their shares or ADSs that are made as part of a pro rata distribution to all of our shareholders generally will not be subject to U.S. federal income tax.

Taxation of Dispositions

A U.S. holder
generally will recognize capital gain or loss on the sale or other disposition of the shares or ADSs in an amount equal to the difference between the U.S. holders basis in such shares or ADSs (in U.S. dollars) and the amount realized on the
disposition (in U.S. dollars, determined at the spot rate on the date of disposition if the amount realized is denominated in a foreign currency). Gain or loss recognized by a U.S. holder on such sale or other disposition generally will be long-term
capital gain or loss if, at the time of disposition, the shares or ADSs have been held for more than one year. Long-term capital gain recognized by a U.S. holder that is an individual is taxable at reduced rates. The deductibility of a capital loss
is subject to limitations.

Gain, if any, realized by a U.S. holder on the sale or other disposition of the shares or ADSs generally will be treated as U.S. source
income for U.S. foreign tax credit purposes. Consequently, if a Mexican withholding tax is imposed on the sale or disposition of the shares, a U.S. holder that does not receive significant foreign source income from other sources may not be able to
derive effective U.S. foreign tax credit benefits in respect of such Mexican taxes. U.S. holders should consult their own tax advisors regarding the application of the foreign tax credit rules to their investment in, and disposition of, the shares
or ADSs.



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Information Reporting and Backup Withholding

Dividends on, and proceeds from the sale or other disposition of, the shares or ADSs paid to a U.S. holder generally may be subject to the information reporting
requirements of the Code and may be subject to backup withholding unless the holder:



| |  |  | establishes that it is an exempt recipient, if required, or
| | - |  | -----------------------------------------------------------



| |  |  | provides an accurate taxpayer identification number on a properly completed Internal Revenue Service Form W-9 and certifies that no loss of exemption from backup withholding has
occurred.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The amount of any backup withholding from a payment to a holder will be allowed as a credit against the U.S. holders U.S. federal
income tax liability and may entitle such holder to a refund, provided that certain required information is timely furnished to the Internal Revenue Service.

U.S. Tax Consequences for Non-U.S. holders

Distributions. A holder of shares or ADSs
that is, with respect to the United States, a foreign corporation or a non-resident alien individual (a non-U.S. holder) will generally not be subject to
U.S. federal income or withholding tax on dividends received on shares or ADSs, unless such income is effectively connected with the conduct by the holder of a U.S. trade or business.

Dispositions. A non-U.S. holder of shares or ADSs will not be subject to U.S. federal income or withholding tax on gain
realized on the sale of shares or ADSs, unless:



| |  |  | such gain is effectively connected with the conduct by the holder of a U.S. trade or business or
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | in the case of gain realized by an individual holder, the holder is present in the United States for 183 days or more in the taxable year of the sale and certain other conditions are met.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Information Reporting and Backup Withholding. Although non-U.S. holders generally are exempt from backup withholding, a non-U.S. holder may be required to comply with certification and identification procedures in order to establish its exemption from information reporting and backup withholding.



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LOGO

|                            
|----------------------------
|PART V:
CORPORATE GOVERNANCE





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Corporate Governance





MANAGEMENT

DIRECTORS

Our Board of
Directors has broad authority to manage our company. Our bylaws provide for the Board of Directors to consist of between five and 21 directors and allow for the election of an equal number of alternate directors. Directors need not be shareholders.
A majority of our directors and a majority of the alternate directors must be Mexican citizens and elected by Mexican shareholders. A majority of the holders of the AA Shares and A Shares voting together elect a majority of the directors and
alternate directors, provided that any holder or group of holders of at least 10.0% of the total AA Shares and A Shares is entitled to name one director and one alternate director. Two directors and two alternate directors, if any, are elected by a
majority vote of the holders of L Shares. Each alternate director may attend meetings of the Board of Directors and vote in the absence of the corresponding director. Directors and alternate directors are elected or reelected at each annual general
meeting of shareholders and each annual ordinary special meeting of holders of L Shares, and each serves until a successor is elected and takes office. In accordance with the Mexican Securities Market Law (Ley del Mercado de Valores), the
determination as to the independence of our directors is made by our shareholders, though the CNBV may challenge this determination. Pursuant to our bylaws and the Mexican Securities Market Law, at least 25.0% of our directors must be independent.
In order to have a quorum for a meeting of the Board of Directors, a majority of those present must be Mexican nationals.

All of the current members of the Board of
Directors, the Executive Committee and the Audit and Corporate Practices Committee were reelected, and the Corporate Secretary and the Corporate Pro-Secretary were reappointed, at the annual general
shareholders meeting held on April 5, 2017, with 14 directors elected by the AA Shares and A Shares voting together and two directors elected by the L Shares. The only alternate director was also reelected.

Our bylaws provide that the members of the Board of Directors are elected for a term of one year. Pursuant to Mexican law, members of the Board continue in their
positions after the expiration of their terms for up to an additional 30-day period if new members are not elected. Furthermore, in certain circumstances provided under the Mexican Securities Law, the Board of
Directors may elect temporary directors who then may be elected or replaced at the shareholders meetings. The names and positions of the members of the Board reelected at the annual general shareholders meeting held on April 5, 2017,
their year of birth, and information concerning their committee membership and principal business activities outside América Móvil are set forth below:

Directors elected by holders of Series AA and Series A Shares:



|                                                                    |  |                                                                               |  |                                                                                                                                                                              
|------------------------------------------------------------------- |  | ----------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Carlos Slim Domit
Chairman of the Board and the Executive Committee |  | Born: First elected:
Term expires: Principal occupation:
Other directorships: |  | 1967 2011
2018 Chairman of the Board of Telmex
Chairman of the Board of Grupo Carso, Grupo Sanborns, S.A.B. de C.V. (Grupo Sanborns) and U.S. Commercial Corp, S.A. de C.V.
|                                                                    |  | Business experience:                                                          |  | Chief Executive Officer of Sanborn Hermanos, S.A. de C.V. (Sanborn Hermanos)                                                                                               



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|                                                                                           |  |                                                                                                    |  |                                                                                                                                                                                                         
|------------------------------------------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Patrick Slim Domit
Vice Chairman and Member of the Executive Committee                     |  | Born: First elected:
Term expires: Principal occupation:
Other directorships:                      |  | 1969 2004
2018 Vice Chairman of our Board of Directors
Director of Grupo Carso, Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V. (IDEAL) and Telmex                             
|                                                                                           |  | Business experience:                                                                               |  | Chief Executive Officer of Grupo Carso and Vice President of Commercial Markets of Telmex                                                                                                               
|Daniel Hajj Aboumrad
Director and Member of the Executive Committee                        |  | Born: First elected:
Term expires: Principal occupation:
Other directorships: Business experience: |  | 1966 2000
2018 Chief Executive Officer of América Móvil
Director of Grupo Carso and Telmex Chief Executive Officer of Compañía
Hulera Euzkadi, S.A. de C.V.                                             
|Carlos Slim Helú
Director                                                                  |  | Born: First elected:
Term expires:                                                                 |  | 1940 2015
2018                                                                                                                                                                                          
|                                                                                           |  | Principal occupation and Business experience:                                                      |  | Chairman of the Board of Minera Frisco, S.A.B. de C.V. and Carso Infraestructura
y Construcción, S.A. de C.V.; Director of IDEAL, Grupo Sanborns and Inmuebles Carso, S.A.B. de C.V. (Inmuebles Carso)
|Luis Alejandro Soberón Kuri
Director                                                       |  | Born: First elected:
Term expires: Principal occupation:                                           |  | 1960 2000
2018 Chief Executive Officer and Chairman of the Board of Servicios Corporativos CIE,
S.A. de C.V. (a subsidiary of Corporación Interamericana de Entretenimiento, S.A. de C.V. (CIE))      
|                                                                                           |  | Other directorships:                                                                               |  | Director of CIE; Director of Banco Nacional de México, S.A.                                                                                                                                             
|                                                                                           |  | Business experience:                                                                               |  | Various positions at CIE                                                                                                                                                                                
|Carlos Bremer Gutiérrez
Director and Member of the Audit and Corporate Practices Committee |  | Born: First elected:
Term expires: Principal occupation:                                           |  | 1960 2004
2018 Chief Executive Officer of Value Grupo Financiero, S.A.B. de C.V. and Value S.A.
de C.V., Casa de Bolsa                                                                                  
|                                                                                           |  | Other directorships:                                                                               |  | Chairman of Value Grupo Financiero, S.A.B. de C.V.                                                                                                                                                      
|                                                                                           |  | Business experience:                                                                               |  | Chief Operating Officer of Abaco Casa de Bolsa, S.A. de C.V.                                                                                                                                            
|Juan Antonio Pérez Simón
Director                                                          |  | Born: First elected:
Term expires: Principal occupation:                                           |  | 1941 2012
2018 Chairman of the Board of Sanborn Hermanos                                                                                                                                                
|                                                                                           |  | Other directorships:                                                                               |  | Director of Grupo Carso, Grupo Financiero Inbursa, Sears and Elementia, S.A., Telmex                                                                                                                    
|                                                                                           |  | Business experience:                                                                               |  | Various positions at Grupo Carso                                                                                                                                                                        



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|                                                                                                |                       |                                                          |                                                                                     |                                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------- | --------------------- | -------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Ernesto Vega Velasco
Director, Chairman of the Audit and Corporate Practices Committee          |                       | Born: First elected:
Term expires: Principal occupation: |                                                                                     | 1937 2007
2018 Retired. Member of the board of directors and audit and corporate practices,
planning and finance and evaluation and compensation committees of certain companies.                                             
|                                                                                                |                       | Other directorships:                                     |                                                                                     | Director of Kuo, S.A.B. de C.V., Dine, S.A.B. de C.V., Inmuebles Carso, IDEAL; Alternate Director of Industrias Peñoles, S.A.B. de C.V.                                                                                       
|                                                                                                |                       | Business experience:                                     |                                                                                     | Various positions in Desc Group, including Corporate Vice-President                                                                                                                                                           
|Rafael Moisés Kalach Mizrahi
Director and Member of the Audit and Corporate Practices Committee |                       | Born: First elected:
Term expires:                       |                                                                                     | 1946 2012
2018                                                                                                                                                                                                                
|                                                                                                | Principal occupation: |                                                          | Chairman and Chief Executive Officer of Grupo Kaltex, S.A. de C.V. (Grupo Kaltex)
|                                                                                                |                       | Other directorships:                                     |                                                                                     | Director of Telmex, Grupo Carso and Sears Roebuck, S.A. de C.V.                                                                                                                                                               
|                                                                                                |                       | Business experience:                                     |                                                                                     | Various positions in Grupo Kaltex                                                                                                                                                                                             
|Antonio Cosío Pando
Director                                                                    |                       | Born: First elected:
Term expires: Principal occupation: |                                                                                     | 1968 2015
2018 Vice President of Grupo Hotelero las Brisas, S.A. de C.V. (Grupo
Brisas), Compañía Industrial Tepeji del Río, S.A. de C.V., and Bodegas de Santo Tomás, S.A. de C.V.                                         
|                                                                                                |                       | Other directorships:                                     |                                                                                     | Director of Grupo Financiero Inbursa, Grupo Carso, Grupo Sanborns, Corporación Actinver S.A.B. de C.V., Corporación Moctezuma S.A.B. de C.V., Kimberly Clark de México, S.A.B. de C.V. (Kimberly Clark de
México) and Telmex
|                                                                                                |                       | Business experience:                                     |                                                                                     | Various positions in Grupo Brisas and Compañía Industrial Tepeji del Río, S.A. de C.V.                                                                                                                                        
|Arturo Elías Ayub
Director                                                                      |                       | Born: First elected:
Term expires: Principal occupation: |                                                                                     | 1966 2011
2018 Head of Strategic Alliances, Communications and Institutional Relations of
Telmex; Chief Executive Officer of Fundación Telmex                                                                                 
|                                                                                                |                       | Other directorships:                                     |                                                                                     | Chairman of the Board of Publicidad y Contenido Editorial, S.A. de C.V.; Director of Grupo Sanborns, Grupo Carso, Sears and TM&MS LLC                                                                                         
|                                                                                                |                       | Business experience:                                     |                                                                                     | Chief Executive Officer of Sociedad Comercial Cadena, President of Pastelería Francesa (El Globo) and
President of Club Universidad Nacional, A.C.                                                                            



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|                                |  |                                                                                                    |  |                                                                                                                                                                                    
|------------------------------- |  | -------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Oscar Von Hauske Solís
Director |  | Born: First elected:
Term expires: Principal occupation:                                           |  | 1957 2011
2018 Chief Fixed-line Operations Officer of América Móvil                                                                                                                
|                                |  | Other directorships:                                                                               |  | Alternate Director of Telmex, Claro S.A. (Claro Brasil); Member of Telekom Austrias Supervisory Board                                                                           
|                                |  | Business experience:                                                                               |  | Chief Executive Officer of Telmex Internacional and Chief Systems and Telecommunications Operators Officer of
Telmex                                                               
|Louis C. Camilleri
Director     |  | Born:
First elected: Term expires:
Principal occupation: Other directorships:
Business experience: |  | 1955
2011 2018
Chairman of Philip Morris International Director of Ferrari N.V.
Chairman and Chief Executive Officer of Altria and various positions in Philip Morris International

Directors elected by holders of Series L Shares:



|                                                                                                   |  |                                                          |  |                                                                                                                                                                                       
|-------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Pablo Roberto González Guajardo
Director and Member of the Audit and Corporate Practices Committee |  | Born: First elected:
Term expires: Principal occupation: |  | 1967 2007
2018 Chief Executive Officer of Kimberly Clark de México                                                                                                                    
|                                                                                                   |  | Other directorships:                                     |  | Director of Kimberly Clark de México, GE International México, S. de R. L. de C. V., Sistema Integral de Abasto Rural, S.A.P.I de C.V., Grupo Sanborns, and Grupo Lala, S.A.B. de C.V.
|                                                                                                   |  | Business experience:                                     |  | Various positions in the Kimberly Clark Corporation and Kimberly Clark de México                                                                                                      
|David Ibarra Muñoz
Director                                                                        |  | Born: First elected:
Term expires: Principal occupation: |  | 1930 2000
2018 Retired                                                                                                                                                                
|                                                                                                   |  | Other directorships:                                     |  | Director of Grupo Financiero Inbursa, IDEAL and Grupo Carso                                                                                                                           
|                                                                                                   |  | Business experience:                                     |  | Chief Executive Officer of Nacional Financiera, S.N.C., served in the Mexican Ministry of Finance and Public
Credit                                                                   

The annual ordinary general shareholders meeting held on April 5, 2017, determined that the following directors are independent:
Messrs. Ernesto Vega Velasco, Carlos Bremer Gutiérrez, Pablo Roberto González Guajardo, David Ibarra Muñoz, Antonio Cosío Pando, Louis C. Camilleri and Rafael Moisés Kalach Mizrahi.

María José Pérez Simón Carrera serves as alternate director for Juan Antonio Pérez Simón and was reelected for a one-year term at the annual ordinary general shareholders meeting held on April 5, 2017.



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Alejandro Cantú Jiménez, our General Counsel, serves as Corporate Secretary and Rafael Robles Miaja as Corporate
Pro-Secretary.

Daniel Hajj Aboumrad and Arturo Elías Ayub are sons-in-law of Carlos Slim Helú and brothers-in-law of Patrick Slim Domit and Carlos Slim Domit. Patrick Slim Domit and
Carlos Slim Domit are sons of Carlos Slim Helú. María José Pérez Simón Carrera is the daughter of Juan Antonio Pérez Simón.

EXECUTIVE COMMITTEE

Our bylaws provide that the
Executive Committee may generally exercise the powers of the Board of Directors, with certain exceptions. In addition, the Board of Directors is required to consult the Executive Committee before deciding on certain matters set forth in the bylaws,
and the Executive Committee must provide its views within 10 calendar days following a request from the Board of Directors, the Chief Executive Officer or the Chairman of the Board of Directors. If the Executive Committee is unable to make a
recommendation within ten calendar days, or if a majority of the Board of Directors or any other corporate body duly acting within its mandate determines in good faith that action cannot be deferred until the Executive Committee makes a
recommendation, the Board of Directors is authorized to act without such recommendation. The Executive Committee may not delegate its powers to special delegates or
attorneys-in-fact.

The Executive Committee is elected from among the directors and
alternate directors by a majority vote of the holders of common shares (AA Shares and A Shares). The Executive Committee currently has three members. The majority of its members must be Mexican citizens and elected by Mexican shareholders. Three
members of the Executive Committee were appointed by our Mexican controlling shareholders. See Major Shareholders under Part IV of this annual report. The current members of the Executive Committee are Messrs. Carlos Slim Domit, Patrick
Slim Domit and Daniel Hajj Aboumrad, appointed by the Mexican controlling shareholders.

AUDIT AND CORPORATE PRACTICES COMMITTEE

Our Audit and Corporate Practices Committee is comprised of independent members of the Board of Directors. The Audit and Corporate Practices Committee
consists of Messrs. Ernesto Vega Velasco (Chairman), Rafael Moisés Kalach Mizrahi, Pablo Roberto González Guajardo and Carlos Bremer Gutiérrez. The mandate of the Audit and Corporate Practices Committee is to assist our Board of
Directors in overseeing our operations, establish and monitor procedures and controls in order to ensure that the financial information we distribute is useful, appropriate and reliable and accurately reflects our financial position. In particular,
the Audit and Corporate Practices Committee is required to, among other things:



| |  |  | provide opinions to the Board of Directors on certain matters as provided by the Mexican Securities Market Law;
| | - |  | ---------------------------------------------------------------------------------------------------------------



| |  |  | call shareholders meetings and recommend inclusion of matters it deems appropriate on the agenda;
| | - |  | --------------------------------------------------------------------------------------------------



| |  |  | inform the Board of Directors of our internal controls and their adequacy;
| | - |  | --------------------------------------------------------------------------



| |  |  | select our auditors, review and pre-approve the scope and terms of their engagement, and determine their compensation;
| | - |  | ----------------------------------------------------------------------------------------------------------------------



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| |  |  | monitor the performance of our auditors and re-evaluate the terms of their engagement;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | recommend procedures for preparing financial statements and internal controls;
| | - |  | ------------------------------------------------------------------------------



| |  |  | monitor internal controls and accounting for specified types of matters;
| | - |  | ------------------------------------------------------------------------



| |  |  | propose procedures for the preparation of financial statements for internal use that are consistent with the published financial statements;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | assist the Board of Directors in preparing reports as provided by the Mexican Securities Market Law;
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | discuss with our auditors the annual financial statements and the accounting principles being applied in the annual and the interim financial statements and, based on such discussions, recommend their approval to the
Board of Directors;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | resolve disagreements between our management and auditors relating to our financial statements;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | request the opinion of independent experts, when deemed appropriate or when required by law;
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | approve services to be provided by our auditors or establish policies and procedures for the pre-approval of services by our auditors;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------



| |  |  | obtain from our auditors a report that includes a discussion of critical accounting policies used by us, any alternative accounting treatments for material items that have been discussed by management with our auditor
and any other written communications between our auditors and management;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | report to the Board of Directors on its activities;
| | - |  | ---------------------------------------------------



| |  |  | develop procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters, including for the confidential submission of concerns regarding such matters by
employees;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | evaluate the performance of the external auditors;
| | - |  | --------------------------------------------------



| |  |  | review and discuss our financial statements and advise the Board of Directors of the committees recommendations for approval of such financial statements;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | receive and analyze recommendations and observations to its functions from shareholders, members of the Board of Directors and senior management and the authority to act upon such recommendations and observations;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | recommend to the Board of Directors procedures for the selection and succession of our Chief Executive Officer and our other principal executives;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | propose criteria for evaluating executive performance;
| | - |  | ------------------------------------------------------



| |  |  | analyze the proposals of the Chief Executive Officer concerning the structure and amount of compensation for our senior executives and raise them with the Board of Directors;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | review new executive compensation programs and the operations of existing programs;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | establish contracting practices to avoid excessive payments to executives;
| | - |  | --------------------------------------------------------------------------



| |  |  | assist the Board of Directors in developing appropriate personnel policies;
| | - |  | ---------------------------------------------------------------------------



| |  |  | participate with the Board of Directors in developing a plan for employees to invest in our L Shares and review the implementation of such plan; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | perform any other functions the Board of Directors may delegate to the Audit and Corporate Practices Committee.
| | - |  | ---------------------------------------------------------------------------------------------------------------

Under
certain circumstances specified in our bylaws, the Audit and Corporate Practices Committee is required to provide its opinion to the Board of Directors. The Company is required to make public disclosure of any Board action that is inconsistent with
the opinion of the Audit and Corporate Practices Committee.

In addition, pursuant to our bylaws, the Audit and Corporate Practices Committee is in charge of our
corporate governance functions under the Mexican securities laws and regulations and is required to submit an annual report to the Board of Directors with respect to our corporate and audit practices. The Audit and Corporate Practices Committee must
request the opinions of our executive officers for purposes of preparing this annual report. The Board of Directors must seek the opinion of the Audit and Corporate Practices Committee regarding any transaction with a related party that is outside
the ordinary course of our business as defined under the Mexican Securities Market Law. Each member of the Audit and Corporate Practices Committee is independent, as determined by our shareholders pursuant to the Mexican Securities Market Law and as
defined under Rule 10A-3 under the Exchange Act.

SENIOR MANAGEMENT

The names, responsibilities and prior business experience of our senior officers are as follows:



|                                                           |  |                                 |  |                                                                                                                                                                                                                                                                                                                                                                        
|---------------------------------------------------------- |  | ------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Daniel Hajj Aboumrad
Chief Executive Officer               |  | Appointed:
Business experience: |  | 2000 Director of Telmex; Chief
Executive Officer of Compañía Hulera Euzkadi, S.A. de C.V.                                                                                                                                                                                                                                                                              
|Carlos José García
Moreno Elizondo Chief Financial Officer |  | Appointed: Business
experience: |  | 2001 General Director of
Public Credit at the Ministry of Finance and Public Credit; Managing Director of UBS Warburg; Associate Director of Financing at Petróleos Mexicanos (Pemex); Member of Telekom Austrias Supervisory Board; Member of KPN Supervisory
Board                                                                                                  
|Alejandro Cantú Jiménez
General Counsel                    |  | Appointed: Business
experience: |  | 2001 Member of Telekom
Austrias Supervisory Board; Attorney at Mijares, Angoitia, Cortésy Fuentes, S.C.                                                                                                                                                                                                                                                               
|Oscar Von Hauske Solís
Chief Fixed-line Operations Officer |  | Appointed: Business
experience: |  | 2010 Chief Executive Officer
of Telmex Internacional; Chief Systems and Telecommunications Officer of Telmex; Head of Finance at Grupo Condumex, S.A. de C.V.; Director of Telmex, Telmex Internacional, Empresa Brasileira de Telecomunicações S.A.
(Embratel), and Net Serviços de Comunicação S.A. (Net Serviços); Member of Telekom Austrias Supervisory Board
|Angel Alija Guerrero
Chief Wireless Operations Officer     |  | Appointed:
Business experience: |  | 2012
Various positions in América Móvil                                                                                                                                                                                                                                                                                                                                

AUDIT COMMITTEE FINANCIAL EXPERT

Our Board of Directors has determined that Ernesto Vega Velasco qualifies as an audit committee financial expert, and Mr. Vega Velasco is independent
under the definition of independence applicable to us under the rules of the NYSE.



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MANAGEMENT COMPENSATION

COMPENSATION OF DIRECTORS AND SENIOR MANAGEMENT

The aggregate compensation paid to our directors (including compensation paid to members of our Audit and Corporate Practices Committee) and senior management in 2016
was approximately Ps.4.0 million and Ps.64.0 million, respectively. None of our directors is a party to any contract with us or any of our subsidiaries that provides for benefits upon termination of employment. We do not provide pension,
retirement or similar benefits to our directors in their capacity as directors. Our executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees, and we do not separately set
aside, accrue or determine the amount of our costs that is attributable to executive officers.

SHARE OWNERSHIP OF DIRECTORS AND SENIOR
MANAGEMENT

Carlos Slim Domit, Chairman of our Board of Directors, holds 647 million (or 3.1%) of our AA Shares and 1,567 million (or 3.5%) of
our L Shares directly. Patrick Slim Domit, Vice Chairman of our Board of Directors, holds 323 million (or 1.6%) of our AA Shares and 859 million (or 1.9%) of our L Shares directly. Carlos Slim Helú, member of our Board of Directors,
holds 1,879 million (or 9.1%) of our AA Shares and 3,072 million (or 6.9%) of our L shares directly. In addition, according to beneficial ownership reports filed with the SEC, Patrick Slim Domit and Carlos Slim Domit are beneficiaries of a
trust that owns shares of the Company. See Major Shareholders under Part IV and BylawsShare Capital under Part IV of this annual report.

Except as described above, according to information provided to us by our directors and members of senior management, none of our directors or executive officers is the
beneficial owner of more than 1.0% of any class of our capital stock.



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CORPORATE GOVERNANCE

Our corporate governance practices are governed by our bylaws, the Mexican Securities Market Law and the regulations issued by the CNBV. We also comply with the Mexican
Code of Best Corporate Practices (Código de Mejores Prácticas Corporativas), which was created in January 2001 by a group of Mexican business leaders and was endorsed by both the CNBV and the Mexican Stock Exchange.

The table below discloses the significant differences between our corporate governance practices and those required for U.S. Companies under the NYSE listing standards.



|                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NYSE Standards                                                                                                                                                                                                                                                                                 |  | Our Corporate Governance Practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                              
|Director Independence                                                                                                                                                                                                                                                                         
|Majority of board of directors must be independent. §303A.01. Controlled companies are exempt from this requirement. A controlled company is one in which more than 50.0% of the voting power is held by an individual,
group or another company, rather than the public. §303A.00.          |  | Pursuant to the Mexican Securities Market Law, our shareholders are required to appoint a board of directors of no more than 21 members, 25% of whom must be independent. Certain persons are per senon-independent, including insiders, control persons, major suppliers and any relatives of such persons. In accordance with the Mexican Securities Market Law, our shareholders meeting is required to make a
determination as to the independence of our directors, though such determination may be challenged by the CNBV.                                   
|                                                                                                                                                                                                                                                                                               | 
|As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.                                                                                                                                                                                                    |  | There is no exemption from the independence requirement for controlled companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                              
|Executive Sessions                                                                                                                                                                                                                                                                            
|Non-management directors must meet at regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year.
§303A.03.                                                                                               |  | Our non-management directors have not held executive sessions without management in the past, and they are not required to do so.                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                              
|Nominating/Corporate Governance Committee                                                                                                                                                                                                                                                     
|Nominating/corporate governance committee composed entirely of independent directors is required. The committee must have a charter specifying the
purpose, duties and evaluation procedures of the committee. §303A.04.  Controlled
companies are exempt from these requirements. §303A.00. |  | We currently do not have a nominating committee or a corporate governance committee. We are not required to have a nominating committee. However, Mexican law requires us to have one or more committees that oversee certain
corporate practices, including appointment of directors and executives. Under the Mexican Securities Market Law, committees overseeing certain corporate practices must be composed of independent directors. However, in the case of controlled
companies, such as ours, only a majority of the committee members must be independent.
|                                                                                                                                                                                                                                                                                               | 
|As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.                                                                                                                                                                                                    |  | Under the Mexican Securities Market Law, certain corporate governance functions must be delegated to one or more committees. Under our bylaws, the Audit and Corporate Practices Committee performs our corporate governance
functions. See Management under Part V of this annual report.                                                                                                                                                                                                                                                                         



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NYSE Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Our Corporate Governance Practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Compensation Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Compensation committee composed entirely of independent directors is required, which must evaluate and approve executive officer compensation. The committee must have a charter specifying the purpose, duties and evaluation
procedures of the committee. §303A.02(a)(ii) and §303A.05. Controlled companies are exempt from this requirement. §303A.00.                                                                                                                     |  | We currently do not have a compensation committee. We are not required to have a compensation committee since our Audit and Corporate Practices Committee, which is comprised solely of independent directors, evaluates and approves
compensation of management (including our CEO) and directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 
|As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Audit Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Audit committee satisfying the independence and other requirements of Rule 10A-3 under the Exchange Act and the additional requirements under the NYSE standards is required.
§§303A.06, 303A.07.                                                                                                                                                                                                                                                                                |  | We have an audit and corporate practices committee of four members. Each member of the audit and corporate practices committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the
independence requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934, as amended. Our audit and corporate practices committee operates primarily pursuant to (1) a written charter
adopted by our board of directors, which assigns to the committee responsibility over those matters required by Rule 10A-3 (2) our bylaws and (3) Mexican law. For a more detailed description of the duties of
our audit and corporate practices committee, see Management under Part V of this annual report.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Equity Compensation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Equity compensation plans and all material revisions thereto require shareholder approval, subject to limited exemptions. §§303A.08 and 312.03.                                                                                                                                                                                                                                                                                                                                  |  | Shareholder approval is expressly required under Mexican law for the adoption and amendment of an equity compensation plan. Such plans must provide for similar treatment of executives in comparable positions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Shareholder Approval for Issuance of Securities                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Issuances of securities (1) that will result in a change of control of the issuer, (2) that are to a related party or someone closely related to a related party, (3) that have voting power equal to at least 20.0% of
the outstanding common stock voting power before such issuance or (4) that will increase the number of shares of common stock by at least 20.0% of the number of outstanding shares before such issuance requires shareholder approval.
§§312.03(b)-(d). |  | Mexican law requires us to obtain shareholder approval of the issuance of equity securities. Under certain circumstances, however, treasury stock may be sold by the board of directors without shareholder approval.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Code of Business Conduct and Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Corporate governance guidelines and a code of business conduct and ethics are required, with disclosure of any waiver for directors or executive officers. The code must contain compliance standards and procedures that will
facilitate the effective operation of the code. §303A.10.                                                                                                                                                                                         |  | We have adopted a code of ethics, which has been accepted by all of our directors and executive officers and other personnel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               



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|                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NYSE Standards                                                                                                                                                                                                                                                                                                             |  | Our Corporate Governance Practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                          
|Conflicts of Interest                                                                                                                                                                                                                                                                                                     
|Determination of how to review and oversee related party transactions is left to the listed company. The audit committee or comparable body, however, could be considered the forum for such review and oversight. §314.00. Certain
issuances of common stock to a related party require shareholder approval. §312.03(b). |  | In accordance with Mexican law, an independent audit committee must provide an opinion to the board of directors regarding any transaction with a related party that is outside of the ordinary course of business, which must be
approved by the board of directors. Pursuant to the Mexican Securities Market Law, our board of directors may establish certain guidelines regarding related party transactions that do not require specific board approval.                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                          
|Solicitation of Proxies                                                                                                                                                                                                                                                                                                   
|Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NYSE. §§402.01 and 402.04.                                                                                                                                 |  | We are not required to solicit proxies from our shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting.
Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders meetings and, where applicable, instructions on how to instruct the depositary to vote at the meeting. Under the deposit agreement relating
to our ADS, we may direct the voting of any ADS as to which no voting instructions are received by the depositary, except with respect to any matter where substantial opposition exists or that materially and adversely affects the rights of
holders.





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CONTROLS
AND PROCEDURES

(a)Disclosure controls and procedures. We carried out an evaluation under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of December 31, 2016. Based upon our evaluation, our Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure.

(b)Managements annual report on internal control over financial reporting. Our management is
responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.
Under the supervision and with the participation of our management, including our Chief Executive Officer, Chief Financial Officer and other personnel, we conducted an evaluation of the effectiveness of our internal control over financial reporting
based on the framework in Internal ControlIntegrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Our
internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Our internal
control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that our receipts and expenditures are being made only in accordance with authorizations of our management
and directors and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of the inherent limitations in all control systems, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our evaluation under the framework in Internal ControlIntegrated Framework, our management concluded that our internal control over financial reporting
was effective as of December 31, 2016.

Mancera, S.C. (Mancera), a member practice of Ernst & Young Global Limited, an independent
registered public accounting firm, our independent auditor, issued an attestation report on our internal control over financial reporting on April 24, 2017.



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(c) Attestation Report of the registered public accounting firm.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The
Board of Directors and Shareholders of América Móvil, S.A.B. de C.V.

We have audited América Móvil, S.A.B. de C.V. and
subsidiaries internal control over financial reporting as of December 31, 2016, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013 framework) (the COSO criteria). América Móvil, S.A.B. de C.V. and subsidiaries management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the
effectiveness of internal control over financial reporting included in the accompanying Managements Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Companys internal control
over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A companys internal control
over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting
Standards, as issued by the International Accounting Standards Board. A companys internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
International Financial Reporting Standards, as issued by the International Accounting Standards Board, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, América Móvil, S.A.B. de C.V. and subsidiaries maintained, in all material respects, effective internal control over financial reporting as
of December 31, 2016, based on the COSO criteria.



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We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statements of financial
position of América Móvil, S.A.B. de C.V. and subsidiaries as of December 31, 2015 and 2016, and the related consolidated statements of comprehensive income, changes in equity and cash flows for each of the three years in the
period ended December 31, 2016, and our report dated April 24, 2017, expressed an unqualified opinion thereon.



| |  |                   |  | 
| |  | ----------------- |  | 
| |  |                  
| |  | /s/ MANCERA, S.C. |  | 
| |  |                   |  | 

Mexico City, Mexico

April 24, 2017





(d) Changes in internal control over financial reporting. There has been no change in our internal control over financial reporting during 2016 that has
materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.





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CODE OF
ETHICS

We have adopted a code of ethics, as defined in Item 16B of Form 20-F under the Exchange Act. Our
code of ethics applies to, among others, our Chief Executive Officer, Chief Financial Officer and Comptroller, and persons performing similar functions. Our code of ethics is available on our website at www.americamovil.com. If we amend any
provisions of our code of ethics that apply to our Chief Executive Officer, Chief Financial Officer, Comptroller and persons performing similar functions, or if we grant any waiver of such provisions, we will disclose such amendment or waiver on our
website at the same address.



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LOGO

|                   
|-------------------
|PART VI:
REGULATION





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Regulation





REGULATION

MEXICO

Legal Framework

Over the last four years, Mexico
has developed a new legal framework for the regulation of telecommunications and broadcasting services. This legal framework is based on constitutional amendments passed in June 2013 and implementing legislation enacted in July 2014, which
established the Federal Law on Telecommunications and Broadcasting (Ley Federal de Telecomunicaciones y Radiodifusión) and the Law for the Public Broadcasting System of the Mexican State (Ley del Sistema Público de
Radiodifusión del Estado Mexicano) to replace the prior statutory framework. The prior General Communications Law (Ley de Vías Generales de Comunicación) and regulations adopted thereunder remain effective under the
new legal framework, except where they conflict with the new legal framework or where they have been superseded by subsequent regulation.

Under the current legal
framework, the IFT determines whether there is a preponderant economic agent in the telecommunications sector, based on number of customers, traffic or network capacity. In 2014, the IFT determined that an economic interest
group consisting of us and our Mexican operating subsidiaries (Telcel, Telmex and Teléfonos del Noroeste, S.A. de C.V. (Telnor)), as well as Grupo Carso and Grupo Financiero Inbursa, constitutes the preponderant economic
agent in the telecommunications sector, based on a finding that we serve more than half of the customers in Mexico as measured by the IFT on a national basis.

The 2013 constitutional amendments authorize the IFT to impose on any preponderant economic agent a special regulatory regime, as supplemented by the 2014 implementing
legislation. The special regime is referred to as asymmetric regulation, because it applies to one market participant and not to the others. Pursuant to the IFTs determination that we are part of a group constituting a preponderant
economic agent, we are subject to extensive asymmetric regulations in our Mexican fixed-line and wireless businesses. See Asymmetric Regulation of the Preponderant Economic Agent under this Part VI.

This legal framework has had a substantial impact on our business and operations in Mexico. The long-term effects will depend on further regulations and other actions by
the IFT, how we and our competitors adapt, how customers behave in response and how the telecommunications and media markets develop.

Principal Regulatory Authorities

The IFT is an
autonomous authority that regulates telecommunications and broadcasting. It is headed by seven commissioners appointed by the President, and ratified by the Senate, from among candidates nominated by an evaluation committee.

The IFT has authority over the application of legislation specific to telecommunications and broadcasting, and also over competition legislation as it applies to those
sectors. While most of the powers previously exercised by the Mexican Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes) were transferred to the IFT, there are a few specific public policy
matters over which it retains authority.



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The Mexican government has certain powers in its relations with concessionaires, including the right to take over the management of an operators networks,
facilities and personnel in cases of imminent danger to national security, public order or the national economy, natural disasters and public unrest as well as to ensure continuity of public services.

Telecommunications operators are also subject to regulation by the Federal Consumer Bureau (Procuraduría Federal del Consumidor) under the Federal Consumer
Protection Law (Ley Federal de Protección al Consumidor), which regulates publicity, quality of services and information required to be provided to consumers.

Asymmetric Regulation of the Preponderant Economic Agent

Based on the IFTs determination that we, our Mexican operating subsidiaries (Telcel, Telmex and Telnor) and certain affiliates constitute a preponderant economic
agent in the telecommunications sector, we are currently subject to extensive specific asymmetric measures. Below is a summary of what we believe are the most important measures.



| |  |  | Interconnection Rates. We may not charge other carriers for the termination services we provide in our networks. We continue to pay such carriers for their interconnection services.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Sharing ofWirelessInfrastructure and Services. We must provide other carriers access to (i) passive infrastructure, including towers, sites, ducts and rights of way; (ii) elements of our
network that allow other carriers and mobile virtual network operators (MVNOs) to resell those services we provide to our customers; and (iii) domestic roaming services, in each case, pursuant to IFT
pre-approved reference terms (ofertas públicas de referencia). If we cannot reach an agreement with other carriers or MVNOs, our rates may be determined by the IFT using, as
applicable, a long-run average incremental costs methodology or, in the case of MVNOs, a retail-minus methodology.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For mobile services, the IFT has the right to verify the economic replicability of the end user rates with respect to rates applicable to services
provided by mobile virtual network operators.



| |  |  | Sharing of Fixed Infrastructure and Services.We must provide other carriers access to (i) passive infrastructure, including towers, sites, ducts and rights of way; (ii) elements of our network that
allow other carriers to resell those services we provide to our customers and (iii) our dedicated links. The IFT will determine the rates applicable to all wholesale regulated fixed services based on
long-run average incremental cost methodologies.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For fixed services, the IFT has the right to
verify the economic replicability of the end user rates.



| |  |  | Access to Local Loop. We must offer other carriers access to elements of our local network separately on terms and conditions pre-approved by the IFT. In addition,
the IFT has ordered the functional separation of the provision of wholesale regulated fixed services related to local loop (acceso local) and shared access and use of passive infrastructure. To that effect, the IFT has ordered the
incorporation of a legal entity with independent management and operations from Telmex, Telnor and Telcel, but not necessarily outside the Companys ownership structure, that will exclusively provide such wholesale services. Implementation of
the functional separation will be based on a separation plan that will be presented by Telmex and Telnor for the IFTs approval. This functional separation must be implemented no later than two years from the IFTs approval of the
separation plan.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | Certain ObligationsRelating toRetail Services. Certain rates for the provision of telecommunications services to our customers are subject to the IFTs prior authorization, in the case of
fixed-line and wireless services, and to rate controls, in the case of fixed-line services only, using historical cost methodologies to determine the maximum prices Telmex may charge its customers. We are also subject to certain obligations and
exclusivity restrictions relating to the sale of our services and products; such obligations include unlocking handsets and tablets for our customers and offering individually all services that we previously offered under a bundled scheme.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Content. We are subject to specific limitations on acquisitions of exclusive transmission rights to relevant content (contenidos audiovisuales relevantes), as determined from time to time by
the IFT, including, but not limited to, certain Mexican national soccer matches, the opening and closing ceremonies of the Summer Olympics, the opening and closing ceremonies and certain matches of the FIFA world cup soccer tournament and the finals
of the Liga MX soccer tournament and any other event where large audiences are expected at a national or regional level.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Reporting of Service Obligations. We are subject to obligations related to reporting of service, including the publication of reference terms for wholesale and interconnection services that are subject to
asymmetric regulation.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The measures are transitory and may be terminated if the IFT declares that effective competition conditions exist in the
telecommunications sector or if we cease to be considered a preponderant economic agent. The IFT reviews the impact of the asymmetrical measures every two years and may modify or eliminate measures or set forth new measures, including the structural
or functional separation or divestiture of assets of the preponderant economic agent. In March 2017, the IFT issued a resolution that modified and added asymmetrical regulations for mobile and fixed services. We are reviewing and analyzing that
resolutions possible effects on the Company and its subsidiaries. The Company cannot predict how these measures will be finally implemented or their effects on our operations.

In March 2014, the Company, Telcel, Telmex and Telnor filed challenges (juicios de amparo)against the declaration by the IFT that Telcel, Telmex and
Telnor, together with certain affiliates, constitute an economic interest group that is a preponderant economic agent (agente económico preponderante)in the Mexican telecommunications market and
imposed certain specific asymmetrical regulations. These challenges were denied in the case of Telmex, Telnor and the Company, and a final resolution is still pending in the case of Telcel. We have also challenged the 2017 resolution. However, given
that under the new regulatory framework IFTs determinations are not suspended while legal challenges against them are resolved, the enforceability of the IFTs declaration cannot be suspended.

Substantial Market Power Investigations

In
2007, the Federal Antitrust Commission (Comisión Federal de Competencia,or Cofeco) initiated two substantial market power investigations against Telcel and determined that Telcel had substantial market power in the
mobile termination services market and in the nationwide wireless voice and data services market. Telcel filed challenges against both decisions and a final resolution of these challenges is still pending. If upheld, these decisions would allow the
IFT to impose additional requirements as to rates, quality of service and information, among other matters.



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In 2007, Cofeco initiated various investigations to evaluate whether Telmex and its subsidiary Telnor have substantial power in the markets for termination, origination,
transit and wholesale dedicated-link circuits. Cofeco issued final resolutions concluding that Telmex and Telnor have substantial power in all four markets, which were challenged by Telmex and Telnor. The challenges related to each one of these
markets have been denied, effectively upholding Cofecos findings. Consequently, the IFT may impose specific tariff requirements or other special regulations with respect to the matters for which the challenges were denied, such as additional
requirements regarding disclosure of information or quality of service.

In the case of the market for wholesale dedicated-link leasing, the IFTs predecessor,
Cofetel, published an agreement in the Official Gazette, establishing requirements regarding tariffs, quality of service and information for dedicated-link circuits. Telmex and Telnor have filed petitions for relief against such resolutions, which
are still pending. However, an adverse resolution could have an impact on the Companys future revenues in this market.

Concessions

Under the current legal framework, a carrier of public telecommunications networks, such as Telcel or Telmex, must operate under a concession. The IFT is
the government authority that grants new or extends existing concessions, which may only be granted to a Mexican citizen or corporation that has agreed to the concession terms and may not be transferred or assigned without the approval of the IFT.
There are two types of concessions:



| |  |  | Network concessions. Telcel, Telmex and its subsidiary Telnor hold network concessions, granted under the previous regulatory framework, to provide specified types of services. Their ability to migrate to the new
regime of unified concessions and, consequently, to provide any and all telecommunications and broadcasting services, is subject to conditions, as described under Migration of Concessions and Additional Services below.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Spectrum concessions. Telcel holds multiple concessions, granted under the previous regulatory framework, to provide wireless services that utilize frequencies of radio-electric spectrum. These concessions have
terms of 15 to 20 years and may be extended for an additional term of equal length.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A public telecommunications concessionaire is required by law to
establish an open-network architecture that permits interconnection and interoperability.

Termination of Concessions

Mexican legislation provides that under certain circumstances, some assets of a concessionaire may be acquired by the federal government upon
termination of these concessions. There is no specific guidance or precedent for applying these provisions, so the scope of assets covered, the compensation to the concessionaire and the procedures to be followed would depend on the type of
concession, the type of assets and the interpretation of applicable legislation by the competent authorities at the time.

Migration of
Concessions and Additional Services

The new legislative framework established the unified concession (concesión única), which
allows the holder to provide all types of telecommunications and broadcasting services, and a regime under which an existing concession can be migrated to the new unified concession at the end of its term or upon request by



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the concession holder. A unified concession has a term of up to 30 years, extendable for up to an equal term. Also, under this new framework a current concession may be
modified to add services not previously contemplated therein.

However, as a result of our preponderant economic agent status, we are subject to additional
conditions for the migration to a unified concession or the addition of a service, such as Pay TV, to a current concession, including: (i) payment of any new concession fee to be determined by the IFT, (ii) compliance with current
requirements under the network concession, the 2013 constitutional amendments, the 2014 legislation and any additional measures imposed by the IFT on the preponderant economic agent and (iii) such other requirements, terms and conditions as the
IFT may establish in the concession itself. We expect the process of migration or additional services to be lengthy and complex. Consequently, we may not be able to provide additional services, such as broadcasting, in the near term.

Telcels Concessions

Telcel operates under
several different network and spectrum concessions covering particular frequencies and regions, holding an average of 129.5 MHz of capacity in Mexicos nine regions in the 850 MHz, 1900 MHz and 1.7/2.1 GHz bands. The following tables summarize
Telcels concessions.



|                               |  |                  |  |              |  |                  |            |  |               |  |         | 
|------------------------------ |  | ---------------- |  | ------------ |  | ---------------- | ---------- |  | ------------- |  | ------- | 
|Frequency                      |  | Region in Mexico |  | Initial Date |  | Termination
Date |            |  | Fee
Structure | 
|Band A (1900 MHz)              |  | Nationwide       |  | Sept. 1999   |  |                  | Sept. 2039 |  |               |  | Annual  | 
|Band B (850 MHz)               |  | Regions 1, 2, 3  |  | Aug. 2011    |  |                  | Aug. 2026  |  |               |  | Annual  | 
|Band B (850 MHz)               |  | Regions 4, 8     |  | Aug. 2010    |  |                  | Aug. 2025  |  |               |  | Annual  | 
|Band B (850 MHz)               |  | Regions 5, 6, 7  |  | Oct. 2011    |  |                  | Oct. 2026  |  |               |  | Annual  | 
|Band B (850 MHz)               |  | Region 9         |  | Oct. 2015    |  |                  | Oct. 2030  |  |               |  | Upfront | 
|Band D (1900MHz)               |  | Nationwide       |  | Oct. 1998    |  |                  | Oct. 2018  |  |               |  | Upfront | 
|Band F (1900 MHz)              |  | Nationwide       |  | Apr. 2005    |  |                  | Apr. 2025  |  |               |  | Annual  | 
|Bands A and B (1.7/2.1 GHz)    |  | Nationwide       |  | Oct. 2010    |  |                  | Oct. 2030  |  |               |  | Annual  | 
|Bands H, I and J (1.7/2.1 GHz) |  | Nationwide       |  | May 2016     |  |                  | Oct. 2030  |  |               |  | Annual  | 

In December 2016, Telcel agreed to purchase from Mexicos Grupo MVS are 60MHz of spectrum in the 2.5 GHz band. The acquisition and
its terms remain subject to regulatory review and approval.

Concession Fees

In addition to the upfront concession fees applicable to all of the 1900 MHz (Bands A, D and F) concessions, all 1.7/2.1 GHz (Bands A, B, H, I and J) concessions and 850
MHz concessions (Regions 1 to 8), owners of concessions granted or renewed on or after January 1, 2003 are also required to pay annual fees for the use and exploitation of radio spectrum bands. The amounts payable are set forth by the annual
Federal Fees Law (Ley Federal de Derechos) and vary depending on the relevant region and radio spectrum band. Currently, Telcel is not required to pay these fees for its 1900 MHz concessions (Bands A) since they were awarded prior to 2003.



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Service Quality Requirements

The
concessions set forth requirements for the quality and continuity of Telcels services, including, in some cases, maximum rates of incomplete and dropped calls and connection time. Additionally, we are subject to the Quality of Local Wireless
Services (Plan Técnico Fundamental de Calidad del Servicio Local Móvil, or the 2011 Technical Plan), which imposes extensive additional service quality requirements for voice, SMS and
internet services and fines for non-compliance with voice-quality requirements. Telcel has been notified of a number of proceedings seeking to impose penalties on the basis of alleged non-compliance with service quality requirements. See Note 16 to our audited consolidated financial statements included in this annual report.

Telmexs Concessions

Telmexs
concession was granted in 1976 and is currently set to expire in 2026. In December 2016, the IFT granted Telmex a 30-year extension of this concession, which will become effective in 2026 and will be valid
until 2056. The new terms of this concession will be issued in early 2023.

Telmexs subsidiary, Telnor, holds a separate concession in a region located in two
states in northwestern Mexico that will expire in 2026. The IFT also granted Telnor a 30-year extension of its concession, which will be effective in 2026 and will be valid until 2056. The material terms of
Telnors concession are similar to those of Telmexs concession.

In addition, Telmex currently holds concessions for the use of frequencies to provide
wireless local access as well as point-to-point and point-to-multipoint transmission.
Telmex obtained these concessions from the now-defunct Federal Commission of Telecommunications (Comisión Federal de Telecomunicaciones, or Cofetel) through a
competitive bidding process for a term of up to 20 years that may be extended for additional 20-year terms with the IFT.

Wireless Rates

Wireless services concessionaires are generally free to establish the prices they charge customers for
telecommunications services. Wireless rates are not subject to a price cap or any other form of price regulation. The interconnection rates concessionaires charge other operators are also generally established by agreement between the parties and,
if the parties cannot agree, may be imposed by the IFT, subject to certain guidelines, cost models and criteria. The establishment of interconnection rates has resulted, and may in the future result, in disputes between carriers and with the IFT.

As a result of the preponderance determination, Telcels retail prices are subject to pre-approval by the IFT before
they can take effect. In addition, the 2014 legislation established that preponderant economic agents may not charge termination rates. Therefore, Telcel may not charge other carriers for the termination services it provides, while it continues to
pay for the termination services provided to it by other carriers. See Asymmetric Regulation of the Preponderant Economic Agent under this Part VI.

The IFT is also authorized to impose specific rate requirements on any carrier that is determined by the IFT to have substantial market power under the Federal Antitrust
Law (Ley Federal de Competencia Económica) and the 2014 legislation. For more information on litigation related to the Federal Antitrust Law and the 2014 legislation, see Substantial Market Power
Investigations under this Part VI.



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Fixed Rates

Telmexs concessions subject
its rates for basic retail telephone services in any period, including installation, monthly rent, measured local-service and long-distance service, to a ceiling on the price of a basket of such services, weighted to reflect the volume
of each service provided by Telmex during the preceding period. Telmex is required to file a survey with the IFT every four years with its projections of units of operation for basic services, costs and prices. Telmex is free to determine the
structure of its own rates, with the exception of domestic long-distance rates, which were eliminated in 2015 under the 2014 legislation, and of the residential fixed-line rates, which have a cap based on the
long-run average incremental cost. As a result of the preponderance determination, Telmexs retail prices are subject to pre-approval by the IFT before they can
take effect.

The price ceiling varies directly with the Mexican National Consumer Price Index (Indice Nacional de Precios al Consumidor), allowing Telmex to
raise nominal rates to keep pace with inflation (minus a productivity factor set for the telecommunications industry), subject to consultation with the IFT. Telmex has not raised its nominal rates since March 2001, for local services, and since
March 1999, for international long-distance services. Under Telmexs concession, the price ceiling is also adjusted downward periodically to pass on the benefits of Telmexs increased productivity to its customers. The IFT sets a periodic
adjustment for every four-year period to permit Telmex to maintain an internal rate of return equal to its weighted average cost of capital.

In addition, basic
retail telephone services as well as broadband services and calling party pays charges are subject to a separate price ceiling scheme based on productivity indicators. In each case, Telmex is required to submit a survey on productivity
indicators to the IFT every two years, including a total factor productivity. The IFT establishes the productivity factor that will apply over the next two years and based on this the IFT will approve the customer prices before they can take effect.

Prices for Telmexs wholesale services are established by the IFT, some of them are based on the long-run average
incremental cost model and the rest on the retail-minus methodology.

BRAZIL

Legal Framework and Principal Regulatory Authorities

The Brazilian Telecommunications Law (Lei Geral das Telecomunicações Brasileiras) provides a framework for telecommunications
regulation. The primary telecommunications regulator in Brazil is the Telecommunications Agency (Agência Nacional de Telecomunicações, or Anatel), which has the authority to
grant concessions and licenses for all radio spectrum, the use of its orbits and telecommunications services, except broadcasting, and to adopt regulations that are legally binding on telecommunications services providers. Additionally, Claro Brasil
is subject to regulation by the Brazilian National Cinema Agency (Agência Nacional do Cinema).

As of the date of this annual report,
Brazilian lawmakers are considering the passage of a revamped legal telecommunications framework aimed at modernizing the current concession-based model to an authorization-based model. The telecom reform bill under review allows fixed-line
concessionaires, such as Claro Brasil, to provide services under an authorization instead of a concession, as long as certain investment-related obligations are met.



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Licenses

In 2014, we simplified our corporate
structure, and our subsidiaries Embratel, Embratel Participações S.A. (Embrapar) and Net Serviços were merged into Claro Brasil. As a result, all licenses previously granted to Embratel and Net Serviços were
transferred to Claro Brasil. Embrapar held no licenses to transfer.

Following its acquisition of Brasil Telecomunicações S.A. in 2016, Claro Brasil was
transferred an additional cable TV license. This license has the same terms and conditions as Claro Brasils other cable TV license.

Our Brazilian subsidiaries
hold licenses for the telecommunications services listed below:



|                 |  |                                                                                                                                                                                                              |  |                                                                       
|---------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------
|Subsidiary       |  | License                                                                                                                                                                                                      |  | Termination Date                                                      
|Claro Brasil     |  | Fixed Local Voice Services
Domestic and International Long Distance Voice Services Personal Communication
Services Data Services Cable TV Services
Mobile Maritime Services Global Mobile Satellite Services |  | Indefinite 2025
Indefinite Indefinite
Indefinite Indefinite
Indefinite
|Claro TV         |  | DTH TV Services Data
Services                                                                                                                                                                                |  | Indefinite
Indefinite                                                 
|Americel S.A.    |  | Data Services                                                                                                                                                                                                |  | Indefinite                                                            
|Star One         |  | Data Services Satellite
Exploitation                                                                                                                                                                         |  | Indefinite See table
below                                            
|Primesys         |  | Data Services                                                                                                                                                                                                |  | Indefinite                                                            
|Telmex do Brasil |  | Data Services                                                                                                                                                                                                |  | Indefinite                                                            

Our Brazilian subsidiary Star One has the following authorizations for satellite exploitation:



|                   |  |                   |  |                                          |  |            |  |                      
|------------------ |  | ----------------- |  | ---------------------------------------- |  | ---------- |  | ---------------------
|Authorization Type |  | Contract Number   |  | Orbital Position                         |  | Issue Date |  | Expiration    Date(1)
|Orbital Position   |  | PVSS/SPV 007/2006 |  | 63°W, 65°W, 68°W, 70°W and 84°W  C Band |  | Jan. 2006  |  | Jan. 2021            
|Orbital Position   |  | PVSS/SPV 001/2003 |  | 65°W  Ku Band                           |  | Feb. 2003  |  | Feb. 2018            
|Orbital Position   |  | PVSS/SPV 12/2007  |  | 92°W  C and Ku Band                     |  | Nov. 2007  |  | Nov. 2022            
|Orbital Position   |  | PVSS/SPV 002/2003 |  | 70°W  Ku Band                           |  | Oct. 2003  |  | Oct. 2018            
|Orbital Position   |  | PVSS/SPV 001/2007 |  | 75°W  C and Ku Band                     |  | Feb. 2007  |  | Feb. 2022            
|Orbital Position   |  | PVSS/SPV 156/2012 |  | 70°W  Ka and Ku Band                    |  | Mar. 2012  |  | Mar. 2027            
|Orbital Position   |  | PVSS/SPV 076/2012 |  | 84°W  Ka and Ku Band                    |  | Feb. 2012  |  | Feb. 2027            
|Landing Rights     |  | PVSS/SPV 002/2009 |  | 37.5°W  C Band                          |  | May 2009   |  | May 2019(2)          



|(1) | Unless otherwise noted, the standard license term is 15 years.
|--- | --------------------------------------------------------------

|(2) | Expiration date to the landing rights coincides with the end of C12 Satellites lifetime.
|--- | -----------------------------------------------------------------------------------------

Our Brazilian
subsidiaries expect to continue acquiring spectrum in the event Anatel conducts additional public auctions, although Claro Brasil, like all of its peer competitors, are subject to a cap on the additional spectrum it may acquire per frequency band.



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The following table sets forth the regions in Brazil in which Claro Brasil holds licenses to provide PCS as well as their termination dates:



|                                 |  |                 
|-------------------------------- |  | ----------------
|Frequency and Geographical Block |  | Termination Date
|2500 MHz:                        |  |                 
|Nationwide                       |  | Oct. 2027       
|Regional                         |  | Oct. 2027       
|Regional                         |  | Feb. 2024       
|Regional(1)                      |  | Oct. 2031       
|700 MHz:                         |  |                 
|Nationwide                       |  | Dec. 2029       
|1900-2100 MHz:                   |  |                 
|Nationwide                       |  | Mar. 2023       
|1800 MHz:                        |  |                 
|Regional                         |  | Mar. 2023       
|Regional                         |  | July 2027       
|Regional                         |  | Aug. 2027       
|Regional                         |  | Apr. 2028       
|Regional                         |  | Mar. 2028       
|Regional                         |  | Dec. 2022       
|Regional                         |  | Dec. 2017(2)    
|900 MHz:                         |  |                 
|Regional                         |  | Apr. 2020       
|Regional                         |  | Dec. 2022       
|Regional                         |  | Dec. 2017(2)    
|Regional                         |  | July 2027       
|Regional                         |  | Aug. 2027       
|Regional                         |  | Apr. 2028       
|Regional                         |  | Mar. 2028       
|850 MHz:                         |  |                 
|Regional                         |  | July 2027       
|Regional                         |  | Aug. 2027       
|Regional                         |  | Apr. 2028       
|Regional                         |  | Mar. 2028       
|Regional                         |  | Mar. 2023       
|450MHz:                          |  |                 
|Regional                         |  | Oct. 2027       



|(1) | This is Claro Brasils most recent license acquisition from a spectrum auction held by Anatel in 2015, in which it acquired 19 licenses (10+10 MHzBand P) in different regional blocks.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Requests for renewals have been submitted and are currently subject to approval.
|--- | --------------------------------------------------------------------------------

Concessions

Claro Brasil holds two fixed-line concessions to provide domestic and international long-distance telephone services. The remaining telecommunications
services provided by Claro Brasil are governed by a system of licenses instead of concession arrangements.



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Concession Fees

Claro Brasil is required to pay
a biennial fee equal to 2.0% of net revenues from wireless services, except for the final year of the 15-year term of its PCS authorizations, in which the fee equals 1.0% of net revenues from wireless
services.

Claro Brasil is also required to pay a biennial fee during the term of its domestic and international long-distance concessions equal to 2.0% of the
revenues from long-distance telephone services, net of taxes and social contributions, for the year preceding the payment.

Termination of
Concessions

Our domestic and international long-distance fixed-line concessions provide that certain of our assets deemed indispensable for
the provision of these services will revert to the Brazilian state upon termination of these concession. Compensation for those assets would be their depreciated cost. See Note 16 to our audited consolidated financial statements included in this
annual report.

Regulation of Rates

Anatel
regulates rates (tariffs and prices) for all telecommunications services, except for fixed-line broadband services, Pay TV and satellite capacity rates, which are not regulated. In general, PCS license-holders and fixed local voice services
license-holders are authorized to increase basic plan rates annually. Domestic long-distance concession-holders may adjust annually only for inflation (less a factor determined by Anatel based on the productivity of each operator during the year).
Claro Brasil may set international long-distance rates freely, provided it gives Anatel and the public advance notice.

Regulation of
Wholesale Market Competition

In November 2012, Anatel approved the General Competition Plan (Plano Geral de Metas da Competição, or
PGMC), a comprehensive regulatory framework aimed at increasing competition in the telecommunications sector. The PGMC imposes asymmetric measures upon economic groups determined by Anatel to have significant market power in any of five
wholesale markets in the telecommunications sector, on the basis of several criteria, including having over 20.0% of market share in the applicable market.

In 2012,
Claro Brasil and three of its primary competitors were determined to have significant market power in the wireless termination and national roaming markets. As a result, Claro Brasil was required to reduce wireless termination rates to 75.0% of the
2013 rates by February 2014, and to 50.0% of the 2013 rates by February 2015. In July 2014, Anatel established termination rates for wireless services applicable to operators with significant market power through 2019. Claro Brasil is also required
to publish, and Anatel must approve, its reference roaming prices for voice, data and SMS on a semi-annual basis, among other measures.

In addition, Embratel was
determined to have significant market power in the market for long-distance leased lines, Claro Brasil and Embratel were determined to have significant market power in the telecommunications infrastructure market and Net Serviços was
determined to have significant market power in the local coaxial transmissions market, together with several of their wireless and fixed-line competitors. Following the merger of Embratel and Net Serviços into Claro Brasil in 2014, Claro
Brasil is required to publish and Anatel must approve its reference offers in each such market. Moreover, wholesale



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contracts entered into by operators determined to have significant market power, for the sale of such operators services, are overseen by independent third-party
companies.

In 2015, Anatel approved Claro Brasils wholesale reference offers with respect to national roaming, telecommunications infrastructure,
long-distance leased lines, wireless termination rates, internet network interconnection and internet links.

In light of evolving market conditions, Anatel reviews
its determination of which operators have significant market power on a biennial basis. Anatel began its first review of all telecom operators in 2014, but this first review has not been completed. Depending on the results of the review, Anatel may
propose modifications to the asymmetric measures applicable under the PGMC, which would be subject to public comment.

Network Usage Fees
and Fixed-Line Interconnection Rates

In July 2014, Anatel approved a resolution establishing the reference terms for fees charged in connection with
wireless network and leased lines usage, and setting a price cap on fees charged for fixed network usage to operators deemed to have significant market power. Such fees, based on the cost allocation of services by telecom providers, have been
applicable since February 2016.

Fixed-line operators determined by Anatel to have significant market power in the local fixed-line market may freely negotiate
interconnection rates, subject to a price cap established by Anatel. Claro Brasil was not determined to have significant market power in the local fixed-line market and thus may set interconnection rates up to 20.0% higher than such cap.

Other Obligations

Under applicable law and our
concessions, Claro Brasil has an obligation to: (i) comply with certain coverage obligations to ensure universal access to its fixed-line voice services, (ii) contribute to the funding of transitioning from analogue to digital TV,
(iii) meet quality-of-service targets and (iv) comply with applicable telecommunications services consumer rights.

COLOMBIA

Legal
Framework and Principal Regulatory Authorities

The Information and Communications Ministry (Ministerio de Tecnologías de la Información
y las Comunicaciones, or ICT Ministry) and the Communications Regulatory Commission (Comisión de Regulación de Comunicaciones, or CRC) are responsible for overseeing and regulating the
telecommunications sector. The main audiovisual regulatory authority in Colombia with respect to Pay TV services is the National Television Authority (Autoridad Nacional de Televisión, or ANTV). We are also subject to
supervision by other government entities responsible for enforcing other regulations, such as antitrust rules or those protecting consumer rights.

Concessions

Comunicación Celular S.A. (Comcel) is qualified to provide fixed and wireless services and was
included in the register of networks and services administered by the ICT Ministry. Such general authorization superseded all of Comcels former concession contracts and, consequently, such former concessions were terminated.



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As a result of the termination of Comcels former concessions, the ICT Ministry and Comcel began discussions with respect to the liquidation of the agreements
governing those concessions. In light of the decision of the Colombian Constitutional Court (Corte Constitucional de Colombia) holding that certain laws limiting the reversion of assets of telecommunications providers did not apply to
concessions granted prior to 1998 and, consequently, that reversion of assets under those earlier concessions would be governed by their contractual terms, the ICT Ministry took the position that assets under Comcels earlier concessions should
revert to the Colombian government. Comcel disputes the ICT Ministrys interpretation of that decision. The Company and the ICT Ministry have both filed arbitration claims arising from this ruling. For further information on this arbitration
claim, see Note 16 to our audited consolidated financial statements included in this annual report.

Licenses and Permits

Comcel holds licenses to provide wireless services in the spectrum frequency bands shown in the table below.



|          |  |           |  |                 
|--------- |  | --------- |  | ----------------
|Frequency |  | Bandwidth |  | Termination Date
|850 MHz   |  | 25 MHz    |  | Mar. 2024       
|1900 MHz  |  | 10 MHz    |  | Dec. 2019       
|          |  | 5 MHz     |  | Sept. 2021      
|          |  | 15 MHz    |  | Apr. 2024       
|          |  | 5 MHz     |  | June 2017(1)    
|2.5 GHz   |  | 30 MHz    |  | Aug. 2023       



|(1) | An application for the renewal of this license has been made.
|--- | -------------------------------------------------------------

In 2013, Telmex Colombia S.A. obtained permission to
provide Pay TV services under any available technology, pursuant to ANTVs unified licensing system. The permission will expire in 2020 and may be renewed at the appropriate time for another 10-year term.

In February 2017, the ICT Ministry published for comments a draft resolution increasing the cap on spectrum acquisitions by 45 MHz per operator in low
frequency bands, in connection with a new spectrum auction in the 700 and 1900 MHz bands. If approved, the resolution would permit our participation in the new spectrum auction. The ICT Ministry is expected to issue a final resolution in the
2017.

Asymmetric Charges

In 2012, the CRC
issued resolutions seeking to correct an alleged market failure and imposing the following measures on Comcel: (i) asymmetric charges for call terminations by other operators on Comcels wireless and long distance network, with access
rates lower than the rates we pay our competitors and (ii) restrictions on the rates we charge our users for calls outside our network (off-net calls), which must not exceed the rates we charge for calls
within our network (on-net calls).

These asymmetric access charges ended in December 2016. In January 2017, the Colombian
government approved symmetrical access charges among established operators like Comcel, Movistar and Tigo. Under general telecommunication regulation, new entrants continue to receive a higher access rate from established operators for a limited
period.



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In February 2017, the CRC issued a resolution updating the list of regulated telecommunication markets by merging the subscription and
on-demand wireless data markets and creating two separate wireless services markets for wholesale and retail wireless services. In connection with the wireless retail services market, the CRC initiated a
proceeding to evaluate Comcels substantial market power in this new market and, if applicable, the imposition of asymmetric regulatory measures that could affect Comcel.

SOUTHERN CONE

Argentina

Following the election of President
Mauricio Macri in 2015, the Argentine government issued a Decree of Necessity and Urgency (Decreto de Necesidad y Urgencia, or DNU) to create a new communications ministry and regulator to oversee the telecommunications and media
sectors. The National Communications Agency (Ente Nacional de Comunicaciones, or Enacom) is now the main telecommunications regulatory authority in Argentina and became operational in January 2016.

As part of the measures passed under the DNU, fixed and wireless services providers are prohibited from providing DTH technology, which is currently the fastest way to
provide Pay TV services. The measures also prohibit their provision of Pay TV services through any other technology as of January 2016 and for a two-year period, which may be extended by a further year.

However, a January 2017 decree permits telecommunications providers, such as AMX Argentina S.A. (AMX Argentina), to provide Pay TV services as of January
2018 within a limited number of territories. The start date for the rest of the country will be determined by Enacom. We expect implementing regulations in connection with this decree to be announced.

AMX Argentina holds licenses in the 700 MHz, 900 MHz, 1700/2100 MHz (AWS) and 1900 MHz frequency bands, some of which expire in 15 years and some which have no
expiration date. Each license also contains certain coverage, reporting and service requirements as well as provides Enacom a revocation right upon a material breach of the license terms.

All telecommunications providers in Argentina must contribute approximately 1.0% of their monthly revenues to finance the provision of telecommunications services in
underserved areas and to underserved persons. All providers must also meet certain quality-of-service requirements.

Chile

The General Telecommunications Law
(Ley General de Telecomunicaciones) established the legal framework for telecommunications services in Chile, including the regulation of concessions, permits, rates and interconnection. The main regulatory agency of the telecommunications
sector is the Chilean Transportation and Communications Ministry (Ministerio de Transportes y Telecomunicaciones), which acts primarily through the Undersecretary of Telecommunications (Subsecretaría de Telecomunicaciones).

Claro Chile S.A. (Claro Chile) holds concessions to provide wireless and fixed-line services in the 700 MHz, 850 MHz, 1900 MHz, 2.6 GHz, 3.4 to 3.6 GHz and
5.8 GHz frequency bands. Additionally, Claro Chile holds a 10-year license to provide DTH technology services and a license with an indefinite term to provide Pay TV services.

Certain of Claro Chiles concessions impose additional requirements such as coverage, reporting and service quality requirements. The Chilean Transportation and
Communications Ministry is authorized to terminate



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any concession in the event of specified breaches under the terms of such concessions. Additionally, Claro Chiles concession in the 700 MHz band imposes certain
obligations to expand mobile and data services in rural areas.

Paraguay

The National Telecommunications Commission of Paraguay (Comisión Nacional de Telecomunicaciones de Paraguay) is in charge of supervising the
telecommunications industry in Paraguay. It is authorized to cancel licenses in the event of specified breaches of the terms of a license.

AMX Paraguay, S.A.
(AMX Paraguay) holds licenses to operate in the 1900 MHz and the 1700/2100 MHz bands. AMX Paraguay also holds a nationwide internet access and data transmission license. In addition, AMX Paraguay holds licenses to provide DTH services
and cable TV services. These licenses are renewable, subject to regulatory approval, and contain coverage, reporting and service requirements.

Uruguay

The Regulatory Unit of Communications
Services (Unidad Reguladora de Servicios de Comunicaciones) is in charge of the regulation of the telecommunications industry in Uruguay.

AM Wireless
Uruguay, S.A. holds various licenses for the provision of PCS and IMT-2000 services that expire in 2024 and 2033, and Telstar, S.A. holds licenses to provide international long distance communications and
wireless data services that have no expiration date.

In 2013, the Court of Administrative Disputes (Tribunal de lo Contencioso Administrativo) notified
Flimay S.A. (Flimay) that the license granted to provide DTH technology services was again in force, following an initial revocation. Later that year, the administrative authorities revoked that license for a second time. Flimay filed a
lawsuit to suspend and revoke that administrative decision and, in December 2014, was notified by the TCA that the second revocation act was suspended, thus Flimays DTH license, which expires in 2024, is provisionally valid. As of the date of
this annual report, the challenge is pending.

ANDEAN REGION

Ecuador

The primary regulatory authorities for
our wireless and fixed-line operations are the National Telecommunications, Regulation and Control Agency (Agencia de Regulación y Control de las Telecomunicaciones, or Arcotel) and the Telecommunications and Information
Society Ministry (Ministerio de Telecomunicaciones y Sociedad de la Información, or Mintel). Arcotel is responsible for the licensing and oversight of radio-electric spectrum use and telecommunications services provisions.
Mintel is responsible for the promotion of equal access to telecommunications services.

In 2015, a new Telecommunications Law (Ley Orgánica
de Telecomunicaciones) went into effect. It established new regulations for operators with significant market power, new penalties based on their gross incomes as well as additional fees also based on an operators gross income but can vary
depending on their market share of customers. Consorcio Ecuatoriano de Telecomunicaciones, S.A. (Conecel) has been deemed to have significant market power in the advanced wireless services market, and as a result, we make such fee
payments on a quarterly basis on the dates established by Arcotel. For fiscal year 2016, Conecel had an obligation to pay the Ecuadorian government 5.0% of its advanced wireless services



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revenues for 2016, which represented approximately Ps.1.2 billion (U.S.$57.5 million). As of the date of this annual report, Conecel has paid the fee in full, along
with the fees paid for fiscal year 2015. The regulators determination and the fee paid by Conecel are under dispute and subject to an arbitration proceeding.

Conecel holds concessions to operate in the 850MHz, 1900 MHz and AWS bands, which include concessions for PCS that expire in 2023. The PCS concession contains quality-of-service requirements for successful call completions, SMS delivery times, customer service, geographic coverage and other service conditions. Conecel also holds
licenses to provide wholesale services, internet value-added services and Pay TV Services (though DTH technology), expiring in April 2017, 2021 and 2023, respectively. Conecel expects to obtain the renewal of the concession expiring in 2017.

Ecuador Telecom, S.A. (Ecuador Telecom) holds a concession to offer wireless voice and fixed-line voice, public telephone and domestic and international
long-distance wholesale services, as well as a license to use the 3.5 GHz frequency band that expires in August 2017, and a Pay TV license that expires in 2031. Renewal of the license expiring in 2017 is pending approval by the government.

In 2015, Arcotel authorized the transfer of Ecuador Telecoms concessions for fixed-line voice, public telephone and domestic and international long-distance
wholesale services, as well as its Pay TV license to Conecel. In November 2016, the Ecuadorian government also authorized the merger of Ecuador Telecom into Conecel.

Ecuador Telecom dissolved at the close of the merger, and Conecel is now the successor to all the rights and obligations arising from Ecuador Telecoms concessions
and licenses.

Recalculation of Concession Rights

Arcotel has initiated several proceedings to recalculate the variable portion of the concession fees payable under Conecels concession, equivalent to 2.93% of
Conecels annual revenues. In November 2016, Conecel paid Ps.0.6 billion (U.S.$31.3 million) in connection with such variable fees for the 2009 to 2011 period and Ps.0.3 billion (U.S.$13.8 million) for the 2012 to 2014 period. Similar
recalculations are likely to occur in connection with the 2015 and 2016 fiscal years.

Peru

América Móvil Perú, S.A.C. (Claro Perú) holds nationwide concessions to provide wireless, PCS, fixed-line, local wholesale,
domestic and international long-distance, Pay TV services (through DTH and HFC technologies), public telephone and value-added services (including internet access). The concessions allow Claro Perú to operate on the 450 MHz, 700 MHz,850 MHz, 1900 MHz, 3.5 GHz and 10.5 GHz bands. In 2016, Claro Perú had plans to acquire 10 MHz in the 1.7/2.1 GHz band from a third-party operator but mutually agreed with the government to terminate that acquisition.

Each of the concessions was awarded by the MTC and covers a 20-year period. The concessions contain coverage, reporting, service
requirement and spectral efficiency goals. The MTC is authorized to cancel any of the concessions in the case of specified breaches of its terms.

In April 2015, new
mobile termination rates were issued for 2015 through 2017, establishing two different rates, one for Claro Perú and Telefónica del Perú and a different one for our competitors, Viettel Perú S.A.C. and Entel. The
ratespost-2017 are expected to be announced at the end of the year.



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As part of Claro Perús acquisitions of Olo del Perú S.A.C., TVS Wireless S.A.C. and their respective subsidiaries in 2016, we acquired additional
licenses to operate on the 2.5 GHz band.

EUROPE

Legal Framework and Principal Regulatory Authorities

The telecommunications regulatory framework in the EU is comprised of a set of directives and regulations that apply to all EU member countries and cover fixed and
wireless services, internet, broadcasting and transmission services. Austria, Bulgaria, Croatia and Slovenia are EU member countries. Macedonia and Serbia, candidates for accession to the EU, are expected to gradually harmonize their regulatory
frameworks with the EUs framework.

In 2015, the EU enacted Regulation (EU) 2015/2120, also known as the Telecoms Single Market Regulation, concerning retail
roaming charges and net neutrality. The regulation (i) implemented additional regulations on net neutrality to protect the right of every European to non-discriminatory access to the internet, which came
into effect in April 2016 and (ii) aims to end retail roaming charges by June 2017. Prior to the elimination of roaming charges, the caps on the roaming charges were reduced in April 2016; operators are only permitted to charge a small
additional amount to domestic prices (up to 0.05 per minute of calls made, 0.01 per minute of calls received, 0.02 per SMS sent and 0.05 per MB of data). The net neutrality rules in the EU are similar to those in the United States with all
traffic treated equally, subject to strict and clearly-identified exceptions. Telecommunications providers will still be able to offer specialized services, so long as these services are not supplied at the expense of the quality of the open
internet.

Additionally, in each European country in which we operate, we are subject to a domestic telecommunications regulatory framework and to oversight by one
or more local regulators.



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Licenses



|          |          |           |            |                 
|--------- | -------- | --------- | ---------- | ----------------
|Country   |          | Frequency |            | Termination
date
|Austria   |          | 800 MHz   |            | Dec. 2029       
|          | 900 MHz  |           | Dec. 2034 
|          | 1800 MHz |           | Dec. 2034 
|          | 2100 MHz |           | Dec. 2020 
|          | 2600 MHz |           | Dec. 2026 
|Bulgaria  |          | 900 MHz   |            | June 2024       
|          | 1800 MHz |           | June 2024 
|          | 2100 MHz |           | Apr. 2025 
|Croatia   |          | 800 MHz   |            | Oct. 2024       
|          | 900 MHz  |           | Oct. 2024 
|          | 1800 MHz |           | Oct. 2024 
|          | 2100 MHz |           | Oct. 2024 
|Belarus   |          | 900 MHz   |            | Dec. 2020       
|          | 1800 MHz |           | Dec. 2020 
|          | 2100 MHz |           | Dec. 2020 
|Slovenia  |          | 800 MHz   |            | May 2029        
|          | 900 MHz  |           | Jan. 2031 
|          | 1800 MHz |           | Jan. 2031 
|          | 2600 MHz |           | May 2029  
|          | 2100 MHz |           | Sept. 2021
|Serbia    |          | 800 MHz   |            | Jan. 2026       
|          | 900 MHz  |           | Nov. 2026 
|          | 1800 MHz |           | Nov. 2026 
|          | 2100 MHz |           | Nov. 2026 
|Macedonia |          | 800 MHz   |            | Dec. 2033       
|          | 1800 MHz |           | Dec. 2033 
|          | 900 MHz  |           | Sept. 2023
|          | 2100 MHz |           | Feb. 2018 



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OTHER JURISDICTIONS



|                         |  |                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                              
|------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Country                  |  | Principal
Regulatory Authorities                                                                                                                                                                |  | Concession and
Licenses                                                                                                                                                                                                                                                                                                      
|Costa Rica               |  | Superintendency of Telecommunications (Superintendencia de Telecomunicaciones)
 Ministry of Science, Technology and Telecommunications (Ministerio de Ciencia, Tecnología
y Telecomunicaciones) |  |           Concessions in the 1800 MHz and 2100 MHz bands that all expire
in 2026 
          License to operate Pay TV services using DTH technology that
will expire in 2027                                                                                                                                               
|El Salvador              |  | Electricity and Telecommunications Superintendency (Superintendencia General de Electricidad y Telecomunicaciones)                                                                              |  |           Concession of 50 MHz in the 1900 MHz band of which 30 MHz will
expire in December 2017 and an application for renewal has been submitted; 10 MHz will expire in 2021; and 10 MHz will expire in 2028 
          Licenses to provide Pay TV Services through HFC and DTH
technologies have an indefinite term     
|Guatemala                |  | Guatemalan Telecommunications Agency (Superintendencia de Telecomunicaciones)                                                                                                                   |  |           Licenses in the 900 MHz and 1900 MHz bands that all expire
in 2033                                                                                                                                                                                                                                                
|Nicaragua                |  | Nicaraguan Telecommunications and Mailing Institute (Instituto Nicaragüense de Telecomunicaciones y Correos)                                                                                    |  |           Concessions in the 700 MHz, 850 MHz, 1900 MHz and
1700/2100 MHz bands that all expire in 2022 
          Concession of 50 MHz in the 3.5 GHz band that will expire in
2022 
          Licenses to provide DTH technology that will expire in 2018
and Pay TV services that has an indefinite term               
|Honduras                 |  | Honduran National Telecommunications Commission (Comisión Nacional de Telecomunicaciones)                                                                                                       |  |           Concessions to use 80 MHz in the 1900 MHz PCS band and 40 MHz
in the LTE-4G 1700/2100 MHz band that all expire in 2033 
          Licenses to operate Pay TV services through (i) HFC
technology that will expire in 2017 and will undergo a process for renewal and (ii) DTH technology that will expire in 2020
|Panama                   |  | National Authority of Public Services (Autoridad Nacional de los Servicios Públicos)                                                                                                            |  |           License to use 40 MHz in the 1900 MHz and 20 MHz in the 700
MHz bands that all expire in 2028 
          Licenses to provide international long-distance, value-added
services and Pay TV service through DTH technology, which expire in 2028, 2030 and 2034, respectively                                      
|United States
(TracFone) |  | The Federal Communications Commission (FCC)                                                                                                                                                   |  |            Not required to hold wireless licenses to carry out
its business                                                                                                                                                                                                                                                 



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|                   |  |                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                          
|------------------ |  | ------------------------------------------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Country            |  | Principal
Regulatory Authorities                                                           |  | Concession and
Licenses                                                                                                                                                                                                                                                                                                                                                  
|Dominican
Republic |  | Dominican Institute of Telecommunications (Instituto Dominicano de las Telecomunicaciones) |  |           Concessions to use 26 MHz in the 800 MHz band, 30 MHz in the
1900 MHz band, 30 MHz in the 3.5 GHz band and 40 MHz in the 1.7/2.1 GHz (AWS) band that expire in 2030 
          Licenses to provide Pay TV Services through DTH and IPTV
technologies that expire in 2030                                                                                     
|Puerto Rico        |  | FCC and the Telecommunications Regulatory Board of Puerto Rico                             |  |           Concessions to use the 700 MHz and 1900 MHz bands that
expire in 2021 and 2017, respectively 
          Concessions to use the 800 MHz that expire in 2018, 2020, 2021
and 2026 
          Concessions to use the 1.7/2.1 GHz bands that expire in 2026
and 2028 
          Franchise to operate Pay TV Services using IPTV technology
that expires in 2030



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LOGO

|                                
|--------------------------------
|PART VII:
ADDITIONAL INFORMATION





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##### Table of Contents

Additional Information







EMPLOYEES

Many of
our employees are members of labor unions with which we conduct collective negotiations on wages, benefits and working conditions. We believe that we have good current relations with our workforce.

The following table sets forth the total number of employees and a breakdown of employees by main category of activity and geographic location, as of the end of each
year in the three-year period ended December 31, 2016.



|                      |  |              |         |  |      |  |         |      |  |  |         | 
|--------------------- |  | ------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                      |  | December 31, |        
|                      |  | 2014         |         |  | 2015 |  |         | 2016 | 
|Number of employees   |  |              | 191,156 |  |      |  | 195,475 |      |  |  | 194,193 | 
|Category of activity: |  |              |         |  |      |  |         |      |  |  |         | 
|Wireless              |  |              | 75,846  |  |      |  | 77,701  |      |  |  | 78,649  | 
|Fixed                 |  |              | 103,577 |  |      |  | 101,077 |      |  |  | 97,104  | 
|Other businesses      |  |              | 11,733  |  |      |  | 16,697  |      |  |  | 18,440  | 
|Geographic location:  |  |              |         |  |      |  |         |      |  |  |         | 
|Mexico                |  |              | 83,484  |  |      |  | 88,446  |      |  |  | 90,306  | 
|South America         |  |              | 71,596  |  |      |  | 69,269  |      |  |  | 65,817  | 
|Central America       |  |              | 9,319   |  |      |  | 9,581   |      |  |  | 9,767   | 
|United States         |  |              | 849     |  |      |  | 902     |      |  |  | 848     | 
|Caribbean             |  |              | 9,666   |  |      |  | 9,605   |      |  |  | 9,488   | 
|Europe                |  |              | 16,242  |  |      |  | 17,672  |      |  |  | 17,967  | 





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LEGAL
PROCEEDINGS

In each of the countries in which we operate, we are party to various legal proceedings in the ordinary course of business. These proceedings
include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters such as interconnection and tariffs. We are party to a number of proceedings regarding our compliance with administrative
rules and regulations and concession standards.

Our material legal proceedings are described in Note 16 to our audited consolidated financial statements included in
this annual report and in Regulation under Part VI.



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PRINCIPAL
ACCOUNTANT FEES AND SERVICES

AUDIT AND NON-AUDIT FEES

The following table sets forth the fees billed to us and our subsidiaries by our independent registered public accounting firm, Mancera S.C. (Mancera),
during the fiscal years ended December 31, 2015 and 2016:



|                      |  |                                |     |  |      |     |     | 
|--------------------- |  | ------------------------------ | --- |  | ---- | --- | --- | 
|                      |  | Year ended December 31,        |    
|                      |  | 2015                           |     |  | 2016 |    
|                      |  | (in millions of Mexican pesos) |    
|Audit
fees(1)         |  | Ps.                            | 207 |  |      | Ps. | 241 | 
|Audit-related
fees(2) |  |                                | 14  |  |      |     | 15  | 
|Tax
fees(3)           |  |                                | 10  |  |      |     | 31  | 
|Total fees            |  | Ps.                            | 231 |  |      | Ps. | 287 | 





|(1) | Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not
required by statute or regulation.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services, tax planning services and tax advice services.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

AUDIT AND CORPORATE PRACTICES COMMITTEE APPROVAL POLICIES AND PROCEDURES

Our audit and corporate practices committee has established policies and procedures for the engagement of our independent auditors for services. Our audit and corporate
practices committee expressly approves any engagement of our independent auditors for audit or non-audit services provided to us or our subsidiaries. Prior to providing any service that requires specific pre-approval, our independent auditor and our Chief Financial Officer present to the audit committee a request for approval of services in which they confirm that the request complies with the applicable rules.





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EXCHANGE
RATES

Mexico has had a free market for foreign exchange since 1991, and the government has allowed the peso to float freely against the U.S. dollar since
December 1994.

The following table sets forth, for the periods indicated, the high, low, average and period-end rate
reported by Banco de México for December 31, 2016 as published in the Official Gazette, expressed in pesos per U.S. dollar.



|                         |  |      |         |  |     |  |         |            |  |  |            |  |  |  |         | 
|------------------------ |  | ---- | ------- |  | --- |  | ------- | ---------- |  |  | ---------- |  |  |  | ------- | 
|Period                   |  | High |         |  | Low |  |         | Average(1) |  |  | Period End | 
|2012                     |  |      | 14.3949 |  |     |  | 12.6299 |            |  |  | 13.1670    |  |  |  | 13.0101 | 
|2013                     |  |      | 13.4394 |  |     |  | 11.9807 |            |  |  | 12.8210    |  |  |  | 13.0765 | 
|2014                     |  |      | 14.7853 |  |     |  | 12.8462 |            |  |  | 13.3580    |  |  |  | 14.7180 | 
|2015                     |  |      | 17.3776 |  |     |  | 14.5559 |            |  |  | 16.0379    |  |  |  | 17.2065 | 
|2016                     |  |      | 21.0511 |  |     |  | 17.1767 |            |  |  | 18.6567    |  |  |  | 20.6640 | 
|October                  |  |      | 19.4086 |  |     |  | 18.5147 |            |  |  | 18.9732    |  |  |  | 18.8443 | 
|November                 |  |      | 21.0511 |  |     |  | 18.5089 |            |  |  | 19.9695    |  |  |  | 20.5521 | 
|December                 |  |      | 20.7488 |  |     |  | 20.2226 |            |  |  | 20.5428    |  |  |  | 20.6640 | 
|2017                     |  |      |         |  |     |  |         |            |  |  |            |  |  |  |         | 
|January                  |  |      | 21.9076 |  |     |  | 20.6194 |            |  |  | 21.3955    |  |  |  | 21.0212 | 
|February                 |  |      | 20.7908 |  |     |  | 19.7011 |            |  |  | 20.3525    |  |  |  | 19.8335 | 
|March                    |  |      | 19.9957 |  |     |  | 18.8092 |            |  |  | 18.4165    |  |  |  | 18.8092 | 
|April (through April 19) |  |      | 18.8334 |  |     |  | 18.5582 |            |  |  | 18.7366    |  |  |  | 18.5582 | 





|(1) | Average of month-end rates.
|--- | ---------------------------

On April 19, 2017, the rate published by the
Official Gazette was Ps.18.5582 to U.S.$1.00.





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ADDITIONAL
INFORMATION

We file reports, including annual reports on Form 20-F, and other information with the SEC pursuant
to the rules and regulations of the SEC that apply to foreign private issuers. You may read and copy any materials filed with the SEC at its public reference rooms in Washington, D.C. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Any filings we make electronically will be available to the public over the internet at the
SECs web site at http://www.sec.gov and at our website at http://www.americamovil.com. (This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website,
which might be accessible through a hyperlink resulting from this URL, is not and shall not be deemed to be incorporated into this annual report.)

The following
documents have been filed with the SEC as exhibits to this annual report:



|     |  |                                                                                                                                                                                                                                                                                  
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.1  |  | Amended and Restated Bylaws (estatutos sociales) of América Móvil, S.A.B. de C.V., dated as of January 13, 2016 (together with an English translation) (incorporated by reference to Exhibit 1.1 to our annual
report on Form 20-F, File No. 001-16269, filed on April 26, 2016).
|     | 
|7.1  |  | Computation of Ratios of Earnings to Fixed Charges.                                                                                                                                                                                                                              
|     | 
|8.1  |  | List of certain subsidiaries of América Móvil, S.A.B. de C.V.                                                                                                                                                                                                                    
|     | 
|12.1 |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                              
|     | 
|12.2 |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                              
|     | 
|13.1 |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                         
|     | 
|15.1 |  | Consent of independent registered public accounting firm.                                                                                                                                                                                                                        





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Additional Information





FORWARD-LOOKING STATEMENTS

Some of the information contained or incorporated by reference in this annual report constitutes forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we have based these forward-looking statements on our expectations and projections about future events, it is possible that actual events may differ materially from
our expectations. In many cases, we include, together with the forward-looking statements themselves, a discussion of factors that may cause actual events to differ from our forward-looking statements. Examples of forward-looking statements include
the following:



| |  |  | projections of our commercial, operating or financial performance, our financing, our capital structure or our other financial items or ratios;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | statements of our plans, objectives or goals, including those relating to acquisitions, competition and rates;
| | - |  | --------------------------------------------------------------------------------------------------------------



| |  |  | statements concerning regulation or regulatory developments;
| | - |  | ------------------------------------------------------------



| |  |  | statements about our future economic performance or that of Mexico or other countries in which we operate;
| | - |  | ----------------------------------------------------------------------------------------------------------



| |  |  | competitive developments in the telecommunications sector;
| | - |  | ----------------------------------------------------------



| |  |  | other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------



| |  |  | statements of assumptions underlying the foregoing statements.
| | - |  | --------------------------------------------------------------

We use words such as believe,
anticipate, plan, expect, intend, target, estimate, project, predict, forecast, guideline, should and other similar
expressions to identify forward-looking statements, but they are not the only way we identify such statements.

Forward-looking statements involve inherent risks and
uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors, some of
which are discussed under Risk Factors, include economic and political conditions and government policies in Mexico, Brazil, Colombia, Europe and elsewhere, inflation rates, exchange rates, regulatory developments, technological
improvements, customer demand and competition. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those in forward-looking statements. You
should evaluate any statements made by us in light of these important factors.

Forward-looking statements speak only as of the date they are made. We undertake no
obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.





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Additional Information





GLOSSARY



|                            |  |                                                                                                                                                                                  
|--------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Term                        |  | Definition                                                                                                                                                                       
|AWS                         |  | Advanced Wireless Services. This is a wireless telecommunications spectrum band used for wireless voice and data services, video and messaging.                                  
|Broadband                   |  | High-speed data transmission in which a single cable (coaxial cable or optical fiber) can carry a large amount of data at once.                                                  
|Bundle or bundling          |  | The marketing of different services as one combined service.                                                                                                                     
|Churn rate                  |  | Disconnection rate. The ratio of wireless subscribers disconnected during a given period to the number of subscribers at the beginning of that period.                           
|Covered population          |  | Population covered by our wireless networks, expressed as the population count or as a percentage of the total population.                                                       
|Cloud services              |  | Internet-based services providing users with on-demand access to resources, data and information.                                                                                
|Data administration         |  | Services that plan, organize and control data resources for customers according to their needs.                                                                                  
|Data center                 |  | A facility used to house computer systems and associated components. We use our data centers to manage a number of cloud solutions.                                              
|DTH                         |  | Direct-to-home broadcasting is a method for transmitting satellite signals directly to the subscribers
home.                                                                    
|Fixed-line                  |  | Telephone services requiring the use of a metal wire or fiber optic telephone line for transmission.                                                                             
|Fixed RGUs                  |  | RGUs from fixed voice, fixed data and Pay TV services.                                                                                                                           
|GSM                         |  | Global System for Mobile Communications. A standard used to describe the protocols for certain digital cellular networks.                                                        
|GSM EDGE                    |  | Enhanced Data Rates for GSM Evolution is a 3rd generation (3G) standard for wireless communication of data for mobile phones
and data terminals.                               
|HFC                         |  | Hybrid fiber-coaxial is a broadband network that combines optical fiber and coaxial cable.                                                                                       
|Hosting services            |  | Services allowing customers to provide content on the internet, either through maintaining a webpage, an email address or other services.                                        
|IAAS                        |  | Infrastructure as a service is a cloud-service model offering virtual machines and other resources.                                                                              
|IMT-2000                    |  | International Mobile Telecommunciations-2000 is a set of global standards by the International Telecommunication Union for 3G wireless telecommunications services and equipment.
|Interconnection rates       |  | The charges that one telecommunications network operator charges another network operator for allowing customers to access its network.                                          
|Licensed population         |  | Population covered by the licenses that each of our subsidiaries manages.                                                                                                        
|Long-distance               |  | Long-distance calls are calls made outside a defined area and may incur additional charges or be subject to specific regulations.                                                
|LTE/4G                      |  | Long-term evolution is a 4th generation (4G) standard for wireless communication of high-speed data for mobile phones and
data terminals.                                      
|Machine-to-machine
services |  | Services allowing direct communication between devices over a network, including fixed and wireless devices.                                                                     



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|                            |  |                                                                                                                                                                                                                                                                                                                                         
|--------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Term                        |  | Definition                                                                                                                                                                                                                                                                                                                              
|Market share                |  | A companys subscriber base in a given country divided by the total number of subscribers in that country.                                                                                                                                                                                                                              
|Mobile payment              |  | Refers to payment services and applications operated and performed on a mobile device.                                                                                                                                                                                                                                                  
|MHz                         |  | Megahertz. The unit of frequency to measure one thousand cycles per second that is used to determine radio frequencies.                                                                                                                                                                                                                 
|MVNO                        |  | Mobile Virtual Network Operator. A wireless communications services provider that does not own the wireless network infrastructure but enters into agreements with other mobile service
providers for the use of their networks.                                                                                                        
|Net debt                    |  | Total debt minus cash and cash equivalents, minus marketable securities or othershort-term investments.                                                                                                                                                                                                                                 
|On-demand                   |  | Describes services providing customers with the ability to stream content over our network immediately upon their request.                                                                                                                                                                                                              
|OTT services                |  | Over-the-top Services. The provision of content, including videos, television and other information, directly
from the content provider to the viewer or end user.                                                                                                                                                                      
|Pay TV                      |  | Pay Television. This refers to television services we offer to subscribers through cable and satellite networks.                                                                                                                                                                                                                        
|PCS                         |  | Personal Communications Service refers to a wide range of wireless communication technologies, including cellular, mobile data, Internet or paging services. Similar but distinct from
cellular telephone services in the frequencies on which they operate and the power levels each uses to transmit signals, among other differences.
|Prepaid subscriber          |  | A subscriber who does not hold a contract with the company for voice and data services but pays in advance for specific use of services.                                                                                                                                                                                                
|Postpaid subscriber         |  | A subscriber who has a contract with the company for voice and data services and is billed recurrently for use of services.                                                                                                                                                                                                             
|RGU                         |  | Revenue Generating Unit. This is an individual subscriber who provides recurring revenue.                                                                                                                                                                                                                                               
|Roaming                     |  | Allows wireless subscribers to access networks other than our own, enabling them to use their devices, including for voice and data transmission. Typically refers to using accessing a
network while abroad.                                                                                                                           
|SMS                         |  | Short Message Service. A text messaging service component of a fixed or wireless communication system.                                                                                                                                                                                                                                  
|SAAS                        |  | Software as a service is a cloud-service model offering users access to software applications and databases.                                                                                                                                                                                                                            
|Subscriber acquisition cost |  | The sum of handset subsidies, marketing expenses and commissions to distributors for handset activation. Handset subsidy is the difference between equipment cost and equipment
revenues.                                                                                                                                               
|Total RGUs                  |  | Fixed RGUs and wireless subscribers.                                                                                                                                                                                                                                                                                                    
|UMTS                        |  | Universal Mobile Telecommunications System is a 3G mobile cellular system for networks based on the GSM standard.                                                                                                                                                                                                                       
|VPN                         |  | Virtual private network grants users access to a private network virtually across a public network.                                                                                                                                                                                                                                     
|Wireless penetration        |  | Total wireless subscribers in a given country divided by the total population in that country.                                                                                                                                                                                                                                          



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Additional Information







FORM 20-F CROSS REFERENCE GUIDE



|     |  |                                                            |  |                                                                                                                  |  |       |              | 
|---- |  | ---------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------- |  | ----- | ------------ | 
|Item |  | Form 20-F caption                                          |  | Location in this report                                                                                          |  | Pages |             
|1    |  | Identity of directors, senior management and
advisers      |  | Not applicable                                                                                                   |  |       |             | 
|2    |  | Offer statistics and expected timetable                    |  | Not applicable                                                                                                   |  |       |             | 
|3    |  | Key information                                            |  |                                                                                                                  |  |       |              | 
|     |  | 3A Selected financial data                                 |  | Selected financial data Exchange rates                                                                           |  |       | 1129         | 
|     |  | 3B Capitalization and indebtedness                         |  | Not applicable                                                                                                   |  |       |             | 
|     |  | 3C Reasons for the offer and use of proceeds               |  | Not applicable                                                                                                   |  |       |             | 
|     |  | 3D Risk factors                                            |  | Risk factors                                                                                                     |  |       | 51           | 
|4    |  | Information on the Company                                 |  |                                                                                                                  |  |       |              | 
|     |  | 4A History and development of the Company                  |  | Information on the Company Note 10Property, Plant and
Equipment, Net Liquidity and capital resources            |  |       | 4F-44
41     | 
|     |  | 4B Business overview                                       |  | Information on the Company Regulation                                                                            |  |       | 4105         | 
|     |  | 4C Organizational structure                                |  | Exhibit 8.1                                                                                                      |  |       |             | 
|     |  | 4D Property, plant and equipment                           |  | Information on the Company
Note 10Property Plant, and Equipment, Net Liquidity and capital resources
Regulation |  |       | 4F-44
41 105 | 
|4A   |  | Unresolved staff comments                                  |  | None                                                                                                             |  |       |             | 
|5    |  | Operating and financial review and
prospects               |  |                                                                                                                  |  |       |              | 
|     |  | 5A Operating results                                       |  | Overview Results of operations                                                                                   |  |       | 1922         | 
|     |  | 5B Liquidity and capital resources                         |  | Liquidity and capital resources                                                                                  |  |       | 41           | 
|     |  | 5C Research and development, patents and licenses, etc.    |  | Not applicable                                                                                                   |  |       |             | 
|     |  | 5D Trend information                                       |  | Overview Results of operations                                                                                   |  |       | 1922         | 
|     |  | 5E Off-balance sheet arrangements                          |  | Off-balance sheet arrangement                                                                                    |  |       | 41           | 
|     |  | 5F Tabular disclosure of contractual obligations           |  | Contractual obligations                                                                                          |  |       | 42           | 
|6    |  | Directors, senior management and employees                 |  |                                                                                                                  |  |       |              | 
|     |  | 6A Directors and senior management                         |  | Management                                                                                                       |  |       | 90           | 
|     |  | 6B Compensation                                            |  | Management compensation                                                                                          |  |       | 97           | 
|     |  | 6C Board practices                                         |  | Management Management compensation                                                                               |  |       | 9097         | 
|     |  | 6D Employees                                               |  | Employees                                                                                                        |  |       | 126          | 
|     |  | 6E Share ownership                                         |  | Major shareholders
Management compensation                                                                       |  |       | 6597         | 
|7    |  | Major shareholders and related party transactions          |  |                                                                                                                  |  |       |              | 
|     |  | 7A Major shareholders                                      |  | Major shareholders                                                                                               |  |       | 65           | 
|     |  | 7B Related party transactions                              |  | Related party transactions                                                                                       |  |       | 67           | 
|     |  | 7C Interests of experts and counsel                        |  | Not applicable                                                                                                   |  |       |             | 
|8    |  | Financial information                                      |  |                                                                                                                  |  |       |              | 
|     |  | 8A Consolidated statements and other financial information |  | Consolidated Financial Statements Dividends
Note 16Commitments and Contingencies                                |  |       | 13768
F-64   | 
|     |  | 8B Significant changes                                     |  | Not applicable                                                                                                   |  |       |             | 



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|     |  |                                                                              |  |                                                                             |  |       |        | 
|---- |  | ---------------------------------------------------------------------------- |  | --------------------------------------------------------------------------- |  | ----- | ------ | 
|Item |  | Form 20-F caption                                                            |  | Location in this report                                                     |  | Pages |       
|9    |  | The offer and listing                                                        |  |                                                                             |  |       |        | 
|     |  | 9A Offer and listing details                                                 |  | Trading markets                                                             |  |       | 69     | 
|     |  | 9B Plan of distribution                                                      |  | Not applicable                                                              |  |       |       | 
|     |  | 9C Markets                                                                   |  | Trading markets                                                             |  |       | 69     | 
|     |  | 9D Selling shareholders                                                      |  | Not applicable                                                              |  |       |       | 
|     |  | 9E Dilution                                                                  |  | Not applicable                                                              |  |       |       | 
|     |  | 9F Expenses of the issue                                                     |  | Not applicable                                                              |  |       |       | 
|10   |  | Additional information                                                       |  |                                                                             |  |       |        | 
|     |  | 10A Share capital                                                            |  | Bylaws                                                                      |  |       | 73     | 
|     |  | 10B Memorandum and articles of association                                   |  | Bylaws                                                                      |  |       | 73     | 
|     |  | 10C Material contracts                                                       |  | Information on the Company Results of operations
Related party transactions |  |       | 422 67 | 
|     |  | 10D Exchange controls                                                        |  | Additional information                                                      |  |       | 125    | 
|     |  | 10E Taxation                                                                 |  | Taxation of shares and ADSs                                                 |  |       | 83     | 
|     |  | 10F Dividends and paying agents                                              |  | Not applicable                                                              |  |       |       | 
|     |  | 10G Statement by experts                                                     |  | Not applicable                                                              |  |       |       | 
|     |  | 10H Documents on display                                                     |  | Additional information                                                      |  |       | 125    | 
|     |  | 10I Subsidiary information                                                   |  | Not applicable                                                              |  |       |       | 
|11   |  | Quantitative and qualitative disclosures about market
risk                   |  | Risk management                                                             |  |       | 46     | 
|12   |  | Description of securities other than equity securities                       |  |                                                                             |  |       |        | 
|     |  | 12A Debt securities                                                          |  | Not applicable                                                              |  |       |       | 
|     |  | 12B Warrants and rights                                                      |  | Not applicable                                                              |  |       |       | 
|     |  | 12C Other securities                                                         |  | Not applicable                                                              |  |       |       | 
|     |  | 12D American Depositary Shares                                               |  | Depositary shares                                                           |  |       | 80     | 
|13   |  | Defaults, dividend arrearages and delinquencies                              |  | Not applicable                                                              |  |       |       | 
|14   |  | Material modifications to the rights of security holders and
use of proceeds |  | Not applicable                                                              |  |       |       | 
|15   |  | Controls and procedures                                                      |  | Controls and procedures                                                     |  |       | 101    | 
|16A  |  | Audit committee financial expert                                             |  | Management                                                                  |  |       | 90     | 
|16B  |  | Code of ethics                                                               |  | Code of ethics                                                              |  |       | 104    | 
|16C  |  | Principal accountant fees and services                                       |  | Principal accountant fees and services                                      |  |       | 128    | 
|16D  |  | Exemptions from the listing standards for audit
committees                   |  | Not applicable                                                              |  |       |       | 
|16E  |  | Purchases of equity securities by the issuer and affiliated
purchasers       |  | Purchases of equity securities by the issuer and affiliated
purchasers      |  |       | 81     | 
|16F  |  | Change in registrants certifying accountant                                 |  | Not applicable                                                              |  |       |       | 
|16G  |  | Corporate governance                                                         |  | Corporate governance                                                        |  |       | 89     | 
|16H  |  | Mine safety disclosure                                                       |  | Not applicable                                                              |  |       |       | 
|17   |  | Financial statements                                                         |  | Not applicable                                                              |  |       |       | 
|18   |  | Financial statements                                                         |  | Consolidated Financial statements                                           |  |       | 137    | 
|19   |  | Exhibits                                                                     |  | Additional Information                                                      |  |       | 125    | 



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SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

Dated: April 24, 2017



AMÉRICA MÓVIL, S.A.B. DE C.V.By:

/s/ Carlos José García Moreno ElizondoName:

Carlos José García Moreno ElizondoTitle:

Chief Financial OfficerBy:

/s/ Alejandro Cantú JiménezName:

Alejandro Cantú JiménezTitle:

General Counsel




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LOGO

|                                            
|--------------------------------------------
|PART VIII:
CONSOLIDATED FINANCIAL STATEMENTS





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##### Table of Contents

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Financial Statements

Years Ended December 31, 2014, 2015 and 2016

with Report of Independent Registered Public Accounting Firm



---

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AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Financial Statements

Years Ended December 31, 2014, 2015 and 2016

Contents:



|                                                           |  |  |     | 
|---------------------------------------------------------- |  |  | --- | 
|Report of Independent Registered Public Accounting Firm    |  |  | F-1 | 
|                                                           | 
|Audited Consolidated Financial Statements:                 |  |  |     | 
|                                                           | 
|Consolidated Statements of Financial Position              |  |  | F-2 | 
|                                                           | 
|Consolidated Statements of Comprehensive Income            |  |  | F-3 | 
|                                                           | 
|Consolidated Statements of Changes in Shareholders
Equity |  |  | F-4 | 
|                                                           | 
|Consolidated Statements of Cash Flows                      |  |  | F-5 | 
|                                                           | 
|Notes to Financial Statements                              |  |  | F-6 | 



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##### Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of

América
Móvil, S.A.B. de C.V.

We have audited the accompanying consolidated statements of financial position of América Móvil, S.A.B. de C.V. and
subsidiaries as of December 31, 2015 and 2016 and the related consolidated statements of comprehensive income, changes in equity and cash flows for each of three years in the period ended December 31, 2016. These financial statements are the
responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.

We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of América
Móvil, S.A.B. de C.V. and subsidiaries as of December 31, 2015 and 2016, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2016, in conformity with International
Financial Reporting Standards, as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), América Móvil, S.A.B. de C.V. and subsidiaries internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control 
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated April 24, 2017, expressed an unqualified opinion thereon.

/s/ MANCERA, S.C.

Mexico City, Mexico

April 24, 2017



F-1



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##### Table of Contents

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Financial Position

(In thousands of Mexican pesos)



|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|----------------------------------------------------------- |  | ---- |  | --------------- | ------------- | - | ---- | --- | ------------- | --------------------------- |  | --- | ------ | -
|                                                            |  |      |  | At December 31, |              
|                                                            |  | Note |  | 2015            |               |   | 2016 |     |               | 2016Millions ofU.S. dollars | 
|Assets                                                      |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Current assets:                                             |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Cash and cash equivalents                                   |  | 3    |  | Ps.             | 45,160,032    |   |      | Ps. | 23,218,383    |                             |  | US$ | 1,120  |  
|Marketable securities and other short-term investments      |  | 4    |  |                 | 56,347,469    |   |      |     | 54,857,157    |                             |  |     | 2,646  |  
|Accounts receivable:                                        |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Subscribers, distributors, recoverable taxes and other, net |  | 5    |  |                 | 145,355,527   |   |      |     | 205,774,539   |                             |  |     | 9,926  |  
|Related parties                                             |  | 6    |  |                 | 845,633       |   |      |     | 740,492       |                             |  |     | 36     |  
|Derivative financial instruments                            |  | 7    |  |                 | 40,882,008    |   |      |     | 909,051       |                             |  |     | 44     |  
|Inventories, net                                            |  | 8    |  |                 | 35,577,472    |   |      |     | 36,871,292    |                             |  |     | 1,779  |  
|Other current assets, net                                   |  | 9    |  |                 | 17,277,913    |   |      |     | 19,538,093    |                             |  |     | 942    |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total current assets                                        |  |      |  | Ps.             | 341,446,054   |   |      | Ps. | 341,909,007   |                             |  | US$ | 16,493 |  
|Non-current assets:                                         |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Property, plant and equipment, net                          |  | 10   |  | Ps.             | 573,528,878   |   |      | Ps. | 701,190,066   |                             |  | US$ | 33,823 |  
|Intangibles, net                                            |  | 11   |  |                 | 124,745,040   |   |      |     | 152,369,446   |                             |  |     | 7,350  |  
|Goodwill                                                    |  | 11   |  |                 | 137,113,716   |   |      |     | 152,632,635   |                             |  |     | 7,362  |  
|Investments in associated companies                         |  |      |  |                 | 3,110,570     |   |      |     | 3,603,484     |                             |  |     | 174    |  
|Deferred income taxes                                       |  | 13   |  |                 | 81,407,012    |   |      |     | 112,651,699   |                             |  |     | 5,434  |  
|Accounts receivable, subscribers and distributors           |  | 5    |  |                 | 9,885,600     |   |      |     | 11,184,860    |                             |  |     | 540    |  
|Other assets, net                                           |  | 9    |  |                 | 25,249,943    |   |      |     | 39,501,077    |                             |  |     | 1,905  |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total assets                                                |  |      |  | Ps.             | 1,296,486,813 |   |      | Ps. | 1,515,042,274 |                             |  | US$ | 73,081 |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Liabilities and equity                                      |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Current liabilities:                                        |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Short-term debt and current portion of long-term debt       |  | 14   |  | Ps.             | 119,589,786   |   |      | Ps. | 82,607,259    |                             |  | US$ | 3,985  |  
|Accounts payable                                            |  | 15a  |  |                 | 189,938,381   |   |      |     | 237,265,126   |                             |  |     | 11,445 |  
|Accrued liabilities                                         |  | 15b  |  |                 | 52,243,228    |   |      |     | 70,479,230    |                             |  |     | 3,400  |  
|Income tax                                                  |  | 13   |  |                 | 3,726,613     |   |      |     | 3,200,673     |                             |  |     | 154    |  
|Other taxes payable                                         |  |      |  |                 | 16,623,389    |   |      |     | 22,087,957    |                             |  |     | 1,065  |  
|Derivative financial instruments                            |  | 7    |  |                 | 7,450,790     |   |      |     | 14,136,351    |                             |  |     | 682    |  
|Related parties                                             |  | 6    |  |                 | 2,246,834     |   |      |     | 2,971,325     |                             |  |     | 143    |  
|Deferred revenues                                           |  |      |  |                 | 33,399,892    |   |      |     | 37,255,328    |                             |  |     | 1,797  |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total current liabilities                                   |  |      |  | Ps.             | 425,218,913   |   |      | Ps. | 470,003,249   |                             |  | US$ | 22,671 |  
|Non-current-liabilities:                                    |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Long-term debt                                              |  | 14   |  | Ps.             | 563,626,958   |   |      | Ps. | 625,194,144   |                             |  | US$ | 30,157 |  
|Deferred income taxes                                       |  | 13   |  |                 | 11,589,865    |   |      |     | 14,061,881    |                             |  |     | 678    |  
|Income tax                                                  |  | 13   |  |                 | 316,546       |   |      |     | 2,348,069     |                             |  |     | 113    |  
|Deferred revenues                                           |  |      |  |                 | 1,052,940     |   |      |     | 1,625,270     |                             |  |     | 78     |  
|Derivative financial instruments                            |  | 7    |  |                 | 3,314,146     |   |      |     | 3,448,396     |                             |  |     | 166    |  
|Asset retirement obligations                                |  | 15c  |  |                 | 11,569,897    |   |      |     | 16,288,631    |                             |  |     | 786    |  
|Employee benefits                                           |  | 17   |  |                 | 118,943,362   |   |      |     | 111,048,867   |                             |  |     | 5,357  |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total non-current liabilities                               |  |      |  | Ps.             | 710,413,714   |   |      | Ps. | 774,015,258   |                             |  | US$ | 37,335 |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total liabilities                                           |  |      |  | Ps.             | 1,135,632,627 |   |      | Ps. | 1,244,018,507 |                             |  | US$ | 60,006 |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Equity:                                                     |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Capital stock                                               |  | 19   |  |                 | 96,338,477    |   |      |     | 96,337,514    |                             |  |     | 4,647  |  
|Retained earnings:                                          |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Prior years                                                 |  |      |  |                 | 137,276,667   |   |      |     | 149,065,873   |                             |  |     | 7,190  |  
|Profit for the year                                         |  |      |  |                 | 35,054,772    |   |      |     | 8,649,427     |                             |  |     | 417    |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total retained earnings                                     |  |      |  |                 | 172,331,439   |   |      |     | 157,715,300   |                             |  |     | 7,607  |  
|Other comprehensive loss items                              |  |      |  |                 | (156,391,921  | ) |      |     | (45,137,571   | )                           |  |     | (2,175 | )
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Equity attributable to equity holders of the parent         |  |      |  |                 | 112,277,995   |   |      |     | 208,915,243   |                             |  |     | 10,079 |  
|Non-controlling interests                                   |  |      |  |                 | 48,576,191    |   |      |     | 62,108,524    |                             |  |     | 2,996  |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total equity                                                |  |      |  |                 | 160,854,186   |   |      |     | 271,023,767   |                             |  |     | 13,075 |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  
|Total liabilities and equity                                |  |      |  | Ps.             | 1,296,486,813 |   |      | Ps. | 1,515,042,274 |                             |  | US$ | 73,081 |  
|                                                            |  |      |  |                 |               |   |      |     |               |                             |  |     |        |  

The accompanying notes are an integral part of these consolidated financial statements.



F-2



---

##### Table of Contents

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands of Mexican pesos, except for earnings per share)



|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|----------------------------------------------------------------------------------------------------- |  | ----------- |  | ------------------------------ | ----------- | - | ---- | --- | ----------- | ---- |  | --- | -------------------------------------------------------- | - |  | --- | ------ | -
|                                                                                                      |  |             |  | For the year ended December 31 |            
|                                                                                                      |  | Note        |  | 2014                           |             |   | 2015 |     |             | 2016 |  |     | 2016Millions of U.S.dollars, exceptfor earningsper share |  
|Operating revenues:                                                                                   |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Mobile voice services                                                                                 |  |             |  | Ps.                            | 258,220,093 |   |      | Ps. | 256,146,766 |      |  | Ps. | 242,302,380                                              |   |  | US$ | 11,688 |  
|Fixed voice services                                                                                  |  |             |  |                                | 111,512,520 |   |      |     | 95,470,187  |      |  |     | 95,299,154                                               |   |  |     | 4,597  |  
|Mobile data services                                                                                  |  |             |  |                                | 192,590,454 |   |      |     | 226,723,039 |      |  |     | 256,936,895                                              |   |  |     | 12,394 |  
|Fixed data services                                                                                   |  |             |  |                                | 99,932,561  |   |      |     | 109,257,140 |      |  |     | 126,278,206                                              |   |  |     | 6,091  |  
|Paid television                                                                                       |  |             |  |                                | 68,894,060  |   |      |     | 66,050,857  |      |  |     | 78,268,778                                               |   |  |     | 3,775  |  
|Sales of equipment, accessories and computers                                                         |  |             |  |                                | 95,847,058  |   |      |     | 115,938,623 |      |  |     | 143,527,123                                              |   |  |     | 6,923  |  
|Other related services                                                                                |  |             |  |                                | 21,583,254  |   |      |     | 24,151,127  |      |  |     | 32,799,952                                               |   |  |     | 1,582  |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|                                                                                                      |  |             |  | Ps.                            | 848,580,000 |   |      | Ps. | 893,737,739 |      |  | Ps. | 975,412,488                                              |   |  | US$ | 47,050 |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Operating costs and expenses:                                                                         |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Cost of sales and services                                                                            |  |             |  |                                | 386,707,682 |   |      |     | 420,263,931 |      |  |     | 485,060,579                                              |   |  |     | 23,397 |  
|Commercial, administrative and general expenses                                                       |  |             |  |                                | 185,567,848 |   |      |     | 201,360,956 |      |  |     | 228,101,116                                              |   |  |     | 11,003 |  
|Other expenses                                                                                        |  |             |  |                                | 4,756,669   |   |      |     | 4,984,956   |      |  |     | 4,114,562                                                |   |  |     | 198    |  
|Depreciation and amortization                                                                         |  | 9,10 and 11 |  |                                | 114,993,551 |   |      |     | 125,714,735 |      |  |     | 148,525,921                                              |   |  |     | 7,164  |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|                                                                                                      |  |             |  | Ps.                            | 692,025,750 |   |      | Ps. | 752,324,578 |      |  | Ps. | 865,802,178                                              |   |  | US$ | 41,762 |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Operating income                                                                                      |  |             |  | Ps.                            | 156,554,250 |   |      | Ps. | 141,413,161 |      |  | Ps. | 109,610,310                                              |   |  | US$ | 5,288  |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Interest income                                                                                       |  |             |  |                                | 7,052,271   |   |      |     | 4,853,012   |      |  |     | 4,192,595                                                |   |  |     | 202    |  
|Interest expense                                                                                      |  |             |  |                                | (31,522,523 | ) |      |     | (31,197,372 | )    |  |     | (33,862,012                                              | ) |  |     | (1,633 | )
|Foreign currency exchange loss, net                                                                   |  |             |  |                                | (28,615,459 | ) |      |     | (78,997,988 | )    |  |     | (40,427,407                                              | ) |  |     | (1,951 | )
|Valuation of derivatives, interest cost from labor obligations and other financial items,
net         |  | 21          |  |                                | (10,190,261 | ) |      |     | 21,496,316  |      |  |     | (16,225,841                                              | ) |  |     | (783   | )
|Equity interest in net (loss) income of associated companies                                          |  |             |  |                                | (6,073,009  | ) |      |     | (1,426,696  | )    |  |     | 189,950                                                  |   |  |     | 9      |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Profit before income tax                                                                              |  |             |  |                                | 87,205,269  |   |      |     | 56,140,433  |      |  |     | 23,477,595                                               |   |  |     | 1,132  |  
|Income tax                                                                                            |  | 13          |  |                                | 39,707,549  |   |      |     | 19,179,651  |      |  |     | 11,398,856                                               |   |  |     | 550    |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Net profit for the year                                                                               |  |             |  | Ps.                            | 47,497,720  |   |      | Ps. | 36,960,782  |      |  | Ps. | 12,078,739                                               |   |  | US$ | 582    |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Net profit for the year attributable to:                                                              |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Equity holders of the parent                                                                          |  |             |  | Ps.                            | 46,146,370  |   |      | Ps. | 35,054,772  |      |  | Ps. | 8,649,427                                                |   |  | US$ | 417    |  
|Non-controlling interests                                                                             |  |             |  |                                | 1,351,350   |   |      |     | 1,906,010   |      |  |     | 3,429,312                                                |   |  |     | 165    |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|                                                                                                      |  |             |  | Ps.                            | 47,497,720  |   |      | Ps. | 36,960,782  |      |  | Ps. | 12,078,739                                               |   |  | US$ | 582    |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Basic and diluted earnings per share attributable to equity holders of the parent                     |  |             |  | Ps.                            | 0.67        |   |      | Ps. | 0.52        |      |  | Ps. | 0.13                                                     |   |  | US$ | 0.01   |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Other comprehensive income (loss) items:                                                              |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Net other comprehensive (loss) income that may be reclassified to profit or loss in subsequent
years: |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Effect of translation of foreign entities and affiliates                                              |  |             |  | Ps.                            | (6,255,715  | ) |      | Ps. | (35,606,320 | )    |  | Ps. | 107,498,708                                              |   |  | US$ | 5,185  |  
|Effect of fair value of derivatives, net of deferred taxes                                            |  |             |  |                                | (313,572    | ) |      |     | 37,495      |      |  |     | 49,129                                                   |   |  |     | 2      |  
|Unrealized gain (loss) on available for sale securities, net of deferred taxes                        |  |             |  |                                |            |   |      |     | 4,011       |      |  |     | (6,673,731                                               | ) |  |     | (322   | )
|Items that will not be reclassified to profit or (loss) in subsequent years:                          |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Re-measurement of defined benefit plan, net of deferred
taxes                                         |  |             |  |                                | (6,807,975  | ) |      |     | (17,980,418 | )    |  |     | 14,773,399                                               |   |  |     | 713    |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Total other comprehensive (loss) income items for the year, net of deferred taxes                     |  | 20          |  |                                | (13,377,262 | ) |      |     | (53,545,232 | )    |  |     | 115,647,505                                              |   |  |     | 5,578  |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Total comprehensive income (loss) for the year                                                        |  |             |  | Ps.                            | 34,120,458  |   |      | Ps. | (16,584,450 | )    |  | Ps. | 127,726,244                                              |   |  | US$ | 6,160  |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Comprehensive income (loss) for the year attributable to:                                             |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|Equity holders of the parent                                                                          |  |             |  | Ps.                            | 33,404,912  |   |      | Ps. | (16,750,963 | )    |  | Ps. | 120,974,842                                              |   |  | US$ | 5,835  |  
|Non-controlling interests                                                                             |  |             |  |                                | 715,546     |   |      |     | 166,513     |      |  |     | 6,751,402                                                |   |  |     | 325    |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  
|                                                                                                      |  |             |  | Ps.                            | 34,120,458  |   |      | Ps. | (16,584,450 | )    |  | Ps. | 127,726,244                                              |   |  | US$ | 6,160  |  
|                                                                                                      |  |             |  |                                |             |   |      |     |             |      |  |     |                                                          |   |  |     |        |  

The accompanying notes are an integral part of these consolidated financial statements.



F-3



---

##### Table of Contents

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Changes in Shareholders Equity

For the year ended December 31, 2014, 2015 and 2016

(In thousands of Mexican pesos)



|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ---------- | - | ------------ | --- | ------- | ---------------- |  | --- | ------------------------------------------------------------------ | - |  | --------------------------------------------------- | ---------- | - | ------------------------------------- | --- | ---------- | ------------------------------- |  | --- | ------------------------------------------------------ | - |  | ------------------------ | ----------- | - | ----------- | --- | ----------- | - |  | --- | ---------- | - |  | --- | ----------- | -
|                                                                                                                                |  | Capitalstock |            |   | Legalreserve |     |         | Retainedearnings |  |     | Effect ofderivativefinancialinstrumentsacquired forhedgingpurposes |   |  | Unrealizedgain (loss) onavailablefor salesecurities |            |   | Re-measurementof definedbenefit plans |     |            | CumulativeTranslationadjustment |  |     | Total equityattributable toequity holdersof the parent |   |  | Non-controllinginterests |             |   | Totalequity |    
|Balance at December 31, 2013                                                                                                    |  | Ps.          | 96,392,339 |   |              | Ps. | 358,440 |                  |  | Ps. | 196,960,472                                                        |   |  | Ps.                                                 | (1,237,332 | ) |                                       | Ps. |           |                                 |  | Ps. | (56,367,265                                            | ) |  | Ps.                      | (33,706,043 | ) |             | Ps. | 202,400,611 |   |  | Ps. | 7,900,466  |   |  | Ps. | 210,301,077 |  
|Net profit for the year                                                                                                         |  |              |           |   |              |     |        |                  |  |     | 46,146,370                                                         |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 46,146,370  |   |  |     | 1,351,350  |   |  |     | 47,497,720  |  
|Effect of fair value of derivatives, net of deferred taxes                                                                      |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     | (329,112   | ) |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (329,112    | ) |  |     | 15,540     |   |  |     | (313,572    | )
|Remeasurement of defined benefit plan, net of deferred taxes                                                                    |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     | (6,625,463                                             | ) |  |                          |            |   |             |     | (6,625,463  | ) |  |     | (182,512   | ) |  |     | (6,807,975  | )
|Effect of translation of foreign entities                                                                                       |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          | (5,786,883  | ) |             |     | (5,786,883  | ) |  |     | (468,832   | ) |  |     | (6,255,715  | )
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|Comprehensive income for the year                                                                                               |  |              |           |   |              |     |        |                  |  |     | 46,146,370                                                         |   |  |                                                     | (329,112   | ) |                                       |     |           |                                 |  |     | (6,625,463                                             | ) |  |                          | (5,786,883  | ) |             |     | 33,404,912  |   |  |     | 715,546    |   |  |     | 34,120,458  |  
|Dividends declared                                                                                                              |  |              |           |   |              |     |        |                  |  |     | (16,539,294                                                        | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (16,539,294 | ) |  |     | (31,356    | ) |  |     | (16,570,650 | )
|Repurchase of shares                                                                                                            |  |              | (9,708     | ) |              |     |        |                  |  |     | (34,646,254                                                        | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (34,655,962 | ) |  |     |           |   |  |     | (34,655,962 | )
|Acquisition of non-controlling interests arising on
business combination of Telekom Austria (Note 12)                           |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     | 9,751      |   |                                       |     |           |                                 |  |     | 45                                                     |   |  |                          | (290,461    | ) |             |     | (280,665    | ) |  |     | 39,239,141 |   |  |     | 38,958,476  |  
|Capital stock increase in Telekom Austria(Note 12)                                                                              |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     |            |   |  |     | 7,181,894  |   |  |     | 7,181,894   |  
|Other acquisitions of non-controlling interests and
others                                                                      |  |              |           |   |              |     |        |                  |  |     | 54,674                                                             |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 54,674      |   |  |     | (4,750,919 | ) |  |     | (4,696,245  | )
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|Balance at December 31, 2014                                                                                                    |  |              | 96,382,631 |   |              |     | 358,440 |                  |  |     | 191,975,968                                                        |   |  |                                                     | (1,556,693 | ) |                                       |     |           |                                 |  |     | (62,992,683                                            | ) |  |                          | (39,783,387 | ) |             |     | 184,384,276 |   |  |     | 50,254,772 |   |  |     | 234,639,048 |  
|Net profit for the year                                                                                                         |  |              |           |   |              |     |        |                  |  |     | 35,054,772                                                         |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 35,054,772  |   |  |     | 1,906,010  |   |  |     | 36,960,782  |  
|Effect of fair value of derivatives, net of deferred taxes                                                                      |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     | 37,011     |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 37,011      |   |  |     | 484        |   |  |     | 37,495      |  
|Unrealized gain on available for sale securities, net of deferred taxes                                                         |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     | 4,011      |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 4,011       |   |  |     |           |   |  |     | 4,011       |  
|Remeasurement of defined benefit plan, net of deferred taxes                                                                    |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     | (17,791,354                                            | ) |  |                          |            |   |             |     | (17,791,354 | ) |  |     | (189,064   | ) |  |     | (17,980,418 | )
|Effect of translation of foreign entities                                                                                       |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          | (34,055,403 | ) |             |     | (34,055,403 | ) |  |     | (1,550,917 | ) |  |     | (35,606,320 | )
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|Comprehensive income (loss) for the year                                                                                        |  |              |           |   |              |     |        |                  |  |     | 35,054,772                                                         |   |  |                                                     | 37,011     |   |                                       |     | 4,011      |                                 |  |     | (17,791,354                                            | ) |  |                          | (34,055,403 | ) |             |     | (16,750,963 | ) |  |     | 166,513    |   |  |     | (16,584,450 | )
|Dividends declared                                                                                                              |  |              |           |   |              |     |        |                  |  |     | (37,192,594                                                        | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (37,192,594 | ) |  |     | (447,085   | ) |  |     | (37,639,679 | )
|Repurchase of shares                                                                                                            |  |              | (9,154     | ) |              |     |        |                  |  |     | (33,942,627                                                        | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (33,951,781 | ) |  |     |           |   |  |     | (33,951,781 | )
|Effect of spin-off (Note 12)                                                                                                    |  |              | (35,000    | ) |              |     |        |                  |  |     | 16,193,640                                                         |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 16,158,640  |   |  |     |           |   |  |     | 16,158,640  |  
|Derecognition of the equity method investment in KoninKlijke KPN, with retained available for sale
financial interest (Note 12) |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     | 1,458,894  |   |                                       |     |           |                                 |  |     | (2,060,910                                             | ) |  |                          | 348,593     |   |             |     | (253,423    | ) |  |     |           |   |  |     | (253,423    | )
|Other acquisitions of non-controlling interests and
others                                                                      |  |              |           |   |              |     |        |                  |  |     | (116,160                                                           | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (116,160    | ) |  |     | (1,398,009 | ) |  |     | (1,514,169  | )
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|Balance at December 31, 2015                                                                                                    |  |              | 96,338,477 |   |              |     | 358,440 |                  |  |     | 171,972,999                                                        |   |  |                                                     | (60,788    | ) |                                       |     | 4,011      |                                 |  |     | (82,844,947                                            | ) |  |                          | (73,490,197 | ) |             |     | 112,277,995 |   |  |     | 48,576,191 |   |  |     | 160,854,186 |  
|Net profit for the year                                                                                                         |  |              |           |   |              |     |        |                  |  |     | 8,649,427                                                          |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 8,649,427   |   |  |     | 3,429,312  |   |  |     | 12,078,739  |  
|Effect of fair value of derivatives, net of deferred taxes                                                                      |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     | 48,496     |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 48,496      |   |  |     | 633        |   |  |     | 49,129      |  
|Unrealized loss on available for sale securities, net of deferred taxes                                                         |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     | (6,673,731 | )                               |  |     |                                                       |   |  |                          |            |   |             |     | (6,673,731  | ) |  |     |           |   |  |     | (6,673,731  | )
|Remeasurement of defined benefit plan, net of deferred taxes                                                                    |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     | 14,771,770                                             |   |  |                          |            |   |             |     | 14,771,770  |   |  |     | 1,629      |   |  |     | 14,773,399  |  
|Effect of translation of foreign entities                                                                                       |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          | 104,178,880 |   |             |     | 104,178,880 |   |  |     | 3,319,828  |   |  |     | 107,498,708 |  
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|Comprehensive income (loss) for the year                                                                                        |  |              |           |   |              |     |        |                  |  |     | 8,649,427                                                          |   |  |                                                     | 48,496     |   |                                       |     | (6,673,731 | )                               |  |     | 14,771,770                                             |   |  |                          | 104,178,880 |   |             |     | 120,974,842 |   |  |     | 6,751,402  |   |  |     | 127,726,244 |  
|Dividends declared                                                                                                              |  |              |           |   |              |     |        |                  |  |     | (18,339,294                                                        | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (18,339,294 | ) |  |     | (652,341   | ) |  |     | (18,991,635 | )
|Stock dividend (Note 19)                                                                                                        |  |              | 1,512      |   |              |     |        |                  |  |     | 4,606,274                                                          |   |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | 4,607,786   |   |  |     |           |   |  |     | 4,607,786   |  
|Repurchase of shares                                                                                                            |  |              | (2,475     | ) |              |     |        |                  |  |     | (7,213,397                                                         | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (7,215,872  | ) |  |     |           |   |  |     | (7,215,872  | )
|Partial sale of shares of Telekom Austria(Note 12)                                                                              |  |              |           |   |              |     |        |                  |  |     |                                                                   |   |  |                                                     |           |   |                                       |     |           |                                 |  |     | 68,127                                                 |   |  |                          | (1,139,192  | ) |             |     | (1,071,065  | ) |  |     | 7,394,401  |   |  |     | 6,323,336   |  
|Other acquisitions of non-controlling interests (Note
12)                                                                       |  |              |           |   |              |     |        |                  |  |     | (2,319,149                                                         | ) |  |                                                     |           |   |                                       |     |           |                                 |  |     |                                                       |   |  |                          |            |   |             |     | (2,319,149  | ) |  |     | 38,871     |   |  |     | (2,280,278  | )
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  
|Balance at December 31, 2016                                                                                                    |  | Ps.          | 96,337,514 |   |              | Ps. | 358,440 |                  |  | Ps. | 157,356,860                                                        |   |  | Ps.                                                 | (12,292    | ) |                                       | Ps. | (6,669,720 | )                               |  | Ps. | (68,005,050                                            | ) |  | Ps.                      | 29,549,491  |   |             | Ps. | 208,915,243 |   |  | Ps. | 62,108,524 |   |  | Ps. | 271,023,767 |  
|                                                                                                                                |  |              |            |   |              |     |         |                  |  |     |                                                                    |   |  |                                                     |            |   |                                       |     |            |                                 |  |     |                                                        |   |  |                          |             |   |             |     |             |   |  |     |            |   |  |     |             |  

The accompanying notes are an integral part of these consolidated financial statements.



F-4



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##### Table of Contents

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands of Mexican pesos)



|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|--------------------------------------------------------------------------------------------------------- |  | -------- |  | ------------------------------ | ------------ | - | ---- | --- | ------------ | ---- |  | --- | --------------------------- | - |  | --- | ------ | -
|                                                                                                          |  |          |  | For the year ended December 31 |             
|                                                                                                          |  | Note     |  | 2014                           |              |   | 2015 |     |              | 2016 |  |     | 2016Millions of U.S.dollars |  
|Operating activities                                                                                      |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Profit before income tax                                                                                  |  |          |  | Ps.                            | 87,205,269   |   |      | Ps. | 56,140,433   |      |  | Ps. | 23,477,595                  |   |  | US$ | 1,132  |  
|Items not requiring the use of cash:                                                                      |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Depreciation                                                                                              |  | 10       |  |                                | 106,386,514  |   |      |     | 110,155,403  |      |  |     | 127,662,344                 |   |  |     | 6,158  |  
|Amortization of intangible and other assets                                                               |  | 9 and 11 |  |                                | 8,607,037    |   |      |     | 15,559,332   |      |  |     | 20,863,577                  |   |  |     | 1,006  |  
|Equity interest in net loss (income) of associated companies                                              |  |          |  |                                | 6,073,009    |   |      |     | 1,426,696    |      |  |     | (189,950                    | ) |  |     | (9     | )
|Loss (gain) on derecognition of equity method investment                                                  |  |          |  |                                | 3,172,218    |   |      |     | (11,988,038  | )    |  |     |                            |   |  |     |       |  
|Loss on sale of property, plant and equipment                                                             |  |          |  |                                | 297,609      |   |      |     | 127,379      |      |  |     | 8,059                       |   |  |     |       |  
|Net period cost of labor obligations                                                                      |  | 17       |  |                                | 7,855,714    |   |      |     | 9,278,081    |      |  |     | 14,240,271                  |   |  |     | 687    |  
|Foreign currency exchange loss, net                                                                       |  |          |  |                                | 36,559,881   |   |      |     | 59,251,486   |      |  |     | 34,049,726                  |   |  |     | 1,642  |  
|Interest income                                                                                           |  |          |  |                                | (7,052,271   | ) |      |     | (4,853,012   | )    |  |     | (4,192,595                  | ) |  |     | (202   | )
|Interest expense                                                                                          |  |          |  |                                | 31,522,523   |   |      |     | 31,197,372   |      |  |     | 33,862,012                  |   |  |     | 1,633  |  
|Employee profit sharing                                                                                   |  |          |  |                                | 4,058,158    |   |      |     | 3,311,887    |      |  |     | 2,235,267                   |   |  |     | 108    |  
|Loss on partial sales of shares of associated company                                                     |  |          |  |                                | 5,554,612    |   |      |     | 545          |      |  |     |                            |   |  |     |       |  
|(Gain) loss in valuation of derivative financial instruments, capitalized interest expense and
other, net |  |          |  |                                | (3,410,626   | ) |      |     | (18,313,877  | )    |  |     | 85,216                      |   |  |     | 4      |  
|Working capital changes:                                                                                  |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Accounts receivable from subscribers, distributors and other                                              |  |          |  |                                | (11,791,213  | ) |      |     | (17,641,833  | )    |  |     | (14,192,651                 | ) |  |     | (685   | )
|Prepaid expenses                                                                                          |  |          |  |                                | 7,469,217    |   |      |     | (1,765,071   | )    |  |     | 792,979                     |   |  |     | 38     |  
|Related parties                                                                                           |  |          |  |                                | 470,719      |   |      |     | 113,662      |      |  |     | 829,632                     |   |  |     | 40     |  
|Inventories                                                                                               |  |          |  |                                | 2,470,754    |   |      |     | (83,902      | )    |  |     | 3,076,159                   |   |  |     | 148    |  
|Other assets                                                                                              |  |          |  |                                | (7,996,680   | ) |      |     | (8,378,977   | )    |  |     | (2,944,581                  | ) |  |     | (142   | )
|Employee benefits                                                                                         |  |          |  |                                | (14,916,385  | ) |      |     | (3,058,536   | )    |  |     | (5,384,944                  | ) |  |     | (260   | )
|Accounts payable and accrued liabilities                                                                  |  |          |  |                                | 14,260,208   |   |      |     | (6,269,338   | )    |  |     | 18,196,349                  |   |  |     | 878    |  
|Employee profit sharing paid                                                                              |  |          |  |                                | (4,737,467   | ) |      |     | (4,055,711   | )    |  |     | (3,297,439                  | ) |  |     | (159   | )
|Financial instruments and other                                                                           |  |          |  |                                | (3,984,891   | ) |      |     | (1,882,540   | )    |  |     | 28,878,632                  |   |  |     | 1,396  |  
|Deferred revenues                                                                                         |  |          |  |                                | 1,356,453    |   |      |     | 782,803      |      |  |     | (972,376                    | ) |  |     | (47    | )
|Interest received                                                                                         |  |          |  |                                | 4,722,621    |   |      |     | 5,275,303    |      |  |     | 3,239,845                   |   |  |     | 156    |  
|Income taxes paid                                                                                         |  |          |  |                                | (33,542,469  | ) |      |     | (50,602,556  | )    |  |     | (44,525,073                 | ) |  |     | (2,148 | )
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Net cash flows provided by operating activities                                                           |  |          |  | Ps.                            | 240,610,514  |   |      | Ps. | 163,726,991  |      |  | Ps. | 235,798,054                 |   |  | US$ | 11,374 |  
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Investing activities                                                                                      |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Purchase of property, plant and equipment                                                                 |  |          |  |                                | (126,265,297 | ) |      |     | (128,039,913 | )    |  |     | (138,707,157                | ) |  |     | (6,691 | )
|Acquisition of intangibles                                                                                |  |          |  |                                | (19,319,656  | ) |      |     | (23,532,826  | )    |  |     | (16,316,738                 | ) |  |     | (787   | )
|Dividends received from associates                                                                        |  |          |  |                                | 359,413      |   |      |     | 1,645,712    |      |  |     | 5,740,092                   |   |  |     | 277    |  
|Proceeds from sale of plant, property and equipment                                                       |  |          |  |                                | 96,781       |   |      |     | 27,329       |      |  |     | 115,600                     |   |  |     | 6      |  
|Acquisition of businesses, net of cash acquired                                                           |  |          |  |                                | (11,910,582  | ) |      |     | (3,457,153   | )    |  |     | (1,823,813                  | ) |  |     | (88    | )
|Partial sale of shares of associated company                                                              |  |          |  |                                | 12,066,037   |   |      |     | 633,270      |      |  |     |                            |   |  |     |       |  
|Proceeds from repayment of related party loan                                                             |  |          |  |                                |             |   |      |     | 21,000,000   |      |  |     |                            |   |  |     |       |  
|Investments in associate companies                                                                        |  |          |  |                                | (2,654,342   | ) |      |     | (177,965     | )    |  |     | (3,487                      | ) |  |     |       |  
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Net cash flows used in investing activities                                                               |  |          |  | Ps.                            | (147,627,646 | ) |      | Ps. | (131,901,546 | )    |  | Ps. | (150,995,503                | ) |  | US$ | (7,283 | )
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Financing activities                                                                                      |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Loans obtained                                                                                            |  |          |  |                                | 44,174,698   |   |      |     | 189,073,791  |      |  |     | 64,281,631                  |   |  |     | 3,101  |  
|Repayment of loans                                                                                        |  |          |  |                                | (36,683,909  | ) |      |     | (133,110,776 | )    |  |     | (125,672,444                | ) |  |     | (6,062 | )
|Interest paid                                                                                             |  |          |  |                                | (33,283,418  | ) |      |     | (32,830,432  | )    |  |     | (32,125,872                 | ) |  |     | (1,550 | )
|Repurchase of shares                                                                                      |  |          |  |                                | (35,049,327  | ) |      |     | (34,443,084  | )    |  |     | (7,021,247                  | ) |  |     | (339   | )
|Dividends paid                                                                                            |  |          |  |                                | (17,054,829  | ) |      |     | (37,359,600  | )    |  |     | (13,809,957                 | ) |  |     | (666   | )
|Derivative financial instruments                                                                          |  |          |  |                                | 653,116      |   |      |     | (503,444     | )    |  |     | (351,213                    | ) |  |     | (17    | )
|Capital stock increase in Telekom Austria                                                                 |  |          |  |                                | 7,181,894    |   |      |     |             |      |  |     |                            |   |  |     |       |  
|Partial sale of shares in subsidiary                                                                      |  |          |  |                                |             |   |      |     |             |      |  |     | 6,323,336                   |   |  |     | 305    |  
|Acquisition of non-controlling interests                                                                  |  |          |  |                                | (4,696,245   | ) |      |     | (1,031,049   | )    |  |     | (2,280,278                  | ) |  |     | (110   | )
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Net cash flows used in financing activities                                                               |  |          |  | Ps.                            | (74,758,020  | ) |      | Ps. | (50,204,594  | )    |  | Ps. | (110,656,044                | ) |  | US$ | (5,338 | )
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Net increase (decrease) in cash and cash equivalents                                                      |  |          |  | Ps.                            | 18,224,848   |   |      | Ps. | (18,379,149  | )    |  | Ps. | (25,853,493                 | ) |  | US$ | (1,247 | )
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Adjustment to cash flows due to exchange rate fluctuations, net                                           |  |          |  |                                | 85,305       |   |      |     | (2,934,522   | )    |  |     | 3,911,844                   |   |  |     | 189    |  
|Cash and cash equivalents at beginning of the year                                                        |  |          |  |                                | 48,163,550   |   |      |     | 66,473,703   |      |  |     | 45,160,032                  |   |  |     | 2,178  |  
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Cash and cash equivalents at end of the year                                                              |  |          |  | Ps.                            | 66,473,703   |   |      | Ps. | 45,160,032   |      |  | Ps. | 23,218,383                  |   |  | US$ | 1,120  |  
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Non-cash transactions related to:                                                                         |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  
|Acquisitions of property, plant and equipment in accounts payable at end of year                          |  |          |  | Ps.                            | 16,771,745   |   |      | Ps. | 12,785,347   |      |  | Ps. | 13,497,804                  |   |  | US$ | 652    |  
|                                                                                                          |  |          |  |                                |              |   |      |     |              |      |  |     |                             |   |  |     |        |  

The accompanying notes are an integral part of these consolidated financial statements.



F-5



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##### Table of Contents

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years ended December 31, 2014, 2015 and 2016

(In thousands of Mexican pesos [Ps.] and thousands of U.S. dollars [US$], unless otherwise indicated)

1. Description of the Business and Relevant Events

I.
Corporate Information

América Móvil, S.A.B. de C.V. and subsidiaries (hereinafter, the Company, América
Móvil or AMX) was incorporated under laws of Mexico on September 25, 2000. The Company provides telecommunications services in 25 countries throughout the United States, Latin America, the Caribbean and Europe. These
telecommunications services include mobile and fixed-line voice services, wireless and fixed data services, internet access and Pay TV, sales of equipment, accessories, computers as well as other related services and over the top services.



| |  | The voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The data services provided by the Company include the following: value added, corporate networks, data and Internet services.
|- |  | -----------------------------------------------------------------------------------------------------------------------------



| |  | Pay TV represents basic services, as well as pay per view and additional programming and advertising services.
|- |  | --------------------------------------------------------------------------------------------------------------



| |  | Equipment, accessories and computer sales
|- |  | -----------------------------------------



| |  | Other related revenues from advertising in telephone directories, publishing and call center services.
|- |  | ------------------------------------------------------------------------------------------------------



| |  | Sell video, audio and other media content that is delivered through the internet directly from the content provider to the viewer or end user.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------

In order to provide these services, América Móvil has licenses, permits and concessions (collectively referred to herein as
licenses) to build, install, operate and exploit public and/or private telecommunications networks and provide miscellaneous telecommunications services (mostly mobile and fixed telephony services), as well as to operate frequency bands
in the radio-electric spectrum to be able to provide fixed wireless telephony and to operate frequency bands in the radio-electric spectrum for point-to-point and point-to-multipoint microwave links. The Company holds licenses in the 24 countries where it has a presence, and such licenses have different dates of expiration through 2046.

Certain licenses require the payment to the respective governments of a share in sales determined as a percentage of revenues from services under
concession. The percentage is set as either a fixed rate or in some cases based on certain size of the infrastructure in operation.

The corporate offices
of América Móvil are located in Mexico City, Mexico, at Lago Zurich 245, Colonia Ampliación Granada, Delegación Miguel Hidalgo, 11529, Mexico City, México.

The accompanying consolidated financial statements were approved for their issuance by the Companys Chief Financial Officer on April 24, 2017, and
subsequent events have been considered through that date.



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##### Table of Contents

II. Relevant events in 2016



|a) | During 2016, there was currency depreciation mainly in the Mexican peso against the US dollar and the euro, and the Brazilian real against the US dollar, euro and the Mexican peso. Because a significant portion of the
Companys debt is denominated in US dollars and euros, as well as the fact that a significant portion of the Companys subsidiary operations have the Brazilian real as functional currency, the currency depreciation adversely affected the
results of the Company as part of the foreign currency exchange loss of the period.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|b) | In December 2016, Radiomóvil Dipsa, S.A. de C.V. (Telcel) agreed to purchase from Mexicos Grupo MVS, 60MHz of spectrum in the 2.5 GHz band. The acquisition and its terms remain subject to
regulatory review and approval.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2. Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting
Policies and Practices

a) Basis of preparation

The accompanying consolidated financial statements have been prepared in conformity with International Financial Reporting Standards, as issued by the
International Accounting Standards Board (IASB) (hereafter referred to as IFRS).

The consolidated financial statements have been prepared on
the historical cost basis, except for the derivative financial instruments (assets and liabilities), the trust assets of post-employment and other employee benefit plans and the investments in available for sale securities, which are presented at
the market value.

The preparation of these consolidated financial statements under IFRS requires the use of critical estimates and assumptions that
affect the amounts reported for certain assets and liabilities, as well as certain income and expenses. It also requires that management exercise judgment in the application of the Companys accounting policies. Actual results could differ from
these estimates and assumptions.

The Mexican peso is the functional currency of the Companys Mexican operations and the consolidated reporting
currency of the Company.

i) Basis of consolidation

The consolidated financial statements include the accounts of América Móvil, S.A.B. de C.V. and those of the subsidiaries over which the Company
exercises control. The consolidated financial statements for the subsidiaries were prepared for the same period as the Company, applying consistent accounting policies. All of the companies operate in the telecommunications field or provide services
to companies relating to this activity.

According to the IFRS 10 Consolidated Financial Statements, control is achieved when the Company is
exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee, if and only if, the Company has:



|(a) | Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee).
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|(b) | Exposure, or rights, to variable returns from its involvement with the investee; and
|--- | ------------------------------------------------------------------------------------



|(c) | The ability to use its power over the investee to affect its returns.
|--- | ---------------------------------------------------------------------

When the Company has less than a
majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:



|(a) | The contractual arrangement with the other vote holders of the investee.
|--- | ------------------------------------------------------------------------



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##### Table of Contents

|(b) | Rights arising from other contractual arrangements; and
|--- | -------------------------------------------------------



|(c) | The Companys voting rights and potential voting rights.
|--- | --------------------------------------------------------

The Company
re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the
Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statements of
comprehensive income from the date the Company gains control until the date the Company ceases to control the subsidiary.

Profit or loss and each
component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Company and to the non-controlling interests. When necessary, adjustments are made to the
financial statements of subsidiaries to bring their accounting policies into line with the Companys accounting policies. All intercompany balances and transactions are eliminated in the consolidated financial statements.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a
subsidiary, it:



| |  |  | Derecognizes the assets (including goodwill) and liabilities of the subsidiary;
| | - |  | -------------------------------------------------------------------------------



| |  |  | Derecognizes the carrying amount of any non-controlling interests;
| | - |  | ------------------------------------------------------------------



| |  |  | Derecognizes the cumulative translation differences recorded in equity;
| | - |  | -----------------------------------------------------------------------



| |  |  | Recognizes the fair value of the consideration received;
| | - |  | --------------------------------------------------------



| |  |  | Recognizes the fair value of any investment retained;
| | - |  | -----------------------------------------------------



| |  |  | Recognizes any surplus or deficit in profit or loss; and
| | - |  | --------------------------------------------------------



| |  |  | Reclassifies the parents share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Company had directly disposed of the related assets or
liabilities.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The financial statements for the subsidiaries were prepared for the same period as the holding company, applying consistent
accounting policies.

Non-controlling interests represent the portion of profits or losses and net assets not held
by the Company. Non-controlling interests are presented separately in the consolidated statements of comprehensive income and in equity in the consolidated statements of financial position separately from
América Móvils own equity.

Non-controlling interests refers to certain subsidiaries in which
the Company does not hold 100% of the shares.

Acquisitions of non-controlling interests are accounted for as
equity transactions. The difference between the book value and the subscription price for acquired shares under common control are accounted for as an equity transaction within retained earnings.

Associates:

Associates are all those entities for which the
Company has significant influence over without having control. According to IAS 28, Investments in Associates, significant influence is the power to participate in the financial and operating policy decisions of the investee but
is not control or joint control over those policies. Significant influence typically exists when an investor holds from 20% to 50% of the voting power of an investee.



F-8



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##### Table of Contents

The Companys investment in associates includes goodwill identified on acquisition, net of any accumulated
impairment losses.

The investments in associated companies in which the Company exercises significant influence are accounted for using the equity
method, whereby América Móvil recognizes its share in the net profit (losses) and equity of the associate.

The results of operations of the
subsidiaries and associates are included in the Companys consolidated financial statements beginning as of the month following their acquisition and its share of other comprehensive income after acquisition is recognized directly in other
comprehensive income.

The Company assesses at each reporting date whether there is objective evidence that investment in associates is impaired. If so,
the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value.

The equity
interest in the most significant subsidiaries and associated companies at December 31, 2015 and 2016, is as follows:



|                                                                            |  |                    |  |                               |        |  |      |  |        | 
|--------------------------------------------------------------------------- |  | ------------------ |  | ----------------------------- | ------ |  | ---- |  | ------ | 
|                                                                            |  |                    |  | Equity interest atDecember 31 |       
|Company name                                                                |  | Country            |  | 2015                          |        |  | 2016 | 
|Subsidiaries:                                                               |  |                    |  |                               |        |  |      |  |        | 
|AMX Tenedora, S.A. de C.V. a)                                               |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|América Móvil B.V. a)                                                       |  | Netherlands        |  |                               | 100.0% |  |      |  | 100.0% | 
|AMOV Canadá, S.A. a)                                                        |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|Compañía Dominicana de Teléfonos, S.A. (Codetel) b)                       |  | Dominican Republic |  |                               | 100.0% |  |      |  | 100.0% | 
|Sercotel, S.A. de C.V. a)                                                   |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (Telcel) b)               |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|Telecomunicaciones de Puerto Rico, Inc.
b)                                  |  | Puerto Rico        |  |                               | 100.0% |  |      |  | 100.0% | 
|Puerto Rico Telephone Company, Inc.
b)                                      |  | Puerto Rico        |  |                               | 100.0% |  |      |  | 100.0% | 
|Servicios de Comunicaciones de Honduras, S.A. de C.V.(Sercom Honduras) b) |  | Honduras           |  |                               | 100.0% |  |      |  | 100.0% | 
|AMX USA Holding, S.A. de C.V. a)                                            |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|TracFone Wireless, Inc. (TracFone)
b)1)                                   |  | USA                |  |                               | 98.2%  |  |      |  | 100.0% | 
|Claro Telecom Participacoes, S.A. a)                                        |  | Brazil             |  |                               | 100.0% |  |      |  | 100.0% | 
|Americel, S.A. b)                                                           |  | Brazil             |  |                               | 99.9%  |  |      |  | 99.9%  | 
|Claro S.A. (Claro Brasil) b)                                                |  | Brazil             |  |                               | 96.4%  |  |      |  | 97.7%  | 
|América Central Tel, S.A. de C.V. (ACT) a)                                |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|Telecomunicaciones de Guatemala, S.A. (Telgua) b)                         |  | Guatemala          |  |                               | 99.3%  |  |      |  | 99.3%  | 
|Empresa Nicaragüense de Telecomunicaciones, S.A. (Enitel) b)              |  | Nicaragua          |  |                               | 99.6%  |  |      |  | 99.6%  | 
|Estesa Holding Corp. a)                                                     |  | Panama             |  |                               | 100.0% |  |      |  | 100.0% | 
|Cablenet, S.A. b)                                                           |  | Nicaragua          |  |                               | 100.0% |  |      |  | 100.0% | 
|Estaciones Terrenas de Satélite, S.A. (Estesa) b)                         |  | Nicaragua          |  |                               | 100.0% |  |      |  | 100.0% | 
|AMX El Salvador, S.A de C.V. a)                                             |  | Mexico             |  |                               | 100.0% |  |      |  | 100.0% | 
|Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (CTE) b)      |  | El Salvador        |  |                               | 95.8%  |  |      |  | 95.8%  | 
|Cablenet, S.A. (Cablenet)
b)                                              |  | Guatemala          |  |                               | 95.8%  |  |      |  | 95.8%  | 
|Telecomoda, S.A. de C.V. (Telecomoda)
b)                                  |  | El Salvador        |  |                               | 95.8%  |  |      |  | 95.8%  | 
|Telecom Publicar Directorios, S.A. de C.V. (Publicom) c)                  |  | El Salvador        |  |                               | 48.8%  |  |      |  | 48.8%  | 
|CTE Telecom Personal, S.A. de C.V. (Personal) b)                          |  | El Salvador        |  |                               | 95.8%  |  |      |  | 95.8%  | 
|Comunicación Celular, S.A. (Comcel) b)                                    |  | Colombia           |  |                               | 99.4%  |  |      |  | 99.4%  | 
|Telmex Colombia, S.A. b)                                                    |  | Colombia           |  |                               | 99.3%  |  |      |  | 99.3%  | 



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##### Table of Contents

|                                                                            |  |           |  |                               |        |  |      |  |        | 
|--------------------------------------------------------------------------- |  | --------- |  | ----------------------------- | ------ |  | ---- |  | ------ | 
|                                                                            |  |           |  | Equity interest atDecember 31 |       
|Company name                                                                |  | Country   |  | 2015                          |        |  | 2016 | 
|Consorcio Ecuatoriano de Telecomunicaciones, S.A. (Conecel) b)            |  | Ecuador   |  |                               | 100.0% |  |      |  | 100.0% | 
|AMX Argentina, S.A. b)                                                      |  | Argentina |  |                               | 100.0% |  |      |  | 100.0% | 
|AMX Wellington Gardens, S.A. de C.V.
a)                                     |  | Mexico    |  |                               | 100.0% |  |      |  | 100.0% | 
|Widcombe, S.A. de C.V. a)                                                   |  | Mexico    |  |                               | 100.0% |  |      |  | 100.0% | 
|AMX Paraguay, S.A. b)                                                       |  | Paraguay  |  |                               | 100.0% |  |      |  | 100.0% | 
|AM Wireless Uruguay, S.A. b)                                                |  | Uruguay   |  |                               | 100.0% |  |      |  | 100.0% | 
|Claro Chile, S.A. b)                                                        |  | Chile     |  |                               | 100.0% |  |      |  | 100.0% | 
|América Móvil Perú, S.A.C
b)                                                |  | Peru      |  |                               | 100.0% |  |      |  | 100.0% | 
|Claro Panamá, S.A. b)                                                       |  | Panama    |  |                               | 100.0% |  |      |  | 100.0% | 
|CGTEL, S.A.P.I. de C.V.(f.k.a.Carso Global Telecom, S.A. de C.V). a)        |  | Mexico    |  |                               | 99.9%  |  |      |  | 99.9%  | 
|Empresas y Controles en Comunicaciones, S.A. de C.V.
a)                     |  | Mexico    |  |                               | 99.9%  |  |      |  | 99.9%  | 
|Teléfonos de México, S.A.B. de C.V.
b)                                      |  | Mexico    |  |                               | 98.7%  |  |      |  | 98.7%  | 
|Telmex Internacional, S.A. de C.V.
a)                                       |  | Mexico    |  |                               | 97.8%  |  |      |  | 97.8%  | 
|Controladora de Servicios de Telecomunicaciones, S.A. de C.V.(Consertel) a) |  | Mexico    |  |                               | 98.4%  |  |      |  | 98.4%  | 
|Telmex Argentina, S.A. b)                                                   |  | Argentina |  |                               | 99.7%  |  |      |  | 99.7%  | 
|Ertach, S.A. b)                                                             |  | Argentina |  |                               | 99.8%  |  |      |  | 99.8%  | 
|Telstar, S.A. b)                                                            |  | Uruguay   |  |                               | 99.9%  |  |      |  | 99.9%  | 
|Ecuador Telecom, S.A. b)2)                                                  |  | Ecuador   |  |                               | 98.4%  |  |      |  |       | 
|Claro 110, S.A. b)                                                          |  | Chile     |  |                               | 99.9%  |  |      |  | 99.9%  | 
|Sección Amarilla USA, LLC. c)                                               |  | USA       |  |                               | 98.4%  |  |      |  | 98.4%  | 
|Publicidad y Contenido Editorial, S.A. de C.V.
c)                           |  | Mexico    |  |                               | 98.4%  |  |      |  | 98.4%  | 
|Editorial Contenido, S.A. de C.V. c)                                        |  | Mexico    |  |                               | 98.4%  |  |      |  | 98.4%  | 
|Plaza VIP COM, S.A.P.I. de C.V. c)                                          |  | Mexico    |  |                               | 100.0% |  |      |  |       | 
|Grupo Telvista, S.A. de C.V. c)                                             |  | Mexico    |  |                               | 89.4%  |  |      |  | 89.4%  | 
|Telekom Austria AG b)                                                       |  | Austria   |  |                               | 59.7%  |  |      |  | 51.0%  | 
|Hitss Solutions, S.A. de C.V. c)                                            |  | Mexico    |  |                               | 68.9%  |  |      |  | 69.9%  | 
|Associates                                                                  |  |           |  |                               |        |  |      |  |        | 
|Plaza VIP COM, S.A.P.I. de C.V. c)                                          |  | Mexico    |  |                               |       |  |      |  | 25.5%  | 



|a) | Holding companies
|-- | -----------------

|b) | Operating companies of mobile and fixed services
|-- | ------------------------------------------------

|c) | Advertising media, content companies and/or other businesses
|-- | ------------------------------------------------------------

|1) | See Note 12 for further details on the accounting for change in equity interest.
|-- | --------------------------------------------------------------------------------

|2) | In December 2016, this entity was merged with Conecel
|-- | -----------------------------------------------------

ii) Basis of translation of financial statements of
foreign subsidiaries and associated companies

The operating revenues of foreign subsidiaries (those outside of Mexico) jointly represent approximately
66%, 69% and 72% of consolidated operating revenues of 2014, 2015 and 2016, respectively, and their total assets jointly represent approximately 74% and 83% of consolidated total assets at December 31, 2015 and 2016, respectively.

The financial statements have been translated to IFRS in the respective local currency and translated into the reporting currency.



F-10



---

##### Table of Contents

The translation of financial statements of foreign subsidiaries prepared under IFRS and denominated in their
respective local currencies, are translated as follows:



| |  |  | all monetary assets and liabilities were translated at the prevailing exchange rate at the period closing;
| | - |  | ----------------------------------------------------------------------------------------------------------



| |  |  | all non-monetary assets and liabilities at the prevailing exchange rate in effect at the period closing;
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | equity accounts are translated at the prevailing exchange rate at the time the capital contributions were made and the profits were generated;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | revenues, costs and expenses are translated at the average exchange rate during the applicable period;
| | - |  | ------------------------------------------------------------------------------------------------------



| |  |  | the difference resulting from the translation process is recognized in equity in the caption Effect of translation.
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | the consolidated statements of cash flows were translated using the weighted-average exchange rate for the applicable period, and the resulting difference is shown in the consolidated statement of cash flows under the
heading Adjustment to cash flows due to exchange rate fluctuations.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Companys consolidated statements of cash flows
are presented using the indirect method.

The difference resulting from the translation process is recognized in equity in the caption Effect of
translation of foreign entities. At December 31, 2015 and 2016, the cumulative translation (loss) gain was Ps. (73,490,197) and Ps. 29,549,491, respectively.

b) Revenue recognition

Revenues are recognized at the
time the related service is rendered, provided that the revenue can be measured reliably, it is probable that the entity will receive the economic benefits associated with the transaction, the stage of completion of the transaction may be reliably
measured and there is high certainty of collectability.

For postpaid plans, the amount billed to clients combines a fixed tariff for a specific quantity
of services, plus the rates for the use above the specified quantities (minutes included in each plan). Costs related to these services are recognized when the service is rendered.

The Company divides its main services into seven types as presented in the consolidated statements of comprehensive income, as follows:



| |  |  | Mobile voice
| | - |  | ------------



| |  |  | Mobile data
| | - |  | -----------



| |  |  | Fixed voice
| | - |  | -----------



| |  |  | Fixed data
| | - |  | ----------



| |  |  | Pay TV
| | - |  | ------



| |  |  | Sales of equipment, accessories and computers
| | - |  | ---------------------------------------------



| |  |  | Other related services (including over the top services)
| | - |  | --------------------------------------------------------

The Company accounts separately for multiple
elements. To recognize the multi-elements or multiple services at its fair value, the Company assigns its fair value to each type of element. In multi-elements plans, the Company considers the price offered in each package, offered minutes and data
plans offered to the subscribers.



F-11



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##### Table of Contents

Voice services



| |  |  | Monthly rent in post-paid plans is billed based on the associated plan and package rates, corresponding to when the services are provided. Revenues billed for services to be rendered in the future are initially recorded
as deferred revenues.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Revenues from local services are derived from charges for line installations, monthly rent for services and monthly charges for metered services based on the number of minutes. These revenues depend on the number of
lines in service, the number of newly installed lines and volume of minutes.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Revenues for interconnection services, which represent calls from other carriers entering the Companys mobile and fixed line networks (incoming interconnection services), are recognized at the time the service is
provided. Such services are invoiced based on the rates previously agreed with other carriers.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Long-distance revenues originate from airtime or minutes used in making calls in a region or coverage area outside of the area where the customers service is activated. These revenues are recognized at the time
the service is provided.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Revenues from roaming charges are related to airtime charged to customers for making or receiving calls when visiting a local service area, country or region outside the local service area where the customers
service is activated. The related revenues are recognized at the time the service is provided based on the rates established and agreed upon by our subsidiaries with other domestic and international mobile carriers.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Data



| |  |  | Value-added services and other services include voice services and data transmission services (such as two-way and written messages, call information, ring tones, emergency
services, among others). Revenues from such services are recognized at the time they are provided or when the services are downloaded.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Revenues from internet services and the sale of point-to-point and
point-to-multipoint links are recognized on the date of installation, which is similar to the date when the respective traffic begins.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Revenues from corporate networks are obtained mainly from private lines and from providing virtual private network services. These revenues are recognized at the time the respective traffic begins.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Pay television



| |  |  | Revenues from pay TV include payments for package deals, pay-per-view and advertising, all of which are recognized at the time the services
are provided.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------

Sales of equipment, accessories and computers



| |  |  | Sales of mobile phone equipment, accessories and computers, which are made to authorized distributors and the general public, are recognized as revenue when the risks as rewards of ownership has passed, which is
considered the time the products are delivered and accepted by the customer (distributors and general public) and the recovery of the amounts is probable. The distributors and general public do not have the right to return the products.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In some subsidiaries of the Company, mobile equipment is sold to customers as part of postpaid plans, where the sale of such equipment may be financed over twelve to twenty four months.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The accounting policy of the Company is to recognize the revenue and the cost of the mobile equipment at the time of the sale. Interest earned as a consequence of the financing of mobile equipment is considered
immaterial over the life of the contract.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-12



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##### Table of Contents

Other related services

Transmission rights



| |  |  | Transmission rights include exclusive rights for the transmission of the Winter Olympic Games and the Rio de Janeiro Olympics for 2016. The related costs and expenses (amortization of its investment) are recognized when
the associated revenue is recognized.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Marketing revenues



| |  |  | Advertising revenues earned through the publication of the telephone directory are recognized in straight line over the period of use of the directories.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------

Over the top services



| |  |  | The provision of content, including videos, television and other information, directly from the content provider to the viewer or end user. The revenues services provided as Pay TV content and videos included in both
fixed and mobile plans are recognized at the time the service is provided.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Any additional services such as additional programming or
content that exceeds the plans original contract with customers is recognized and invoiced as revenue when such services are provided to customers.

Loyalty programs

Some subsidiaries have loyalty programs
where the Company awards credits customer credit awards referred as points. The customer can redeem accrued points for awards such as devices, accessories or air time. All awards are provided by the Company.

The consideration allocated to the award credits is identified as a separate identifiable component; the corresponding liability of the award credits is
measured at its fair value. The consideration allocated to award credits amount is deferred recognized as revenue at the time that such points are redeemed and the Company has fulfill its obligations to supply awards.

c) Cost of mobile equipment and computers

The cost of
mobile equipment and computers is recognized at the time the client receives the device. The costs relating to the sale of such equipment is recognized in  ̈cost of sales and services ̈ line in the consolidated statements of comprehensive
income.

d) Cost of services

These costs include the
cost of call terminations in the networks of other carriers, the costs to link the fixed and mobile networks, payments for long-distance services, rental costs for the use of infrastructure (links, ports and measured service), as well as message
exchanges between carriers. Such costs are recognized at the time the service is received by the fixed or mobile carriers. These costs also include last-mile costs and line installation costs, which are also recognized at the time the services are
received.

Last mile installation costs and decoder-related charges are capitalized at the time of installation and depreciated over the average useful
life as the customer remains active in the Company.

e) Commissions to distributors

The Companys distribution agreements have three types of commissions related to postpaid plans.



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##### Table of Contents

Loyalty and activation commissions are accrued monthly as an expense based on statistical information about
customer retention, sales volume and the number of new customers obtained by each distributor. Retention commissions are paid when customers continue for a specified period. Volume commissions are paid at the time the distributor reaches prescribed
ranges of activated clients.

In all three cases the fees are recognized within commercial, administrative and general expenses line in the
consolidated statements of comprehensive income, as these fees are not reflected in the price of services and products.

f) Cash and cash equivalents

Cash and cash equivalents consist of bank deposits and highly liquid investments with maturities of less than three months. These amounts are
stated at cost plus accrued interest, which is similar to their market value.

The Company also maintains restricted cash held as collateral to meet
certain contractual obligations (see Note 9). Restricted cash is presented as part of Other assets within other non-current financial assets given that the restrictions are long-term in nature (See
Note 9).

g) Marketable securities and other short term investments

Marketable securities and other short term investments are primarily composed of investment securities available for sale, although this line item also
includes other short-term financial investments. Amounts are initially recorded at cost and adjusted to their estimated fair value. Fair value adjustments for available for sale securities are recorded through other comprehensive income, while fair
value adjustments for other short-term investments are recorded in the income statement as they occur. An available-for-sale equity security is considered to be impaired
if there is objective evidence that the cost may not be recovered. The Company considers whether there is a significant or prolonged decline in the fair value of an investment in such instruments below its cost to determine if such impairment
exists.

h) Allowance for bad debts

The Company
periodically recognizes a provision for doubtful accounts based mainly on its past experience, the aging of its accounts receivable, the delays in resolving its disputes with other carriers, and the market segments of its customers (governments,
businesses and mass market).

Collection policies and procedures vary depending on the credit history of the customer, the credit granted, and the age of
the unpaid calls among other reasons.

The evaluation of collection risk of accounts receivables with related parties is performed annually based on an
examination of each related partys financial situation and the markets in which they operate, as well as the balance aging.

Cash collateral that
clients in time left as default and according to business policies that operated the company is deducted from the account balance to be impaired once the deposit has been identified.

i) Inventories

Inventories, which are mainly composed of
cellular equipment, accessories, tablets and other devices, are initially recognized at historical cost and are valued, using the average cost method, without exceeding their net realizable value.

The estimate of the realizable value of inventories on-hand is based on their age and turnover.



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The difference between the sales price to the end user and the subsidized cost of equipment is recognized as an
expense in the cost of sales and service line in the consolidated statements of comprehensive income, at the time of delivery, consequently, the cost of equipment includes the corresponding adjustments of its net realizable value.

The cost of the equipment sold in installments is recognized when charged in each of the quotas.

j) Business combinations and goodwill

Business
combinations are accounted for using the acquisition method, which in accordance with IFRS 3, Business acquisitions, consists in general terms as follows:



|(i) | Identify the acquirer
|--- | ---------------------



|(ii) | Determine the acquisition date
|---- | ------------------------------



|(iii) | Value the acquired identifiable assets and assumed liabilities
|----- | --------------------------------------------------------------



|(iv) | Recognize the goodwill or a bargain purchase gain
|---- | -------------------------------------------------

For acquired subsidiaries, goodwill represents the
difference between the purchase price and the fair value of the net assets acquired at the acquisition date. For acquired associates, the investment in associates includes goodwill identified on acquisition, net of any impairment loss.

Acquisition-related cost is accounted for as an expense in the other expenses caption in the consolidated statements of comprehensive income as
they are incurred.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic circumstance and pertinent conditions as of the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquire.

If the business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain
or loss is recognized in profit or loss in the Other expenses caption in the consolidated statements of comprehensive income.

Goodwill is
initially measured as the excess of the aggregate of the fair value of the consideration transferred plus any non-controlling interest in the acquired over the net value of the identifiable assets acquired and
liabilities assumed as of the acquisition date.

If the consideration paid is less than the fair value of the net assets of the acquired company, (in the
case of a bargain purchase), the difference is recognized in the consolidated statements of comprehensive income.

Goodwill is reviewed annually to
determine its recoverability or more often if circumstances indicate that the carrying value of the goodwill might not be fully recoverable.

The possible
loss of value in goodwill is determined by analyzing the recovery value of the cash generating unit (or the group thereof) to which the goodwill is associated at the time it originated. If this recovery value is lower than the carrying value, an
impairment loss is charged to results of operations.

For the years ended December 31, 2014, 2015 and 2016, no impairment losses were recognized for
the goodwill shown in the Companys consolidated statements of financial position.



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k) Property, plant and equipment

i) Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation. Depreciation is computed on the cost of the assets
using the straight line method, based on the estimated useful lives of the related assets, beginning the month after they become available for use.

Borrowing costs that are incurred for general financing for construction in progress for periods exceeding six months are capitalized as part of the cost of
the asset. During 2014, 2015 and 2016 the borrowing costs that were capitalized amounted to Ps. 3,258,928, Ps. 3,524,841 and Ps. 2,861,307, respectively.

In addition to the purchase price and costs directly attributable to preparing an asset in terms of its physical location and condition for use as intended by
management, when required, the cost also includes the estimated costs for the dismantlement and removal of the asset, and for restoration of the site where it is located (See Note 15c).

ii) The net book value of property, plant and equipment is removed from the consolidated statements of financial position at the time the asset is sold
or when no future economic benefits are expected from its use or sale. Any gains or losses on the sale of property, plant and equipment represent the difference between net proceeds of the sale, if any, and the net book value of the item at the time
of sale. These gains or losses are recognized as either other operating income or operating expenses upon sale.

iii) The Company periodically
assesses the residual values, useful lives and depreciation methods associated with its property, plant and equipment. If necessary, the effects of any changes in accounting estimates is recognized prospectively, at the closing of each period, in
accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

For property, plant and equipment made up of
several components with different useful lives, the major individual components are depreciated over their individual useful lives. Maintenance costs and repairs are expensed as incurred.

Annual depreciation rates are as follows:



|                                             |  |        
|-------------------------------------------- |  | -------
|Telephone plant in operation and equipment:  |  |        
|Monitoring equipment and network performance |  | 20%-33%
|Base stations                                |  | 5%-33% 
|Switching and telephone exchanges            |  | 2%-20% 
|Towers, antennas and engineering works       |  | 10%-13%
|Measuring equipment                          |  | 2%-17% 
|Buildings and leasehold improvements         |  | 2%-33% 
|Submarine cable                              |  | 5%     
|Other assets                                 |  | 10%-50%

iv) The carrying value of property, plant and equipment is reviewed whenever there are indicators of impairment in such
assets. Whenever an assets recovery value, which is the greater of the assets selling price and its value in use (the present value of future cash flows), is less than the assets net carrying value, the difference is recognized as
an impairment loss.

During the years ended December 31, 2014, 2015 and 2016, no impairment losses were recognized.

v) Inventories for operation of the plant

Inventories for
the operation of telephone plants are valued using the average cost method, without exceeding their net realizable value.



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The valuation of inventories for the operation of telephone plants considered obsolete, defective or slow-moving,
are reduced to their estimated net realizable value. The estimate of the recovery value of inventories is based on their age and turnover.

l)
Intangibles

i) Licenses

Licenses to operate
wireless telecommunications networks are recorded for at acquisition cost or at fair value at its acquisition date, net of accumulated amortization.

The
licenses that in accordance with government requirements are categorized as automatically renewable, for a nominal cost and with substantially consistent terms, are considered by the Company as intangible assets with an indefinite useful life.
Accordingly, they are not amortized. Licenses are amortized when the Company does not have a basis to conclude that they are indefinite lived. Licenses are amortized using the straight-line method over a period ranging from 3 to 30 years, which
represents the usage period of the assets. The payments to the governments are recognized in the cost of service and equipment.

ii) Concessions

The Company has concessions for telecommunications services granted by the governments of the countries in which it operates.

The Company has conducted an internal analysis on the applicability of IFRIC No. 12 (Service Concession Agreements) and has concluded that its
concessions are outside the scope of IFRIC 12. To determine the applicability of IFRIC 12, the Company analyzes each concession or group of similar concessions in a given jurisdiction. As a threshold matter, the Company identifies those government
concessions that provide for the development, financing, operation or maintenance of infrastructure used to provide a public service, and that set out performance standards, mechanisms for adjusting prices and arrangements for arbitrating disputes.

With respect to those services, the Company evaluates whether the grantor controls or regulates (i) what services the operator must provide,
(ii) to whom it must provide them and (iii) the applicable price (the Services Criterion). In evaluating whether the applicable government, as grantor, controls the price at which the Company provides its services, the Company
looks at the terms of the concession agreement, in light of all applicable regulations. If the Company determines that the concession under analysis meets the Services Criterion, then the Company evaluates whether the grantor would hold a
significant residual interest in the concessions infrastructure at the end of the term of the arrangement.

In some of the jurisdictions where the
Company operates and under certain circumstances, the Company may be required to transfer certain assets covered by some of its concessions to the government pursuant to valuation methodologies that vary in each jurisdiction. In Brazil, for example,
Claro Brasil is required to maintain and file before the Brazilian Agency of Telecommunications (Agência Nacional de Telecomunicações, or Anatel) a list of assets potentially subject to reversion. The most recent
publicly available filing, published by Anatel in 2016 (referring to the base year 2015), lists potentially reversible assets for an estimated book value of Ps. 24,129,223 (3,793,247 Brazilian reals). The Company believes that this list
significantly overstates the extent of assets that would as a legal matter be subject to reversion, but there is no regulatory requirement or legal basis for a more refined analysis. See also Notes 10 and 16c).

iii) Trademarks

Trademarks are recorded at their fair
value at the valuation date when acquired. The useful lives of trademarks are assessed as either finite or indefinite. Trademarks with finite useful lives are amortized using the straight-line



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method over a period ranging from 1 to 10 years. Trademarks with indefinite useful lives are not amortized, but are tested for impairment annually at the cash generating unit level. The
assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable, if not, the change in useful life from indefinite to finite is made on a prospective basis.

iv) Rights of use

Rights of use are recognized according to the
amount paid for the right to carry traffic and are amortized over the period in which they are granted.

The carrying value of the Companys licenses
and trademarks with indefinite useful lives and with finite useful lives are reviewed annually and whenever there are indicators of impairment in the value of such assets. When an assets recoverable amount, which is the higher of the
assets fair value, less disposal costs and its value in use (the present value of future cash flows), is less than the assets carrying value, the difference is recognized as an impairment loss.

v) Customer relationships

The value of customer relations
are determined and valued at the time that a new subsidiary is acquired, as determined by the Company with the assistance of independent appraisers, and is amortized over the useful life of the customer relationship on a five years.

During the years ended December 31, 2014, 2015 and 2016, no impairment losses were recognized for licenses, trademarks, rights of use or customer
relationships.

m) Impairment in the value of long-lived assets

The Company has a policy in place for evaluating the existence of indicators of impairment in the carrying value of long-lived assets, investments in
associates, goodwill and intangible assets. When there are such indicators, or in the case of assets whose nature requires an annual impairment analysis (goodwill and intangible assets with indefinite useful lives), the Company estimates the
recoverable amount of the asset, which is the higher of its fair value, less disposal costs, and its value in use. Value in use is determined by discounting estimated future cash flows, applying a pre-tax
discount rate that reflects the time value of money and taking into consideration the specific risks associated with the asset. When the recoverable amount of an asset is below its carrying value, impairment is considered to exist. In this case, the
carrying value of the asset is reduced to the assets recoverable amount, recognizing the loss in results of operations for the respective period. Depreciation and/or amortization expense of future periods is adjusted based on the new carrying
value determined for the asset over the assets remaining useful life. Impairment is computed individually for each asset. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or group of assets.

In the estimation of impairments, the Company uses the strategic plans established for
the separate cash-generating units to which the assets are assigned. Such strategic plans generally cover a period from three to five years. For longer periods, beginning in the fifth year, projections are based on such strategic plans while
applying a constant or declining expected growth rate.

Key assumptions used in value in use calculations

The forecasts were performed by the Companys management in real terms (net of inflation) and in the functional currency of the subsidiary as of
December 31, 2016.

In developing information for financial forecasts, premises and assumptions have been included that any other market participant
in similar conditions would consider.



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Local synergies have not been taken into consideration that any other market participant would not have taken
into consideration to prepare similar forecasted financial information.

The assumptions used to develop the financial forecasts were validated by the
Companys management for each of the cash generating unit (CGUs), taking into consideration the following:



| |  |  | Current subscribers and expected growth.
| | - |  | ----------------------------------------



| |  |  | Type of subscribers (prepaid, postpaid, fixed line, multiple services)
| | - |  | ----------------------------------------------------------------------



| |  |  | Market situation and penetration expectations
| | - |  | ---------------------------------------------



| |  |  | New products and services
| | - |  | -------------------------



| |  |  | Economic situation of each country
| | - |  | ----------------------------------



| |  |  | Investments in maintenance of the current assets
| | - |  | ------------------------------------------------



| |  |  | Investments in technology for expanding the current assets
| | - |  | ----------------------------------------------------------



| |  |  | Market consolidation and synergies
| | - |  | ----------------------------------

The foregoing forecasts could differ from the results obtained through
time; however, América Móvil prepares its estimates based on the current situation of each of the CGUs.

The recoverable amounts are based
on value in use. The value in use was determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are:



| |  |  | Margin on EBITDA is determined by dividing EBITDA (operating income plus depreciation and amortization) by total revenue.
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | Margin on CAPEX is determined by dividing capital expenditures (CAPEX) by total revenue.
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | Pre-tax weighted average cost of capital (WACC) used to discount the projected cash flows.
| | - |  | --------------------------------------------------------------------------------------------

To determine the discount rate, the Company uses the WACC which was determined for each of the cash generating units and is described in following paragraphs.

The estimated discount rates to perform the IAS 36 Impairment of assets, impairment test for each CGU consider market participants
assumptions. Market participants were selected taking into consideration the size, operations and characteristics of the business that were similar to those in América Móvil.

The discount rates represents the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and
individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segments and is derived from its WACC. The
WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by América Móvils investors. The cost of debt is based on the interest bearing borrowings América
Móvil is obliged to service. Segment-specific risk is incorporated by applying individual beta factors.

The beta factors are evaluated annually
based on publicly available market data.

Market participant assumptions are important because, not only do they include industry data for growth rates,
management also assesses how the CGUs position, relative to its competitors, might change over the forecasted period.



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The most significant forward looking estimates used for the 2015 and 2016 impairment evaluations are shown below:



|                                     |  |                         |  |                        |  |                                   
|------------------------------------ |  | ----------------------- |  | ---------------------- |  | ----------------------------------
|                                     |  | Average margin onEBIDTA |  | Average margin onCAPEX |  | Average pre-taxdiscount rate(WACC)
|2015:                                |  |                         |  |                        |  |                                   
|Europe (7 countries)                 |  | 24.50% - 49.46%         |  | 13.88% - 22.8%         |  | 5.19% - 15.34%                    
|Brazil (fixed line, wireless and TV) |  | 29.82%                  |  | 19.01%                 |  | 8.89%                             
|Puerto Rico                          |  | 18.97%                  |  | 5.28%                  |  | 5.26%                             
|Dominican Republic                   |  | 45.32%                  |  | 10.90%                 |  | 18.98%                            
|Mexico (fixed line and wireless)     |  | 34.26%                  |  | 10.97%                 |  | 13.22%                            
|Ecuador                              |  | 32.37%                  |  | 9.70%                  |  | 22.52%                            
|Peru                                 |  | 34.52%                  |  | 14.60%                 |  | 15.34%                            
|El Salvador                          |  | 41.45%                  |  | 16.43%                 |  | 13.30%                            
|Chile                                |  | 44.58%                  |  | 33.14%                 |  | 12.26%                            
|Colombia                             |  | 41.31%                  |  | 17.04%                 |  | 12.85%                            
|Other countries                      |  | 7.90% - 49.25%          |  | 0.5% - 17.39%          |  | 8.48% - 22.10%                    



|                                     |  |                         |                 |  |                        |  |                |                                    |  |  |                | 
|------------------------------------ |  | ----------------------- | --------------- |  | ---------------------- |  | -------------- | ---------------------------------- |  |  | -------------- | 
|                                     |  | Average margin onEBITDA |                 |  | Average margin onCAPEX |  |                | Average pre-taxdiscount rate(WACC) | 
|2016:                                |  |                         |                 |  |                        |  |                |                                    |  |  |                | 
|Europe (7 countries)                 |  |                         | 23.61% - 51.58% |  |                        |  | 8.29% - 20.72% |                                    |  |  | 8.74% - 20.07% | 
|Brazil (fixed line, wireless and TV) |  |                         | 31.65%          |  |                        |  | 18.21%         |                                    |  |  | 9.70%          | 
|Puerto Rico                          |  |                         | 28.91%          |  |                        |  | 9.08%          |                                    |  |  | 11.29%         | 
|Dominican Republic                   |  |                         | 45.83%          |  |                        |  | 10.55%         |                                    |  |  | 19.70%         | 
|Mexico (fixed line and wireless)     |  |                         | 33.38%          |  |                        |  | 10.75%         |                                    |  |  | 14.34%         | 
|Ecuador                              |  |                         | 35.80%          |  |                        |  | 7.92%          |                                    |  |  | 22.84%         | 
|Peru                                 |  |                         | 28.92%          |  |                        |  | 14.18%         |                                    |  |  | 14.20%         | 
|El Salvador                          |  |                         | 39.43%          |  |                        |  | 23.69%         |                                    |  |  | 21.95%         | 
|Chile                                |  |                         | 25.92%          |  |                        |  | 8.61%          |                                    |  |  | 7.87%          | 
|Colombia                             |  |                         | 38.34%          |  |                        |  | 14.40%         |                                    |  |  | 13.93%         | 
|Other countries                      |  |                         | 10.1% - 48.92%  |  |                        |  | 0.5% - 21.39%  |                                    |  |  | 7.39% - 23.79% | 

Sensitivity to changes in assumptions:

The implications of the key assumptions for the recoverable amount are discussed below:

Margin on CAPEX- The Company performed a sensitivity analysis by increasing its CAPEX by 5% and maintaining all other assumptions the same. The sensitivity
analysis would require the Company to adjust the amount of its long-life assets in its CGUs, by approximately Ps. 505,000.

WACC- Additionally, should the
Company increase by 50 basis points the WACC and maintain all other assumptions the same, the carrying amount of the long-life assets, mainly in the Central America, region would be impaired by approximately Ps. 1,664,000.



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n) Leases

The determination of whether an agreement is, or contains, a lease is based on the substance of the agreement and requires an evaluation of whether performance
of the agreement is dependent on the use of a specific asset and whether the agreement transfers the right of use of the asset to the Company.

Operating leases

Leases under which the lessor retains a
significant portion of the risks and benefits inherent to the ownership of the leased asset are considered operating leases. Payments made under operating lease agreements are charged to results of operations on a straight-line basis over the rental
period.

Finance leases

Lease agreements that
substantially transfer all the risks and benefits of ownership of the leased assets to the Company are accounted for as finance leases. Accordingly, upon commencement of the lease, the asset, which is classified based on its nature, and associated
debt are recorded at the lower of the fair value of the leased asset or the present value of the lease payments. Finance lease payments are apportioned between the reduction of lease liability and the finance cost so that a constant interest rate is
determined on the outstanding liability balance. Finance costs are charged to results of operations over the life of the agreement.

o) Financial
assets and liabilities

Financial assets

Financial assets are categorized, at initial recognition, as (i) financial assets at fair value through profit or loss, (ii) loans and receivables, (iii) held-to-maturity investments, (iv) available-for-sale financial assets, or as
(v) derivatives designated as hedging instruments in an effective hedge, as appropriate.

Initial recognition and measurement

Financial assets are initially recognized at fair value, plus directly attributable transactions costs, except for financial assets designated upon initial
recognition at fair value through profit or loss.

 Subsequent measurement

The subsequent measurement of assets depends on their categorization as either financial assets and liabilities measured at fair value through profit and loss,
loans and receivables, held to maturity or available for sale financial assets, or derivatives designated as hedging instruments in an effective hedge.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading if they are acquired for the purpose of selling or repurchasing
in the short term. Derivatives, including separated embedded derivatives, are also classified as held for trading fair value through profit or loss, unless they are designated as effective hedging instruments as defined in IAS 39. Financial assets
at fair value through profit or loss are recorded in the consolidated statements of financial position at fair value with net changes in fair value in the consolidated statements of comprehensive income in the within valuation of derivatives,
interest cost from labor obligations and other financial items.

Held-to-maturity investments

Held-to-maturity investments are those that the Company has the intent and
ability to hold to maturity and are recorded at cost which includes transaction costs and premiums or discounts related to investment that are amortized over the life of the investment based on its outstanding balance, less any impairment. Interest
and dividends on investments classified as held-to-maturity are included within interest income.



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Available-for-sale financial
assets

Available-for-sale financial assets are recorded at fair value,
with gains and losses, net of tax, reported in other comprehensive income. Interest and dividends on investments classified as available-for-sale are included in
valuation of derivatives, interest cost from labor obligations and other financial items The fair value of investments is readily available based on market value. The foreign exchange gain or losses of securities available for sale are
recognized in the caption  ̈Foreign currency exchange loss, net ̈ of the consolidated statement of comprehensive income.

Loans and receivables

Loans and receivables are non-derivative financial instruments with fixed or determinable payments that are
not quoted in an active market. Loans and receivables with a relevant period (including accounts receivable to subscribers, distributors and other receivables) are measured at amortized cost using the effective interest method, less any impairment.
Interest income is recognized by applying the effective interest rate, except for accounts receivable from subscribers, distributors and other in the short term when the recognition of interest would be immaterial.

This category generally applies to accounts receivable from subscribers, distributors and other receivables.

Derecognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the groups consolidated statement of financial position) when: The rights to receive cash flows from the asset have expired,
or 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
(i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the
transferred asset to the extent of the Companys continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Impairment of financial assets

The Company assesses, at each reporting date, whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A
financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred loss
event) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors
is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and when observable data indicate that there is a
measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

Financial
assets carried at amortized cost

For financial assets carried at amortized cost, the Company first assesses whether objective evidence of impairment
exists individually for financial assets that are individually significant, or collectively for financial



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assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not,
it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to
be, recognized are not included in a collective assessment of impairment.

Financial liabilities

Financial liabilities are classified into the following categories based on the nature of the financial instruments contracted or issued: (i) financial
liabilities measured at fair value, and (ii) financial liabilities measured at amortized cost. The Companys financial liabilities include accounts payable to suppliers, deferred revenues, other accounts payable, loans and derivative
financial instruments. Derivative financial instruments are measured at fair value; short- and long-term debt and accounts payable, are accounted for as financial liabilities and measured at amortized cost.

Initial recognition

All financial liabilities are
recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent
measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial
recognition at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IAS 39, Financial Instruments:
Recognition and Measurement. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on financial liabilities held for trading are recognized in the consolidated statements of valuation of derivatives, interest cost from
labor obligations and other financial items.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated at the initial date of recognition, and only if the criteria in IAS 39 are satisfied.

Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains
and losses are recognized in the consolidated statements of comprehensive income when the liabilities are derecognized as well as through the effective interest rate (EIR) amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in interest income in the consolidated statements of comprehensive income.

This category generally applies to interest-bearing
loans and borrowings. For more information refer Note 14.



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Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or 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 in the consolidated statements
of comprehensive income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is presented in the consolidated statements of financial position if, and only if,
there is:



|(i) | a currently a legally enforceable right to offset the recognized amounts, and
|--- | -----------------------------------------------------------------------------



|(ii) | the intention to either settle them on a net basis, or to realize the assets and settle the liabilities simultaneously.
|---- | -----------------------------------------------------------------------------------------------------------------------

Fair value of financial instruments

At each financial
statement reporting date, the fair value of financial instruments traded in active markets is determined based on market prices, or prices quoted by brokers (purchase price for asset positions and sales price for liability positions), without any
deduction for transaction costs.

For financial instruments that are not traded in an active market, the fair value is determined using appropriate
valuation techniques. Such techniques may include using recent arms length market transactions, references to the current fair value of another financial instrument that is substantially similar, a discounted cash flow analysis or other
valuation models.

Note 7 and 18 provides an analysis of the fair values of the Companys financial instruments.

p) Transactions in foreign currency

Transactions in
foreign currency are recorded at the prevailing exchange rate at the time of the related transactions. Foreign currency denominated assets and liabilities are translated at the prevailing exchange rate at the financial statement reporting date.
Exchange differences determined from the transaction date to the time foreign currency denominated assets and liabilities are settled or translated at the financial statement reporting date are charged or credited to the results of operations.



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The exchange rates used for the translation of foreign currencies against the Mexican peso are as follows:



|                   |  |                  |  |                       |         |  |                                      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|------------------ |  | ---------------- |  | --------------------- | ------- |  | ------------------------------------ |  | ------- | ---- |  |  | ------- |  |  | ---- | ------- |  |  |  | ------- | 
|                   |  |                  |  | Average exchange rate |         |  | Closing exchange rate atDecember 31, | 
|Country or Zone    |  | Currency         |  | 2014                  |         |  | 2015                                 |  |         | 2016 |  |  | 2015    |  |  | 2016 |        
|Argentina (1)      |  | Argentine Peso   |  |                       | 1.6405  |  |                                      |  | 1.7152  |      |  |  | 1.2632  |  |  |      | 1.3195  |  |  |  | 1.3047  | 
|Brazil             |  | Real             |  |                       | 5.6574  |  |                                      |  | 4.8068  |      |  |  | 5.3868  |  |  |      | 4.4065  |  |  |  | 6.3611  | 
|Colombia           |  | Colombian Peso   |  |                       | 0.0067  |  |                                      |  | 0.0058  |      |  |  | 0.0061  |  |  |      | 0.0055  |  |  |  | 0.0069  | 
|Guatemala          |  | Quetzal          |  |                       | 1.7195  |  |                                      |  | 2.0704  |      |  |  | 2.4548  |  |  |      | 2.2544  |  |  |  | 2.7561  | 
|U.S.A. (2)         |  | US Dollar        |  |                       | 13.2969 |  |                                      |  | 15.8504 |      |  |  | 18.6529 |  |  |      | 17.2065 |  |  |  | 20.7314 | 
|Uruguay            |  | Uruguay Peso     |  |                       | 0.5726  |  |                                      |  | 0.5810  |      |  |  | 0.6206  |  |  |      | 0.5745  |  |  |  | 0.7066  | 
|Nicaragua          |  | Cordobas         |  |                       | 0.5122  |  |                                      |  | 0.5813  |      |  |  | 0.6515  |  |  |      | 0.6161  |  |  |  | 0.7071  | 
|Honduras           |  | Lempiras         |  |                       | 0.6291  |  |                                      |  | 0.7171  |      |  |  | 0.8109  |  |  |      | 0.7639  |  |  |  | 0.8759  | 
|Chile              |  | Chilean Peso     |  |                       | 0.0233  |  |                                      |  | 0.0243  |      |  |  | 0.0276  |  |  |      | 0.0242  |  |  |  | 0.0310  | 
|Paraguay           |  | Guaraní          |  |                       | 0.0030  |  |                                      |  | 0.0031  |      |  |  | 0.0033  |  |  |      | 0.0030  |  |  |  | 0.0036  | 
|Peru               |  | Soles            |  |                       | 4.6830  |  |                                      |  | 4.9746  |      |  |  | 5.5232  |  |  |      | 5.0415  |  |  |  | 6.1701  | 
|Dominican Republic |  | Dominican Peso   |  |                       | 0.3050  |  |                                      |  | 0.3515  |      |  |  | 0.4048  |  |  |      | 0.3776  |  |  |  | 0.4438  | 
|Costa Rica         |  | Colon            |  |                       | 0.0244  |  |                                      |  | 0.0293  |      |  |  | 0.0338  |  |  |      | 0.0316  |  |  |  | 0.0369  | 
|European Union     |  | Euro             |  |                       | 17.6507 |  |                                      |  | 17.3886 |      |  |  | 20.6334 |  |  |      | 18.6828 |  |  |  | 21.8032 | 
|Bulgaria           |  | Lev              |  |                       | 8.8045  |  |                                      |  | 9.3785  |      |  |  | 10.5483 |  |  |      | 9.5527  |  |  |  | 11.1561 | 
|Belarus (3)        |  | Belarusian Ruble |  |                       | 0.0012  |  |                                      |  | 0.0009  |      |  |  | 0.0009  |  |  |      | 0.0009  |  |  |  | 0.0011  | 
|Croatia            |  | Croatian Kuna    |  |                       | 2.2508  |  |                                      |  | 2.4096  |      |  |  | 2.7392  |  |  |      | 2.4452  |  |  |  | 2.8886  | 
|Macedonia          |  | Macedonian Denar |  |                       | 0.2805  |  |                                      |  | 0.2984  |      |  |  | 0.3350  |  |  |      | 0.3037  |  |  |  | 0.3546  | 
|Serbia             |  | Serbian Denar    |  |                       | 0.1449  |  |                                      |  | 0.1517  |      |  |  | 0.1676  |  |  |      | 0.1537  |  |  |  | 0.1768  | 



|(1) | In the years ended December 31, 2015 and 2016, the Argentine peso depreciated against the US dollar by 52.5% and 21.8%, respectively, considering the exchange rate of that foreign currency in the single and free
market of changes. The Company believes that general market sentiment is that on the basis of the quantitative and qualitative indicators in IAS 29, the economy of Argentina should not be considered as hyperinflationary as of December 31, 2016.
However, it is possible that certain market participants and regulators could have varying views on this topic both during 2016 and as Argentinas economy continue to evolve in 2017. The Company will continue to carefully monitor the situation
and make appropriate changes if and when necessary.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama.
|--- | --------------------------------------------------------------

|(3) | Year-end rates were used for the translation of revenues and expenses as IAS 29 Financial Reporting in Hyperinflationary Economies was applied in 2014. In January
2015, hyperinflation accounting has been discontinued, as the characteristics indicating hyperinflation have no longer been met
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | On the disposal of a foreign operation (i.e. a disposal of the Companys entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a
disposal involving loss of joint control over a joint venture that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated
in other comprehensive income in respect of that operation attributable to the owners of the Company are recognized in the consolidated statements of comprehensive income.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | As of April 19, 2017, the exchange rate between the US dollar and the Mexican Peso was 18.5582.
|--- | -----------------------------------------------------------------------------------------------

q)
Accounts payable, accrued liabilities and provisions

Liabilities are recognized whenever (i) the Company has current obligations (legal or
assumed) resulting from a past event, (ii) when it is probable the obligation will give rise to a future cash disbursement for its settlement, and (iii) the amount of the obligation can be reasonably estimated.

When the effect of the time value of money is significant, the amount of the liability is determined as the present value of the expected disbursements to
settle the obligation. The discount rate is determined on a pre-tax basis



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and reflects current market conditions at the financial statement reporting date and, where appropriate, the risks specific to the liability. Where discounting is used, an increase in the
liability is recognized as finance expense.

Contingent liabilities are recognized only when it is probable they will give rise to a future cash
disbursement for their settlement. Also, contingencies are only recognized when they will generate a loss.

r) Employee benefits

The Company has defined benefit pension plans for its subsidiaries Radiomóvil Dipsa, S.A. de C.V., Telecomunicaciones de Puerto Rico, S.A.,
Teléfonos de México, Claro Brasil and Telekom Austria. Claro Brasil also has medical plans and defined contribution plans and Telekom Austria provides retirement benefits to its employees under a defined contribution plan. The Company
recognizes the costs of these plans based upon independent actuarial computations, and are determined using the projected unit credit method. The latest actuarial computations were prepared as of December 31, 2016.

Mexico

Mexican subsidiaries have the obligation to pay
seniority premiums to personnel based on the Mexican Federal labor law which also establishes the obligation to make certain payments to personnel who cease to provide services under certain circumstances. Pensions and seniority premiums are
determined based on the salary of employees in their final year of service, the number of years worked at Telmex and their age at retirements.

The costs
of pensions, seniority premiums and severance benefits, are recognized based on calculations by independent actuaries using the projected unit credit method using financial hypotheses, net of inflation.

Telmex has established an irrevocable trust fund and makes annual contributions to that fund.

Puerto Rico

In Puerto Rico, the Company has
noncontributing pension plans for full-time employees, which are tax qualified as they meet Employee Retirement Income Security Act of 1974 requirements.

The pension benefit is composed of two elements:

(i) An
employee receives an annuity an retirement if they meet the rule of 85 (age at retirement plus accumulated years of service). The annuity is calculated by applying a percentage times years of services to the last three years of salary.

(ii) The second element is a lump-sum benefit based on years of service equivalent to approximately nine to
twelve months of salary. Health care and life insurance benefits are also provided to retirees under a separate plan (post-retirement benefits).

Brazil

In Brazil, the Company provides a defined benefit
plan and post-retirement medical assistance plan, and a defined contribution plan, through a pension fund that supplements the government retirement benefit, for certain employees.

Under the defined benefit plan, the Company makes monthly contributions to the pension fund equal to 17.5% of the employees aggregate salary. In
addition, the Company contributes a percentage of the aggregate salary base for funding the post-retirement medical assistance plan for the employees who remain in the defined benefit plan. Each employee makes contributions to the pension fund based
on age and salary. All newly hired employees automatically adhere to the defined contribution plan and no further admittance to the defined benefit plan is allowed. For the defined contribution plan, see Note 17.



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Austria

In
Austria, the Company provides retirement benefits to its employees under defined contribution and defined benefit plans.

The Company pays contributions
to publicly or privately administered pension or severance insurance plans on mandatory or contractual basis. Once the contributions have been paid, the Company has no further payment obligations. The regular contributions are recognized as employee
expenses in the year in which they are due.

All other employee benefit obligations provided in Austria are unfunded defined benefit plans for which the
Company records provisions which are calculated using the projected unit credit method. The future benefit obligations are measured using actuarial methods on the basis of an appropriate assessment of the discount rate, rate of employee turnover,
rate of compensation increase and rate of increase in pensions.

For severance and pensions, Austria recognizes actuarial gains and losses in other
comprehensive income. The re-measurement of defined benefit plans relates to actuarial gains and losses only as Austria holds no plan assets. Interest expense related to employee benefit obligations is
reported in the Valuation of derivatives, interests cost from labor obligation and other financial item, net.

Ecuador

The Companys subsidiary Consorcio Ecuatoriano de Telecomunicaciones, S.A. has a pension plan in which employees who have rendered a continuous and
uninterrupted service for twenty five years or more are entitled to retirement benefits from their employer. In addition, employees who on the date of their dismissal had fulfilled twenty years or more and less than twenty-five years of continuous
or uninterrupted work shall be entitled to a proportionate share of such retirement. In addition, the Company will have to pay certain benefits to employees as a result of the termination of employment by the Company or as a result of the employee
leaving the Company. These benefits are approximately 25% of the last monthly payment made for each of the years of service by the employee to the Company. These plans are classified as defined benefit plans.

Other subsidiaries

For the rest of the Companys
subsidiaries, there are no defined benefit plans or compulsory defined contribution structures. However, certain of foreign subsidiaries make contributions to national pension, social security and severance plans in accordance with the percentages
and rates established by the applicable payroll and labor laws of each country. Such contributions are made to the entities designated by the country and are recorded as direct labor expenses in the consolidated statements of comprehensive income as
they are incurred.

Re-measurements of defined benefit plans, comprising of actuarial gains and losses, the effect
of the asset ceiling, excluding net interest and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to retained earnings through
OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:



|(i) | The date of the plan amendment or curtailment, and
|--- | --------------------------------------------------



|(ii) | The date that the Company recognizes restructuring-related costs
|---- | ----------------------------------------------------------------

Net interest on liability for defined
benefits is calculated by applying the discount rate to the net defined benefit liability or asset and it is recognized in the valuation of derivatives, interest cost from labor obligations and other financial items in the consolidated
statements of comprehensive income. The Company recognizes the changes in the net defined benefit obligation under cost of sales and services and Commercial, administrative and general expenses in the consolidated statements
of comprehensive income.



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Paid absences

The Company recognizes a provision for the costs of paid absences, such as vacation time, based on the accrual method.

s) Employee profit sharing

Employee profit sharing is
paid by certain subsidiaries of the Company to its eligible employees. The Company has employee profit sharing in Mexico, Ecuador and Peru. In Mexico, employee profit sharing was computed at the rate of 10% of the individual company taxable income,
except for depreciation of historical rather than restated values, foreign exchange gains and losses, which are not included until the asset is disposed of or the liability is due and other effects of inflation are also excluded. Effective
January 1, 2014, employee profit sharing in Mexico is calculated using the same taxable income for income tax, except for the following:



|i) | Neither tax losses from prior years nor the employee profit sharing paid during year are deductible.
|-- | ----------------------------------------------------------------------------------------------------



|ii) | Payments exempt from taxes for the employees are fully deductible in the employee profit sharing computation.
|--- | -------------------------------------------------------------------------------------------------------------

Employee profit sharing is presented as an operating expense in the consolidated statements of comprehensive income.

t) Taxes

Income taxes

Current income tax payable is presented as a short-term liability, net of prepayments made during the year.

Deferred income tax is determined using the liability method based on the temporary differences between the tax values of the assets and liabilities and their
book values at the financial statement reporting date.

Deferred tax assets and liabilities are measured using the tax rates that are expected to be in
effect in the period when the asset will materialize or the liability will be settled, based on the enacted tax rates (and tax legislation) that have been enacted or substantially enacted at the financial statement reporting date. The value of
deferred tax assets is reviewed by the Company at each financial statement reporting date and is reduced to the extent that it is more likely than not that the Company will not have sufficient future tax profits to allow for the realization of all
or a part of its deferred tax assets. Unrecognized deferred tax assets are revalued at each financial statement reporting date and are recognized when it is more likely than not that there will be sufficient future tax profits to allow for the
realization of these assets.

Deferred taxes relating to items recognized outside profit or loss are also recognized outside of profit and loss. These
deferred taxes are recognized together with the underlying transaction in other comprehensive income.

Deferred tax consequences on unremitted foreign
earnings are accounted for as temporary differences, except to the extent that the Company is able to control the timing of the reversal of the temporary difference; and it is probable that the temporary difference will not reverse in the
foreseeable future. Taxes paid on remitted foreign earnings are able to be offset against Mexican taxes, thus to the extent that a remittance is to be made, the deferred tax would be limited to the incremental difference between the Mexican tax rate
and the rate of the remitting country. As of December 31, 2015 and 2016, the Company has not provided for any deferred taxes related to unremitted foreign earnings.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and
the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.



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Sales tax

Revenues, expenses and assets are recognized net of the amount of sales tax, except:



| |  |  | When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of
the expense item, as applicable.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Receivables and payables that are stated with the amount of sales tax included.
| | - |  | -------------------------------------------------------------------------------

The net amount of sales tax
recoverable from, or payable to, the taxation authority is included as part of the current receivables or payables in the consolidated statements of financial position unless they are due in more than a year in which case they are classified as non-current.

u) Advertising

Advertising expenses are expensed as incurred. for the years ended December 31, 2014, 2015 and 2016, advertising expenses were Ps. 21,772,454, Ps.
24,673,557 and Ps.28,180,538 respectively, and are recorded in the consolidated statements of comprehensive income in the caption Commercial, administrative and general expenses.

v) Earnings per share

Basic and diluted earnings per
share are determined by dividing net profit of the year by the weighted-average number of shares outstanding during the year. In determining the weighted average number of shares issued and outstanding, shares repurchased by the Company have been
excluded.

w) Financial risks

The main risks
associated with the Companys financial instruments are: (i) liquidity risk, (ii) market risk (foreign currency exchange risk and interest rate risk) and (iii) credit risk and counterparty risk. The Board of Directors approves
the policies submitted by management to mitigate these risks.

i) Liquidity risk

Liquidity risk is the risk that the Company may not meet its financial obligations associated with financial instruments when they are due. The Companys
financial obligations and commitments are included in Notes 14 and 16.

ii) Market risk

The Company is exposed to certain market risks from changes in interest rates and fluctuations in exchange rates of foreign currencies. The Companys debt
is denominated in foreign currencies, mainly in US dollars, other than its functional currency. In order to reduce the risks related to fluctuations in the exchange rate of foreign currency, the Company uses derivative financial instruments such as
cross-currency swaps and forwards to adjust exposures resulting from foreign exchange currency. The Company does not use derivatives to hedge the exchange risk arising from having operations in different countries.

Additionally, the Company occasionally uses interest rate swaps to adjust its exposure to the variability of the interest rates or to reduce their financing
costs. The Companys practices vary from time to time depending on their judgments about the level of risk, expectations of change in the movements of interest rates and the costs of using derivatives. The Company may terminate or modify a
derivative financial instrument at any time. See Note 7 for disclosure of the fair value of derivatives as of December 31, 2015 and 2016.



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iii) Credit risk

Credit risk represents the loss that could be recognized in case the counterparties fail to fully comply with the contractual obligations.

The financial instruments that potentially represent concentrations of credit risk are cash and short-term deposits, trade accounts receivable and financial
instruments related to debt and derivatives. The Companys policy is designed in order to limit its exposure to any one financial institution; therefore, the Companys financial instruments are contracted with several different financial
institutions located in different geographic regions.

The credit risk in accounts receivable is diversified because the Company has a broad customer base
that is geographically dispersed. The Company continuously evaluates the credit conditions of its customers and does not require collateral to guarantee collection of its accounts receivable. The Company monitors on a monthly basis its collection
cycle to avoid deterioration of its results of operations.

A portion of the Companys cash surplus is invested in short- term deposits with
financial institutions with high credit ratings.

iv) Sensitivity analysis for market risks

The Company uses sensitivity analyses to measure the potential losses based on a theoretical increase of 100 basis points in interest rates and a 5%
fluctuation in exchange rates:

Exchange rate fluctuations

Should the Companys debt at December 31, 2016 of Ps. 744,005,256, suffer a 5% increase/(decrease) in exchange rates, the debt would
increase/(decrease) by Ps.36,203,853 and Ps.(34,653,790) respectively.

Interest rate

In the event that the Companys agreed-upon interest rates at December 31, 2016 increased/(decreased) by 100 basis points, the increase in net
interest expense would increase/(decrease) by Ps. 6,428,515 and Ps.(13,717,022), respectively.

v) Concentration of risk

The Company depends on several key suppliers and sellers. During the years ended December 31, 2014, 2015 and 2016, approximately 55%, 67% and 73%,
respectively, of the total cost of the cellular equipment of América Móvil represented purchases made from three suppliers, and approximately 19%, 17% and 25%, respectively, of the telephony plant equipment was purchased from two
suppliers. If any of these suppliers were to cease to provide equipment and services to the Company, or to provide them in a timely manner and at a reasonable cost, the Companys business and results of operations might be adversely affected.

vi) Capital management

The Company manages its capital to
ensure that its subsidiaries to continue as going concerns while maximizing the return to stakeholders through the optimization of their balances and debt capital to maintain the lowest cost of capital available. The Company manages its capital
structure and makes adjustments according to economic conditions. To maintain the capital structure, the Company may adjust the dividend payment to shareholders or its share buyback program, for which the Company holds a reserve. In addition, the
Company creates a legal reserve, as required by law (See Note 19).



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x) Derivative financial instruments

Derivative financial instruments are recognized in the consolidated statement of financial position at fair value. Valuations obtained by the Company are
recognized against those of the financial institutions with which the agreements are entered into, and it is the Company policy to compare such fair value to the valuation provided by an independent pricing provider retained by the Company in case
of discrepancies. The effective portion of gains or losses on the cash flow derivatives is recognized in equity under the heading Effect for fair value of derivatives, and the ineffective portion is charged to results of operations of
the period. Changes in the fair value of derivatives that do not qualify as hedging instruments are recognized immediately in results.

The Company is
exposed to interest rate and foreign currency risks, which it tries to mitigate through a controlled risk management program that includes the use of derivative financial instruments. The Company principally uses cross-currency swaps and foreign
currency forwards to offset the risk of exchange rate fluctuations. For purposes of reducing the risks from changes in interest rates, the Company utilizes interest rate swaps through which it pays or receives the net amount resulting from paying or
receiving a fixed rate, and from receiving or paying cash based on a variable rate. For the years ended December 31, 2014, 2015 and 2016, some of the Companys derivative financial instruments have been designated, and have qualified, as
cash flow hedges.

The change in fair value recognized in results of operations corresponding to derivatives that qualify as hedges is presented in the
same caption of the consolidated statements of comprehensive income as the gain or loss of the hedged item (interests and foreign exchange rate).

The
policy of the Company in this regard comprises: (i) the formal documentation of all transactions between the hedging instruments and hedged positions, (ii) risk management objectives, and (iii) the strategy for executing hedging
transactions. This documentation also includes the relationship between the cash flows of the derivatives with those of the Companys assets and liabilities recognized in the consolidated statement of financial position.

The effectiveness of the Companys derivatives is evaluated prior to their designation as hedges, as well as during the hedging period, which is
performed, at least quarterly, based on recognized statistical techniques. Whenever it is determined that a derivative is not highly effective as a hedge or that the derivative ceases to be a highly effective hedge, the Company ceases to apply hedge
accounting for the derivative on a prospective basis.

y) Current versus non-current classification

The Company presents assets and liabilities in its consolidated statements of financial position based on
current/non-current classification. An asset is current when it is either:



|(i) | Expected to be realized or intended to be sold or consumed in the normal operating cycle.
|--- | -----------------------------------------------------------------------------------------



|(ii) | Held primarily for the purpose of trading.
|---- | ------------------------------------------



|(iii) | Expected to be realized within twelve months after the reporting period.
|----- | ------------------------------------------------------------------------



|(iv) | Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------

All other assets are classified as non-current.

A liability is current when:



| |  |  | It is expected to be settled in the normal operating cycle.
| | - |  | -----------------------------------------------------------



| |  |  | It is held primarily for the purpose of trading.
| | - |  | ------------------------------------------------



| |  |  | It is due to be settled within twelve months after the reporting period.
| | - |  | ------------------------------------------------------------------------



| |  |  | There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------



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The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

y.1) Presentation of consolidated statement of comprehensive income

The costs and expenses shown in the consolidated statements of comprehensive income are presented in combined manner (based on both their function and nature),
which allows for a better understanding of the components of the Companys operating income. This classification allows for a comparison to the telecommunications industry.

The Company presents operating income in its consolidated statements of comprehensive income since it is a key indicator of the Companys performance.
Operating income represents operating revenues less operating costs and expenses.

The employee benefits expense recognized in 2014, 2015 and 2016 of Ps.
36,939,601, Ps. 41,366,183 and Ps. 46,759,415 recognized as Cost of sales and services, respectively and Ps. 53,938,718, Ps. 58,977,212 and Ps. 63,691,855 recognized in Commercial, administrative and general
expenses, respectively.

y.2) Operating Segments

Segment information is presented based on information used by management in its decision-making processes. Segment information is presented based on the
geographic areas in which the Company operates.

The management of the Company is responsible for making decisions regarding the resources to be allocated
to the Companys different segments, as well as evaluating the performance of each segment.

Intersegment revenues and costs, intercompany balances
as well as investments in shares in consolidated entities are eliminated upon consolidation and reflected in the eliminations column.

None of
the segments records revenue from transactions with a single external customer amounting to at least 10% or more of the revenues.

y.3) Convenience
Translation

At December 31, 2016, amounts in U.S. dollars have been included in the financial statements solely for the convenience of the reader
and have been translated to Mexican pesos at December 31, 2016 at an exchange rate of Ps. 20.7314 per U.S. dollar, which was the exchange rate at that date. Such translation should not be construed as a representation that the Mexican peso can
be converted to U.S. dollars at the exchange rate in effect on December 31, 2016 or any other exchange rate.

y.4) Significant Accounting
Judgments, Estimates and Assumptions

In preparing its consolidated financial statements, América Móvil makes estimates concerning a
variety of matters. Some of these matters are highly uncertain, and its estimates involve judgments it makes based on the information available to it. In the discussion below, América Móvil has identified several of these matters for
which its financial statements would be materially affected if either (1) América Móvil uses different estimates that it could reasonably have used or (2) in the future América Móvil changes its estimates in
response to changes that are reasonably likely to occur.

The following discussion addresses only those estimates that América Móvil
considers most important based on the degree of uncertainty and the likelihood of a material impact if it used a different estimate. There are many other areas in which América Móvil uses estimates about uncertain matters, but the
reasonably likely effect of changed or different estimates is not material to the financial presentation for those other areas.



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Fair Value of Financial Assets and Liabilities

América Móvil has substantial financial assets and liabilities that it recognizes at their fair value, which is an estimate of the amount at
which the instrument could be exchanged in a current transaction between willing parties. The methodologies and assumptions América Móvil uses to estimate an instruments fair value depend on the type of instrument and include
(i) recognizing cash and cash equivalents and trade receivables and trade payables and other current liabilities at close to their carrying amount, (ii) recognizing quoted instruments at their price quotations on the reporting date,
(iii) recognizing unquoted instruments, such as loans from banks and obligations under financial leases, by discounting future cash flows using rates for similar instruments and (iv) applying various valuation techniques, such as present
value calculations, to derivative instruments. Using different methodologies or assumptions to estimate the fair value of América Móvils financial assets and liabilities could materially impact the reported financial results. See
Note 18.

The Company maintains investments in available for sale securities that are valued at market prices obtained from the stock exchange where these
shares are listed. At each reporting date, the Company evaluates whether an impairment exists on its available for sale securities according to the accounting policy outlined in Note 2. This analysis first involves an evaluation of the objective
measures of impairment as described in IAS 39. The Company will then evaluate whether the loss recognized in other comprehensive income on its available for sale securities is either prolonged or significant, as described in the accounting policies
in Note 2. At December 31, 2016, the Company has not observed an objective measure of impairment on its available for sale securities, nor have unrealized losses on its available for sale securities been considered either significant or
prolonged.

Estimated useful lives of plant, property and equipment

América Móvil currently depreciates most of its telephone plant and equipment based on an estimated useful life determined upon the expected
particular conditions of operations and maintenance in each of the countries in which it operates. The estimates are based on AMXs historical experience with similar assets, anticipated technological changes and other factors, taking into
account the practices of other telecommunications companies. América Móvil reviews estimated useful lives each year to determine whether they should be changed, and at times, it changes them for particular classes of assets.
América Móvil may shorten the estimated useful life of an asset class in response to technological changes, changes in the market or other developments. This results in increased depreciation expense. See Note 2k) and 10.

Impairment of Long-Lived Assets

América
Móvil has large amounts of long-lived assets, including property, plant and equipment, intangible assets, investments in affiliates and goodwill, on its consolidated statement of financial position. América Móvil is required to
test long-lived assets for impairment when circumstances indicate a potential impairment or, in some cases, at least on an annual basis. The impairment analysis for long-lived assets requires the Company to estimate the recovery value of the asset,
which is the higher of its fair value (minus any disposal costs) and its value in use. To estimate the fair value of a long-lived asset, América Móvil typically takes into account recent market transactions or, if no such transactions
can be identified, América Móvil uses a valuation model that requires the making of certain assumptions and estimates. Similarly, to estimate the value in use of long-lived assets, América Móvil typically makes various
assumptions about the future prospects for the business to which the asset relates, consider market factors specific to that business and estimate future cash flows to be generated by that business. Based on this impairment analysis, including all
assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets, América Móvil determines whether it needs to take an impairment charge to reduce the net carrying value of
the asset as stated on its consolidated statement of financial position. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external
factors, such as industry and economic trends, and internal factors, such as changes in the Companys business strategy and its internal forecasts. Different assumptions and estimates could materially impact the Companys reported



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financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net income and result in lower
asset values on the consolidated statement of financial position. Conversely, less conservative assumptions could result in smaller or no impairment charges, higher net income and higher asset values. The key assumptions used to determine the
recoverable amount for the Companys CGUs, are further explained in Notes 2m), Note 10 and Note 11.

Deferred Income Taxes

América Móvil is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves the jurisdiction-by-jurisdiction estimation of actual current tax exposure and the assessment of temporary differences resulting from the differing treatment of certain items,
such as accruals and amortization, for tax and financial reporting purposes, as well as net operating loss carry-forwards and other tax credits. These items result in deferred tax assets and liabilities, which are included in the América
Móvils consolidated statement of financial position. América Móvil assesses in the course of its tax planning procedures the fiscal year of the reversal of its deferred tax assets and liabilities, and if there will be
future taxable profits in those periods to support the recognition of the deferred tax assets. Significant management judgment is required in determining the Companys provisions for income taxes, deferred tax assets and liabilities. The
analysis is based on estimates of taxable income in the jurisdictions in which América Móvil operates and the period over which the deferred tax assets and liabilities will be recoverable or settled. If actual results differ from these
estimates, or América Móvil adjusts these estimates in future periods, its financial position and results of operations may be materially affected.

América Móvil records deferred tax assets based on the amount that it believes is probable to be realized. In assessing the future realization
of deferred tax assets, the Company considers future taxable income and ongoing tax planning strategies. In the event that the estimates of projected future taxable income and benefits from tax planning strategies are lowered, or changes in current
tax regulations are enacted that would impose restrictions on the timing or extent of the ability to utilize the tax benefits of net operating loss carry-forwards in the future, an adjustment to the recorded amount of deferred tax assets would be
made, with a related charge to income. See Note 13.

Accruals

Accruals are recorded when, at the end of the period, the Company has a present obligation as a result of past events, whose settlement requires an outflow of
resources that is considered probable and can be measured reliably. This obligation may be legal or constructive, arising from, but not limited to, regulation, contracts, common practice or public commitments, which have created a valid expectation
for third parties that the Company will assume certain responsibilities. The amount recorded is the best estimation performed by the Companys management in respect of the expenditure that will be required to settle the obligations, considering
all the information available at the date of the financial statements, including the opinion of external experts, such as legal advisors or consultants. Accruals are adjusted to account for changes in circumstances for ongoing matters and the
establishment of additional accruals for new matters.

If América Móvil is unable to reliably measure the obligation, no accrual is recorded
and information is then presented in the notes to its consolidated financial statements. Because of the inherent uncertainties in this estimation, actual expenditures may be different from the originally estimated amount recognized. See Note 15.

América Móvil is subject to various claims and contingencies related to tax, labor and legal proceedings as described in Note 16(c).

Labor Obligations

América Móvil recognizes
liabilities on its consolidated statement of financial position and expenses in its statement of comprehensive income to reflect its obligations related to its post-retirement seniority premiums,



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pension and retirement plans in the countries in which it operates and offer defined contribution and benefit pension plans. The amounts the Company recognizes are determined on an actuarial
basis that involves many estimates and accounts for post-retirement and termination benefits in accordance with IFRS.

América Móvil uses
estimates in four specific areas that have a significant effect on these amounts: (i) the rate of return América Móvil assumes its pension plan will achieve on its investments, (ii) the rate of increase in salaries that the
Company assumes it will observe in future years, (iii) the discount rates that the Company uses to calculate the present value of its future obligations and (iv) the expected rate of inflation. The assumptions América Móvil
has applied are further disclosed in Note 17. These estimates are determined based on actuarial studies performed by independent experts using the projected unit-credit method.

Allowance for Bad Debts

América Móvil
maintains an allowance for bad debts for estimated losses resulting from the failure of its customers, distributors and cellular operators to make required payments. The Company bases these estimates on the individual conditions of each of the
markets in which it operates that may impact the collectability of accounts. In particular, in making these estimates the Company takes into account with respect to accounts (i) with customers, the number of days since the calls were made,
(ii) with distributors, the number of days invoices are overdue and (iii) with cellular operators, both the number of days since the calls were made and any disputes with respect to such calls. The amount of loss, if any, that
América Móvil actually experiences with respect to these accounts may differ from the amount of the allowance maintained in connection with them. See Note 5.

y.5) Retrospective adjustments

The following amounts in
consolidated statements of financial position, comprehensive income and cash flows as of December 31, 2014 and 2015, respectively, have been retrospectively adjusted to conform to the presentation for the year ended December 31, 2016:

In the Consolidated Statements of Financial Position:



|                                                            |  |                            |                    |  |                          |  |                 |                  |  |  |                   | 
|----------------------------------------------------------- |  | -------------------------- | ------------------ |  | ------------------------ |  | --------------- | ---------------- |  |  | ----------------- | 
|                                                            |  | 2015,As previouslyreported |                    |  | Retrospectiveadjustments |  |                 | 2015,As adjusted | 
|Assets:                                                     |  |                            |                    |  |                          |  |                 |                  |  |  |                   | 
|Subscribers, distributors, recoverable taxes and other, net |  |                            | Ps.155,241,127     |  |                          |  | Ps.(9,885,600   | )                |  |  | Ps.145,355,527    | 
|Subscribers, distributors, non-current                      |  |                            |                   |  |                          |  | 9,885,600       |                  |  |  | 9,885,600         | 
|Liabilities:                                                |  |                            |                    |  |                          |  |                 |                  |  |  |                   | 
|Income tax                                                  |  |                            |                   |  |                          |  | 3,726,613       |                  |  |  | 3,726,613         | 
|Other taxes payable                                         |  |                            | 20,666,548         |  |                          |  | (4,043,159      | )                |  |  | 16,623,389        | 
|Non-current income tax                                      |  |                            | Ps.               |  |                          |  | Ps.     316,546 |                  |  |  | Ps.       316,546 | 

The Company reclassified Ps.9,885,600 of accounts receivable as of December 31, 2015, from short-term to long-term related to
installment accounts receivable related to the sale of mobile equipment sold to customers, where the sale of such equipment was financed over twelve to twenty-four months. In addition, to conform with the 2016 presentation, the Company presented
income taxes payable separately from other taxes payable on the consolidated statements of financial position.



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In the Consolidated Statements of Comprehensive Income:



|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|--------------------------------------------------------------------------------------------- |  | -------------------------- | ----------- | - | ------------------------ | --- | ---------- | ---------------- |  | --- | ----------- | -
|                                                                                              |  | 2014,As previouslyreported |             |   | Retrospectiveadjustments |     |            | 2014,As adjusted | 
|Operating revenues:                                                                           |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Mobile voice services                                                                         |  | Ps.                        | 255,606,335 |   |                          | Ps. | 2,613,758  |                  |  | Ps. | 258,220,093 |  
|Fixed voice services                                                                          |  |                            | 114,687,475 |   |                          |     | (3,174,955 | )                |  |     | 111,512,520 |  
|Mobile data services                                                                          |  |                            | 194,882,905 |   |                          |     | (2,292,451 | )                |  |     | 192,590,454 |  
|Fixed data services                                                                           |  |                            | 97,533,378  |   |                          |     | 2,399,183  |                  |  |     | 99,932,561  |  
|Paid television                                                                               |  |                            | 68,378,623  |   |                          |     | 515,437    |                  |  |     | 68,894,060  |  
|Sales of equipment, accessories and computers                                                 |  |                            | 95,632,868  |   |                          |     | 214,190    |                  |  |     | 95,847,058  |  
|Other related services                                                                        |  |                            | 21,540,236  |   |                          |     | 43,018     |                  |  |     | 21,583,254  |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|                                                                                              |  |                            | 848,261,820 |   |                          |     | 318,180    |                  |  |     | 848,580,000 |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Operating costs and expenses:                                                                 |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Cost of sales and services                                                                    |  |                            | 386,102,139 |   |                          |     | 605,543    |                  |  |     | 386,707,682 |  
|Commercial, administrative and general expenses                                               |  |                            | 185,683,205 |   |                          |     | (115,357   | )                |  |     | 185,567,848 |  
|Other expenses                                                                                |  |                            | 4,928,675   |   |                          |     | (172,006   | )                |  |     | 4,756,669   |  
|Depreciation and amortization                                                                 |  |                            | 114,993,551 |   |                          |     |           |                  |  |     | 114,993,551 |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|                                                                                              |  |                            | 691,707,570 |   |                          |     | 318,180    |                  |  |     | 692,025,750 |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Operating income                                                                              |  | Ps.                        | 156,554,250 |   |                          | Ps. |           |                  |  | Ps. | 156,554,250 |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|                                                                                              |  |                            |            
|                                                                                              |  | 2015,As previouslyreported |             |   | Retrospectiveadjustments |     |            | 2015,As adjusted | 
|Operating revenues:                                                                           |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Mobile voice services                                                                         |  | Ps.                        | 243,576,248 |   |                          | Ps. | 12,570,518 |                  |  | Ps. | 256,146,766 |  
|Fixed voice services                                                                          |  |                            | 104,754,844 |   |                          |     | (9,284,657 | )                |  |     | 95,470,187  |  
|Mobile data voice services                                                                    |  |                            | 235,087,506 |   |                          |     | (8,364,467 | )                |  |     | 226,723,039 |  
|Fixed data services                                                                           |  |                            | 104,853,471 |   |                          |     | 4,403,669  |                  |  |     | 109,257,140 |  
|Paid television                                                                               |  |                            | 65,259,697  |   |                          |     | 791,160    |                  |  |     | 66,050,857  |  
|Sale of equipment, accessories and computers                                                  |  |                            | 115,557,754 |   |                          |     | 380,869    |                  |  |     | 115,938,623 |  
|Other related services                                                                        |  |                            | 25,127,107  |   |                          |     | (975,980   | )                |  |     | 24,151,127  |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|                                                                                              |  |                            | 894,216,627 |   |                          |     | (478,888   | )                |  |     | 893,737,739 |  
|Operating costs and expenses:                                                                 |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Cost of sales and services                                                                    |  |                            | 418,061,856 |   |                          |     | 2,202,075  |                  |  |     | 420,263,931 |  
|Commercial, administrative and general expenses                                               |  |                            | 203,524,778 |   |                          |     | (2,163,822 | )                |  |     | 201,360,956 |  
|Other expenses                                                                                |  |                            | 5,440,338   |   |                          |     | (455,382   | )                |  |     | 4,984,956   |  
|Depreciation and amortization                                                                 |  |                            | 125,735,395 |   |                          |     | (20,660    | )                |  |     | 125,714,735 |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|                                                                                              |  |                            | 752,762,367 |   |                          |     | (437,789   | )                |  |     | 752,324,578 |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Operating income                                                                              |  |                            | 141,454,260 |   |                          |     | (41,099    | )                |  |     | 141,413,161 |  
|Interest income                                                                               |  |                            | 4,774,894   |   |                          |     | 78,118     |                  |  |     | 4,853,012   |  
|Interest expense                                                                              |  |                            | (31,200,286 | ) |                          |     | 2,914      |                  |  |     | (31,197,372 | )
|Foreign currency exchange loss, net                                                           |  |                            | (78,997,898 | ) |                          |     | (90        | )                |  |     | (78,997,988 | )
|Valuation of derivatives, interest cost from labor obligations and other financial items,
net |  |                            | 21,536,159  |   |                          |     | (39,843    | )                |  |     | 21,496,316  |  
|Equity interest in net loss of associated companies                                           |  |                            | (1,426,696  | ) |                          |     |           |                  |  |     | (1,426,696  | )
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  
|Profit before income tax                                                                      |  | Ps.                        | 56,140,433  |   |                          | Ps. |           |                  |  | Ps. | 56,140,433  |  
|                                                                                              |  |                            |             |   |                          |     |            |                  |  |     |             |  



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In the Consolidated Statements of Cash Flows:



|                                                                                                   |  |                            |             |   |                          |     |         |                  |  |     |             |  
|-------------------------------------------------------------------------------------------------- |  | -------------------------- | ----------- | - | ------------------------ | --- | ------- | ---------------- |  | --- | ----------- | -
|                                                                                                   |  | 2015,As previouslyreported |             |   | Retrospectiveadjustments |     |         | 2015,As adjusted | 
|Depreciation                                                                                       |  | Ps.                        | 110,177,127 |   |                          | Ps. | (21,724 | )                |  | Ps. | 110,155,403 |  
|Amortization of intangible assets and other assets                                                 |  |                            | 15,558,268  |   |                          |     | 1,064   |                  |  |     | 15,559,332  |  
|Foreign currency exchange loss, net                                                                |  |                            | 59,251,396  |   |                          |     | 90      |                  |  |     | 59,251,486  |  
|Interest income                                                                                    |  |                            | (4,774,894  | ) |                          |     | (78,118 | )                |  |     | (4,853,012  | )
|Interest expense                                                                                   |  |                            | 31,200,286  |   |                          |     | (2,914  | )                |  |     | 31,197,372  |  
|Gain in valuation of derivative financial instruments, capitalized interest expense and other,
net |  |                            | (18,274,034 | ) |                          |     | (39,843 | )                |  |     | (18,313,877 | )
|Accounts payable and accrued liabilities                                                           |  | Ps.                        | (6,410,783  | ) |                          | Ps. | 141,445 |                  |  | Ps. | (6,269,338  | )

Retrospective adjustments in the consolidated statements of comprehensive income for the years ended December 31, 2015
and 2014 and the consolidated statement of cash flows for the year ended December 31, 2015, reflect reclassifications made to align the presentation of certain accounts from Telekom Austria and subsidiaries with the Company ́s reporting.

3. Cash and Cash Equivalents

Cash and cash
equivalents are comprised of short-term deposits with different financial institutions across the globe. Cash equivalents only include instruments with purchased maturity of less than three months. The amount includes the amount deposited, plus any
interest earned.

4. Marketable securities and other short-term investments

As of December 31, 2015 and 2016, marketable securities and other short-term investments includes an available for sale investment in KPN for
Ps. 44,089,801 and Ps. 41,463,511, respectively, and other short-term investments for Ps. 12,257,668 and Ps. 13,393,646, respectively.

As explained in Note 12, the investment in KPN is carried at fair value with changes in fair value being recognized through other comprehensive loss (equity)
in the Companys consolidated statements of financial position. When the Company changed the classification of its KPN investment, the Company recorded a pre-tax gain of approximately Ps. 11,988,038, in
its 2015 consolidated statements of comprehensive income. As of December 31, 2015 and 2016, the Company has recognized changes in fair value of the investment of Ps. 4,011 and Ps. (6,673,731), respectively, net of deferred taxes, through other
comprehensive loss (equity).

At December 31, 2016, the Company has not observed an objective measure of impairment on its available for sale
securities, nor have unrealized losses on its available for sale securities been considered either significant or prolonged.

During the years ended
December 31, 2015 and 2016, the Company received dividends from KPN for an amount of Ps. 1,645,712 and Ps. 5,740,092, respectively; which are included within Valuation of derivatives, interest cost from labor obligations, and other
financial items, net in the consolidated statements of comprehensive income. The other short-term investments of Ps. 13,393,646, as of December 31, 2016 (Ps. 12,257,668 in 2015) represents a cash deposit used to guarantee a short term
obligation for one of the Companys foreign subsidiaries and are presented at their carrying value, which approximates fair value.



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5. Accounts receivable from subscribers, distributors, recoverable taxes and other, net

a)An analysis of accounts receivable by component at December 31, 2015 and 2016 is as follows:



|                                                                           |  |                 |             |   |      |     |             |  
|-------------------------------------------------------------------------- |  | --------------- | ----------- | - | ---- | --- | ----------- | -
|                                                                           |  | At December 31, |            
|                                                                           |  | 2015            |             |   | 2016 |    
|Subscribers and distributors                                               |  | Ps.             | 131,592,906 |   |      | Ps. | 186,744,954 |  
|Mobile phone carriers for network interconnection and other services       |  |                 | 6,898,229   |   |      |     | 9,649,849   |  
|Recoverable taxes                                                          |  |                 | 26,042,534  |   |      |     | 41,899,517  |  
|Sundry debtors                                                             |  |                 | 18,202,616  |   |      |     | 16,016,756  |  
|                                                                           |  |                 |             |   |      |     |             |  
|                                                                           |  |                 | 182,736,285 |   |      |     | 254,311,076 |  
|Less: Allowance for bad debts                                              |  |                 | (27,495,158 | ) |      |     | (37,351,677 | )
|                                                                           |  |                 |             |   |      |     |             |  
|Net                                                                        |  | Ps.             | 155,241,127 |   |      | Ps. | 216,959,399 |  
|                                                                           |  |                 |             |   |      |     |             |  
|Non-current subscribers and distributors                                   |  |                 | 9,885,600   |   |      |     | 11,184,860  |  
|                                                                           |  |                 |             |   |      |     |             |  
|Total current Subscribers , distributors, recoverable taxes and other, net |  | Ps.             | 145,355,527 |   |      | Ps. | 205,774,539 |  
|                                                                           |  |                 |             |   |      |     |             |  

b)Changes in the allowance for bad debts were as follows:



|                               |  |                                 |                 |   |      |  |                 |      |  |  |                 |  
|------------------------------ |  | ------------------------------- | --------------- | - | ---- |  | --------------- | ---- |  |  | --------------- | -
|                               |  | For the years ended December31, |                
|                               |  | 2014                            |                 |   | 2015 |  |                 | 2016 | 
|Balance at beginning of year   |  |                                 | Ps. (20,292,099 | ) |      |  | Ps. (25,685,528 | )    |  |  | Ps. (27,495,158 | )
|Increases recorded in expenses |  |                                 | (11,770,721     | ) |      |  | (13,171,120     | )    |  |  | (16,987,769     | )
|Write-offs                     |  |                                 | 4,978,376       |   |      |  | 9,555,734       |      |  |  | 12,587,567      |  
|Translation effect             |  |                                 | 1,398,916       |   |      |  | 1,805,756       |      |  |  | (5,456,317      | )
|                               |  |                                 |                 |   |      |  |                 |      |  |  |                 |  
|Balance at end of year         |  |                                 | Ps. (25,685,528 | ) |      |  | Ps. (27,495,158 | )    |  |  | Ps. (37,351,677 | )
|                               |  |                                 |                 |   |      |  |                 |      |  |  |                 |  

c)The following table shows the aging of accounts receivable at December 31, 2015 and 2016, for subscribers and
distributors:



|                  |  |          |                 |  |                           |  |                  |            |  |  |                |  |  |            |               |  |                     |  |               |  |  |  |                | 
|----------------- |  | -------- | --------------- |  | ------------------------- |  | ---------------- | ---------- |  |  | -------------- |  |  | ---------- | ------------- |  | ------------------- |  | ------------- |  |  |  | -------------- | 
|                  |  | Past due |                
|                  |  | Total    |                 |  | Unbilled servicesprovided |  |                  | 1- 30 days |  |  | 31-60 days     |  |  | 61-90 days |               |  | Greater than90 days | 
|December 31, 2015 |  |          | Ps. 131,592,906 |  |                           |  | Ps.   78,181,506 |            |  |  | Ps. 16,372,947 |  |  |            | Ps. 3,766,200 |  |                     |  | Ps. 2,693,750 |  |  |  | Ps. 30,578,503 | 
|December 31, 2016 |  |          | Ps. 186,744,954 |  |                           |  | Ps. 113,014,706  |            |  |  | Ps. 19,175,008 |  |  |            | Ps. 5,835,162 |  |                     |  | Ps. 4,209,456 |  |  |  | Ps. 44,510,622 | 

In accordance with the Companys accounting policy for the allowance for bad debts, as of December 31, 2015 and
2016, there are certain accounts receivable greater than 90 days that are not impaired as they are primarily due from governmental institutions and distributors for which the Company has collateral. To estimate the recoverability of accounts
receivable, the Company considers any change in the credit quality of the subscribers and distributors from the date the credit was granted until the end of period.



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d)The following table shows the accounts receivable from subscribers and distributors included in the
allowance for doubtful accounts, as of December 31, 2015 and 2016:



|                  |  |                |  |               |  |                    
|----------------- |  | -------------- |  | ------------- |  | -------------------
|                  |  | Total          |  | 61-90 days    |  | Greater than90 days
|December 31, 2015 |  | Ps. 27,495,158 |  | Ps. 1,442,029 |  | Ps. 26,053,129     
|December 31, 2016 |  | Ps. 37,351,677 |  | Ps. 3,970,770 |  | Ps. 33,380,907     

6. Related Parties

a)The following is an analysis of the balances with related parties as of December 31, 2015 and 2016. All of the companies were considered affiliates of América Móvil since the Company or the Companys principal
shareholders are also direct or indirect shareholders in the related parties.



|                                                                   |  |      |               |  |      |  |               | 
|------------------------------------------------------------------ |  | ---- | ------------- |  | ---- |  | ------------- | 
|                                                                   |  | 2015 |               |  | 2016 | 
|Accounts receivable:                                               |  |      |               |  |      |  |               | 
|Sears Roebuck de México, S.A. de C.V.                              |  |      | Ps. 219,338   |  |      |  | Ps. 230,974   | 
|Sanborns Hermanos, S.A.                                            |  |      | 140,058       |  |      |  | 119,423       | 
|Carso Infraestructura y Construcción, S.A. de C.V and Subsidiaries |  |      | 399,297       |  |      |  | 112,834       | 
|Enesa, S.A. de C.V. and Subsidiaries                               |  |      | 5,430         |  |      |  | 93,360        | 
|Grupo Condumex, S.A. de C.V. and Subsidiaries                      |  |      | 8,913         |  |      |  | 41,057        | 
|Operadora de Sites Mexicanos, S.A. de C.V.                         |  |      |              |  |      |  | 22,629        | 
|Patrimonial Inbursa, S.A.                                          |  |      | 8,399         |  |      |  | 9,299         | 
|Other                                                              |  |      | 64,198        |  |      |  | 110,916       | 
|                                                                   |  |      |               |  |      |  |               | 
|Total                                                              |  |      | Ps. 845,633   |  |      |  | Ps. 740,492   | 
|                                                                   |  |      |               |  |      |  |               | 
|                                                                   |  |     
|                                                                   |  | 2015 |               |  | 2016 | 
|Accounts payable:                                                  |  |      |               |  |      |  |               | 
|Carso Infraestructura y Construcción, S.A. de C.V and Subsidiaries |  |      | Ps. 1,091,128 |  |      |  | Ps. 1,291,062 | 
|Grupo Condumex, S.A. de C.V. and Subsidiaries                      |  |      | 232,312       |  |      |  | 753,603       | 
|Fianzas Guardiana Inbursa, S.A. de C.V.                            |  |      | 506,658       |  |      |  | 409,293       | 
|PC Industrial, S.A. de C.V. and Subsidiaries                       |  |      | 192,499       |  |      |  | 117,841       | 
|Grupo Financiero Inbursa, S.A.B. de C.V.                           |  |      | 34,622        |  |      |  | 40,737        | 
|Enesa, S.A. de C.V. and Subsidiaries                               |  |      | 35,685        |  |      |  | 53,670        | 
|Other                                                              |  |      | 153,930       |  |      |  | 305,119       | 
|                                                                   |  |      |               |  |      |  |               | 
|Total                                                              |  |      | Ps. 2,246,834 |  |      |  | Ps. 2,971,325 | 
|                                                                   |  |      |               |  |      |  |               | 

For the years ended December 31, 2014, 2015 and 2016, the Company has not recorded any impairment of receivables relating
to amounts owed by related parties.



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##### Table of Contents

b)For the years ended December 31, 2014, 2015 and 2016, the Company conducted the following
transactions with related parties:



|                                                                                                            |  |      |            |  |      |     |            |      |  |     |            | 
|----------------------------------------------------------------------------------------------------------- |  | ---- | ---------- |  | ---- | --- | ---------- | ---- |  | --- | ---------- | 
|                                                                                                            |  | 2014 |            |  | 2015 |     |            | 2016 | 
|Investments and expenses:                                                                                   |  |      |            |  |      |     |            |      |  |     |            | 
|Construction services, purchases of materials, inventories and property, plant and equipment (i)            |  | Ps.  | 5,424,826  |  |      | Ps. | 5,975,677  |      |  | Ps. | 9,917,280  | 
|Insurance premiums, fees paid for administrative and operating services, brokerage services and
others (ii) |  |      | 2,188,261  |  |      |     | 4,332,331  |      |  |     | 4,118,469  | 
|Call termination costs (iii)                                                                                |  |      | 6,141,063  |  |      |     | 353,937    |      |  |     |           | 
|Interconnection cost                                                                                        |  |      | 120,119    |  |      |     |           |      |  |     |           | 
|Rent of towers                                                                                              |  |      |           |  |      |     | 927,678    |      |  |     | 4,748,503  | 
|Other services                                                                                              |  |      | 955,833    |  |      |     | 1,025,332  |      |  |     | 1,899,818  | 
|                                                                                                            |  |      |            |  |      |     |            |      |  |     |            | 
|                                                                                                            |  | Ps.  | 14,830,102 |  |      | Ps. | 12,614,955 |      |  | Ps. | 20,684,070 | 
|                                                                                                            |  |      |            |  |      |     |            |      |  |     |            | 
|Revenues:                                                                                                   |  |      |            |  |      |     |            |      |  |     |            | 
|Sale of long-distance services and other telecommunications services                                        |  | Ps.  | 291,038    |  |      | Ps. | 271,196    |      |  | Ps. | 411,076    | 
|Sale of materials and other
services (iv)                                                                   |  |      | 506,100    |  |      |     | 2,397,520  |      |  |     | 2,662,829  | 
|Voice services                                                                                              |  |      | 201,990    |  |      |     | 1,474      |      |  |     | 16,762     | 
|                                                                                                            |  |      |            |  |      |     |            |      |  |     |            | 
|                                                                                                            |  | Ps.  | 999,128    |  |      | Ps. | 2,670,190  |      |  | Ps. | 3,090,667  | 
|                                                                                                            |  |      |            |  |      |     |            |      |  |     |            | 



|i) | In 2016, this amount includes Ps.9,547,530 (Ps. 5,823,537 in 2015 and Ps. 5,330,989 in 2014) for network construction services and construction materials purchased from subsidiaries of Grupo Carso, S.A.B. de C.V.
(Grupo Carso).
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ii) | In 2016, this amount includes Ps.812,247 (Ps. 721,416 in 2015 and Ps. 537,904 in 2014) for network maintenance services performed by Grupo Carso subsidiaries; Ps.705,074 in 2016 (Ps. 216,910 and Ps.634,368, in
2015 and 2014, respectively) for software services provided by an associate; Ps.2,406,058 in 2016 (Ps. 2,635,342 and Ps. 676,335 in 2015 and 2014, respectively) for insurance premiums with Seguros Inbursa S.A. and Fianzas Guardiana Inbursa, S.A.,
which, in turn, places most of such insurance with reinsurers.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|iii) | Includes the cost of buying airtime, long-distance services and megabytes navigation for value added services of Ps. 6,008,380 in 2014 from AT&T subsidiaries.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|iv) | In 2016, this amount includes Ps.1,811,363 for the sale of inventories for distribution to Sanborns Hermanos, S.A. and Sears Operadora de México, S.A. de C.V. (Ps. 1,560,204 in 2015).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

c)During 2016, the Company paid Ps. 1,255,326 (Ps. 915,135 and Ps. 1,037,513 in 2015 and 2014, respectively) for short-term direct benefits to its
executives.

The aggregate compensation paid to the Companys, directors (including compensation paid to members of the Audit and Corporate Practices
Committee), and senior management in 2016 was approximately Ps. 4,000 and Ps. 64,000, respectively. None of the Companys directors is a party to any contract with the Company or any of its subsidiaries that provides for benefits upon
termination of employment. The Company does not provide pension, retirement or similar benefits to its directors in their capacity as directors. The Companys executive officers are eligible for retirement and severance benefits required by
Mexican law on the same terms as all other employees who are not located in Mexico, and the Company does not separately set aside, accrue or determine the amount of our costs that is attributable to executive officers.



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##### Table of Contents

d)On June 27, 2014, Inmobiliaria Carso, S.A. de C.V. and Control Empresarial de Capitales, S.A. de
C.V. acquired AT&Ts ownership interest in the Company. Therefore, since such date, AT&T is no longer considered arelated party and is thus not included in the December 31, 2015
and 2016 related party disclosures with respect to the analysis of the balances with related parties. AT&T is included as a related party in the disclosures up for to the period ended June 27, 2014.

e)Österreichische Bundes- und Industriebeteiligungen GmbH (ÖBIB) is considered a related party due to it is a significant non-controlling shareholder in Telekom Austria. Through Telekom Austria, América Móvil is related to the Republic of Austria and its subsidiaries, which are mainly ÖBB Group, ASFINAG Group and
Post Group as well as Rundfunk und Telekom Reguliegungs-GmbH, all of which these are related parties. In 2016 and 2015, none of the individual transactions associated with government agencies or government-owned entities of Austria are considering
significant to América Móvil.

7. Derivative Financial Instruments

To mitigate the risks of future increases in interest rates for the servicing of its debt, the Company has entered into interest-rate swap contracts in over-the-counter transactions carried out with financial institutions from which the Company has obtained the loans. No collateral is given as security in connection with
these transactions. In 2016 the weighted-average interest rate of the total debt including the impact of interest rate derivatives held by the Company is 3.7% (3.9% and 3.5% in 2015 and 2014, respectively).

An analysis of the derivative financial instruments contracted by the Company at December 31, 2015 and 2016 is as follows:



|                                |  |                            |       |  |            |  |                |                            |  |     |            |  |  |     |             | 
|------------------------------- |  | -------------------------- | ----- |  | ---------- |  | -------------- | -------------------------- |  | --- | ---------- |  |  | --- | ----------- | 
|                                |  | At December 31,            |      
|                                |  | 2015                       |       |  | 2016       | 
|Instrument                      |  | Notional amount inmillions |       |  | Fair value |  |                | Notional amount inmillions |  |     | Fair value | 
|Swaps US Dollar-Mexican peso    |  | US$                        | 2,550 |  |            |  | Ps. 16,657,149 |                            |  | US$ |           |  |  | Ps. |            | 
|Swaps Euro-Mexican peso         |  |                           | 100   |  |            |  | 395,571        |                            |  |    | 70         |  |  |     | 479,007     | 
|Swaps US Dollar-Euro            |  |                           | 4,505 |  |            |  | 22,200,837     |                            |  |    |           |  |  |     |            | 
|Swaps GBP-Euro                  |  | £                          | 740   |  |            |  | 836,665        |                            |  | £   |           |  |  |     |            | 
|Swaps Yen-US Dollar             |  | ¥                          |      |  |            |  |               |                            |  | ¥   | 13,000     |  |  |     | 430,044     | 
|Forwards US Dollar-Mexican peso |  | US$                        | 390   |  |            |  | 130,121        |                            |  | US$ |           |  |  |     |            | 
|Forwards Euro-US Dollar         |  |                           | 535   |  |            |  | 661,665        |                            |  |    |           |  |  |     |            | 
|                                |  |                            |       |  |            |  |                |                            |  |     |            |  |  |     |             | 
|Total Assets                    |  |                            |       |  |            |  | Ps. 40,882,008 |                            |  |     |            |  |  |     | Ps. 909,051 | 
|                                |  |                            |       |  |            |  |                |                            |  |     |            |  |  |     |             | 



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##### Table of Contents

|                                    |  |                            |        |  |            |  |                  |                            |  |     |            |  |  |  |                  |  
|----------------------------------- |  | -------------------------- | ------ |  | ---------- |  | ---------------- | -------------------------- |  | --- | ---------- |  |  |  | ---------------- | -
|                                    |  | At December 31,            |       
|                                    |  | 2015                       |        |  | 2016       | 
|Instrument                          |  | Notional amount inmillions |        |  | Fair value |  |                  | Notional amount inmillions |  |     | Fair value | 
|Interest rate swaps in Mexican peso |  | Ps.                        | 19,800 |  |            |  | Ps.   (1,053,397 | )                          |  | Ps. | 15,750     |  |  |  | Ps.   (131,998   | )
|Forwards US DollarMexican Peso     |  | US$                        | 946    |  |            |  | (465,905         | )                          |  | US$ | 80         |  |  |  | (99,228          | )
|Forwards EuroUS Dollar             |  |                           | 1,575  |  |            |  | (2,304,322       | )                          |  |    | 460        |  |  |  | (1,142,155       | )
|Swaps Euro-US Dollar                |  |                           | 505    |  |            |  | (1,335,040       | )                          |  |    | 500        |  |  |  | (1,807,332       | )
|Swaps Yen-US Dollar                 |  | ¥                          | 18,100 |  |            |  | (347,776         | )                          |  | ¥   |           |  |  |  |                 |  
|Swaps US Dollar-Euro                |  | US$                        |       |  |            |  |                 |                            |  | US$ | 2,192      |  |  |  | (698,917         | )
|Swaps CHF-US Dollar                 |  | CHF                        | 745    |  |            |  | (405,213         | )                          |  | CHF | 745        |  |  |  | (745,263         | )
|Swaps GBP-Euro                      |  | £                          |       |  |            |  |                 |                            |  | £   | 740        |  |  |  | (2,585,890       | )
|Swaps GBP-US Dollar                 |  | £                          | 1,510  |  |            |  | (1,179,866       | )                          |  | £   | 2,010      |  |  |  | (5,961,324       | )
|Call spread option                  |  |                           |       |  |            |  |                 |                            |  |    | 750        |  |  |  | (155,950         | )
|Put option                          |  |                           |       |  |            |  |                 |                            |  |    | 374        |  |  |  | (2,379,434       | )
|Call option                         |  |                           | 3,000  |  |            |  | (3,673,417       | )                          |  |    | 3,000      |  |  |  | (1,877,256       | )
|                                    |  |                            |        |  |            |  |                  |                            |  |     |            |  |  |  |                  |  
|Total liability                     |  |                            |        |  |            |  | Ps. (10,764,936  | )                          |  |     |            |  |  |  | Ps. (17,584,747  | )
|                                    |  |                            |        |  |            |  |                  |                            |  |     |            |  |  |  |                  |  
|Non-current liability               |  |                            |        |  |            |  | Ps.   (3,314,146 | )                          |  |     |            |  |  |  | Ps.   (3,448,396 | )
|                                    |  |                            |        |  |            |  |                  |                            |  |     |            |  |  |  |                  |  
|Total current liability             |  |                            |        |  |            |  | Ps.   (7,450,790 | )                          |  |     |            |  |  |  | Ps. (14,136,351  | )
|                                    |  |                            |        |  |            |  |                  |                            |  |     |            |  |  |  |                  |  

The changes in the fair value of these derivative financial instruments for the years ended December 31, 2014, 2015 and
2016 amounted to a gain (loss) of Ps. 7,397,142, Ps. 15,128,269 and Ps. (9,622,233), respectively, and such amounts are included in the consolidated statements of comprehensive income as part of the caption Valuation of derivatives interest
cost from labor obligations and other financial items, net and Ps. (329,112), Ps. 37,011 and Ps. 48,496, net of tax, respectively, that are accounted for as Effect of derivative financial instruments acquired for hedging purposes
in equity.

The maturities of the notional amount of the derivatives are as follows:



|                                    |  |                           |        |  |      |  |        |      |  |  |      |  |  |      |     |  |            |  |       |  |  |  |        | 
|----------------------------------- |  | ------------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ---- |  |  | ---- | --- |  | ---------- |  | ----- |  |  |  | ------ | 
|Instrument                          |  | Notionalamount inmillions |        |  | 2017 |  |        | 2018 |  |  | 2019 |  |  | 2020 |     |  | Thereafter | 
|Assets                              |  |                           |        |  |      |  |        |      |  |  |      |  |  |      |     |  |            |  |       |  |  |  |        | 
|Swaps Euro-Mexican peso             |  |                          | 70     |  |      |  | 70     |      |  |  |     |  |  |      |    |  |            |  |      |  |  |  |       | 
|Swaps Yen-US Dollar                 |  | ¥                         | 13,000 |  |      |  |       |      |  |  |     |  |  |      |    |  |            |  |      |  |  |  | 13,000 | 
|Liabilities                         |  |                           |        |  |      |  |        |      |  |  |      |  |  |      |     |  |            |  |       |  |  |  |        | 
|Interest rate swaps in Mexican peso |  | Ps.                       | 15,750 |  |      |  | 15,350 |      |  |  |     |  |  |      | 400 |  |            |  |      |  |  |  |       | 
|Swaps CHF-US Dollar                 |  | CHF                       | 745    |  |      |  | 270    |      |  |  | 475  |  |  |      |    |  |            |  |      |  |  |  |       | 
|Swaps Euro-US Dollar                |  |                          | 500    |  |      |  | 500    |      |  |  |     |  |  |      |    |  |            |  |      |  |  |  |       | 
|Swaps Sterling pound-Euro           |  | £                         | 740    |  |      |  |       |      |  |  |     |  |  |      |    |  |            |  |      |  |  |  | 740    | 
|Swaps Sterling pound-US Dollar      |  | £                         | 2,010  |  |      |  |       |      |  |  |     |  |  |      |    |  |            |  | 550   |  |  |  | 1,460  | 
|Swaps US Dollar-Euro                |  | US$                       | 2,192  |  |      |  |       |      |  |  | 67   |  |  |      | 125 |  |            |  |      |  |  |  | 2,000  | 
|Forwards US Dollar-Mexican Peso     |  | US$                       | 80     |  |      |  | 80     |      |  |  |     |  |  |      |    |  |            |  |      |  |  |  |       | 
|Forwards Euro-US Dollar             |  |                          | 460    |  |      |  | 430    |      |  |  | 30   |  |  |      |    |  |            |  |      |  |  |  |       | 
|Call option                         |  |                          | 3,000  |  |      |  |       |      |  |  |     |  |  |      |    |  |            |  | 3,000 |  |  |  |       | 
|Call spread option                  |  |                          | 750    |  |      |  |       |      |  |  | 750  |  |  |      |    |  |            |  |      |  |  |  |       | 
|Put option                          |  |                          | 374    |  |      |  |       |      |  |  |     |  |  |      |    |  |            |  |      |  |  |  | 374    | 



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##### Table of Contents

8. Inventories, net

An analysis of inventories at December 31, 2015 and 2016 is as follows:



|                                                                      |  |      |                |   |      |  |                |  
|--------------------------------------------------------------------- |  | ---- | -------------- | - | ---- |  | -------------- | -
|                                                                      |  | 2015 |                |   | 2016 | 
|Mobile phones, accessories, computers, TVs, cards and other materials |  |      | Ps. 39,076,612 |   |      |  | Ps. 41,020,172 |  
|Less: Reserve for obsolete and slow-moving inventories                |  |      | (3,499,140     | ) |      |  | (4,148,880     | )
|                                                                      |  |      |                |   |      |  |                |  
|Total                                                                 |  |      | Ps. 35,577,472 |   |      |  | Ps. 36,871,292 |  
|                                                                      |  |      |                |   |      |  |                |  

For the years ended December 31, 2014, 2015 and 2016, the cost of inventories recognized in cost of sales was
Ps. 129,634,613, Ps. 145,491,598 and Ps.172,495,376, respectively.

9. Other assets, net

An analysis of other assets at December 31, 2015 and 2016 is as follows:



|                                                                          |  |      |                 |  |      |  |                  | 
|------------------------------------------------------------------------- |  | ---- | --------------- |  | ---- |  | ---------------- | 
|                                                                          |  | 2015 |                 |  | 2016 | 
|Current portion:                                                          |  |      |                 |  |      |  |                  | 
|Advances to suppliers (different from PP&E and inventories)               |  |      | Ps.   9,557,420 |  |      |  | Ps. 12,078,114   | 
|Costs of mobile equipment and computers associated with deferred revenues |  |      | 6,270,374       |  |      |  | 5,914,166        | 
|Prepaid insurance                                                         |  |      | 697,211         |  |      |  | 786,683          | 
|Other                                                                     |  |      | 752,908         |  |      |  | 759,130          | 
|                                                                          |  |      |                 |  |      |  |                  | 
|                                                                          |  |      | Ps. 17,277,913  |  |      |  | Ps. 19,538,093   | 
|                                                                          |  |      |                 |  |      |  |                  | 
|Non-current portion:                                                      |  |      |                 |  |      |  |                  | 
|Recoverable taxes                                                         |  |      | Ps.   5,137,336 |  |      |  | Ps.   9,971,482  | 
|Prepayments for the use of fiber optics                                   |  |      | 2,890,010       |  |      |  | 4,262,387        | 
|Prepaid expenses and judicial
deposits (1)                                |  |      | 17,222,597      |  |      |  | 25,267,208       | 
|                                                                          |  |      |                 |  |      |  |                  | 
|Total                                                                     |  |      | Ps. 25,249,943  |  |      |  | Ps.   39,501,077 | 
|                                                                          |  |      |                 |  |      |  |                  | 

For the years ended December 31, 2014, 2015 and 2016, amortization expense for other assets was Ps. 284,088, Ps. 558,457
and Ps. 1,340,609, respectively.



|(1) | Judicial deposits represent cash and cash equivalents pledged in order to fulfill the collateral requirements for tax contingencies in Brazil. At December 31, 2015 and 2016, the amount for these deposits is
Ps. 12,426,915 and Ps. 20,030,041, respectively. Based on its evaluation of the underlying contingencies, the Company believes that such amounts are recoverable.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

10. Property, Plant and Equipment, net

a) An analysis of property, plant and equipment, net at December 31, 2014, 2015 and 2016 is as follows:



|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|-------------------------------------------------------- |  | ------------------ | --------------- | - | --------- |  | ------------------- | ----------- |  |  | -------------------- | - |  | ------------------------------------------ | ----------------- |  | ------------------------------------------ |  | ------------------ | ---------------------- |  |  | ------------------ | - |  |  | ------------------- | - |  |  | --------------- | -
|                                                         |  | AtDecember 31,2013 |                 |   | Additions |  |                     | Retirements |  |  | Businesscombinations |   |  | Effect oftranslation offoreignsubsidiaries |                   |  | Hyperinflationrestatement                  |  |                    | Depreciationofthe year |  |  | AtDecember 31,2014 |  
|Cost                                                     |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Telephonic plant in operation and equipment              |  |                    | Ps. 509,908,646 |   |           |  | Ps. 108,661,794     |             |  |  | Ps.   (30,933,135    | ) |  |                                            | Ps. 54,202,020    |  |                                            |  | Ps.       634,026  |                        |  |  | Ps.       143,886  |   |  |  | Ps.                |   |  |  | Ps. 642,617,237 |  
|Land and buildings                                       |  |                    | 48,227,443      |   |           |  | 3,650,705           |             |  |  | (823,850             | ) |  |                                            | 5,271,503         |  |                                            |  | 124,621            |                        |  |  | 13,114             |   |  |  |                    |   |  |  | 56,463,536      |  
|Other assets                                             |  |                    | 78,010,934      |   |           |  | 30,940,997          |             |  |  | (11,426,188          | ) |  |                                            | 5,417,138         |  |                                            |  | 2,586,726          |                        |  |  | 21,200             |   |  |  |                    |   |  |  | 105,550,807     |  
|Construction in process and advances plant suppliers (1) |  |                    | 39,831,975      |   |           |  | 13,543,305          |             |  |  | (16,386,806          | ) |  |                                            | 2,600,498         |  |                                            |  | (491,799           | )                      |  |  | 10,012             |   |  |  |                    |   |  |  | 39,107,185      |  
|Inventories for operation of the plant                   |  |                    | 17,366,081      |   |           |  | 15,580,184          |             |  |  | (12,958,645          | ) |  |                                            | 962,017           |  |                                            |  | (100,923           | )                      |  |  |                   |   |  |  |                    |   |  |  | 20,848,714      |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Total                                                    |  |                    | 693,345,079     |   |           |  | 172,376,985         |             |  |  | (72,528,624          | ) |  |                                            | 68,453,176        |  |                                            |  | 2,752,651          |                        |  |  | 188,212            |   |  |  |                    |   |  |  | 864,587,479     |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Accumulated depreciation                                 |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Telephonic plant in operation and equipment              |  |                    | 161,596,258     |   |           |  |                    |             |  |  | (16,618,742          | ) |  |                                            |                  |  |                                            |  | (2,950,031         | )                      |  |  | 98,918             |   |  |  | 92,400,728          |   |  |  | 234,527,131     |  
|Land and buildings                                       |  |                    | 1,607,313       |   |           |  |                    |             |  |  | (185,421             | ) |  |                                            |                  |  |                                            |  | 125,881            |                        |  |  | 1,364              |   |  |  | 2,179,268           |   |  |  | 3,728,405       |  
|Other assets                                             |  |                    | 29,060,833      |   |           |  |                    |             |  |  | (3,596,940           | ) |  |                                            |                  |  |                                            |  | 981,659            |                        |  |  | 18,933             |   |  |  | 11,811,543          |   |  |  | 38,276,028      |  
|Inventories for operation of the plant                   |  |                    | (26,276         | ) |           |  |                    |             |  |  | (29,199              | ) |  |                                            |                  |  |                                            |  | 10,235             |                        |  |  |                   |   |  |  | (5,025              | ) |  |  | (50,265         | )
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Total                                                    |  |                    | Ps. 192,238,128 |   |           |  | Ps.                |             |  |  | Ps.   (20,430,302    | ) |  |                                            | Ps.              |  |                                            |  | Ps.   (1,832,256   | )                      |  |  | Ps.       119,215  |   |  |  | Ps.  106,386,514    |   |  |  | Ps. 276,481,299 |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Net Cost                                                 |  |                    | Ps. 501,106,951 |   |           |  | Ps. 172,376,985     |             |  |  | Ps.   (52,098,322    | ) |  |                                            | Ps. 68,453,176    |  |                                            |  | Ps.    4,584,907   |                        |  |  | Ps.         68,997 |   |  |  | Ps. (106,386,514    | ) |  |  | Ps. 588,106,180 |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|                                                         |  |                    |                 |   |           |  |                     |            
|                                                         |  | AtDecember 31,2014 |                 |   | Additions |  |                     | Retirements |  |  | Businesscombinations |   |  | Spin-off effects(Note 12)                  |                   |  | Effect oftranslation offoreignsubsidiaries |  |                    | Depreciationofthe year |  |  | AtDecember 31,2015 |  
|Cost                                                     |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Telephonic plant in operation and equipment              |  |                    | Ps. 642,617,237 |   |           |  | Ps.   78,632,899    |             |  |  | Ps.   (16,061,956    | ) |  |                                            | Ps.   4,293,671   |  |                                            |  | Ps.               |                        |  |  | Ps. (68,097,149    | ) |  |  | Ps.                |   |  |  | Ps. 641,384,702 |  
|Land and buildings                                       |  |                    | 56,463,536      |   |           |  | 2,559,088           |             |  |  | (2,492,288           | ) |  |                                            | 54,902            |  |                                            |  |                   |                        |  |  | (1,790,852         | ) |  |  |                    |   |  |  | 54,794,386      |  
|Other assets                                             |  |                    | 105,550,807     |   |           |  | 27,711,493          |             |  |  | (10,169,829          | ) |  |                                            | 820,329           |  |                                            |  | (12,643,381        | )                      |  |  | (4,800,817         | ) |  |  |                    |   |  |  | 106,468,602     |  
|Construction in process and advances plant suppliers (1) |  |                    | 39,107,185      |   |           |  | 72,899,705          |             |  |  | (68,666,020          | ) |  |                                            | 160,311           |  |                                            |  | (348,395           | )                      |  |  | (4,302,010         | ) |  |  |                    |   |  |  | 38,850,776      |  
|Inventories for operation of the plant                   |  |                    | 20,848,714      |   |           |  | 44,423,898          |             |  |  | (43,911,307          | ) |  |                                            |                  |  |                                            |  |                   |                        |  |  | (1,018,916         | ) |  |  |                    |   |  |  | 20,342,389      |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Total                                                    |  |                    | 864,587,479     |   |           |  | 226,227,083         |             |  |  | (141,301,400         | ) |  |                                            | 5,329,213         |  |                                            |  | (12,991,776        | )                      |  |  | (80,009,744        | ) |  |  |                    |   |  |  | 861,840,855     |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Accumulated depreciation                                 |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Telephonic plant in operation and equipment              |  |                    | 234,527,131     |   |           |  |                    |             |  |  | (31,529,529          | ) |  |                                            |                  |  |                                            |  | (7,403,656         | )                      |  |  | (51,082,202        | ) |  |  | 92,219,984          |   |  |  | 236,731,728     |  
|Land and buildings                                       |  |                    | 3,728,405       |   |           |  |                    |             |  |  | (433,368             | ) |  |                                            |                  |  |                                            |  |                   |                        |  |  | (1,334,962         | ) |  |  | 2,607,513           |   |  |  | 4,567,588       |  
|Other assets                                             |  |                    | 38,276,028      |   |           |  |                    |             |  |  | (4,533,893           | ) |  |                                            |                  |  |                                            |  |                   |                        |  |  | (1,995,119         | ) |  |  | 15,310,068          |   |  |  | 47,057,084      |  
|Inventories for operation of the plant                   |  |                    | (50,265         | ) |           |  |                    |             |  |  | (13,405              | ) |  |                                            |                  |  |                                            |  |                   |                        |  |  | 1,409              |   |  |  | 17,838              |   |  |  | (44,423         | )
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Total                                                    |  |                    | Ps. 276,481,299 |   |           |  | Ps.                |             |  |  | Ps.   (36,510,195    | ) |  |                                            | Ps.              |  |                                            |  | Ps.   (7,403,656   | )                      |  |  | Ps. (54,410,874    | ) |  |  | Ps.  110,155,403    |   |  |  | Ps. 288,311,977 |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  
|Net Cost                                                 |  |                    | Ps. 588,106,180 |   |           |  | Ps. 226,227,083     |             |  |  | Ps. (104,791,205     | ) |  |                                            | Ps.   5,329,213   |  |                                            |  | Ps.   (5,588,120   | )                      |  |  | Ps. (25,598,870    | ) |  |  | Ps. (110,155,403    | ) |  |  | Ps. 573,528,878 |  
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                   |  |                                            |  |                    |                        |  |  |                    |   |  |  |                     |   |  |  |                 |  



F-44



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##### Table of Contents

|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|-------------------------------------------------------- |  | ------------------ | --------------- | - | --------- |  | ------------------- | ----------- |  |  | -------------------- | - |  | ------------------------------------------ | --------------- |  | ---------------------- |  | --------------- | ------------------ |  |  | --------------------- | - |  |  | ------------------ | 
|                                                         |  | AtDecember 31,2015 |                 |   | Additions |  |                     | Retirements |  |  | Businesscombinations |   |  | Effect oftranslation offoreignsubsidiaries |                 |  | Depreciationofthe year |  |                 | AtDecember 31,2016 | 
|Cost                                                     |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|Telephonic plant in operation and equipment              |  |                    | Ps. 641,384,702 |   |           |  | Ps. 101,794,197     |             |  |  | Ps.     (8,963,076   | ) |  |                                            | Ps. 1,873,445   |  |                        |  | Ps. 235,186,745 |                    |  |  | Ps.                  |   |  |  | Ps.    971,276,013 | 
|Land and buildings                                       |  |                    | 54,794,386      |   |           |  | 2,900,511           |             |  |  | (2,845,298           | ) |  |                                            | 3,839           |  |                        |  | 7,281,973       |                    |  |  |                      |   |  |  | 62,135,411         | 
|Other assets                                             |  |                    | 106,468,602     |   |           |  | 24,368,918          |             |  |  | (10,717,096          | ) |  |                                            | 69,937          |  |                        |  | 24,736,655      |                    |  |  |                      |   |  |  | 144,927,016        | 
|Construction in process and advances plant suppliers (1) |  |                    | 38,850,776      |   |           |  | 70,517,319          |             |  |  | (70,911,593          | ) |  |                                            | 11,255          |  |                        |  | 11,252,127      |                    |  |  |                      |   |  |  | 49,719,884         | 
|Inventories for operation of the plant                   |  |                    | 20,342,389      |   |           |  | 34,010,751          |             |  |  | (27,641,919          | ) |  |                                            | 5,520           |  |                        |  | 1,566,307       |                    |  |  |                      |   |  |  | 28,283,048         | 
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|Total                                                    |  |                    | 861,840,855     |   |           |  | 233,591,696         |             |  |  | (121,078,982         | ) |  |                                            | 1,963,996       |  |                        |  | 280,023,807     |                    |  |  |                      |   |  |  | 1,256,341,372      | 
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|Accumulated depreciation                                 |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|Telephonic plant in operation and equipment              |  |                    | 236,731,728     |   |           |  |                    |             |  |  | (1,968,376           | ) |  |                                            |                |  |                        |  | 153,147,349     |                    |  |  | 107,976,385           |   |  |  | 495,887,086        | 
|Land and buildings                                       |  |                    | 4,567,588       |   |           |  |                    |             |  |  | (975,284             | ) |  |                                            |                |  |                        |  | 3,709,952       |                    |  |  | 3,179,066             |   |  |  | 10,481,322         | 
|Other assets                                             |  |                    | 47,057,084      |   |           |  |                    |             |  |  | (25,099,710          | ) |  |                                            |                |  |                        |  | 10,396,438      |                    |  |  | 16,105,885            |   |  |  | 48,459,697         | 
|Inventories for operation of the plant                   |  |                    | (44,423         | ) |           |  |                    |             |  |  | (54,280              | ) |  |                                            |                |  |                        |  | 20,896          |                    |  |  | 401,008               |   |  |  | 323,201            | 
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|Total                                                    |  |                    | Ps. 288,311,977 |   |           |  | Ps.                |             |  |  | Ps.   (28,097,650    | ) |  |                                            | Ps.            |  |                        |  | Ps. 167,274,635 |                    |  |  | Ps.   127,662,344     |   |  |  | Ps.    555,151,306 | 
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 
|Net Cost                                                 |  |                    | Ps. 573,528,878 |   |           |  | Ps. 233,591,696     |             |  |  | Ps.   (92,981,332    | ) |  |                                            | Ps. 1,963,996   |  |                        |  | Ps. 112,749,172 |                    |  |  | Ps. (127,662,344      | ) |  |  | Ps.    701,190,066 | 
|                                                         |  |                    |                 |   |           |  |                     |             |  |  |                      |   |  |                                            |                 |  |                        |  |                 |                    |  |  |                       |   |  |  |                    | 



|(1) | Construction in progress includes fixed and mobile telephone facilities as well as satellite developments and fiber optic which is in the process of being installed.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

The completion period of construction in progress is variable and depends upon the type of fixed assets under construction. In the case of telephone plant
(switching and transmission), it takes six months on average; for others, it may take more than 2 years.

b) At December 31, 2015 and 2016,
property, plant and equipment include the following assets under capital leases:



|                            |  |      |                |   |      |  |                |  
|--------------------------- |  | ---- | -------------- | - | ---- |  | -------------- | -
|                            |  | 2015 |                |   | 2016 | 
|Assets under capital leases |  |      | Ps.  6,707,087 |   |      |  | Ps.  8,210,557 |  
|Accumulated depreciation    |  |      | (2,379,602     | ) |      |  | (4,839,007     | )
|                            |  |      |                |   |      |  |                |  
|                            |  |      | Ps.  4,327,485 |   |      |  | Ps.  3,371,550 |  
|                            |  |      |                |   |      |  |                |  

c)On September 30, 2014, the Company completed the process for capitalizing the submarine cable system. The cable
extends from the U.S. to Central America and Brazil, which provides international connectivity to all the Company subsidiaries in these geographic areas. The total investment capitalized at December 31, 2014 is Ps.4,275,682 (US$ 290,507).

d)At December 31, 2016, Claro Brasil has land and buildings and other equipment that is pledged in guarantee of legal proceedings in the amount
of Ps. 3,530,845 (Ps. 6,206,771 as of December 31, 2015).

e)Relevant information related to the computation of the capitalized borrowing
costs is as follows:



|                                                        |  |                          |                |  |      |  |                |      |  |  |                | 
|------------------------------------------------------- |  | ------------------------ | -------------- |  | ---- |  | -------------- | ---- |  |  | -------------- | 
|                                                        |  | Years ended December 31, |               
|                                                        |  | 2014                     |                |  | 2015 |  |                | 2016 | 
|Amount invested in the acquisition of qualifying assets |  |                          | Ps. 47,332,317 |  |      |  | Ps. 52,922,105 |      |  |  | Ps. 52,974,400 | 
|Capitalized interest                                    |  |                          | 3,258,928      |  |      |  | 3,524,841      |      |  |  | 2,861,307      | 
|Capitalization rate                                     |  |                          | 6.9%           |  |      |  | 6.7%           |      |  |  | 5.4%           | 

Capitalized interest is being amortized over a period of seven years, which is the estimated useful life of the related
assets.



F-45



---

##### Table of Contents

f)On July 9, 2013, Star One signed an agreement denominated in US dollars with a manufacturer
for construction and launching of the Star One D1 satellite, which will be equipped with transponders in Bands C, Ku and Ka. The cost of this project is estimated to be approximately Ps. 5,946,072 (US$ 404,000). The Star One D1 will replace the
satellite Brazilsat B4. At December 31, 2016, the amount recorded in Construction in progress amounts to Ps 8,209,565.

g)The Companys
concessions in Brazil establish certain conditions under which assets may be reverted to the government, as discussed in Note 16(c).

h)During
2016, Claro Brasil reviewed the useful life of its set top boxes. Such review was supported by historical data, change in the economic environment in which Claro Brasil operates and based on a professional technical evaluation. Based on the review
of the remaining economic useful life of its set top boxes, Parabolic Antennas and Low Noise Block with Feed Horn, the Company shortened such useful lives and recorded an increase in depreciation expense for Ps. 2,468,415 (R$458,234).

In some of the jurisdictions where the Company operates and under certain circumstances, the Company may be required to transfer certain assets covered by
some of their concessions to the government pursuant to valuation methodologies that vary in each jurisdiction. It is uncertain whether reversion would ever be applied and how reversion provisions would be interpreted in practice.

In addition, the regulations in the jurisdictions in which the Company operates can revoke their concessions under certain circumstances. In Mexico, for
example, the Federal Law on Telecommunications and Broadcasting gives the government the right to expropriate our concessions or to take over the management of their networks, facilities and personnel in cases of imminent danger to national
security, internal peace or the national economy, natural disasters and public unrest.

11. Intangible assets, net and goodwill

a)An analysis of intangible assets at December 31, 2014, 2015 and 2016 is as follows:



|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|-------------------------- |  | ------------------------------------ | ----------- | - | ------------ | --- | ---------- | ----------------------------------- |  | --- | ------------------ |  |  | ----------------------- | ---------- | - | ------------------------------------------ | --- | ---------- | -------------------- |  | --- | ---------- | - |  | --- | ----------- | -
|                           |  | For the year ended December 31, 2014 |            
|                           |  | Balance atbeginning ofyear           |             |   | Acquisitions |     |            | Acquisitionsin businesscombinations |  |     | Disposalsand other |  |  | Amortizationof the year |            |   | Effect oftranslation offoreignsubsidiaries |     |            | Balance atendof year | 
|Licenses and rights of use |  | Ps.                                  | 123,083,514 |   |              | Ps. | 24,946,015 |                                     |  | Ps. | 27,504,303         |  |  | Ps.                     |           |   |                                            | Ps. |           |                      |  | Ps. | (738,738   | ) |  | Ps. | 174,795,094 |  
|Accumulated amortization   |  |                                      | (86,029,682 | ) |              |     |           |                                     |  |     |                   |  |  |                         |           |   |                                            |     | (6,013,565 | )                    |  |     | 811,998    |   |  |     | (91,231,249 | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Net                        |  |                                      | 37,053,832  |   |              |     | 24,946,015 |                                     |  |     | 27,504,303         |  |  |                         |           |   |                                            |     | (6,013,565 | )                    |  |     | 73,260     |   |  |     | 83,563,845  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Trademarks                 |  |                                      | 11,700,606  |   |              |     | 1,584,189  |                                     |  |     | 8,930,690          |  |  |                         |           |   |                                            |     |           |                      |  |     | 59,506     |   |  |     | 22,274,991  |  
|Accumulated amortization   |  |                                      | (10,534,300 | ) |              |     |           |                                     |  |     |                   |  |  |                         |           |   |                                            |     | (300,778   | )                    |  |     | 5,676      |   |  |     | (10,829,402 | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Net                        |  |                                      | 1,166,306   |   |              |     | 1,584,189  |                                     |  |     | 8,930,690          |  |  |                         |           |   |                                            |     | (300,778   | )                    |  |     | 65,182     |   |  |     | 11,445,589  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Customer relationships     |  |                                      |            |   |              |     |           |                                     |  |     | 15,249,879         |  |  |                         |           |   |                                            |     |           |                      |  |     | 56,288     |   |  |     | 15,306,167  |  
|Accumulated amortization   |  |                                      |            |   |              |     |           |                                     |  |     |                   |  |  |                         |           |   |                                            |     | (485,951   | )                    |  |     |           |   |  |     | (485,951    | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Net                        |  |                                      |            |   |              |     |           |                                     |  |     | 15,249,879         |  |  |                         |           |   |                                            |     | (485,951   | )                    |  |     | 56,288     |   |  |     | 14,820,216  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Software licenses          |  |                                      |            |   |              |     | 1,169,260  |                                     |  |     | 5,455,642          |  |  |                         | 641,280    |   |                                            |     |           |                      |  |     | 30,995     |   |  |     | 7,297,177   |  
|Accumulated amortization   |  |                                      |            |   |              |     |           |                                     |  |     |                   |  |  |                         |           |   |                                            |     | (1,521,693 | )                    |  |     | 11,179     |   |  |     | (1,510,514  | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Net                        |  |                                      |            |   |              |     | 1,169,260  |                                     |  |     | 5,455,642          |  |  |                         | 641,280    |   |                                            |     | (1,521,693 | )                    |  |     | 42,174     |   |  |     | 5,786,663   |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Content rights             |  |                                      |            |   |              |     | 2,303,675  |                                     |  |     |                   |  |  |                         | (770,486   | ) |                                            |     |           |                      |  |     | 328,841    |   |  |     | 1,862,030   |  
|Accumulated amortization   |  |                                      |            |   |              |     |           |                                     |  |     |                   |  |  |                         |           |   |                                            |     | (962       | )                    |  |     | (157,593   | ) |  |     | (158,555    | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Net                        |  |                                      |            |   |              |     | 2,303,675  |                                     |  |     |                   |  |  |                         | (770,486   | ) |                                            |     | (962       | )                    |  |     | 171,248    |   |  |     | 1,703,475   |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Total of intangibles, net  |  | Ps.                                  | 38,220,138  |   |              | Ps. | 30,003,139 |                                     |  | Ps. | 57,140,514         |  |  | Ps.                     | (129,206   | ) |                                            | Ps. | (8,322,949 | )                    |  | Ps. | 408,152    |   |  | Ps. | 117,319,788 |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  
|Goodwill (Note 12)         |  | Ps.                                  | 92,486,284  |   |              | Ps. |           |                                     |  | Ps. | 51,316,970         |  |  | Ps.                     | (1,642,939 | ) |                                            | Ps. |           |                      |  | Ps. | (1,256,924 | ) |  | Ps. | 140,903,391 |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |            |   |                                            |     |            |                      |  |     |            |   |  |     |             |  



F-46



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##### Table of Contents

|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|-------------------------- |  | ------------------------------------ | ----------- | - | ------------ | --- | ---------- | ----------------------------------- |  | --- | ------------------ |  |  | ----------------------- | --------- | - | ------------------------------------------ | --- | ----------- | -------------------- |  | --- | ----------- | - |  | --- | ----------- | -
|                           |  | For the year ended December 31, 2015 |            
|                           |  | Balance atbeginning ofyear           |             |   | Acquisitions |     |            | Acquisitionsin businesscombinations |  |     | Disposalsand other |  |  | Amortizationof the year |           |   | Effect oftranslation offoreignsubsidiaries |     |             | Balance atendof year | 
|Licenses and rights of use |  | Ps.                                  | 174,795,094 |   |              | Ps. | 19,507,462 |                                     |  | Ps. | 448,364            |  |  | Ps.                     | 1,109,172 |   |                                            | Ps. |            |                      |  | Ps. | (20,564,317 | ) |  | Ps. | 175,295,775 |  
|Accumulated amortization   |  |                                      | (91,231,249 | ) |              | Ps. |           |                                     |  | Ps. |                   |  |  | Ps.                     | (25,976   | ) |                                            | Ps. | (7,419,551  | )                    |  | Ps. | 13,830,252  |   |  | Ps. | (84,846,524 | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Net                        |  |                                      | 83,563,845  |   |              |     | 19,507,462 |                                     |  |     | 448,364            |  |  |                         | 1,083,196 |   |                                            |     | (7,419,551  | )                    |  |     | (6,734,065  | ) |  |     | 90,449,251  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Trademarks                 |  |                                      | 22,274,991  |   |              |     |           |                                     |  |     | 252,728            |  |  |                         | 207,251   |   |                                            |     |            |                      |  |     | 89,043      |   |  |     | 22,824,013  |  
|Accumulated amortization   |  |                                      | (10,829,402 | ) |              |     |           |                                     |  |     |                   |  |  |                         |          |   |                                            |     | (936,606    | )                    |  |     | 242,301     |   |  |     | (11,523,707 | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Net                        |  |                                      | 11,445,589  |   |              |     |           |                                     |  |     | 252,728            |  |  |                         | 207,251   |   |                                            |     | (936,606    | )                    |  |     | 331,344     |   |  |     | 11,300,306  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Customer relationships     |  |                                      | 15,306,167  |   |              |     |           |                                     |  |     | 949,915            |  |  |                         | 791,548   |   |                                            |     |            |                      |  |     | 1,346,777   |   |  |     | 18,394,407  |  
|Accumulated amortization   |  |                                      | (485,951    | ) |              |     |           |                                     |  |     |                   |  |  |                         |          |   |                                            |     | (3,452,760  | )                    |  |     | (24,164     | ) |  |     | (3,962,875  | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Net                        |  |                                      | 14,820,216  |   |              |     |           |                                     |  |     | 949,915            |  |  |                         | 791,548   |   |                                            |     | (3,452,760  | )                    |  |     | 1,322,613   |   |  |     | 14,431,532  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Software licenses          |  |                                      | 7,297,177   |   |              |     | 2,245,027  |                                     |  |     | 42,760             |  |  |                         | (307,955  | ) |                                            |     |            |                      |  |     | (494,241    | ) |  |     | 8,782,768   |  
|Accumulated amortization   |  |                                      | (1,510,514  | ) |              |     |           |                                     |  |     |                   |  |  |                         | 1,434,129 |   |                                            |     | (2,921,767  | )                    |  |     | 573,554     |   |  |     | (2,424,598  | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Net                        |  |                                      | 5,786,663   |   |              |     | 2,245,027  |                                     |  |     | 42,760             |  |  |                         | 1,126,174 |   |                                            |     | (2,921,767  | )                    |  |     | 79,313      |   |  |     | 6,358,170   |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Content rights             |  |                                      | 1,862,030   |   |              |     | 768,888    |                                     |  |     |                   |  |  |                         |          |   |                                            |     |            |                      |  |     | 3,609       |   |  |     | 2,634,527   |  
|Accumulated amortization   |  |                                      | (158,555    | ) |              |     |           |                                     |  |     |                   |  |  |                         |          |   |                                            |     | (270,191    | )                    |  |     |            |   |  |     | (428,746    | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Net                        |  |                                      | 1,703,475   |   |              |     | 768,888    |                                     |  |     |                   |  |  |                         |          |   |                                            |     | (270,191    | )                    |  |     | 3,609       |   |  |     | 2,205,781   |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Total of intangibles, net  |  | Ps.                                  | 117,319,788 |   |              | Ps. | 22,521,377 |                                     |  | Ps. | 1,693,767          |  |  | Ps.                     | 3,208,169 |   |                                            | Ps. | (15,000,875 | )                    |  | Ps. | (4,997,186  | ) |  | Ps. | 124,745,040 |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  
|Goodwill (Note 12)         |  | Ps.                                  | 140,903,391 |   |              | Ps. | 220,124    |                                     |  | Ps. | 711,723            |  |  | Ps.                     |          |   |                                            | Ps. |            |                      |  | Ps. | (4,721,522  | ) |  | Ps. | 137,113,716 |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |  |  |                         |           |   |                                            |     |             |                      |  |     |             |   |  |     |             |  



|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|-------------------------- |  | ------------------------------------ | ----------- | - | ------------ | --- | ---------- | ----------------------------------- |  | --- | ------------------ | - |  | ----------------------- | --------- | - | ------------------------------------------ | --- | ----------- | --------------------- |  | --- | ----------- | - |  | --- | ------------ | -
|                           |  | For the year ended December 31, 2016 |            
|                           |  | Balance atbeginning ofyear           |             |   | Acquisitions |     |            | Acquisitionsin businesscombinations |  |     | Disposals andother |   |  | Amortizationof the year |           |   | Effect oftranslation offoreignsubsidiaries |     |             | Balance at endof year | 
|Licenses and rights of use |  | Ps.                                  | 175,295,775 |   |              | Ps. | 9,129,949  |                                     |  | Ps. | 360,144            |   |  | Ps.                     | 1,269,478 |   |                                            | Ps. |            |                       |  | Ps. | 56,684,016  |   |  | Ps. | 242,739,362  |  
|Accumulated amortization   |  |                                      | (84,846,524 | ) |              | Ps. |           |                                     |  | Ps. |                   |   |  | Ps.                     |          |   |                                            | Ps. | (10,255,271 | )                     |  | Ps. | (31,606,303 | ) |  | Ps. | (126,708,098 | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Net                        |  |                                      | 90,449,251  |   |              |     | 9,129,949  |                                     |  |     | 360,144            |   |  |                         | 1,269,478 |   |                                            |     | (10,255,271 | )                     |  |     | 25,077,713  |   |  |     | 116,031,264  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Trademarks                 |  |                                      | 22,824,013  |   |              |     |           |                                     |  |     | 101,655            |   |  |                         | (13,820   | ) |                                            |     |            |                       |  |     | 4,877,302   |   |  |     | 27,789,150   |  
|Accumulated amortization   |  |                                      | (11,523,707 | ) |              |     |           |                                     |  |     |                   |   |  |                         |          |   |                                            |     | (330,576    | )                     |  |     | (3,367,974  | ) |  |     | (15,222,257  | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Net                        |  |                                      | 11,300,306  |   |              |     |           |                                     |  |     | 101,655            |   |  |                         | (13,820   | ) |                                            |     | (330,576    | )                     |  |     | 1,509,328   |   |  |     | 12,566,893   |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Customer relationships     |  |                                      | 18,394,407  |   |              |     |           |                                     |  |     | 1,904,503          |   |  |                         |          |   |                                            |     |            |                       |  |     | 5,946,598   |   |  |     | 26,245,508   |  
|Accumulated amortization   |  |                                      | (3,962,875  | ) |              |     |           |                                     |  |     |                   |   |  |                         |          |   |                                            |     | (3,231,518  | )                     |  |     | (5,240,681  | ) |  |     | (12,435,074  | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Net                        |  |                                      | 14,431,532  |   |              |     |           |                                     |  |     | 1,904,503          |   |  |                         |          |   |                                            |     | (3,231,518  | )                     |  |     | 705,917     |   |  |     | 13,810,434   |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Software licenses          |  |                                      | 8,782,768   |   |              |     | 3,854,066  |                                     |  |     | 26,871             |   |  |                         | (829,680  | ) |                                            |     |            |                       |  |     | 1,040,771   |   |  |     | 12,874,796   |  
|Accumulated amortization   |  |                                      | (2,424,598  | ) |              |     | (41,185    | )                                   |  |     | (8,367             | ) |  |                         | 829,680   |   |                                            |     | (3,469,461  | )                     |  |     | (9,809      | ) |  |     | (5,123,740   | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Net                        |  |                                      | 6,358,170   |   |              |     | 3,812,881  |                                     |  |     | 18,504             |   |  |                         |          |   |                                            |     | (3,469,461  | )                     |  |     | 1,030,962   |   |  |     | 7,751,056    |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Content rights             |  |                                      | 2,634,527   |   |              |     | 2,242,556  |                                     |  |     |                   |   |  |                         | (217,057  | ) |                                            |     |            |                       |  |     | 216,272     |   |  |     | 4,876,298    |  
|Accumulated amortization   |  |                                      | (428,746    | ) |              |     |           |                                     |  |     |                   |   |  |                         | (1,612    | ) |                                            |     | (2,236,141  | )                     |  |     |            |   |  |     | (2,666,499   | )
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Net                        |  |                                      | 2,205,781   |   |              |     | 2,242,556  |                                     |  |     |                   |   |  |                         | (218,669  | ) |                                            |     | (2,236,141  | )                     |  |     | 216,272     |   |  |     | 2,209,799    |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Total of intangibles, net  |  | Ps.                                  | 124,745,040 |   |              | Ps. | 15,185,386 |                                     |  | Ps. | 2,384,806          |   |  | Ps.                     | 1,036,989 |   |                                            | Ps. | (19,522,967 | )                     |  | Ps. | 28,540,192  |   |  | Ps. | 152,369,446  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  
|Goodwill (Note 12)         |  | Ps.                                  | 137,113,716 |   |              | Ps. |           |                                     |  | Ps. | 3,953,023          |   |  | Ps.                     | (356,832  | ) |                                            | Ps. |            |                       |  | Ps. | 11,922,728  |   |  | Ps. | 152,632,635  |  
|                           |  |                                      |             |   |              |     |            |                                     |  |     |                    |   |  |                         |           |   |                                            |     |             |                       |  |     |             |   |  |     |              |  



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b)The aggregate carrying amount of goodwill is allocated as follows:



|                                |  |              |                |  |      |  |                | 
|------------------------------- |  | ------------ | -------------- |  | ---- |  | -------------- | 
|                                |  | December 31, |               
|                                |  | 2015         |                |  | 2016 | 
|Europe (7 countries)            |  |              | Ps.51,737,157  |  |      |  | Ps.52,207,877  | 
|Brazil (Fixed, wireless and TV) |  |              | 17,931,543     |  |      |  | 26,106,623     | 
|Puerto Rico                     |  |              | 17,463,393     |  |      |  | 17,463,393     | 
|Dominican Republic              |  |              | 14,186,724     |  |      |  | 14,186,724     | 
|Mexico (includes Telmex)        |  |              | 10,114,275     |  |      |  | 9,936,857      | 
|Ecuador                         |  |              | 2,155,385      |  |      |  | 2,155,385      | 
|Peru                            |  |              | 2,240,706      |  |      |  | 3,792,950      | 
|El Salvador                     |  |              | 2,510,596      |  |      |  | 2,510,596      | 
|Chile                           |  |              | 2,306,705      |  |      |  | 2,758,653      | 
|Colombia                        |  |              | 11,612,051     |  |      |  | 14,659,892     | 
|Other countries                 |  |              | 4,855,181      |  |      |  | 6,853,685      | 
|                                |  |              |                |  |      |  |                | 
|                                |  |              | Ps.137,113,716 |  |      |  | Ps.152,632,635 | 
|                                |  |              |                |  |      |  |                | 

c)The following is a description of the major changes in the Licenses and rights of use caption during the
years ended December 31, 2014, 2015 and 2016:

2014 Acquisitions

i) In March 2014, Claro Colombia renewed a license for the use of the radio spectrum granted to Comunicación Celular, S.A. (Claro) in the 824.040 Mhz to
891.480 Mhz and 1.877 Mhz to 1,965 Mhz bands for a period that ends in March 2024. The amount paid was Ps. 1,018,190.

ii) On September 30, 2014,
Claro Brasil obtained a license to provide cellular service in the 700 national MHz frequency band. On December 8, 2014, Anatel assigned formally to Claro Brasil the frequency band. The total consideration for the acquisition of this band was
Ps. 15,588,866. Claro Brasil paid Ps. 9,662,144 in 2014 and the remaining amount will be paid in four equal annual installments. The frequency band expires in 2029.

iii) As a part of the business combination of Telekom Austria, the Company recognized licenses for amount of Ps. 27,504,380. Telekom Austria holds mobile
telecommunication licenses provided by regulatory authorities in Austria, Croatia, Slovenia, Serbia, Bulgaria, Belarus and Macedonia. These licenses are estimated to have a remaining useful life of 10 years.

iv) In 2014, Argentina paid Ps. 4,151,753 (AR$ 2,385,379) for the acquisition of 4G licenses to increase the service in all the country.

v) Additionally, the Company acquired other licenses in the Dominican Republic, Brazil and others in the amount of Ps. 4,174,614.

2015 Acquisitions

i) In October 2015, Radio Móvil
Dipsa renewed a license to provide cellular service in the 800 MHz frequency band. The frequency band expires in 2030. The amount paid was Ps.1,007,410.

ii) In May 2015, Claro Ecuador acquired licenses related to 4G/LTE services. The frequency band expires in 2023. The amount paid was Ps. 2,861,060.

iii) In 2015, Claro Brasil obtained renewals related with the frequency bands of national 700Mhz, auction conducted by Anatel on September 30, 2014.
Funding for these procedures must be transmitted by operators in four annual installments adjusted by the IGP-ID of Ps. 4,412,730 (R$ 1,001,414) for which the corresponding renewal was performed.



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##### Table of Contents

iv) In November 2015, Vipnet located in Croatia acquired 2 x 3 MHz and 2 x 4.8 MHz in the 1.800 MHz spectrum for
EUR 18,513. Vipnet already holds 2 x 29.4 MHz in the lower frequency band (below 1 GHz), 2 x 25.0 in the higher frequency band (above 1 GHz) as well as 5.0 MHz TDD spectrum. The amount paid was Ps. 321,915.

v) In November 2015, Vip mobile, the Serbian subsidiary acquired 2 x 5 MHz of the 800 MHz spectrum. The new spectrum will be used by VIP mobile for the LTE
rollout and will enhance the high-speed data service in rural areas as well as data usage in connection with smartphones. Vip mobile already holds a 2 x 4.2 MHz in the lower frequency band (below 1 GHz) as well as 2 x 45.0 MHz in the higher
frequency band (above 1 GHz). The amount paid was Ps. 1,129,988 (EUR $ 60,942).

As a part of the business combinations, the Company recognized licenses
for an amount of Ps. 448,364. The Company holds licenses provided by the regulatory authorities in those jurisdictions. These licenses are estimated to have a remaining useful life of 10 years.

vi) In 2015, Argentina paid Ps. 5,599,745 (AR$ 3,269,312) for the acquisition of 4G licenses to increase the service throughout the country.

vii) Additionally the Company acquired other licenses in Puerto Rico, Panama and others countries in the amount of Ps. 4,174,614.

2016 Acquisitions

i) In February 2016, the
Company ́s subsidiary in Paraguay was granted with the use of 30 MHz of spectrum in the 1700/2100 Mhz frequency. The total cost was Ps. 830,719 (US$ 46,000).

ii) In February 2016, the Company through its subsidiary Radiomóvil Dipsa, S.A. de C.V. (Telcel), acquired through an auction a total of 20MHz in the
national wide AWS-1 band and 40 MHz in the AWS-3 band. The concession expires in October 2030. The Company paid an amount of Ps. 2,098,060.

iii) In May 2016, Mtel, located in Bulgaria, acquired 2 x 5 MHz in the 1,800-MHz spectrum for Ps. 135,441 (EUR 6,212).
During 2016, Telekom Austria paid Ps. 410,713 (EUR 18,837) for the renewals referring to an obligation obtained from concessions granted in previous years.

iv) On May 26, 2016, the Companys subsidiary in Peru acquired spectrum in a public auction of the 700 MHz band. The frequency band expires in 2036.
The cost of the spectrum was Ps. 5, 627,316 (S$.1,002,523).

v) In July 2016, Ecuador Telecom acquired a license to operate TV in Ecuador for a period
that ends in 2031. The amount paid was Ps. 27,700 (US$ 1,500).

Amortization of intangibles for the years ended December 31, 2014, 2015 and 2016
amounted to Ps. 8,322,949, Ps. 15,000,875 and Ps. 19,522,968, respectively.

12. Business combinations, acquisitions, sale, non-controlling interest and spin-offs

a)The following is a description of the major acquisitions of
investments in associates and subsidiaries during the years ended December 31, 2014, 2015 and 2016:

Acquisitions  2014

i) Telekom Austria

On July 10, 2014, the Company
through both a share acquisition and a Shareholders ́ Agreement obtained control of the telecommunications company Telekom Austria, acquiring an additional 22.79% of the outstanding shares



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##### Table of Contents

to reach share ownership of 50.81%. The main goal for the Company was the further development of Telekom Austria. This acquisition was measured at its fair value on the purchase date. The total
purchase price was Ps. 28,637,635. Acquisition costs were expensed by the Company as incurred and recorded as a part of Other expenses in the consolidated statement of comprehensive income for an immaterial amount. Telekom Austria was
included in operating results as of July 1, 2014.

As a result, the Company derecognized the investment in Telekom Austria upon consolidation. As
part of the recognition of its previous equity investment in Telekom Austria, the Company recognized a loss of Ps.3,172,218 in the Valuation of derivatives, interest cost from labor obligations and other financial items, net caption on the
consolidated statement of comprehensive income. See Note 21.

The Companys purchase price was based upon a valuation and the Companys
estimates and assumptions.

The Companys fair values of the net identifiable assets and liabilities as at the date of the transaction are as
follows:



|                                                                        |  |     |             |  
|----------------------------------------------------------------------- |  | --- | ----------- | -
|Cash and cash equivalents                                               |  | Ps. | 2,180,899   |  
|Trade receivables                                                       |  |     | 12,023,422  |  
|Other current assets                                                    |  |     | 4,745,510   |  
|Property and equipment                                                  |  |     | 68,453,157  |  
|Licenses and rights of use                                              |  |     | 27,504,303  |  
|Trademarks                                                              |  |     | 8,930,690   |  
|Customer relationships                                                  |  |     | 14,184,227  |  
|Investments in shares                                                   |  |     | 180,900     |  
|Deferred tax asset                                                      |  |     | 2,146,300   |  
|                                                                        |  |     |             |  
|Total assets acquired                                                   |  | Ps. | 140,349,408 |  
|                                                                        |  |     |             |  
|Liabilities and account payable short-term                              |  | Ps. | 34,041,011  |  
|Liabilities and account payable long-term                               |  |     | 18,560,409  |  
|Deferred tax liability                                                  |  |     | 8,518,783   |  
|Long term debt                                                          |  |     | 62,307,922  |  
|                                                                        |  |     |             |  
|Total liabilities assumed                                               |  | Ps. | 123,428,125 |  
|                                                                        |  |     |             |  
|Total identified net assets at fair value                               |  | Ps. | 16,921,283  |  
|Non-controlling interest measured at fair value (49.19% of
net assets)  |  |     | (39,239,141 | )
|Goodwill arising on acquisition                                         |  |     | 50,955,493  |  
|                                                                        |  |     |             |  
|Fair value of the investment in Telekom Austria at the acquisition date |  | Ps. | 28,637,635  |  
|                                                                        |  |     |             |  
|                                                                        | 
|Consideration transferred:                                              |  |     |             |  
|Fair value of the prior equity method investment                        |  | Ps. | 15,381,507  |  
|Cash paid                                                               |  |     | 13,256,128  |  
|                                                                        |  |     |             |  
|Total consideration transferred                                         |  | Ps. | 28,637,635  |  
|                                                                        |  |     |             |  



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|                                           |  |                           |                  | 
|------------------------------------------ |  | ------------------------- | ---------------- | 
|Analysis of cash flows for acquisition:    |  |                           |                 
|                                           |  | Cash-flows foracquisition |                 
|Cash paid                                  |  |                           | Ps.(13,256,128)  | 
|Cash acquired with the subsidiary          |  |                           | 2,180,899        | 
|                                           |  |                           |                  | 
|Net cash flow on acquisition               |  |                           | Ps. (11,075,229) | 
|                                           |  |                           |                  | 
|                                           | 
|Goodwill at the date of the consolidation: |  |                           |                 
|                                           | 
|                                           |  | Goodwill                  |                 
|Controlling interest                       |  |                           | Ps.25,890,485    | 
|Non-controlling interest                   |  |                           | 25,065,008       | 
|                                           |  |                           |                  | 
|Total                                      |  |                           | Ps.50,955,493    | 
|                                           |  |                           |                  | 

The fair value of the trade receivables which approximates its book value amounted to Ps.12,023,422. However, none of the
trade receivables have been impaired and it is expected that the full contractual amounts can be collected.

The goodwill comprises the value of expected
synergies arising from the acquisition. Goodwill is allocated entirely to the European segment. None of the goodwill recognized is expected to be deductible for income tax purposes.

During the period from July 1, 2014 through December 31, 2014, the Company acquired an additional 38.4 million shares of Telekom Austria, which
equates to an additional shareholding of approximately 8.68%. The Company paid Ps. 4,796,332 for these shares, and now owns 59.70% of Telekom Austria as of December 31, 2014. This additional acquisition of shares was accounted as equity
transactions as the Company has control over this subsidiary.



|ii) | Unaudited pro forma financial data
|--- | ----------------------------------

The following pro forma consolidated financial data for the year
ended December 31, 2014, is based on the consolidated financial statements of the Company adjusted to give effect to (i) the acquisition of Telekom Austria; and (ii) certain accounting adjustments of the assets and liabilities of the
acquired company.

The pro forma results of operations assume that the acquisition was completed at the beginning of the year of acquisition and are based
both on the information available and additional considerations that management believes are reasonable. The pro forma financial data is not intended to indicate what the operations of the Company had been if the operations had occurred such date,
or predict the results of the operations of the Company.



|                           |  |      |             | 
|-------------------------- |  | ---- | ----------- | 
|                           |  | 2014 |            
|Operating revenues         |  | Ps.  | 883,831,810 | 
|Profit before income taxes |  |      | 85,047,796  | 
|Net income                 |  | Ps.  | 45,713,130  | 

The pro-forma financial data does not reflect the other 2014 acquisitions discussed
below as they were not material to the Companys financial position or results of operations.



|iii) | Page Plus
|---- | ---------

On January 16, 2014, Tracfone Wireless Inc. (subsidiary of the Company) acquired Start
Wireless Group for the brand known as Page Plus. This business was acquired in order to expand the Companys distribution channels,



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add an incremental revenue stream, and assist in the growth of subscribers. The purchase price of the acquisition was Ps. 1,583,773 (US$120,000). The cash used in the acquisition was
approximately Ps. 835,353 (US$63,900). The results of operations of Page Plus are included in the results of operations from January 16, 2014. The goodwill recorded as part of this acquisition is Ps. 277,911.



|iv) | V-Sys
|--- | -----

On April 9, 2014, Telmex acquired 100% of the shares
of V-sys, a company that offers value added services of unified companies and information technologies for an amount of Ps.174,182. The goodwill recognized amounted to Ps. 83,559.



|Acquisitions |  2015
|------------ | ------



| | 1) | In February 2015, the Company acquired throughout its Telmex and Consertel subsidiaries an additional 35% of Hitss Solutions, S. A. de C.V. (Hitss) increasing its equity interest in this entity to 68.9%. Hitss offers
information technology service. This acquisition was valued at is fair value at the purchase date. The Company started consolidating this subsidiary beginning March, 2015. The amount paid for the additional equity interest was Ps. 472,481, net of
cash, and the goodwill recorded as part of this acquisition is Ps. 205,141. The identified goodwill has been allocated to the Mexico segment. The goodwill recognized is not deductible for income tax purposes.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2) | The following entities were acquired by Telekom Austria:
| | -- | --------------------------------------------------------



| | i) | In June 2015, acquired 100% of eight cable operators in the Republic of Macedonia through its subsidiary Blizoo.
| | -- | ----------------------------------------------------------------------------------------------------------------



| | ii) | In September 2015, acquired 100% of Amisco NV (Amis), the holding entity of Amis Slovenia and Amis Croatia. Amis operates as a fixed-line reseller in Slovenia and owns a fiber network in Croatia. The
companies offer internet, IPTV and telephone services to approximately 66,000 customers in Slovenia and approximately 24,000 customers in Croatia as of year-end 2015.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii) | In September 2015, acquired 100% of Bultel Cable Bulgaria EAD (Blizoo Bulgaria). Blizoo Bulgaria is the second largest fixed-line operator in Bulgaria and holds an 8% share in the fixed broadband
market and an 11% share in the TV market. Blizoo Bulgaria currently has approximately 378,000 subscribers, which obtain fixed voice, broadband and TV products via DOCSIS 3 technology. In total Blizoo Bulgaria has network coverage of 1.3 million
households.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The acquired companies were consolidated beginning October 2015. The amount paid was Ps. 2,864,968, net of cash, and the
goodwill recognized as part of these acquisitions was Ps. 711,723. The identified goodwill has been allocated to the Europe segment. The goodwill recognized is not deductible for income tax purposes.



| | 3) | During 2015, the Company acquired throughout its Mexican and Brazil subsidiaries other entities for which paid Ps.119,704, net of cash.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------



| | 4) | The Company acquired an additional non-controlling interest in its Mexican and Brazil entities for an amount of Ps.1,031,049.
| | -- | -----------------------------------------------------------------------------------------------------------------------------

Acquisitions and sale  2016

a) In January 2016, in
order to expand and strengthen its operations in Brazil, the Company through its Brazilian subsidiary, acquired a controlling interest of 99.99% in Brazil Telecomunicações S.A. (BRTel), a company operating in the market for
Pay TV, Internet and broadband services and serving various municipalities of Brazil under the BLUE brand. The amount paid for the business acquisition was Ps. 1,088,668, net of acquired cash. The goodwill recognized amounted to Ps. 1,046,253.



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b) In May 2016, the Company acquired an additional non-controlling
interest of 1.8% of Tracfone Wireless Inc. thereby obtaining 100% of its capital stock. The amount paid was Ps. 2,300,553 (US$ 124,673). This transaction was recorded as an equity transaction, that is, no gain or loss was recognized.

c) In May 2016, the Company through his subsidiary, América Móvil Perú, S.A.C. acquired 100% of the capital stock of Olo del Perú
S.A.C. (Olo), and TVS Wireless S.A.C. (TVS). Olo and TVS provide telecommunications services throughout Peru and hold radio spectrum in the 2.5 GHz band. The amount of the transaction was Ps. 1,854,379 (US$. 102,343) net of
acquired cash, and at the date of this financial statements the Company has paid Ps. 152,214 (US$ 7,554). The Company is in process to determine the fair value of the assets and liabilities of Olo and TVS. The goodwill
recognized amounted to Ps. 1,454,333.

d) Based on a 2014 shareholder agreement, the Company agreed to ensure a minimal free float of Telekom Austria
shares in the market. Consequently, in July 2016, the Company sold shares corresponding to 7.8% of the outstanding common stock of Telekom Austria AG. This sale reduced the overall shareholding of América Movil in Telekom Austria AG from
59.70% to 51.89%. Additionally, in August 2016, the Company sold 0.89% of the outstanding common stock of Telekom Austria AG. Following the successful completion of this transaction, AMXs stake was reduced to 51.0%. The amount of cash received
for these transactions was Ps. 6,323,336. As América Móvil still retains control over Telekom Austria AG, these transactions were recorded as equity transactions.

e) In September 2016, the Company, through his subsidiary Tracfone, acquired certain assets of T-Mobile, that
represented a business, which included the brands known as Walmart Mobile and Go Smart. These assets were acquired in order to expand the Companys distribution channels, add an incremental revenue stream, and assist in the growth of
subscribers. There was no cash exchanged in the acquisition. The goodwill recognized amounted to Ps. 1,251,464.

f) In November 2016, Telekom Austria
Group acquired 100% of the Belarusian fixed-line operator Atlant Telecom (Atlant) and its subsidiary TeleSet. After the acquisition, Atlant was renamed velcom ACS. Both companies are the leading privately owned fixed-line operators in Belarus
offering fixed-line broadband, IPTV and cable TV as well as a video and audio library. The acquisition of Atlant and TeleSet is a further step in Telekom Austria Groups convergence strategy. The final allocation of consideration transferred
will be determined once all necessary information regarding identifiable assets is available. The amount paid for the business acquisition was Ps. 582,931, net of acquired cash. The goodwill recognized amounted to Ps. 200,973.



|b) | Consolidated subsidiaries with non-controlling interests
|-- | --------------------------------------------------------

The
subsidiary that has a material non-controlling interest is Telekom Austria. Set out below is summarized financial information as of December 31, 2015 and 2016 for the
non-controlling interests of the TKAs consolidated financial statements. The amounts disclosed for this subsidiary are before inter-company eliminations and using the same accounting policies of
América Móvil.



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##### Table of Contents

Selected financial data from the statements of financial position



|                                                    |  |              |             |  |      |     |             | 
|--------------------------------------------------- |  | ------------ | ----------- |  | ---- | --- | ----------- | 
|                                                    |  | December 31, |            
|                                                    |  | 2015         |             |  | 2016 |    
|Assets:                                             |  |              |             |  |      |     |             | 
|Current assets                                      |  | Ps.          | 34,621,840  |  |      | Ps. | 31,371,809  | 
|Non-current assets                                  |  |              | 127,544,176 |  |      |     | 143,708,470 | 
|                                                    |  |              |             |  |      |     |             | 
|Total assets                                        |  | Ps.          | 162,166,016 |  |      | Ps. | 175,080,279 | 
|                                                    |  |              |             |  |      |     |             | 
|Liabilities and equity:                             |  |              |             |  |      |     |             | 
|Current liabilities                                 |  | Ps.          | 43,643,550  |  |      | Ps. | 40,961,299  | 
|Non-current liabilities                             |  |              | 78,038,244  |  |      |     | 80,966,903  | 
|                                                    |  |              |             |  |      |     |             | 
|Total liabilities                                   |  |              | 121,681,794 |  |      |     | 121,928,202 | 
|Equity attributable to equity holders of the parent |  |              | 17,113,774  |  |      |     | 23,527,370  | 
|Non-controlling interest (1)                        |  |              | 23,370,448  |  |      |     | 29,624,707  | 
|                                                    |  |              |             |  |      |     |             | 
|Total equity                                        |  | Ps.          | 40,484,222  |  |      | Ps. | 53,152,077  | 
|                                                    |  |              |             |  |      |     |             | 
|Total liabilities and equity                        |  | Ps.          | 162,166,016 |  |      | Ps. | 175,080,279 | 
|                                                    |  |              |             |  |      |     |             | 



|(1) | Includes Ps. 13,715,747, for the undated subordinated fixed rate bond (see Note 19).
|--- | ------------------------------------------------------------------------------------

Summarized statements of comprehensive income



|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|------------------------------------- |  | ------------------------------- | ---------- |  | ---- | --- | ---------- | ---- |  | --- | ---------- | 
|                                      |  | For the year ended December 31, |           
|                                      |  | 2014                            |            |  | 2015 |     |            | 2016 | 
|Operating revenues                    |  | Ps.                             | 37,392,067 |  |      | Ps. | 73,159,960 |      |  | Ps. | 85,185,177 | 
|Operating costs and expenses          |  |                                 | 33,526,607 |  |      |     | 66,913,434 |      |  |     | 81,590,233 | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|Operating income                      |  |                                 | 3,865,460  |  |      |     | 6,246,526  |      |  |     | 3,594,944  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|Net income                            |  |                                 | 2,358,676  |  |      |     | 6,157,758  |      |  |     | 7,065,770  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|Total comprehensive income            |  | Ps.                             | 1,747,203  |  |      | Ps. | 4,968,909  |      |  | Ps. | 8,450,837  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|Net income attributable to:           |  |                                 |            |  |      |     |            |      |  |     |            | 
|Equity holders of the parent          |  | Ps.                             | 1,246,451  |  |      | Ps. | 3,674,886  |      |  | Ps. | 3,241,556  | 
|Non-controlling interest              |  |                                 | 1,112,225  |  |      |     | 2,482,872  |      |  |     | 3,824,214  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|                                      |  | Ps.                             | 2,358,676  |  |      | Ps. | 6,157,758  |      |  | Ps. | 7,065,770  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|Comprehensive income attributable to: |  |                                 |            |  |      |     |            |      |  |     |            | 
|Equity holders of the parent          |  | Ps.                             | 1,043,080  |  |      | Ps. | 2,967,698  |      |  | Ps. | 4,311,801  | 
|Non-controlling interest              |  |                                 | 704,123    |  |      |     | 2,001,211  |      |  |     | 4,139,036  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 
|                                      |  | Ps.                             | 1,747,203  |  |      | Ps. | 4,968,909  |      |  | Ps. | 8,450,837  | 
|                                      |  |                                 |            |  |      |     |            |      |  |     |            | 



|c) | Tower operations and other passive infrastructure in Mexico (spin-off)
|-- | ----------------------------------------------------------------------

In October 2015, following the approval of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, or IFT) and
confirmation by the Mexican Tax Administration Service (Servicio de Administración Tributaria) of its tax implications. The Company completed the spin-off process of Telesites, S.A.B. de C.V.
(Telesites), its telecom towers located in Mexico, which had been approved by an extraordinary meeting of shareholders held in April 2015. The National Securities and Banking Commission (Comisión Nacional Bancaria y de Valores)
authorized the registration of the shares of Telesites in December 2015, and the Company concluded the listing process on December 21, 2015.

As of
the date of the spin-off, the assets and liabilities of Telesites no longer appear on the Companys consolidated statement of financial position, and the Company transferred to Telesites as part of the spin-off



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Ps. 4,937,752 in property, plant and equipment, Ps. 21,000,000 in debt and other net liabilities of Ps. 96,392 resulting in a net gain of Ps. 16,158,640 recognized directly in equity. In
December, 2015 Telesites repaid to the Company the debt amounting Ps. 21,000,000.

The Company has entered into lease agreements for the use of tower
space from Telesites, a related party. Lease terms are for five years, with options for renewal for five more years.



|13. | Income Taxes
|--- | ------------

As explained previously in these consolidated financial statements, the Company is a
Mexican corporation which has numerous consolidated subsidiaries operating throughout the world. Presented below is a discussion of income tax matters that relates to the Companys consolidated operations, its Mexican operations and significant
foreign operations.



|i) | Consolidated income tax matters
|-- | -------------------------------

The composition of income tax expense for the years ended
December 31, 2014, 2015 and 2016 is as follows:



|                        |  |      |            |   |      |     |             |      |  |     |             |  
|----------------------- |  | ---- | ---------- | - | ---- | --- | ----------- | ---- |  | --- | ----------- | -
|                        |  | 2014 |            |   | 2015 |     |             | 2016 | 
|In Mexico:              |  |      |            |   |      |     |             |      |  |     |             |  
|Current year income tax |  | Ps.  | 26,891,333 |   |      | Ps. | 17,156,638  |      |  | Ps. | 14,316,005  |  
|Deferred income tax     |  |      | 304,231    |   |      |     | (4,095,128  | )    |  |     | (12,086,232 | )
|Foreign:                |  |      |            |   |      |     |             |      |  |     |             |  
|Current year income tax |  |      | 18,212,915 |   |      |     | 17,775,360  |      |  |     | 15,367,903  |  
|Deferred income tax     |  |      | (5,700,930 | ) |      |     | (11,657,219 | )    |  |     | (6,198,820  | )
|                        |  |      |            |   |      |     |             |      |  |     |             |  
|                        |  | Ps.  | 39,707,549 |   |      | Ps. | 19,179,651  |      |  | Ps. | 11,398,856  |  
|                        |  |      |            |   |      |     |             |      |  |     |             |  

Deferred tax related to items recognized in OCI during the year:



|                                                              |  |      |                |   |      |  |                 |      |  |     |            |  
|------------------------------------------------------------- |  | ---- | -------------- | - | ---- |  | --------------- | ---- |  | --- | ---------- | -
|                                                              |  | 2014 |                |   | 2015 |  |                 | 2016 | 
|Remeasurement of defined benefit plans                        |  |      | Ps. (1,650,959 | ) |      |  | Ps.   7,786,292 |      |  | Ps. | (7,734,732 | )
|Effect of financial instruments acquired for hedging purposes |  |      | 23,267         |   |      |  | (16,069         | )    |  |     | (21,046    | )
|Available for sale securities                                 |  |      |               |   |      |  | 169,529         |      |  |     | 2,858,452  |  
|Other                                                         |  |      | 278,776        |   |      |  | (4,019          | )    |  |     | 136,879    |  
|                                                              |  |      |                |   |      |  |                 |      |  |     |            |  
|Deferred tax charged to OCI                                   |  |      | Ps.(1,348,916  | ) |      |  | Ps.   7,935,733 |      |  | Ps. | (4,760,447 | )
|                                                              |  |      |                |   |      |  |                 |      |  |     |            |  



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##### Table of Contents

A reconciliation of the statutory income tax rate in Mexico to the consolidated effective income tax rate
recognized by the Company is as follows:



|                                                                 |  |                         |       |   |      |  |       |      |  |  |        |  
|---------------------------------------------------------------- |  | ----------------------- | ----- | - | ---- |  | ----- | ---- |  |  | ------ | -
|                                                                 |  | Year ended December 31, |      
|                                                                 |  | 2014                    |       |   | 2015 |  |       | 2016 | 
|Statutory income tax rate in Mexico                              |  |                         | 30.0% |   |      |  | 30.0% |      |  |  | 30.0%  |  
|Impact of non-deductible and non-taxable items:                  |  |                         |       |   |      |  |       |      |  |  |        |  
|Tax inflation effects                                            |  |                         | 6.0%  |   |      |  | 6.2%  |      |  |  | 15.9%  |  
|Derivatives                                                      |  |                         |      |   |      |  | 0.5%  |      |  |  | 8.0%   |  
|Employee benefits                                                |  |                         | 1.5%  |   |      |  | 1.7%  |      |  |  | 4.4%   |  
|Operations of foreign subsidiaries                               |  |                         | (0.9% | ) |      |  |      |      |  |  |       |  
|Other                                                            |  |                         | (0.8% | ) |      |  | (0.1% | )    |  |  | 9.8%   |  
|                                                                 |  |                         |       |   |      |  |       |      |  |  |        |  
|Effective tax rate on Mexican operations                         |  |                         | 35.8% |   |      |  | 38.3% |      |  |  | 68.1%  |  
|Change in estimated realization of deferred tax assets in Brazil |  |                         | 0.2%  |   |      |  |      |      |  |  |       |  
|Use of tax credits in Brazil                                     |  |                         | (0.1% | ) |      |  | 0.4%  |      |  |  | (0.6%  | )
|Equity interest in net loss of associated companies              |  |                         | 2.1%  |   |      |  | 0.8%  |      |  |  | (0.2%  | )
|Loss (gain) on derecognition of equity method investment         |  |                         | 1.1%  |   |      |  | (6.4% | )    |  |  |       |  
|Loss on partial sale of investment in associated company         |  |                         | 1.9%  |   |      |  |      |      |  |  |       |  
|Dividends received from associates                               |  |                         | (0.1% | ) |      |  | (0.9% | )    |  |  | (7.9%  | )
|Foreign subsidiaries and other items non-deductible,
net         |  |                         | 4.6%  |   |      |  | 2.0%  |      |  |  | (10.8% | )
|                                                                 |  |                         |       |   |      |  |       |      |  |  |        |  
|Effective tax rate                                               |  |                         | 45.5% |   |      |  | 34.2% |      |  |  | 48.6%  |  
|                                                                 |  |                         |       |   |      |  |       |      |  |  |        |  

An analysis of temporary differences giving rise to the net deferred tax liability is as follows:



|                                                          |  |                                              |             |           |                                                |     |            |            |  |     |            |            |  |      |            |   |  |     |            |  
|--------------------------------------------------------- |  | -------------------------------------------- | ----------- | --------- | ---------------------------------------------- | --- | ---------- | ---------- |  | --- | ---------- | ---------- |  | ---- | ---------- | - |  | --- | ---------- | -
|                                                          |  | Consolidated statement of financial position |             |           | Consolidated statement of comprehensive income |    
|                                                          |  | 2015                                         |             |           | 2016                                           |     |            | 2014       |  |     | 2015       |            |  | 2016 |           
|Provisions                                                |  | Ps.                                          | 19,637,868  |           |                                                | Ps. | 25,850,131 |            |  | Ps. | (2,556,720 | )          |  | Ps.  | (126,330   | ) |  | Ps. | 1,622,132  |  
|Deferred revenues                                         |  |                                              | 8,234,540   |           |                                                |     | 8,222,412  |            |  |     | 1,146,039  |            |  |      | 1,065,242  |   |  |     | (12,128    | )
|Tax losses carry forward                                  |  |                                              | 19,271,677  |           |                                                |     | 38,208,079 |            |  |     | 1,378,615  |            |  |      | (1,222,172 | ) |  |     | 12,706,245 |  
|Property, plant and equipment                             |  |                                              | (12,302,621 | )         |                                                |     | (9,716,615 | )          |  |     | 2,805,277  |            |  |      | 7,110,085  |   |  |     | 2,445,783  |  
|Inventories                                               |  |                                              | 1,752,310   |           |                                                |     | 1,522,739  |            |  |     | (769,095   | )          |  |      | (1,527,453 | ) |  |     | (229,571   | )
|Licenses and rights of use                                |  |                                              | (2,525,550  | )         |                                                |     | (2,530,747 | )          |  |     | 136,034    |            |  |      | 2,548,353  |   |  |     | 54,182     |  
|Employee benefits                                         |  |                                              | 30,612,286  |           |                                                |     | 28,243,207 |            |  |     | 3,263,517  |            |  |      | 2,614,932  |   |  |     | 3,616,952  |  
|Other                                                     |  |                                              | 5,136,637   |           |                                                |     | 8,790,612  |            |  |     | (6,967     | )          |  |      | 5,289,690  |   |  |     | (1,918,543 | )
|                                                          |  |                                              |             |           |                                                |     |            |            |  |     |            |            |  |      |            |   |  |     |            |  
|Net deferred tax assets/(liabilities)                     |  | Ps.                                          | 69,817,147  |           |                                                | Ps. | 98,589,818 |            |  |     |            |            |  |      |            |   |  |     |            |  
|                                                          |  |                                              |             |           |                                                |     |            |            |  |     |            |            |  |      |            |   |  |     |            |  
|Deferred tax expense/(benefit) in net profit for the year |  |                                              | Ps.         | 5,396,700 |                                                |     | Ps.        | 15,752,347 |  |     | Ps.        | 18,285,052 | 
|                                                          |  |                                              |             |           |                                                |     |            |            |  |     |            |            |  |      |            |   |  |     |            |  



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##### Table of Contents

Reconciliation of deferred tax assets and liabilities, net:



|                                                                                    |  |      |             |   |      |     |             |      |  |     |             |  
|----------------------------------------------------------------------------------- |  | ---- | ----------- | - | ---- | --- | ----------- | ---- |  | --- | ----------- | -
|                                                                                    |  | 2014 |             |   | 2015 |     |             | 2016 | 
|Opening balance as of January 1,                                                    |  | Ps.  | 52,504,635  |   |      | Ps. | 52,310,097  |      |  | Ps. | 69,817,147  |  
|Deferred tax benefit and effect of changes in tax rate recognized in profit or loss |  |      | 5,396,700   |   |      |     | 15,752,347  |      |  |     | 18,285,052  |  
|Effect of translation                                                               |  |      | (95,599     | ) |      |     | (6,259,252  | )    |  |     | 15,273,228  |  
|Benefit for tax credits in Brazil                                                   |  |      | 1,138,742   |   |      |     |            |      |  |     |            |  
|Deferred tax benefit (expense) recognized in OCI                                    |  |      | (1,348,916  | ) |      |     | 7,935,732   |      |  |     | (4,760,447  | )
|Deferred taxes acquired in business combinations                                    |  |      | (5,285,465  | ) |      |     | 78,223      |      |  |     | (25,162     | )
|                                                                                    |  |      |             |   |      |     |             |      |  |     |             |  
|Closing balance as of December 31,                                                  |  | Ps.  | 52,310,097  |   |      | Ps. | 69,817,147  |      |  | Ps. | 98,589,818  |  
|                                                                                    |  |      |             |   |      |     |             |      |  |     |             |  
|Presented in the consolidated statements of financial position as follows:          |  |      |             |   |      |     |             |      |  |     |             |  
|Deferred income tax assets                                                          |  | Ps.  | 66,500,539  |   |      | Ps. | 81,407,012  |      |  | Ps. | 112,651,699 |  
|Deferred income tax liabilities                                                     |  |      | (14,190,442 | ) |      |     | (11,589,865 | )    |  |     | (14,061,881 | )
|                                                                                    |  |      |             |   |      |     |             |      |  |     |             |  
|                                                                                    |  | Ps.  | 52,310,097  |   |      | Ps. | 69,817,147  |      |  | Ps. | 98,589,818  |  
|                                                                                    |  |      |             |   |      |     |             |      |  |     |             |  

The deferred tax assets are in tax jurisdictions in which the Company considers that based on financial projections of its
cash flows, results of operations and synergies between subsidiaries, will generate sufficient taxable income in subsequent periods to utilize/realize such assets.

The Company does not recognize a deferred tax liability related to the undistributed earnings of its subsidiaries, because it currently does not expect these
earnings to be taxable or to be repatriated in the near future. The Companys policy has been to distribute the profits when it has paid the corresponding taxes in its home jurisdiction and the tax can be accredited in Mexico.

At December 31, 2015 and 2016, the balance of the contributed capital account (CUCA) is Ps. 460,432,409 and Ps. 478,087,224, respectively. On
January 1, 2014, the CUFIN is computed on an América Móvils stand-alone basis. The balance of the América Móvils stand-alone basis amounted to Ps. 200,300,352 and Ps. 191,795,991 as of December 31,
2015 and 2016, respectively.

Optional Regime

The new
Income Tax Law establishes the optional regime for corporate groups to defer the remittance of the deferred income tax of the groups subsidiaries, under the terms and conditions established in Articles 59 to 71 of the MITL. In addition to the
above, the Company meets the requirements for adopting this regime in conformity with Article 60 of the MITL and accordingly, the Company filed its notice of incorporation into the optional regime under the terms and conditions published by the tax
authority on February 17, 2014. Also, in conformity with rule 1.3.22.8 of the Miscellaneous Tax Rules, the Company has declared its intention to take the option contained in such rule, which allows companies with unused tax losses at
December 31, 2013 to carry forward these losses under the new regime. At December 31, 2015 and 2016, the non-current income taxes amounted to Ps. 316,546 and Ps. 2,348,069, respectively.

Corporate tax rate

The income tax rate applicable in Mexico
from 2014 through 2016 was 30%.



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|ii) | Significant foreign income tax matters
|--- | --------------------------------------



| | a) | Results of operations
| | -- | ---------------------

The foreign subsidiaries determine their taxes on profits based on their
individual taxable income, in accordance with the specific tax regimes of each country.

The combined income before taxes and the combined provision for
taxes of such subsidiaries in 2014, 2015 and 2016 are as follows:



|                                                                                             |  |      |            |  |      |     |            |      |  |     |            | 
|-------------------------------------------------------------------------------------------- |  | ---- | ---------- |  | ---- | --- | ---------- | ---- |  | --- | ---------- | 
|                                                                                             |  | 2014 |            |  | 2015 |     |            | 2016 | 
|Combined income before taxes                                                                 |  | Ps.  | 13,256,266 |  |      | Ps. | 27,933,182 |      |  | Ps. | 45,697,258 | 
|Combined tax provision differences not deductible-not
cumulative in the foreign subsidiaries |  | Ps.  | 12,511,984 |  |      | Ps. | 6,118,142  |      |  | Ps. | 9,169,083  | 

The effective income tax rate for the Companys foreign jurisdiction was 94% in 2014, 22% in 2015 and 20% in 2016 as
shown in the table above. The statutory tax rates in these jurisdictions vary, although many approximate 22% to 40%. The primary difference between the statutory rates and the effective rates in 2014 was attributable to the loss on derecognition of
the equity method of Telekom Austria, the loss on partial sales of KPN shares and equity method recognized on KPN. The primary difference between the statutory rates and the effective rates in 2015 was attributable to the gain on derecognition of
the equity method investment in KPN. The primary difference between the statutory rates and the effective rates in 2016 was attributable to dividends received from associates and other non-deductible items.



|iii) | Tax losses
|---- | ----------



| | a) | At December 31, 2016, the available tax loss carryforwards recorded in deferred tax assets are as follows on a country by country basis:
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------



|              |  |                                                                |             |  |                              |  |               | 
|------------- |  | -------------------------------------------------------------- | ----------- |  | ---------------------------- |  | ------------- | 
|Country       |  | Balance of available taxloss carryforwards atDecember 31, 2016 |             |  | Tax loss carryforwardbenefit | 
|Brazil        |  | Ps.                                                            | 74,798,142  |  |                              |  | Ps.25,431,368 | 
|Mexico        |  |                                                                | 31,139,313  |  |                              |  | 9,341,794     | 
|Colombia      |  |                                                                | 85,497      |  |                              |  | 34,199        | 
|Peru          |  |                                                                | 419,687     |  |                              |  | 125,906       | 
|Austria       |  |                                                                | 13,095,184  |  |                              |  | 3,273,796     | 
|United States |  |                                                                | 2,673       |  |                              |  | 1,016         | 
|              |  |                                                                |             |  |                              |  |               | 
|Total         |  | Ps.                                                            | 119,540,496 |  |                              |  | Ps.38,208,079 | 
|              |  |                                                                |             |  |                              |  |               | 

b)The tax loss carryforwards in the different countries in which the Company operates have the following terms and
characteristics:

bi) The Company has accumulated Ps.74,798,142 in net operating loss carryforwards (NOLs) in Brazil as of
December 31, 2016. In Brazil there is no expiration of the NOLs. However, the NOL ́s amount used against taxable income in each year may not exceed 30% of the taxable income for such year. Consequently, in the year in which taxable
income is generated, the effective tax rate is 25% rather than the 34% corporate tax rate.

The Company believes that it is more likely than not that the
accumulated balances of its net deferred tax assets are recoverable, based on the positive evidence of the Company to generate taxable temporary differences related to the same taxation authority which will result in taxable amounts against which
the available tax losses can be utilized before they expire. Positive evidence includes the Companys recent merger in 2014 of its operations in Brazil, resulting in an organizational structure that is anticipated to be more efficient and
profitable.

bii) The Company has accumulated Ps. 31,139,313 in NOL ́s in Mexico as of December 31, 2016. In Mexico, the NOL ́s expire in
ten years on a stand-alone basis. The NOL ́s mainly relates to foreign currency exchange losses.



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biii) The Company has accumulated Ps. 13,095,184 in NOLs in Austria as of December 31, 2016. In
Austria, the NOL ́s have no expiration, but its annual usage is limited to 75% of the taxable income of the year.



|14. | Debt
|--- | ----

a)The Companys short- and long-term debt consists of the following:



|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|-------------------- |  | -------------------------------------- |  | --------------------------------- |  | -------- | ---- |  | ----- | --- | ----------- | 
|At December 31, 2015 | 
|Currency             |  | Loan                                   |  | Interest rate                     |  | Maturity |      |  | Total |    
|U.S. dollars         |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)            |  | 2.375% - 6.375%                   |  |          | 2042 |  |       | Ps. | 205,099,106 | 
|                     |  | Floating rates Senior notes (i)        |  | L + 1.0%                          |  |          | 2016 |  |       |     | 12,904,875  | 
|                     |  | Lines of credit (iii)                  |  | 1.5% - 8.0% and L + 0.20% - 0.28% |  |          | 2024 |  |       |     | 39,488,198  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal U.S. dollars                  |  |                                   |  |          |      |  |       | Ps. | 257,492,179 | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Mexican pesos        |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i) (ii)       |  | 6.00% - 9.00%                     |  |          | 2037 |  |       | Ps. | 81,782,648  | 
|                     |  | Floating rate Senior notes (i) (ii)    |  | TIIE + 1.25%%                     |  |          | 2016 |  |       |     | 2,000,000   | 
|                     |  | Lines of credit (iii)                  |  | TIIE + 0.05% - 1.00%              |  |          | 2016 |  |       |     | 2,632,549   | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal Mexican pesos                 |  |                                   |  |          |      |  |       | Ps. | 86,415,197  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Euros                |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)            |  | 1.00% - 6.375%                    |  |          | 2023 |  |       | Ps. | 209,987,492 | 
|                     |  | Lines of credit (iii)                  |  | 3.10% - 5.41%                     |  |          | 2019 |  |       |     | 7,316,507   | 
|                     |  | Series A and B Capital Securities
(iv) |  | 5.125% and 6.375%                 |  |          | 2073 |  |       |     | 27,090,086  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal Euros                         |  |                                   |  |          |      |  |       | Ps. | 244,394,085 | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Sterling Pounds      |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)            |  | 4.375% - 5.750%                   |  |          | 2041 |  |       | Ps. | 55,751,813  | 
|                     |  | Capital Securities (iv)                |  | 6.375%                            |  |          | 2073 |  |       |     | 13,937,953  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal Sterling pounds               |  |                                   |  |          |      |  |       | Ps. | 69,689,766  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Swiss francs         |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)            |  | 1.125% and 2.00%                  |  |          | 2018 |  |       | Ps. | 14,085,385  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal Swiss francs                  |  |                                   |  |          |      |  |       | Ps. | 14,085,385  | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Brazilian reals      |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Lines of credit (iii)                  |  | 3.00% - 9.50%                     |  |          | 2020 |  |       | Ps. | 2,752,089   | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal Brazilian reals               |  |                                   |  |          |      |  |       | Ps. | 2,752,089   | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Colombian pesos      |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)            |  | 7.59%                             |  |          | 2016 |  |       | Ps. | 2,458,485   | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal Colombian pesos               |  |                                   |  |          |      |  |       | Ps. | 2,458,485   | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|Other currencies     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)            |  | 1.53% - 3.96%                     |  |          | 2039 |  |       |     | 5,695,406   | 
|                     |  | Financial Leases                       |  | 5.05% - 8.97%                     |  |          | 2027 |  |       | Ps. | 234,152     | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Subtotal other currencies              |  |                                   |  |          |      |  |       |     | 5,929,558   | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Total debt                             |  |                                   |  |          |      |  |       | Ps. | 683,216,744 | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Less: Short-term debt and              |  |                                   |  |          |      |  |       |     |             | 
|                     |  | current portion of long-term debt      |  |                                   |  |          |      |  |       |     | 119,589,786 | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 
|                     |  | Long-term debt                         |  |                                   |  |          |      |  |       | Ps. | 563,626,958 | 
|                     |  |                                        |  |                                   |  |          |      |  |       |     |             | 



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|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|-------------------- |  | ----------------------------------------------------------- |  | --------------------------- |  | -------- | ---- |  | ----- | --- | ----------- | 
|At December 31, 2016 | 
|Currency             |  | Loan                                                        |  | Interest rate               |  | Maturity |      |  | Total |    
|U.S. dollars         |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)                                 |  | 3.125% - 6.375%             |  |          | 2042 |  |       | Ps. | 205,984,329 | 
|                     |  | Lines of credit (iii)                                       |  | 1.5% - 8.5%                 |  |          | 2019 |  |       |     | 14,929,806  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal U.S. dollars                                       |  |                             |  |          |      |  |       | Ps. | 220,914,135 | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|Mexican pesos        |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i) (ii)                            |  | 6.00% - 8.60%               |  |          | 2037 |  |       | Ps. | 72,415,602  | 
|                     |  | Lines of credit (iii)                                       |  | TIIE + 0.15% - TIIE + 2.00% |  |          | 2017 |  |       |     | 15,111,048  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal Mexican pesos                                      |  |                             |  |          |      |  |       | Ps. | 87,526,650  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|Euros                |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)                                 |  | 1.00% - 4.750%              |  |          | 2028 |  |       | Ps. | 270,240,624 | 
|                     |  | Series A and B Capital
Securities (iv)                      |  | 5.125% and 6.375%           |  |          | 2073 |  |       |     | 31,614,659  | 
|                     |  | Lines of credit (iii)                                       |  | 3.52%                       |  |          | 2018 |  |       |     | 491,144     | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal Euros                                              |  |                             |  |          |      |  |       | Ps. | 302,346,427 | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|Sterling Pounds      |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)                                 |  | 4.375% - 5.750%             |  |          | 2041 |  |       | Ps. | 56,281,605  | 
|                     |  | Capital Securities (iv)                                     |  | 6.375%                      |  |          | 2073 |  |       |     | 14,070,401  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal Sterling pounds                                    |  |                             |  |          |      |  |       | Ps. | 70,352,006  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|Swiss francs         |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)                                 |  | 1.125% and 2.00%            |  |          | 2018 |  |       | Ps. | 16,682,775  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal Swiss francs                                       |  |                             |  |          |      |  |       | Ps. | 16,682,775  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|Brazilian reals      |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Lines of credit (iii)                                       |  | 3.00% - 9.50%               |  |          | 2021 |  |       | Ps. | 3,467,091   | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal Brazilian reals                                    |  |                             |  |          |      |  |       | Ps. | 3,467,091   | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|Other currencies     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Fixed-rate Senior notes (i)                                 |  | 2.95% - 3.96%               |  |          | 2039 |  |       | Ps. | 6,386,086   | 
|                     |  | Financial Leases                                            |  | 8.70% - 8.97%               |  |          | 2027 |  |       |     | 126,233     | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Subtotal other currencies                                   |  |                             |  |          |      |  |       | Ps. | 6,512,319   | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Total debt                                                  |  |                             |  |          |      |  |       | Ps. | 707,801,403 | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Less: Short-term debt and current portion of long-term debt |  |                             |  |          |      |  |       |     | 82,607,259  | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 
|                     |  | Long-term debt                                              |  |                             |  |          |      |  |       | Ps. | 625,194,144 | 
|                     |  |                                                             |  |                             |  |          |      |  |       |     |             | 

L = LIBOR (London Interbank Offer Rate)

TIIE = Mexican Interbank Rate

EURIBOR = Euro Interbank Offered
Rate

Except for the fixed-rate notes, interest rates on the Companys debt are subject to variances in international and local rates. The
Companys weighted average cost of borrowed funds at December 31, 2015, and December 31, 2016 was approximately 4.2% for both periods.

Such rates do not include commissions or the reimbursements for Mexican tax withholdings (typically a tax rate of 4.9%) that the Company must pay to
international lenders.



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An analysis of the Companys short-term debt maturities as of December 31, 2015, and December 31,
2016, is as follows:



|                               |  |      |                  |  |      |  |                    | 
|------------------------------ |  | ---- | ---------------- |  | ---- |  | ------------------ | 
|                               |  | 2015 |                  |  | 2016 | 
|Domestic Senior Notes          |  |      | Ps.    2,000,000 |  |      |  | Ps.      2,000,000 | 
|International Senior Notes     |  |      | 75,878,612       |  |      |  | 50,955,191         | 
|Lines of credit                |  |      | 41,573,097       |  |      |  | 29,619,908         | 
|Financial Leases               |  |      | 138,077          |  |      |  | 32,160             | 
|                               |  |      |                  |  |      |  |                    | 
|Total                          |  |      | Ps.119,589,786   |  |      |  | Ps.    82,607,259  | 
|                               |  |      |                  |  |      |  |                    | 
|Weighted average interest rate |  |      | 3.5%             |  |      |  | 5.1%               | 
|                               |  |      |                  |  |      |  |                    | 

The Companys long-term debt maturities are as follows:



|                    |  |        |             | 
|------------------- |  | ------ | ----------- | 
|Years               |  | Amount |            
|2018                |  | Ps.    | 30,484,832  | 
|2019                |  |        | 57,266,310  | 
|2020                |  |        | 113,820,541 | 
|2021 and thereafter |  |        | 423,622,461 | 
|                    |  |        |             | 
|Total               |  | Ps.    | 625,194,144 | 
|                    |  |        |             | 

(i) Senior Notes

The
outstanding Senior Notes at December 31, 2015, and December 31, 2016, are as follows:



|                  |  |      |             |  |      |     |             | 
|----------------- |  | ---- | ----------- |  | ---- | --- | ----------- | 
|Currency*         |  | 2015 |             |  | 2016 |    
|U.S. dollars      |  | Ps.  | 218,003,981 |  |      | Ps. | 205,984,329 | 
|Mexican pesos     |  |      | 83,782,648  |  |      |     | 72,415,602  | 
|Euros**           |  |      | 209,987,492 |  |      |     | 270,240,624 | 
|Sterling pounds** |  |      | 55,751,813  |  |      |     | 56,281,605  | 
|Swiss francs      |  |      | 14,085,385  |  |      |     | 16,682,775  | 
|Japanese yens     |  |      | 2,590,564   |  |      |     | 2,306,643   | 
|Colombian pesos   |  |      | 2,458,485   |  |      |     |            | 
|Chilean pesos     |  |      | 3,104,842   |  |      |     | 4,079,443   | 



|* | Thousands of Mexican pesos
|- | --------------------------

|** | Includes secured and unsecured senior notes.
|-- | --------------------------------------------

In May 2015, the Company placed 5 year bonds for an amount of
EUR $3,000 million which may be exchanged for ordinary shares of KPN, at an exercise price of 4.9007, 45% higher than the reference price on the date of issuance. In December 31, 2015, the closing price of the stock of KPN was
3.4920. Given the terms of the bond, we have identified an embedded option with a fair value of EUR $86.1 million reflected as a liability within derivative financial instruments on the Consolidated Statement of Financial Position as of
December 31, 2016. Under the terms of the exchangeable bond agreement, none of the exchanged property (specifically, the KPN shares) has been or will be charged or otherwise placed in custody or set aside to secure or satisfy the Companys
obligations. At any time, the Company may or may not be the owner of the whole or any part of this property and may sell or otherwise dispose of the same or take any action or exercise any rights or options in respect of the same at any time.

In September 2015, the Company completed the placement of EUR $750 million principal amount of exchangeable bonds that will be mandatorily exchangeable
into ordinary shares of KPN at maturity. The bonds have a maturity of 3 years and will pay a coupon of 5.5% per year payable quarterly in arrears, as well as the



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corresponding cash dividends paid by KPN net of withholding taxes. The reference price of the KPN shares for its exchange was set at 3.3374 but could be as high as 4.2552 (reference
price plus 27.5%). As a result of the Companys mandatory exchangeable bond, the Company placed 224.7 million of ordinary shares of KPN in a trust in favor of the bond trustee and the bond holders. The aforementioned conditions allowed the
Company to derecognize a portion of its investment in shares in KPN corresponding to the 224.7 million of ordinary shares on its Consolidated Statement of Financial Position as of December 31, 2015.

The exchangeable bonds described above have provisions that will allow for their settlement in cash if AMX wishes to retain ownership of the shares.

In March 2016, AMX placed an international bond for a total amount of EUR $1,500 million divided in two tranches, the first one for EUR $850 million
with a coupon of 1.5% and maturity in 2024, and a second one for EUR $650 million with a coupon of 2.125% and maturity in 2028.

In December 2016,
Telekom Austria placed an international bond for a total amount of EUR 500 million with a coupon of 1.5% and maturity in 2026, issued to cover a bond amortization in January 2017.

(ii) Domestic Senior Notes

At December 31, 2015,
and December 31, 2016, debt under Domestic Senior Notes aggregated to Ps. $22,910.9 million and Ps. $21,043.9 million, respectively. In general these issues bear a fixed-rate or floating rate determined as a differential on the
TIIE rate.

(iii) Lines of credit

At
December 31, 2015, and December 31, 2016, debt under lines of credit aggregated to Ps. $52,189.3 million and Ps. $33,999.1 million, respectively.

The Company has two undrawn revolving syndicated facilities one for the Euro equivalent of U.S. $2,000 million and the other for
U.S. $2,500 million maturing in 2021 and 2019 respectively. These loans bear interest at variable rates based on LIBOR and EURIBOR. Telekom Austria has also an undrawn revolving syndicated facility in Euros for $1,000 million at a
variable rate based on EURIBOR.

(iv) Hybrid Notes

The Company issued three series of Capital Securities (hybrid notes) maturing in 2073: two series denominated in Euros for 1,450 million with a
coupon of 5.125% and 6.375% respectively, and one series denominated in sterling pounds in the amount of £550 million with a coupon of 6.375%. The Capital Securities are deeply subordinated, and when they were issued the principal rating
agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50.0% equity credit). The Capital Securities are subject to redemption at our option at
varying dates beginning in 2018 and 2023, respectively, for the euro-denominated series and beginning in 2020 for the sterling-denominated series.

Restrictions

A portion of the debt is subject to certain
restrictions with respect to maintaining certain financial ratios, as well as restrictions on selling a significant portion of groups of assets, among others. At December 31, 2016, the Company was in compliance with all these requirements.

A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of a change in control of the Company, as
defined in each instrument. The definition of change in control varies from instrument to instrument; however, no change in control shall be considered to have occurred as long as Carso Global Telecom or its current shareholders continue to hold the
majority of the Companys voting shares.



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Covenants

In conformity with the credit agreements, the Company is obliged to comply with certain financial and operating commitments. Such covenants limit in certain
cases, the ability of the Company or the guarantor to: pledge assets, carry out certain types of mergers, sell all or substantially all of its assets, and sell control of Telcel.

Such covenants do not restrict the ability of AMXs subsidiaries to pay dividends or other payment distributions to AMX. The more restrictive financial
covenants require the Company to maintain a consolidated ratio of debt to EBITDA (defined as operating income plus depreciation and amortization) that does not exceed 4 to 1, and a consolidated ratio of EBITDA to interest paid that is not below 2.5
to 1 (in accordance with the clauses included in the credit agreements).

Several of the financing instruments of the Company may be accelerated, at the
option of the debt holder in the case that a change in control occurs.

At December 31, 2016, the Company was in compliance with all the covenants.

15. Accounts Payable, Accrued Liabilities and Asset Retirement Obligations

a)The components of the caption accounts payable and accrued liabilities is as follows:



|                                |  |                 |                |  |      |  |                | 
|------------------------------- |  | --------------- | -------------- |  | ---- |  | -------------- | 
|                                |  | At December 31, |               
|                                |  | 2015            |                |  | 2016 | 
|Suppliers                       |  |                 | Ps.106,399,877 |  |      |  | Ps.132,796,101 | 
|Sundry creditors                |  |                 | 68,700,378     |  |      |  | 89,494,976     | 
|Interest payable                |  |                 | 9,810,698      |  |      |  | 9,971,959      | 
|Guarantee deposits from clients |  |                 | 1,424,428      |  |      |  | 1,258,065      | 
|Dividends payable               |  |                 | 3,603,000      |  |      |  | 3,744,025      | 
|                                |  |                 |                |  |      |  |                | 
|Total                           |  |                 | Ps.189,938,381 |  |      |  | Ps.237,265,126 | 
|                                |  |                 |                |  |      |  |                | 

b)The balance of accrued liabilities at December 31, 2015 and 2016, are as follows:



|                                 |  |                 |               |  |      |  |               | 
|-------------------------------- |  | --------------- | ------------- |  | ---- |  | ------------- | 
|                                 |  | At December 31, |              
|                                 |  | 2015            |               |  | 2016 | 
|Current liabilities              |  |                 |               |  |      |  |               | 
|Direct employee benefits payable |  |                 | Ps.17,632,137 |  |      |  | Ps.19,713,160 | 
|Contingencies                    |  |                 | 34,611,091    |  |      |  | 50,766,070    | 
|                                 |  |                 |               |  |      |  |               | 
|Total                            |  |                 | Ps.52,243,228 |  |      |  | Ps.70,479,230 | 
|                                 |  |                 |               |  |      |  |               | 

The movements in contingencies for the years ended December 31, 2015 and 2016 are as follows:



|              |  |                  |               |  |                     |  |           |                      |  |  |                     |  |  |              |               |  |            |  |                |                  |  |  |                |  |  |  |               | 
|------------- |  | ---------------- | ------------- |  | ------------------- |  | --------- | -------------------- |  |  | ------------------- |  |  | ------------ | ------------- |  | ---------- |  | -------------- | ---------------- |  |  | -------------- |  |  |  | ------------- | 
|              |  | Balance at       |               |  |                     |  |           |                      |  |  |                     |  |  | Applications |               |  | Balance at | 
|              |  | December 31,2014 |               |  | Businesscombination |  |           | Effect oftranslation |  |  | Increase ofthe year |  |  | Payments     |               |  | Reversals  |  |                | December 31,2015 | 
|Contingencies |  |                  | Ps.33,232,749 |  |                     |  | Ps.68,896 |                      |  |  | Ps.(3,951,150)      |  |  |              | Ps.11,414,777 |  |            |  | Ps.(3,643,533) |                  |  |  | Ps.(2,510,648) |  |  |  | Ps.34,611,091 | 
|              |  |                  |               |  |                     |  |           |                      |  |  |                     |  |  |              |               |  |            |  |                |                  |  |  |                |  |  |  |               | 



|              |  |                  |               |  |                     |  |           |                      |  |  |                     |  |  |              |               |  |            |  |                |                  |  |  |                |  |  |  |               | 
|------------- |  | ---------------- | ------------- |  | ------------------- |  | --------- | -------------------- |  |  | ------------------- |  |  | ------------ | ------------- |  | ---------- |  | -------------- | ---------------- |  |  | -------------- |  |  |  | ------------- | 
|              |  | Balance at       |               |  |                     |  |           |                      |  |  |                     |  |  | Applications |               |  | Balance at | 
|              |  | December 31,2015 |               |  | Businesscombination |  |           | Effect oftranslation |  |  | Increase ofthe year |  |  | Payments     |               |  | Reversals  |  |                | December 31,2016 | 
|Contingencies |  |                  | Ps.34,611,091 |  |                     |  | Ps.30,333 |                      |  |  | Ps.15,397,279       |  |  |              | Ps.12,199,311 |  |            |  | Ps.(8,959,551) |                  |  |  | Ps.(2,512,393) |  |  |  | Ps.50,766,070 | 
|              |  |                  |               |  |                     |  |           |                      |  |  |                     |  |  |              |               |  |            |  |                |                  |  |  |                |  |  |  |               | 



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Contingencies include tax, labor, regulatory and other legal type contingencies. See Note 16 c) for detail of
contingencies.

c)The movements in the asset retirement obligations for the years ended December 31, 2015 and 2016, are as follows:



|                             |  |                            |            |  |                      |     |           |                     |  |     |              |  |  |                            |          |   |  |     |            |   |  |     |            | 
|---------------------------- |  | -------------------------- | ---------- |  | -------------------- | --- | --------- | ------------------- |  | --- | ------------ |  |  | -------------------------- | -------- | - |  | --- | ---------- | - |  | --- | ---------- | 
|                             |  | Balance atDecember 31,2014 |            |  | Effect oftranslation |     |           | Increase ofthe year |  |     | Applications |  |  | Balance atDecember 31,2015 |         
|                             |  |                            |            |  | Payments             |     |           | Reversals           |  |    
|Asset retirement obligations |  | Ps.                        | 13,451,407 |  |                      | Ps. | (608,012  | )                   |  | Ps. | 1,356,088    |  |  | Ps.                        | (20,219  | ) |  | Ps. | (2,609,367 | ) |  | Ps. | 11,569,897 | 
|                             |  |                            |            |  |                      |     |           |                     |  |     |              |  |  |                            |          |   |  |     |            |   |  |     |            | 
|                             |  |                            |            |  |                     
|                             |  | Balance atDecember 31,2015 |            |  | Effect oftranslation |     |           | Increase ofthe year |  |     | Applications |  |  | Balance atDecember 31,2016 |         
|                             |  |                            |            |  | Payments             |     |           | Reversals           |  |    
|Asset retirement obligations |  | Ps.                        | 11,569,897 |  |                      | Ps. | 2,806,374 |                     |  | Ps. | 2,510,635    |  |  | Ps.                        | (121,317 | ) |  | Ps. | (476,958   | ) |  | Ps. | 16,288,631 | 
|                             |  |                            |            |  |                      |     |           |                     |  |     |              |  |  |                            |          |   |  |     |            |   |  |     |            | 

The discount rates used for the asset retirement obligation are based on market rates that are expected to be undertaken by
the dismantling or restoration of cell sites, and may include labor costs. Reversals for 2015 are primarily related to the Telesites spin-off, as described in further detail within Note 12.

16. Commitments and Contingencies

a) Leases

At December 31, 2015 and 2016, the Company has entered into several lease agreements with related parties and third parties for the buildings where its
offices are located (as a lessee), as well as with the owners of towers and or premises where the Company has installed radio bases. The lease agreements generally have terms from one to fourteen years.

An analysis of the minimum rental payments for the next five years is shown below. In some cases, rental amounts are increased each year based on the National
Consumer Price Index.

The Company has the following non-cancelable commitments under finance leases:



|                                            |  |  |           |  
|------------------------------------------- |  |  | --------- | -
|Year ended December 31,                     |  |  |          
|2017                                        |  |  | Ps.42,904 |  
|2018                                        |  |  | 42,904    |  
|2019                                        |  |  | 9,692     |  
|2020                                        |  |  | 9,692     |  
|2021                                        |  |  | 9,692     |  
|2022 and thereafter                         |  |  | 54,918    |  
|                                            |  |  |           |  
|Total                                       |  |  | 169,802   |  
|Less: amounts representing finance charges  |  |  | (43,569   | )
|                                            |  |  |           |  
|Present value of net minimum lease payments |  |  | 126,233   |  
|Less current portion                        |  |  | (76,979   | )
|                                            |  |  |           |  
|Long-term obligations                       |  |  | Ps.49,254 |  
|                                            |  |  |           |  



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An analysis of non-cancellable operating leases in the next five years is
as follows:



|                        |  |  |               | 
|----------------------- |  |  | ------------- | 
|Year ended December 31, |  |  |              
|2017                    |  |  | Ps.12,949,848 | 
|2018                    |  |  | 12,323,819    | 
|2019                    |  |  | 11,140,350    | 
|2020                    |  |  | 10,528,831    | 
|2021                    |  |  | 10,143,715    | 
|2022 and thereafter     |  |  | 42,068,717    | 
|                        |  |  |               | 
|Total                   |  |  | Ps.99,155,280 | 
|                        |  |  |               | 

Rent expense for the years ended December 31, 2014, 2015 and 2016 was Ps. 18,925,361, Ps. 22,015,761 and
Ps. 32,300,963, respectively.

b) Commitments

At December 31, 2016, there were commitments in certain subsidiaries for the acquisition of equipment for incorporation into their 4G networks for an
amount up to approximately Ps. 19,203,236 (US$ 926,287). The completion period of these projects depends upon the type of fixed assets under construction. In the case of telephone plant (switching transmission), it takes six months on average; for
others, it may take more than 2 years.

These commitments will be paid as follows:



|                 |  |  |               | 
|---------------- |  |  | ------------- | 
|Less than 1 year |  |  | Ps.17,359,726 | 
|1 to 3 years     |  |  | 1,843,510     | 
|                 |  |  |               | 
|Total            |  |  | Ps.19,203,236 | 
|                 |  |  |               | 

As of December 31, 2016, the Company has purchase commitments with telephone manufacturers for cellular phones for resale
for approximately Ps.7,027,945 (US$ 339,000), for delivery through March 2017.

In addition, the Company subsidiary Tracfone has entered into long-term
contracts with wireless carriers for the purchase of airtime minutes at current market prices. The purchase commitments are with two carriers and at December 31, 2016, are as follows:



|                        |  |  |               | 
|----------------------- |  |  | ------------- | 
|Year ended December 31, |  |  |              
|2017                    |  |  | Ps.31,097,100 | 
|2018                    |  |  | 18,658,260    | 
|2019                    |  |  | 18,658,260    | 
|2020                    |  |  | 18,658,260    | 
|                        |  |  |               | 
|Total                   |  |  | Ps.87,071,880 | 
|                        |  |  |               | 

c) Contingencies

I. MEXICO

a. América Móvil

Tax Assessment

In December 2014, the
Mexican Tax Administration Service (Servicio de Administración Tributaria,or SAT) notified the Company of a Ps.529,700 tax assessment related to the Companys tax return for the fiscal year



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ended December 31, 2005, and reduced the Companys consolidated tax loss for that year from Ps.8,556,000 to zero. The Company has challenged this assessment in federal tax court, and
the challenge is still pending. The Company has not established a provision in the accompanying consolidated financial statements for a loss arising from this assessment, which it does not consider probable.

ICSID (Additional Facility) Arbitration Proceedings

In August 2016, AMX initiated an arbitration claim against the Republic of Colombia (the ICSID Arbitration) on behalf of itself and its
subsidiary Comcel under the ICSID Additional Facility Rules pursuant to the investment chapter of the Mexico-Colombia Free Trade Agreement (the Mexico-Colombia FTA). The claim relates to certain measures adopted by Colombia since
August 2013, including the Colombian Constitutional Courts decision of 2013 holding that certain laws eliminating the reversion of telecommunication assets did not apply to concessions granted prior to 1998, among them, Comcels
concessions. As a result, the Ministry of Information Technology and Communications (Ministerio de Tecnologías de la Información y las Comunicaciones or ITC Ministry) refused to recognize Comcels
property rights over its assets following the termination of its concession contracts and decided that Comcel must pay a fee to rent those assets. Moreover, the ITC Ministry initiated an arbitration proceeding pursuant to the concession contracts
seeking the reversion of all assets related to those contracts. This has prevented Comcel from using or disposing of their assets freely. AMX has requested compensation on the basis of Colombias breach of the Mexico-Colombia FTA and other
international legal obligations. The parties are currently in the process of selecting the members who will comprise the arbitral tribunal.

The rights
and obligations involved in the ICSID Arbitration are separate from those involved in the local arbitration proceedings administered by the Bogotá Chamber of Commerce (Centro de Arbitraje y Conciliación de la Cámara de
Comercio de Bogotá). AMXs international claims do not affect Comcels right to defend against any legal actions initiated by the ITC Ministry or any other government entity pursuant to Colombian law.

b. Telcel

Tax Assessment related to Short Message
Service Revenues

In 2014, the SAT notified Telcel of a Ps.320,000 tax assessment for alleged nonpayment of revenues generated by short message
services (SMS) during 2004 and 2005. The SAT claims that Telcel owed such amounts because SMS constitute services under Telcels concession. Telcel challenged SATs claim on the grounds that SMS are value-added services
which are not under concession. In 2015, both claims were unfavorably resolved by the judicial authorities, and in 2016, Telcel paid both assessments, which were accrued in previous years.

Monopolistic Practices Investigations

In June
2015, the IFT issued a resolution declaring that Telcel had complied with all of the undertakings that had been proposed by IFTs predecessor, Cofeco, in connection with Cofecos investigations into Telcels alleged relative
monopolistic practices and the revocation of a related fine imposed by Cofeco in May 2012. Six operators challenged the conclusion of the investigations and the revocation of the fine. All of those proceedings were resolved on terms favorable
to Telcel between 2013 and 2015. However, the resolution to a civil proceeding filed by one of these operators alleging damages arising from the IFTs revocation of the fine and Telcels undertakings is still pending.

In March 2016, the IFT resolved a related investigation of Telcels alleged relative monopolistic practices on terms favorable to Telcel, due
to the fact that the alleged monopolistic practices had been taken into consideration by Cofeco in connection with previous investigations proceedings. This resolution was challenged by the operator that initially filed the claim, which also claims
that such alleged monopolistic behavior was unlawfully being repeated (incidente de repetición de acto reclamado). A final resolution to these proceedings is still pending.



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Mobile Termination Rates

The mobile termination rates between Telcel and other operators have been the subject of various legal proceedings, including the following:



| |  |  | One proceeding (desacuerdo de interconexión) for the years 2009 and 2010filed with Cofetel by an operator is still pending resolution by the IFT.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In connection with certain proceedings (desacuerdos de interconexión)originally filed with Cofetel by several operators, including Telcel, requesting that the regulator set mobile termination rates
and other interconnection conditions for the years 2011 through 2017, the IFT set the applicable rates for 2012 through 2016, while the applicable rates for 2011 were previously set by Cofetel. The applicable rates set by the IFT were challenged by
several operators, including Telcel. As of the date of this report, only the proceedings related to the applicable rates for 2011 and 2012 have been resolved, confirming the rates previously set by the IFT. However, given that under the new
regulatory framework the IFTs determinations are not suspended pending the resolution of the legal challenges against them, Telcel has applied the rates originally determined by IFT.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Telcel has challenged all resolutions under the current regulatory framework imposing asymmetric interconnection rates. These challenges are still pending.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, the Company expects that mobile termination rates, as well as other rates applicable to mobile interconnection (such as transit), will continue
to be the subject of litigation and administrative proceedings in Mexico. The Company cannot predict when or how these matters will be resolved or the financial effects of any such resolution. As of December 31, 2016, the Company has a
provision of approximately Ps.494,488 in the accompanying consolidated financial statements to cover the losses considered probable.

Class Action Lawsuits

The Federal Consumer
Bureau (Procuraduría Federal del Consumidor, or Profeco) initiated a proceeding before Mexican courts in 2011 on behalf of customers who alleged deficiencies in the quality of Telcels network in 2010 and breach
of customer agreements. This proceeding is still pending and if resolved in favor of Profeco, Telcels customers would be entitled to compensation for damages.

Telcel was also subject to four class actions lawsuits initiated by customers allegedly affected by Telcels quality of service and wireless and
broadband rates. One of the lawsuits, filed in Mexico City, was recently dismissed with prejudice because the plaintiffs had filed two practically identical lawsuits, leaving three class action lawsuits that are still pending.

The Company does not currently have enough information on these proceedings to determine whether any of the remaining three class action lawsuits could have
an adverse effect on the Companys business and results of operations in the event that they are resolved against Telcel. Consequently, the Company has not established a provision in the accompanying consolidated financial statements for a loss
arising from these proceedings.

c. Telmex and Telnor

Monopolistic Practices Investigations

Since 2007,
Cofeco initiated three investigations into alleged monopolistic practices of Telmex and Telnor. Two of the investigations have been concluded by the payment of penalties following appeals. One of these investigations is still pending.

IFT Proceedings Against Telmex

In November 2008,
Telmex entered into certain commercial agreements with Dish México Holdings, S. de R.L. de C.V. and its related companies (Dish), involving billing, collection services, distribution and equipment



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leasing. In addition, Telmex had an option that allowed it to purchase shares representing 51% of the capital stock of Dish México, S. de R.L. de C.V. (Dish
México). In July 2014, Telmex waived its rights under such option.

In January 2015, the IFT imposed a fine on Telmex for an amount of
Ps.14,414 on the grounds that an alleged merger (concentración) took placebetween Telmex and Dish in November 2008 and was not disclosed. Telmex filed an appeal for relief against this resolution and the case is pending. The
Company cannot predict the outcome of such proceedings.

In August 2015, the IFT initiated several proceedings in order to determine potential violations
of: (i) Telmexs concession, with respect to an alleged direct or indirect exploitation of a public television services concession in the country and (ii) certain provisions of the Mexican Constitution (Constitución
Política de los Estados Unidos Mexicanos)and the Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión)regarding the cost-free rule of re-transmission of television broadcast signals (commonly known as must offer), through other operators.

In
June 2016, the IFT determined that the internet service known as Uno TV and its access through Telmexs network do not breach the prohibition to distribute television signals established under Telmexs concession.

d. CGTEL, S.A.P.I. de C.V. (formerly Carso Global Telecom, S.A. de C.V.)

Tax Assessment

In November 2010, the SAT notified
the Companys subsidiary, CGTEL, S.A.P.I. de C.V. (formerly Carso Global Telecom, S.A. de C.V., CGT), of a Ps.3,392,000 tax assessment related to the change in the scope of the tax consolidation for the fiscal year ended
December 31, 2005. The SAT alleges that this change generated a reduction in the participation of CGT in its subsidiaries, resulting in increased income taxes. In 2016, CGT obtained a favorable judicial decision that resulted in the elimination
of the tax assessment previously determined by the SAT.

e. America Central Tel

Tax Assessment

In August 2016, the SAT notified
the Companys subsidiary ACT of a tax assessment of approximately Ps 1,244,000, for alleged tax improprieties for the fiscal year ended December 31, 2008. The SAT alleged that certain taxes paid by ACT in Guatemala in relation to
dividends received in Mexico could not be applied as tax credits for income tax purposes in Mexico. ACT has challenged the SATs assessment before the federal tax court and a resolution is still pending. The Company has not established a
provision in the accompanying consolidated financial statements for a loss arising from this assessment, which the Company does not consider probable.

f. Sercotel

Tax Assessment

In March 2012, the SAT notified the Company and its subsidiary Sercotel, S.A. de C.V. (Sercotel) of a fine of approximately Ps.1,400,000 for
alleged tax improprieties arising from the transfer of certain accounts receivable from one of the Companys other subsidiaries to Sercotel. In July 2014, the Company challenged the fine before the federal tax court, and the challenge is still
pending. The Company also expects the SAT to issue an additional tax assessment of Ps.2,750,000 in connection with this matter. The Company has not established a provision in the accompanying consolidated financial statements for a loss arising from
this fine, which the Company does not consider probable.



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II. BRAZIL

Following the merger in 2014 of the Companys subsidiaries Empresa Brasileira de Telecomunicações S.A. (Embratel),
Embratel Participações S.A. (Embrapar) and Net Serviços de Comunicação S.A. (Net Serviços) into Claro S.A. (Claro Brasil), Claro Brasil became the
legal successor of Embratel, Embrapar and Net Serviços.

a. Tax Matters

The principal tax imposed on telecommunications services is a state-level value-added tax (Imposto sobre Operações relativas à
Circulação de Mercadorias e sobre Prestações de Serviços de Transporte Interestadual e Intermunicipal e de Comunicação, or ICMS). Each Brazilian state imposes its own tax rate
on gross revenues derived from telecommunications services, which varies from state to state and averages 26% nationwide.

Corporate income tax
(Imposto Sobre Renda de Pessoa Jurídica, or IRPJ), is applied at a rate of 25%. The social contribution on net income (Contribuição Social Sobre o Lucro Líquido, or
CSLL) is applied at a rate of 9% and subject to calculation and payment rules similar to those applicable to IRPJ.

Withholding tax
(Imposto de Renda Retido na Fonte, or IRRF), is a modality of federal tax over taxable income that applies, among other types of income, to labor and capital income, remittances abroad and remuneration of services provided
by legal entities. There are several IRRF rates, each according to the specific activity which generated the earnings.

The principal federal taxes
collected on gross revenues include:



| |  |  | The social integration program (Programa de Integração Social, or PIS). PIS contributions are applied at a rate of 0.65% on gross revenues derived from telecommunications services
in the cumulative method and at a rate of 1.65% in the non-cumulative method.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The contribution for social security financing (Contribuição para Financiamento da Seguridade Social, or COFINS). COFINS contributions are applied at a rate of 3.0% on gross
revenues derived from telecommunications services in the cumulative method and at a rate of 7.60% in the non-cumulative method.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The principal taxes collected on net revenues include:



| |  |  | The universalization fund of telecommunications services (Fundo de Universalização dos Serviços de Telecomunicações, or FUST), and the telecommunications
technologic development fund (Fundo para o Desenvolvimento Tecnológico das Telecomunicações, or FUNTTEL). These taxes are applied at a rate of 1% and 0.5%, respectively.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The telecommunications inspection fund (Fundo de Fiscalização das Telecomunicações, or FISTEL). The taxes charged to raise this fund aim to provide resources to
cover inspection expenditures of telecommunication equipment.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ICMS

As of December 31, 2016, the Companys Brazilian subsidiaries Claro Brasil, Star One S.A. (Star One), Primesys
Soluções Empresariais S.A. (Primesys), Telmex Do Brasil Ltda. (TdB), Americel S.A. (Americel), Brasil Telecomunicações S.A. (BrTel) and TVSAT
Telecomunicações S.A. (TV SAT), had aggregate tax contingencies related to ICMS of approximately Ps.64,405,948 (R$10,125 million). As of December 31, 2016, the Company has established a provision of Ps.3,517,678
(R$553 million) in the accompanying consolidated financial statements for the losses arising from these contingencies that the Company considers probable. Such ICMS contingencies include:



| |  |  | Tax assessments against Star One in the amount of Ps.23,618,695 (R$3,713 million) based on allegations that the
provision of satellite capacity by Star One is subject to ICMS. The Company is
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | contesting these tax assessments in separate proceedings at different litigation stages and has obtained favorable judicial decisions in two proceedings. The Company has not established a
provision in the accompanying consolidated financial statements to cover losses arising from these assessments, which the Company does not consider probable.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Tax assessments against Claro Brasil and Americel in the amount of Ps.6,933,579 (R$1,090 million), due to a decision holding unconstitutional certain benefits granted by the Brazilian states. The Company has not
established a provision in the accompanying consolidated financial statements to cover losses arising from these assessments, which the Company does not consider probable.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A tax assessment against Primesys in the amount of Ps.4,535,451 (R$713 million), related to ICMS over certain activities not deemed as part of data communication services. The Company has not established a provision in
the accompanying consolidated financial statements to cover losses arising from this assessment, which the Company does not consider probable.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

CSLL/IRPJ

As of December 31, 2016, Claro
Brasil, Americel, BrTel and Star One had aggregate tax contingencies related to CSLL, IRPJ and the non-delivery of certain tax files in an amount of Ps.25,565,186 (R$4,019 million). As of December 31,
2016, the Company has established a provision of Ps.3,212,346 (R$505 million) in the accompanying consolidated financial statements for the losses arising from these contingencies that the Company considers probable.

The aforementioned CSLL/IRPJ contingencies include a tax assessment against Claro Brasil in the amount of Ps.12,365,942 (R$1,944 million) alleging the undue
amortization of goodwill amounts between 2009 and 2012, and charging CSLL, IRPJ and penalties due to the late payment of taxes. Claro Brasil has challenged this assessment at the administrative level and the challenge is still pending. The Company
has not established a provision in the accompanying consolidated financial statements to cover losses arising from this assessment, which the Company does not consider probable.

PIS/COFINS

As of December 31, 2016, Claro
Brasil, Americel, Star One, TdB and Brasil Center Comunicações Ltda. (Brasil Center) had aggregate tax assessments related to PIS and COFINS in the amount of Ps.32,651,430 (R$5,133 million). As of December 31,
2016, the Company has established a provision of Ps.16,303,451 (R$2,563 million) in the accompanying consolidated financial statements for the losses arising from the PIS/COFINS assessments that the Company considers probable. With respect to such
PIS/COFINS assessments:



| |  |  | Claro Brasil and Americel have commenced lawsuits against the Brazilian Federal Revenue Service seeking a ruling on constitutional grounds to exclude ICMS payments and interconnection fees from the base used to
calculate PIS and COFINS tax obligations. Pending a final ruling and pursuant to applicable Brazilian procedure, the companies have paid the tax based on their position in the lawsuits, and have established a provision for the disputed amounts. As
of December 31, 2016, the total amount in dispute was approximately Ps.18,822,440 (R$2,959 million).
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Tax assessments against Claro Brasil and Americel related to the offset of PIS and COFINS credits recorded in the non-cumulative method in an amount of Ps.9,452,567 (approximately
R$1,486 million) as of December 31, 2016. The Company has not established a provision in the accompanying consolidated financial statements to cover the losses arising from this contingency, which the Company does not consider probable.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

FUST/FUNTTEL

Anatel has
initiated administrative proceedings against Claro Brasil, Americel, Primesys, TdB, Star One, BrTel and TVSAT an aggregate amount of Ps.16,049,008 (R$2,523 million) based on an allegedly improper exclusion



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of interconnection revenues and costs from the basis used to calculate its FUST obligations. The companies are contesting these assessments. As of December 31, 2016, the Company has
established a provision of Ps.12,722 (R$2 million) in the accompanying consolidated financial statements to cover the losses arising from these assessments that the Company considers probable.

In addition, Anatel and the Brazilian Ministry of Communications (Ministério das Comunicações) have initiated administrative
proceedings against Claro Brasil, Americel, Primesys, TdB, Star One, BrTel and TVSAT totaling an amount of Ps.5,763,140 (R$906 million) as of December 31, 2016, due to an alleged underpayment of their obligations to FUST and FUNTTEL. The
companies have challenged these assessments, which are still pending. As of December 31, 2016, the Company has established a provision of Ps.6,361 (R$1 million) in the accompanying consolidated financial statements to cover the losses arising
from these assessments that the Company considers probable.

ISS

The Municipal Revenue Services have issued tax assessments against Claro Brasil, Brasil Center and Primesys, totaling an aggregate amount of approximately
Ps.3,371,373 (R$530 million) due to the alleged nonpayment of ISS over several telecommunication services, including Pay TV services, considered as taxable for ISS by these authorities. The companies have challenged the tax assessments on the
grounds that the services cited are not subject to ISS tax and these challenges are still pending. As of December 31, 2016, the Company has established a provision of Ps.25,444 (R$4 million) in the accompanying financial statements for the
losses arising from these assessments that the Company considers probable.

TFI

As of December 31, 2016, Anatel has fined Claro Brasil and Americel a total of Ps.13,797,185 (R$2,169 million), for an unpaid installation inspection fee
(Taxa de Fiscalização de Instalação,or TFI) allegedly due for the renovation of radio base stations. Claro Brasil and Americel have challenged the fine, arguing that there was no new equipment
installation that could lead to this charge, and the challenges are still pending. The Company has not established a provision in the accompanying consolidated financial statements to cover losses arising from these proceedings, which the Company
does not consider probable.

Other Tax Contingencies

There are several other tax contingencies involving Claro Brasil, Americel, Star One, TdB and Primesys in an aggregate amount of Ps.13,778,102 (R$2,166
million), mainly related to telecommunication taxes, the funding of the Brazilian Communication Company (Empresa Brasileira de Comunicação, or EBC), IRPJ, CSLL, social security taxes (Instituto Nacional do
Seguro Social,or INSS), taxes on industrial products (Imposto Sobre Produtos Industrializados,or IPI), taxes on financial transactions (Contribuição Provisória sobre
Movimentações Financeiras,or CPMF), the offsetting of IRPJ, COFINS, CSLL and IRRF against allegedly improper IRPJ credits, and for not making certain filings in the correct form from 2002 through 2005, the
allegedly nonpayment of the IRRF and the economic domain intervention contribution (Contribuição de Intervenção no Domínio Econômico,or CIDE), overpayments related to
outbound traffic, the public price concerning the administration of numbering resources (Preço Público Relativo à Administração dos Recursos de Numeração,or PPNUM) and
import taxes (Imposto de Importação,or II). As of December 31, 2016, the Company has established a provision of Ps.4,656,311 (R$732 million) in the accompanying consolidated financial statements for the
losses arising from these contingencies that the Company considers probable.

b. Regulatory Matters

Inflation-Related Adjustments

Anatel has
challenged the calculation of inflation-related adjustments due under the concession agreements with Tess S.A. (Tess), and Algar Telecom Leste S.A. (ATL), two of the Companys subsidiaries that were



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previously merged into Claro Brasil. Anatel rejected Tess and ATLs calculation of the inflation-related adjustments applicable to 60% of the concessions price (which was due in three equal
annual installments, subject to inflation-related adjustments and interest), claiming that the companies calculation of the inflation-related adjustments resulted in a shortfall of the installment payments. The companies have filed declaratory
and consignment actions seeking resolution of the disputes and have obtained injunctions from a federal appeals court suspending payment until the pending appeals are resolved.

The amount of the alleged shortfall as well as the method used to calculate monetary correction are subject to judicial disputes. If other methods or
assumptions are applied, the amount may increase. In December 2016, Anatel calculated the monetary correction in a total amount of Ps.15,571,927 (R$2,448 million). As of December 31, 2016, the Company has established a provision of Ps.4,102,897
(R$645 million) in the accompanying consolidated financial statements for the losses arising from these contingencies that the Company considers probable.

Reversible Assets

Claro Brasils
long-distance fixed-line concessions provide that the concessionaires assets that are indispensable for the provision of domestic and international long-distance fixed-line services cannot be disconnected, replaced or sold without
the prior regulatory approval of Anatel. Upon expiration of these concessions, those assets that are indispensable to provide domestic and international long distance fixed-line services will revert to the Brazilian government, in which
case any compensation for investments made in those assets would be the depreciated cost of such assets. Brazilian law does not provide any guidance as to which assets would be subject to reversion under these concessions, and there is no precedent
establishing: (i) which assets are indispensable under these concessions at the time of their expiration or (ii) the treatment of assets that are also used for telecommunications services not regulated by the concessions. Those
assets Claro Brasil uses exclusively in the provision of wireless and Pay TV services are not subject to reversion. See Note 2.

In the second half of
2015, Anatel fined Claro Brasil approximately Ps.63,611 (R$10 million) and imposed the obligations listed below on Claro Brasil in connection with the alleged non-compliance with requirements set out in the
Reversible Assets Regulation (Regulamento de Bens Reversíveis).



| |  |  | To make a deposit within 180 days of approximately Ps.5,534,141 (R$870 million) in an escrow account to buy other assets which would be subject to reversion and thereby replace the assets removed. However, if the assets
were replaced, Claro Brasil may instead deposit the difference between their sale price and the price of assets purchase to replace them. According to Anatel, such amount represents the value of the assets that were being allegedly removed from the
assets list reported to Anatel without a justification for the alleged removal.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Within 180 days following Anatels decision, the inclusion in all agreements executed after the Reversible Assets Regulation (Regulamento de Bens Reversíveis) came into effect, of mandatory provisions
related, among others, to the indispensability of those assets for the provision of the services under the concessions, Anatels subrogation rights under those agreements and the obligation of their counterparty not to encumber the assets used
by Claro Brasil thereunder.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To file an appeal against any order imposing a lien on any Claro Brasils reversible assets within 30 days from the date Claro Brasil received notice of the decision.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

In 2015, Claro Brasil appealed the decision, causing a temporary suspension of its obligations, and this appeal is still pending.

Other regulatory disputes

Claro Brasil is party
to other judicial disputes with Anatel in an aggregate amount of Ps.7,817,769 (R$1,229 million). As of December 31, 2016, the Company has established a provision of Ps.674,275 (R$106 million) in the accompanying consolidated financial
statements for the losses arising from these disputes that the Company considers probable.



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c. Other Civil, Environmental and Labor Contingencies

Claro Brasil and its subsidiaries are party to other civil, environmental and labor claims, as described below. In each case, the Company is contesting the
claims at different stages. As of December 31, 2016, the Company has established the following provisions for those losses arising from these claims that the Company considers probable.



| |  |  | Civil: Claims for Ps.30,571,357 (R$4,806 million), including those filed by its Pay TV, internet access and telephone service customers and a provision of Ps.1,036,856 (R$163 million) in the accompanying
consolidated financial statements.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Environmental: Claims for Ps.4,611,784 (R$725 million) and a provision of Ps.63,611 (R$10 million) in the accompanying consolidated financial statements.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Labor: Claims for Ps.42,752,827 (R$6,721 million) filed by current and former employees and a provision of Ps.2,830,681 (R$445 million) in the accompanying consolidated financial statements.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

d. Third-Party Disputes

Claro Brasil, Americel, TdB,
Primesys, Brasil Center and their subsidiaries are parties to certain disputes with third parties in connection with former sales agents, outsourced companies contract cancellation, increases in monthly subscription rates and channel
transmission, class actions, real estate issues, disputes with former employees regarding health care payments and other matters. The cases, which are in advanced stages of litigation, are for claims in an aggregate amount of Ps.22,384,645 (R$3,519
million). As of December 31, 2016, the Company has established a provision of Ps.2,309,073 (R$363 million) in the accompanying consolidated financial statements for the losses arising from these disputes that the Company considers probable.

III. COLOMBIA

Local Arbitration Proceedings
(Bogotá Chamber of Commerce)

In 2013, the Colombian Constitutional Court rendered a decision holding that certain laws eliminating the
reversion of telecommunication assets in Colombia did not apply to concessions granted prior to 1998 and that the reversion of assets under those earlier concession agreements would be governed by their contractual terms. Following the termination
of Comcels concession contracts, Comcel and the ITC Ministry initiated discussions with respect to the liquidation of Comcels concession contracts. However, as a result of the Constitutional Courts decision, the ITC Ministry took
the position that assets under Comcels concession contracts should revert to the Colombian government. Comcel disputes the ITC Ministrys interpretation of the Constitutional Courts decision and contends that the reversion of assets
should not apply.

In February 2016, the ITC Ministry initiated an arbitration claim against Comcel before the Bogotá Chamber of Commerce pursuant
to the concession contracts. In its claim, the ITC Ministry requested: (a) the liquidation of the concession contracts; (b) the reversion of all assets related to the concession contracts and (c) monetary compensation in case the
assets cannot be reverted without affecting the continuity of the mobile services. In May 2016, Comcel was served with the ITC Ministrys arbitration claim and in July 2016 answered the complaint rejecting the ITC Ministrys claim. The
proceedings are currently at the evidentiary stage.

IV. ECUADOR

a. Conecel

Tax Assessments

In 2011 and 2012, the Ecuadorian Internal Revenue Services (Servicios de Rentas Internas del Ecuador,or SRI) notified Conecel of tax
assessments of Ps.2,467,037 (US$119,000) relating to income tax for fiscal years



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2007 through 2009, which were challenged by Conecel. Following an amnesty law enacted by the National Assembly (Asamblea Nacional) in May 2015, that granted the remission of interest and
penalties from tax obligations, Conecel applied for amnesty pursuant this new law in connection with the tax assessments for the 2007 and 2009 fiscal years and paid a total amount of Ps.1,339,248 (US$64,600) in connection with such fiscal years. In
October 2015, the National Court of Justice (Corte Nacional de Justicia)ruled in favor of SRI with regard to the tax assessment for the fiscal year 2008.

As of December 31, 2016, Conecel has made payments in the amount of Ps.935,111 (US$45,106) in connection with the 2008 tax assessment and filed an
extraordinary protection action before the Constitutional Court. However such action does not suspend the enforcement of the National Court of Justices decision. As of December 31, 2016, Conecel has established a provision of Ps.238,453
(US$11,502), representing the outstanding amount of the 2008 tax assessment, in the accompanying consolidated financial statements for the losses arising from this assessment that the Company considers probable.

Monopolistic Practices Proceedings

In February
2014, following a regulatory claim filed in 2012 by state-owned operator Corporación Nacional de Telecomunicaciones(CNT), the Superintendency of Control of Market Power (Superintendencia de Control del Poder del
Mercado,or SCPM) imposed a fine on Conecel of Ps.2,869,226 (US$138,400) for alleged monopolistic practices. CNT alleged that Conecel had exclusive rights to deploy its network in five locations and was thereby preventing CNT
from deploying its own network in the same locations. In March 2014, Conecel challenged the fine and posted a guarantee for 50% of its value. Through a judicial order issued the same month, the fine was suspended while it is pending. Conecel denies
any wrongdoing and contends that CNT had other alternative sites in the same locations where it could have deployed its network. The Company has not established a provision in the accompanying consolidated financial statements to cover losses
arising from this proceeding that the Company does not consider probable.

Conecel is also subject to one proceeding initiated by the SCPM to assess
Conecels compliance with the administrative injunction issued by the SCPM as part of its decision that admitted the claim filed by CNT in 2012. In August 2016, the SCPM, imposed a fine on Conecel of Ps.1,699,975 (US$82 million). Conecel has
challenged this decision and posted a guarantee for Ps.856,207 (US$41.3 million). The Company has not established a provision in the accompanying consolidated financial statements to cover losses arising from this proceeding, which the Company does
not consider probable.

Rounded Rates

In
February 2015, the National Assembly enacted a new Telecommunications Law (Ley Orgánica de Telecomunicaciones),which included a provision requiring Conecel to pay the Telecommunication Regulatory Agency (Agencia de
Regulación y Control de las Telecomunicaciones,or Arcotel) any amounts rounded per minute charged to the users between 1999 and 2000. Until 2000, charging rates on a per minute basis (and rounding up to the next full
minute for any fractions of a minute) was a legal pricing scheme used by mobile telephony operators.

In 2015, Conecel challenged the validity of the
application of this provision of the Telecommunications Law. However, all legal actions were decided in a manner adverse to Conecel and no decision was issued by the Ecuadorian State Attorney with respect to the applicable interest rate of the
obligation. Accordingly, in November 2016, Conecel paid Arcotel approximately Ps.352,434 (US$17,000) in addition to the Ps.1,015,839 (US$49,000) previously paid by Conecel. This matter has been resolved.



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V. BULGARIA

a. Mobiltel

Tax Assessments

In June 2014, the Bulgarian tax authorities issued a tax assessment against Mobiltel EAD (Mobiltel) in connection with the amortization of
its brand name and customer base for fiscal year 2007, in an amount of approximately Ps.494,933 (22.7 million), including interest as of December 31, 2016. In 2015, Mobiltel challenged this assessment. In October 2015, the Administrative
Court


LOGO
 issued a ruling favorable to Mobiltel, which was subsequently challenged by the tax authorities and forwarded to the Supreme Administrative Court for a final determination. Mobiltel has obtained bank guarantees to
secure the tax liability of up to Ps.497,113 (22.8 million).

In September 2015, the tax authorities issued a second tax assessment based on the
same allegations for fiscal year 2008, in an amount of approximately Ps.464,408 (21.3 million), including interest as of December 31, 2016. In 2015, Mobiltel challenged this assessment and obtained the suspension of the administrative
proceeding until the challenge of the 2007 tax assessment is resolved. Three additional bank guarantees were issued to secure the tax liability related to 2008, totaling an amount of Ps.466,589 (21.4 million).

In October 2016, the tax authorities issued a third tax assessment based on the same allegations for the year 2009, in an amount of approximately Ps.396,818
(18.2 million), including interest as of December 31, 2016. Mobiltel has challenged this assessment before the highest Bulgarian tax authority and obtained the suspension of the administrative proceeding until the challenge of the 2007
tax assessment is resolved. The obligation of the third tax assessment is secured by one bank guarantee for an amount of Ps.401,179 (18.4 million).

In case of an unfavorable decision by the competent courts, Mobiltel might face a further potential additional claim for the years 2010 to 2012 in the amount
of up to Ps.978,964 (44.9 million) including interest as of December 31, 2016. The Company has not established a provision in the accompanying consolidated financial statements for a loss arising from these assessments, which the Company
does not consider probable.

17. Employee Benefits

An analysis of the net liability and net period cost for employee benefits is as follows:



|             |  |                 |                 |  |      |  |                 | 
|------------ |  | --------------- | --------------- |  | ---- |  | --------------- | 
|             |  | At December 31, |                
|             |  | 2015            |                 |  | 2016 | 
|Liabilities: |  |                 |                 |  |      |  |                 | 
|Mexico       |  |                 | Ps.  84,801,485 |  |      |  | Ps.  70,073,351 | 
|Puerto Rico  |  |                 | 15,621,619      |  |      |  | 17,736,616      | 
|Brazil       |  |                 | 3,534,739       |  |      |  | 7,222,762       | 
|Europe       |  |                 | 14,788,678      |  |      |  | 15,748,433      | 
|Ecuador      |  |                 | 196,841         |  |      |  | 267,705         | 
|             |  |                 |                 |  |      |  |                 | 
|Total        |  |                 | Ps.118,943,362  |  |      |  | Ps.111,048,867  | 
|             |  |                 |                 |  |      |  |                 | 



|                           |  |                                 |              |   |      |  |              |      |  |  |               | 
|-------------------------- |  | ------------------------------- | ------------ | - | ---- |  | ------------ | ---- |  |  | ------------- | 
|                           |  | For the year ended December 31, |             
|                           |  | 2014                            |              |   | 2015 |  |              | 2016 | 
|Net period cost (benefit): |  |                                 |              |   |      |  |              |      |  |  |               | 
|Mexico                     |  |                                 | Ps.8,755,823 |   |      |  | Ps.8,962,953 |      |  |  | Ps.12,281,154 | 
|Puerto Rico                |  |                                 | (1,631,225   | ) |      |  | (455,117     | )    |  |  | 1,058,131     | 
|Brazil                     |  |                                 | 436,753      |   |      |  | 451,353      |      |  |  | 633,159       | 
|Europe                     |  |                                 | 267,604      |   |      |  | 260,850      |      |  |  | 226,447       | 
|Ecuador                    |  |                                 | 26,759       |   |      |  | 58,042       |      |  |  | 41,380        | 
|                           |  |                                 |              |   |      |  |              |      |  |  |               | 
|Total                      |  |                                 | Ps.7,855,714 |   |      |  | Ps.9,278,081 |      |  |  | Ps.14,240,271 | 
|                           |  |                                 |              |   |      |  |              |      |  |  |               | 



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a) Defined benefit plans

The defined benefit obligation (DBO) and plan assets for the pension and other benefit obligation plans are as follows:



|            |  |                |                |  |             |  |                  |                        |  |  |                               |  |  |     |                 |  |             |  |                |                        |  |  |                               |  |  |  |                |  |  |  |               | 
|----------- |  | -------------- | -------------- |  | ----------- |  | ---------------- | ---------------------- |  |  | ----------------------------- |  |  | --- | --------------- |  | ----------- |  | -------------- | ---------------------- |  |  | ----------------------------- |  |  |  | -------------- |  |  |  | ------------- | 
|            |  | At December 31 |               
|            |  | 2015           |                |  | 2016        | 
|            |  | DBO            |                |  | Plan Assets |  |                  | Effect ofasset celling |  |  | Net employeebenefit liability |  |  | DBO |                 |  | Plan Assets |  |                | Effect of assetcelling |  |  | Net employeebenefit liability | 
|Mexico      |  |                | Ps.266,548,490 |  |             |  | Ps.(182,436,376) |                        |  |  | Ps.                          |  |  |     | Ps.  84,112,114 |  |             |  | Ps.249,101,141 |                        |  |  | Ps.(179,871,258)              |  |  |  | Ps.           |  |  |  | Ps.69,229,883 | 
|Puerto Rico |  |                | 32,929,155     |  |             |  | (17,307,536)     |                        |  |  |                              |  |  |     | 15,621,619      |  |             |  | 39,909,853     |                        |  |  | (22,173,237)                  |  |  |  |               |  |  |  | 17,736,616    | 
|Brazil      |  |                | 10,909,086     |  |             |  | (12,490,528)     |                        |  |  | 4,823,147                     |  |  |     | 3,241,705       |  |             |  | 19,752,908     |                        |  |  | (20,301,126)                  |  |  |  | 7,083,218      |  |  |  | 6,535,000     | 
|Europe      |  |                | 3,544,587      |  |             |  |                 |                        |  |  |                              |  |  |     | 3,544,587       |  |             |  | 4,366,245      |                        |  |  |                              |  |  |  |               |  |  |  | 4,366,245     | 
|            |  |                |                |  |             |  |                  |                        |  |  |                               |  |  |     |                 |  |             |  |                |                        |  |  |                               |  |  |  |                |  |  |  |               | 
|Total       |  |                | Ps.313,931,318 |  |             |  | Ps.(212,234,440) |                        |  |  | Ps.4,823,147                  |  |  |     | Ps.106,520,025  |  |             |  | Ps.313,130,147 |                        |  |  | Ps.(222,345,621)              |  |  |  | Ps.7,083,218   |  |  |  | Ps.97,867,744 | 
|            |  |                |                |  |             |  |                  |                        |  |  |                               |  |  |     |                 |  |             |  |                |                        |  |  |                               |  |  |  |                |  |  |  |               | 

Below is a summary of the actuarial results generated for the pension and retirement plans as well as the medical services in
Puerto Rico and Brazil; the pension plans and seniority premiums related to Telmex; the pension plan, the service awards plan and severance in Austria corresponding to the years ended December 31, 2014, 2015 and 2016:



|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|--------------------------------------------------------- |  | -------------------- | ----------- | - | ----------- | --- | ------------ | ---------------------- |  | --- | ----------------------------- | - |  | --- | ----------- | -
|                                                          |  | At December 31, 2014 |            
|                                                          |  | DBO                  |             |   | Plan Assets |     |              | Effect of assetcelling |  |     | Net employeebenefit liability |  
|Balance at the beginning of the year                      |  | Ps.                  | 290,188,853 |   |             | Ps. | (230,393,171 | )                      |  | Ps. | 6,414,645                     |   |  | Ps. | 66,210,327  |  
|Current service cost                                      |  |                      | 4,673,010   |   |             |     |             |                        |  |     |                              |   |  |     | 4,673,010   |  
|Interest cost on projected benefit obligation             |  |                      | 25,052,769  |   |             |     |             |                        |  |     |                              |   |  |     | 25,052,769  |  
|Expected return on plan assets                            |  |                      |            |   |             |     | (20,853,857  | )                      |  |     |                              |   |  |     | (20,853,857 | )
|Changes in the asset ceiling during the period and others |  |                      |            |   |             |     |             |                        |  |     | 734,171                       |   |  |     | 734,171     |  
|Past service costs and other                              |  |                      | (2,530,502  | ) |             |     | 101,554      |                        |  |     |                              |   |  |     | (2,428,948  | )
|Actuarial loss for changes in experience                  |  |                      | 11,307      |   |             |     |             |                        |  |     |                              |   |  |     | 11,307      |  
|Actuarial gain from changes in demographic assumptions    |  |                      | (89         | ) |             |     |             |                        |  |     |                              |   |  |     | (89         | )
|Actuarial loss from changes in financial assumptions      |  |                      | 132,529     |   |             |     |             |                        |  |     |                              |   |  |     | 132,529     |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Net period cost                                           |  | Ps.                  | 27,339,024  |   |             | Ps. | (20,752,303  | )                      |  | Ps. | 734,171                       |   |  | Ps. | 7,320,892   |  
|Actuarial loss for changes in experience                  |  |                      | 1,709,077   |   |             |     |             |                        |  |     |                              |   |  |     | 1,709,077   |  
|Actuarial loss from changes in demographic assumptions    |  |                      | 1,295,107   |   |             |     |             |                        |  |     |                              |   |  |     | 1,295,107   |  
|Actuarial loss from changes in financial assumptions      |  |                      | 3,885,510   |   |             |     |             |                        |  |     |                              |   |  |     | 3,885,510   |  
|Changes in the asset ceiling during the period and others |  |                      |            |   |             |     |             |                        |  |     | (844,575                      | ) |  |     | (844,575    | )
|Return on plan assets greater than discount rate          |  |                      |            |   |             |     | 4,076,445    |                        |  |     |                              |   |  |     | 4,076,445   |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Recognized in Other comprehensive income                  |  | Ps.                  | 6,889,694   |   |             | Ps. | 4,076,445    |                        |  | Ps. | (844,575                      | ) |  | Ps. | 10,121,564  |  
|Contributions made by plan participants                   |  |                      | 191,622     |   |             |     |             |                        |  |     |                              |   |  |     | 191,622     |  
|Contributions to the pension plan by the Company          |  |                      |            |   |             |     | (2,183,939   | )                      |  |     |                              |   |  |     | (2,183,939  | )
|Benefits paid                                             |  |                      | (8,523,259  | ) |             |     | 8,523,259    |                        |  |     |                              |   |  |     |            |  
|Payments to employees                                     |  |                      | (12,720,278 | ) |             |     |             |                        |  |     |                              |   |  |     | (12,720,278 | )
|Acquisition of subsidiary                                 |  |                      | 2,934,794   |   |             |     |             |                        |  |     |                              |   |  |     | 2,934,794   |  
|Effect of translation                                     |  |                      | 3,339,349   |   |             |     | (1,630,620   | )                      |  |     | (47,167                       | ) |  |     | 1,661,562   |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Others                                                    |  | Ps.                  | (14,777,772 | ) |             | Ps. | 4,708,700    |                        |  | Ps. | (47,167                       | ) |  | Ps. | (10,116,239 | )
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Balance at the end of the year                            |  | Ps.                  | 309,639,799 |   |             | Ps. | (242,360,329 | )                      |  | Ps. | 6,257,074                     |   |  | Ps. | 73,536,544  |  
|Less short-term portion                                   |  |                      | (126,439    | ) |             |     |             |                        |  |     |                              |   |  |     | (126,439    | )
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Non-current obligation                                    |  | Ps.                  | 309,513,360 |   |             | Ps. | (242,360,329 | )                      |  | Ps. | 6,257,074                     |   |  | Ps. | 73,410,105  |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  



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|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|--------------------------------------------------------- |  | -------------------- | ----------- | - | ----------- | --- | ------------ | ---------------------- |  | --- | ----------------------------- | - |  | --- | ----------- | -
|                                                          |  | At December 31, 2015 |            
|                                                          |  | DBO                  |             |   | Plan Assets |     |              | Effect of assetcelling |  |     | Net employeebenefit liability |  
|Balance at the beginning of the year                      |  | Ps.                  | 309,639,799 |   |             | Ps. | (242,360,329 | )                      |  | Ps. | 6,257,074                     |   |  | Ps. | 73,536,544  |  
|Current service cost                                      |  |                      | 4,540,925   |   |             |     |             |                        |  |     |                              |   |  |     | 4,540,925   |  
|Interest cost on projected benefit obligation             |  |                      | 25,811,047  |   |             |     |             |                        |  |     |                              |   |  |     | 25,811,047  |  
|Expected return on plan assets                            |  |                      |            |   |             |     | (20,710,965  | )                      |  |     |                              |   |  |     | (20,710,965 | )
|Changes in the asset ceiling during the period and others |  |                      |            |   |             |     |             |                        |  |     | 601,540                       |   |  |     | 601,540     |  
|Past service costs and other                              |  |                      | (1,365,096  | ) |             |     | 118,725      |                        |  |     |                              |   |  |     | (1,246,371  | )
|Actuarial gain for changes in experience                  |  |                      | (27,949     | ) |             |     |             |                        |  |     |                              |   |  |     | (27,949     | )
|Actuarial loss from changes in financial assumptions      |  |                      | 30,285      |   |             |     |             |                        |  |     |                              |   |  |     | 30,285      |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Net period cost                                           |  | Ps.                  | 28,989,212  |   |             | Ps. | (20,592,240  | )                      |  | Ps. | 601,540                       |   |  | Ps. | 8,998,512   |  
|Actuarial gain for changes in experience                  |  |                      | (2,021,790  | ) |             |     |             |                        |  |     |                              |   |  |     | (2,021,790  | )
|Actuarial gain from changes in demographic assumptions    |  |                      | (685,110    | ) |             |     |             |                        |  |     |                              |   |  |     | (685,110    | )
|Actuarial gain from changes in financial assumptions      |  |                      | (2,502,344  | ) |             |     |             |                        |  |     |                              |   |  |     | (2,502,344  | )
|Changes in the asset ceiling during the period and others |  |                      |            |   |             |     |             |                        |  |     | (754,357                      | ) |  |     | (754,357    | )
|Return on plan assets greater than discount rate          |  |                      |            |   |             |     | 31,026,539   |                        |  |     |                              |   |  |     | 31,026,539  |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Recognized in Other comprehensive income                  |  | Ps.                  | (5,209,244  | ) |             | Ps. | 31,026,539   |                        |  | Ps. | (754,357                      | ) |  | Ps. | 25,062,938  |  
|Contributions made by plan participants                   |  |                      | 231,619     |   |             |     |             |                        |  |     |                              |   |  |     | 231,619     |  
|Contributions to the pension plan by the Company          |  |                      |            |   |             |     | (2,954,839   | )                      |  |     |                              |   |  |     | (2,954,839  | )
|Benefits paid                                             |  |                      | (22,321,686 | ) |             |     | 22,149,262   |                        |  |     |                              |   |  |     | (172,424    | )
|Payments to employees                                     |  |                      | (19,929     | ) |             |     |             |                        |  |     |                              |   |  |     | (19,929     | )
|Effect of translation                                     |  |                      | 2,739,958   |   |             |     | 497,167      |                        |  |     | (1,281,110                    | ) |  |     | 1,956,015   |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Others                                                    |  | Ps.                  | (19,370,038 | ) |             | Ps. | 19,691,590   |                        |  | Ps. | (1,281,110                    | ) |  | Ps. | (959,558    | )
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Balance at the end of the year                            |  | Ps.                  | 314,049,729 |   |             | Ps. | (212,234,440 | )                      |  | Ps. | 4,823,147                     |   |  | Ps. | 106,638,436 |  
|Less short-term portion                                   |  |                      | (118,411    | ) |             |     |             |                        |  |     |                              |   |  |     | (118,411    | )
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Non-current obligation                                    |  | Ps.                  | 313,931,318 |   |             | Ps. | (212,234,440 | )                      |  | Ps. | 4,823,147                     |   |  | Ps. | 106,520,025 |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  



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|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|--------------------------------------------------------- |  | -------------------- | ----------- | - | ----------- | --- | ------------ | ---------------------- |  | --- | ----------------------------- | - |  | --- | ----------- | -
|                                                          |  | At December 31, 2016 |            
|                                                          |  | DBO                  |             |   | Plan Assets |     |              | Effect of assetcelling |  |     | Net employeebenefit liability |  
|Balance at the beginning of the year                      |  | Ps.                  | 314,049,729 |   |             | Ps. | (212,234,440 | )                      |  | Ps. | 4,823,147                     |   |  | Ps. | 106,638,436 |  
|Current service cost                                      |  |                      | 4,606,856   |   |             |     |             |                        |  |     |                              |   |  |     | 4,606,856   |  
|Interest cost on projected benefit obligation             |  |                      | 27,275,363  |   |             |     |             |                        |  |     |                              |   |  |     | 27,275,363  |  
|Expected return on plan assets                            |  |                      |            |   |             |     | (18,972,042  | )                      |  |     |                              |   |  |     | (18,972,042 | )
|Changes in the asset ceiling during the period and others |  |                      |            |   |             |     |             |                        |  |     | 875,192                       |   |  |     | 875,192     |  
|Past service costs and other                              |  |                      |            |   |             |     | 165,851      |                        |  |     |                              |   |  |     | 165,851     |  
|Actuarial gain for changes in experience                  |  |                      | (28,867     | ) |             |     |             |                        |  |     |                              |   |  |     | (28,867     | )
|Actuarial loss from changes in financial assumptions      |  |                      | 7,784       |   |             |     |             |                        |  |     |                              |   |  |     | 7,784       |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Net period cost                                           |  | Ps.                  | 31,861,136  |   |             | Ps. | (18,806,191  | )                      |  | Ps. | 875,192                       |   |  | Ps. | 13,930,137  |  
|Actuarial gain for changes in experience                  |  |                      | (20,976,837 | ) |             |     |             |                        |  |     |                              |   |  |     | (20,976,837 | )
|Actuarial loss from changes in demographic assumptions    |  |                      | 397,985     |   |             |     |             |                        |  |     |                              |   |  |     | 397,985     |  
|Actuarial loss from changes in financial assumptions      |  |                      | 1,718,189   |   |             |     |             |                        |  |     |                              |   |  |     | 1,718,189   |  
|Changes in the asset ceiling during the period and others |  |                      |            |   |             |     |             |                        |  |     | (754,535                      | ) |  |     | (754,535    | )
|Return on plan assets lower than discount rate            |  |                      |            |   |             |     | (4,724,041   | )                      |  |     |                              |   |  |     | (4,724,041  | )
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Recognized in Other comprehensive income                  |  | Ps.                  | (18,860,663 | ) |             | Ps. | (4,724,041   | )                      |  | Ps. | (754,535                      | ) |  | Ps. | (24,339,239 | )
|Contributions made by plan participants                   |  |                      | 255,760     |   |             |     | (255,760     | )                      |  |     |                              |   |  |     |            |  
|Contributions to the pension plan by the Company          |  |                      |            |   |             |     | (2,756,519   | )                      |  |     |                              |   |  |     | (2,756,519  | )
|Benefits paid                                             |  |                      | (25,694,301 | ) |             |     | 25,517,599   |                        |  |     |                              |   |  |     | (176,702    | )
|Payments to employees                                     |  |                      | (525,612    | ) |             |     |             |                        |  |     |                              |   |  |     | (525,612    | )
|Effect of translation                                     |  |                      | 12,196,546  |   |             |     | (9,086,269   | )                      |  |     | 2,139,414                     |   |  |     | 5,249,691   |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Others                                                    |  | Ps.                  | (13,767,607 | ) |             | Ps. | 13,419,051   |                        |  | Ps. | 2,139,414                     |   |  | Ps. | 1,790,858   |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Balance at the end of the year                            |  | Ps.                  | 313,282,595 |   |             | Ps. | (222,345,621 | )                      |  | Ps. | 7,083,218                     |   |  | Ps. | 98,020,192  |  
|Less short-term portion                                   |  |                      | (152,448    | ) |             |     |             |                        |  |     |                              |   |  |     | (152,448    | )
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  
|Non-current obligation                                    |  | Ps.                  | 313,130,147 |   |             | Ps. | (222,345,621 | )                      |  | Ps. | 7,083,218                     |   |  | Ps. | 97,867,744  |  
|                                                          |  |                      |             |   |             |     |              |                        |  |     |                               |   |  |     |             |  

In the case of other subsidiaries in Mexico, the net period cost of other employee benefits for the years ended
December 31, 2014, 2015 and 2016 was Ps. 573,733, Ps. 160,835 and Ps.200,455, respectively. The balance of other employee benefits at December 31, 2015 and 2016 was Ps. 689,471 and Ps.843,467, respectively.

In the case of Ecuador, the net period cost of other benefits for the years ended December 31, 2014 and 2015 and 2016 was Ps.26,759, Ps. 58,042 and
Ps.41,380, respectively. The balance of employee benefits at December 31, 2015 and 2016 was Ps. 196,841 and Ps.267,705, respectively.



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Plan assets are invested in:



|                   |  |                |      |  |        |  |      |        |  |  |             |  |  |        |      |  |        |  |      |  |  |  |      | 
|------------------ |  | -------------- | ---- |  | ------ |  | ---- | ------ |  |  | ----------- |  |  | ------ | ---- |  | ------ |  | ---- |  |  |  | ---- | 
|                   |  | At December 31 |     
|                   |  | 2015           |      |  | 2016   | 
|                   |  | Puerto Rico    |      |  | Brazil |  |      | Mexico |  |  | Puerto Rico |  |  | Brazil |      |  | Mexico | 
|Equity instruments |  |                | 35%  |  |        |  | 7%   |        |  |  | 57%         |  |  |        | 30%  |  |        |  | 4%   |  |  |  | 65%  | 
|Debt instruments   |  |                | 64%  |  |        |  | 88%  |        |  |  | 43%         |  |  |        | 68%  |  |        |  | 90%  |  |  |  | 35%  | 
|Others             |  |                | 1%   |  |        |  | 5%   |        |  |  |            |  |  |        | 2%   |  |        |  | 6%   |  |  |  |     | 
|                   |  |                |      |  |        |  |      |        |  |  |             |  |  |        |      |  |        |  |      |  |  |  |      | 
|                   |  |                | 100% |  |        |  | 100% |        |  |  | 100%        |  |  |        | 100% |  |        |  | 100% |  |  |  | 100% | 
|                   |  |                |      |  |        |  |      |        |  |  |             |  |  |        |      |  |        |  |      |  |  |  |      | 

Included in Telmexs net pension plan liability are plan assets of Ps. 182,436,377 and Ps. 179,871,258 as of
December 31, 2015 and 2016, respectively, of which 28.1% and 31.6% during 2015 and 2016, respectively, were invested in equity and debt instruments of both América Movil and also of related parties, primarily entities that are under
common control of the Companys principal shareholder. The Telmex pension plan recorded a re-measurement of its defined pension plan of Ps. 25,954,494 and Ps. (26,940,226) during 2015 and 2016,
respectively, attributable to a change in actuarial assumptions, and also a decline in the fair value of plan investments from December 31, 2015 to December 31, 2016. The increase in fair value of the aforementioned related party pension
plan investments approximated Ps. (28,793,765) and Ps. 3,071,275 during the years ended December 31, 2015 and 2016, respectively.

The assumptions
used in determining the net period cost were as follows:



|                                                                |  |            |       |  |        |  |        |        |  |  |        |  |  |            |                     |  |        |  |        |        |  |  |        |  |  |            |       |  |        |  |                       |        |  |  |        |  |  |  |        |  |  |  |        |  |  |  |                   | 
|--------------------------------------------------------------- |  | ---------- | ----- |  | ------ |  | ------ | ------ |  |  | ------ |  |  | ---------- | ------------------- |  | ------ |  | ------ | ------ |  |  | ------ |  |  | ---------- | ----- |  | ------ |  | --------------------- | ------ |  |  | ------ |  |  |  | ------ |  |  |  | ------ |  |  |  | ----------------- | 
|                                                                |  | 2014       |       |  | 2015   |  |        | 2016   | 
|                                                                |  | PuertoRico |       |  | Brazil |  |        | Mexico |  |  | Europe |  |  | PuertoRico |                     |  | Brazil |  |        | Mexico |  |  | Europe |  |  | PuertoRico |       |  | Brazil |  |                       | Mexico |  |  | Europe | 
|Discount rate and long-term rate return                         |  |            | 4.80% |  |        |  | 12.09% |        |  |  | 9.20%  |  |  |            | 2.00%               |  |        |  | Varies |        |  |  | 12.57% |  |  |            | 9.20% |  |        |  | 1.25% &2.25%          |        |  |  | Varies |  |  |  | 10.84% |  |  |  | 10.70% |  |  |  | 1.0%,1.5% &
1.75% | 
|Rate of future salary increases                                 |  |            | 4.00% |  |        |  | 5.40%  |        |  |  | 4.50%  |  |  |            | 5.5%,   3.1% &
4.5% |  |        |  | 3.50%  |        |  |  | 5.00%  |  |  |            | 4.50% |  |        |  | 4.9%,     3.0% &
4.5% |        |  |  | 3.50%  |  |  |  | 4.85%  |  |  |  | 4.50%  |  |  |  | 3.0%,3.9% &4.4%   | 
|Percentage of increase in health care costs for the coming year |  |            | 5.80% |  |        |  | 11.90% |        |  |  |       |  |  |            |                    |  |        |  | 5.70%  |        |  |  | 11.50% |  |  |            |      |  |        |  |                      |        |  |  | 4.20%  |  |  |  | 11.35% |  |  |  |       |  |  |  |                  | 
|Year to which this level will be maintained                     |  |            | 2027  |  |        |  |       |        |  |  |       |  |  |            |                    |  |        |  | 2027   |        |  |  |       |  |  |            |      |  |        |  |                      |        |  |  | N/A    |  |  |  | 2017   |  |  |  |       |  |  |  |                  | 
|Rate of increase of pensions                                    |  |            |      |  |        |  |       |        |  |  |       |  |  |            | 1.60%               |  |        |  |       |        |  |  |       |  |  |            |      |  |        |  | 1.60%                 |        |  |  |       |  |  |  |       |  |  |  |       |  |  |  | 1.60%             | 
|Employee turnover rate*                                         |  |            |      |  |        |  |       |        |  |  |       |  |  |            | 0.0%-2.01%          |  |        |  |       |        |  |  |       |  |  |            |      |  |        |  | 0.0%-2.06%            |        |  |  |       |  |  |  |       |  |  |  |       |  |  |  | 0.0%-1.88%        | 

|* | Depending on years of service
|- | -----------------------------

Biometric



|                       |  |                                                                                       
|---------------------- |  | --------------------------------------------------------------------------------------
|Puerto Rico:           |  |                                                                                       
|Mortality: Disability: |  | RP 2014, MSS 2016 Tables.
1985 Pension Disability Table                               
|                       | 
|Brazil:                |  |                                                                                       
|Mortality:             |  | 2000 Basic AT Table for gender                                                        
|Disability for assets: |  | UP 84 modified table for gender                                                       
|Disability retirement: |  | 80 CSO Code Table                                                                     
|Rotation:              |  | Probability of leaving the Company other than death, disability and retirement is
zero



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Europe

Life
expectancy in Austria is based on AVÖ 2008-P- Rechnungsgrundlagen für die Pensionsversicherung-Pagler & Pagler.



|            |  |                                                      
|----------- |  | -----------------------------------------------------
|Mexico      |  |                                                      
|Mortality:  |  | Mexican 2000 (CNSF) adjusted                         
|Disability: |  | Mexican Social Security adjusted by Telmex experience
|Turnover:   |  | Telmex experience                                    
|Retirement: |  | Telmex experience                                    

For the year ended December 31, 2016, the Company conducted a sensitivity analysis on the most significant variables that
affect the DBO, simulating independently, reasonable changes to roughly 100 basis points in each of these variables. The increase (decrease) would have resulted in the DBO pension and other benefits at December 31, 2016 are as follows:



|                            |  |             |            |  |             |     |             |  
|--------------------------- |  | ----------- | ---------- |  | ----------- | --- | ----------- | -
|                            |  | -100 points |            |  | +100 points |    
|Discount rate               |  | Ps.         | 27,507,189 |  |             | Ps. | (22,260,296 | )
|Health care cost trend rate |  | Ps.         | 718,149    |  |             | Ps. | (616,499    | )

Telmex Plans

A percentage of
the Telmex ́s employees are covered under defined benefit pension plans and seniority premiums. Pension benefits and seniority premiums are determined on the basis of compensation received by employees in their final year of employment, their
seniority, and their retirement age. Telmex has set up an irrevocable trust fund to finance these employee benefits and has adopted the policy of making contributions to such fund when it is considered necessary.

Defined benefits plan in Austria

Telekom Austria provides
defined benefits for certain former employees in Austria. All such employees are retired and were employed prior to January 1, 1975. This unfunded plan provides benefits based on a percentage of salary and years employed, not exceeding 80% of
the salary before retirement, and taking into consideration the pension provided by the social security system. Telekom Austria is exposed to the risk of development of life expectancy and inflation because the benefits from pension plans are
lifetime benefits.

Service awards in Austria

Civil
servants and certain employees are eligible to receive certain service awards. Under such plans, eligible employees receive a cash bonus of two months salary after 25 years of service and four months salary after 40 years of service.
Employees with at least 35 years of service when retiring (at the age of 65) or who are retiring under a specific legal regime are eligible to receive four monthly salaries. The compensation is accrued as earned over the period of service, taking
into account the employee turnover rate.

Severance in Austria

Employees starting to work for Austria on or after January 1, 2003 are covered by a defined contribution plan. Telekom Austria paid Ps. 36,917 and Ps.
44,217 (1.53% of the salary) into this defined contribution plan (BAWAG Allianz Mitarbeitervorsorgekasse AG) in 2015 and 2016, respectively.

Severance benefit obligations for employees hired before January 1, 2003 are covered by defined benefit plans. Upon termination by Telekom Austria or
retirement, eligible employees receive severance payments equal to a multiple of their monthly compensation which comprises fixed compensation plus variable elements such as



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overtime or bonuses. Maximum severance is equal to a multiple of twelve times the eligible monthly compensation. Up to three months of benefits are paid upon termination, with any benefit in
excess of that amount being paid in monthly installments over a period not exceeding ten months. In case of death, the heirs of eligible employees receive 50% of the severance benefits.

b) The defined contribution plans (DCP)

Brazil

Claro makes contributions to the DCP through Embratel Social Security Fund  Telos. Contributions are computed based on the salaries of the employees, who
decide on the percentage of their contributions to the plan (between 3% and 8% of their salaries). Claro contributes the same percentage as the employee, capped at 8% of the participants balance for the employees that are eligible to
participate in this plan.

The unfunded liability represents Claros obligation for those participants that migrated from the DBP to the DCP. This
liability is being paid over a term of 20 years as of January 1, 1999. Unpaid balances are adjusted monthly based on the yield of the asset portfolio at that date and is increased based on the General Price Index of Brazil plus
6 percentage points per year. At December 31, 2015 and 2016, the balance of the DCP liability was Ps. 293,034 and Ps. 687,762, respectively.

For the years ended December 31, 2014, 2015 and 2016 the cost of labor were Ps. 38,583, Ps. 23,319 and Ps. 64,166, respectively.

Austria

In Austria, pension benefits generally are provided by
the social security system for employees and by the government for civil servants. Telekom Austria is required to assist in funding the Austrian governments pension and health care obligations to Telekom Austria current and former civil
servants and their surviving dependents. In 2015 and 2014, the rate of contribution for active civil servants amounted to a maximum of 28.3% depending on the age of the civil servant. 15.75% are borne by Telekom Austria and the remaining portion is
contributed by the civil servants. Contributions to the government, net of the share contributed by civil servants, amounted to Ps. 718,934 in 2015 and Ps. 836,655 in 2016. From January 1, 2017, the rate of contribution will be reduced to a
maximum of 25.1% depending on the age of the civil servant 12.55% are borne by Telekom Austria and the remaining portion is contributed by the civil servants.

Additionally, Telekom Austria sponsors a defined contribution plan for employees of some of its Austrian subsidiaries. Telekom Austria contributions to this
plan are based on a percentage of the compensation not exceeding 5%. The annual expenses for this plan amounted to Ps. 252,368 in 2015 and Ps.258,891 in 2016.

As of December 31, 2015 and 2016 the liability related to this defined contribution plan amounted to Ps. 127,510 and Ps. 130,689, respectively.

Other countries

For the rest of the countries where the Company
operates and that do not have defined benefit plans or defined contribution plans, the Company makes contributions to the respective governmental social security agencies which are recognized in results of operations as they are incurred.



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c) Long-term direct employee benefits



|                                   |  |                            |                      |  |  |                     |           |  |          |     |              |           |  |                            |             |  |  |  |                |  |  |     |            | 
|---------------------------------- |  | -------------------------- | -------------------- |  |  | ------------------- | --------- |  | -------- | --- | ------------ | --------- |  | -------------------------- | ----------- |  |  |  | -------------- |  |  | --- | ---------- | 
|                                   |  | Balance atDecember 31,2014 |                      |  |  |                     |           |  |          |     | Applications |           |  | Balance atDecember 31,2015 |            
|                                   |  |                            | Effect oftranslation |  |  | Increase ofthe year |           |  | Payments |     |              | Reversals |  |                           
|Long-term direct employee benefits |  | Ps.                        | 12,160,824           |  |  | Ps.                 | 569,955   |  |          | Ps. | 2,022,865    |           |  | Ps.                        | (1,720,080) |  |  |  | Ps.(1,916,983) |  |  | Ps. | 11,116,581 | 
|                                   |  |                            |                      |  |  |                     |           |  |          |     |              |           |  |                            |             |  |  |  |                |  |  |     |            | 
|                                   |  |                            |                      |  | 
|                                   |  | Balance atDecember 31,2015 |                      |  |  |                     |           |  |          |     | Applications |           |  | Balance atDecember 31,2016 |            
|                                   |  |                            | Effect oftranslation |  |  | Increase ofthe year |           |  | Payments |     |              | Reversals |  |                           
|Long-term direct employee benefits |  | Ps.                        | 11,116,581           |  |  | Ps.                 | 1,856,606 |  |          | Ps. | 2,210,026    |           |  | Ps.                        | (1,832,675) |  |  |  | Ps.(2,099,039) |  |  | Ps. | 11,251,499 | 
|                                   |  |                            |                      |  |  |                     |           |  |          |     |              |           |  |                            |             |  |  |  |                |  |  |     |            | 

In 2008, a comprehensive restructuring program was initiated in Austria. The provision for restructuring includes future
compensation for employees, who will no longer provide services for Telekom Austria but who cannot be laid off due to their status as civil servants. These employee contracts are onerous contracts under IAS 37, as the unavoidable cost related to the
contractual obligation exceeds the future economic benefit. The restructuring program also includes social plans for employees whose employments will be terminated in a socially responsible way.

Changes in the provision are recognized in employee expense and reported in the line item selling, general & administrative expenses, while the
accretion expense is reported in the financial result in the line item interest on employee benefits and restructuring and other financial items. A part of the provision was released since a number of employees returned to regular operations, were
transferred to the government or opted for schemes such as golden handshakes, special severance packages and early retirement to an extent not foreseeable at the time of the measurement of the provision in the previous year. The changes in estimate
are due to adjustments of the discount rate and the rate of compensation as well as an adjustment of the employee turnover rate from 22.9% in 2015 to 34.3% in 2016. The employee turnover rate takes into consideration employees leaving in the future
as well as temporary re-employment within Telekom Austria and is only applicable to the provision for employees permanently leaving the service process and not to provisions for social plans.

Based on the general agreement for the transfer of personnel, which was concluded with the Austrian government in 2013, employees transferring voluntarily to
the government can apply for a permanent transfer after a probation period of six months. During this probation period, Telekom Austria bears the salary expense. In case of a permanent transfer, Telekom Austria has to compensate the government for
any excess expense arising due to differing professional classifications of work places. Furthermore, compensation payments have to be effected to civil servants up to the age of 62 (optionally also one-off
payments).

Furthermore, restructuring includes agreements from previous years concluded with the Austrian government relating to the voluntary transfer
of civil servants with tenure, whose positions are eliminated due to technological progress, to employment with the government. Civil servants in Austria can voluntarily transfer to administrative employment with the government. After a period of
six to twelve months of public service and subjects to a positive performance evaluation, the civil servants have the option to apply for a permanent transfer, in which case the right to return to Telekom Austria is forfeited. Telekom Austria bore
the salary expense for these civil servants up to June 30, 2016. The civil servants are compensated for any shortfall in salary or pension payments.



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18. Financial Assets and Liabilities

Set out below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Company as of December 31, 2015 and
2016:



|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|----------------------------------------------------------------- |  | -------------------- | -------------- |  | ------------------------------- | --- | ------------- | --------------------- |  | --- | ------------- | 
|                                                                  |  | December 31, 2015    |               
|                                                                  |  | Loans andReceivables |                |  | Fair valuethroughprofit or loss |     |               | Fair valuethrough OCI | 
|Financial Assets:                                                 |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Marketable securities and other short term investments            |  | Ps.                  | 12,257,668     |  |                                 | Ps. |              |                       |  | Ps. | 44,089,801    | 
|Accounts receivable from subscribers, distributors,and other, net |  |                      | 129,198,593    |  |                                 |     |              |                       |  |     |              | 
|Related parties                                                   |  |                      | 845,633        |  |                                 |     |              |                       |  |     |              | 
|Derivative financial instruments                                  |  |                      |               |  |                                 |     | 40,882,008    |                       |  |     |              | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Total                                                             |  |                      | Ps.142,301,894 |  |                                 |     | Ps.40,882,008 |                       |  |     | Ps.44,089,801 | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Financial Liabilities:                                            |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Debt                                                              |  | Ps.                  | 683,216,744    |  |                                 | Ps. |              |                       |  | Ps. |              | 
|Accounts payable                                                  |  |                      | 189,938,381    |  |                                 |     |              |                       |  |     |              | 
|Related parties                                                   |  |                      | 2,246,834      |  |                                 |     |              |                       |  |     |              | 
|Derivative financial instruments                                  |  |                      |               |  |                                 |     | 10,664,337    |                       |  |     | 100,599       | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Total                                                             |  | Ps.                  | 875,401,959    |  |                                 | Ps. | 10,664,337    |                       |  | Ps. | 100,599       | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|                                                                  | 
|                                                                  |  | December 31, 2016    |               
|                                                                  |  | Loans andReceivables |                |  | Fair valuethroughprofit or loss |     |               | Fair valuethrough OCI | 
|Financial Assets:                                                 |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Marketable securities and other short term investments            |  | Ps.                  | 13,393,646     |  |                                 | Ps. |              |                       |  | Ps. | 41,463,511    | 
|Accounts receivable from subscribers, distributors,and other, net |  |                      | 175,059,881    |  |                                 |     |              |                       |  |     |              | 
|Related parties                                                   |  |                      | 740,492        |  |                                 |     |              |                       |  |     |              | 
|Derivative financial instruments                                  |  |                      |               |  |                                 |     | 909,051       |                       |  |     |              | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Total                                                             |  | Ps.                  | 189,194,019    |  |                                 | Ps. | 909,051       |                       |  | Ps. | 41,463,511    | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Financial Liabilities:                                            |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Debt                                                              |  | Ps.                  | 707,801,403    |  |                                 | Ps. |              |                       |  | Ps. |              | 
|Accounts payable                                                  |  |                      | 237,265,126    |  |                                 |     |              |                       |  |     |              | 
|Related parties                                                   |  |                      | 2,971,325      |  |                                 |     |              |                       |  |     |              | 
|Derivative financial instruments                                  |  |                      |               |  |                                 |     | 17,504,910    |                       |  |     | 79,837        | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 
|Total                                                             |  | Ps.                  | 948,037,854    |  |                                 | Ps. | 17,504,910    |                       |  | Ps. | 79,837        | 
|                                                                  |  |                      |                |  |                                 |     |               |                       |  |     |               | 

Fair value hierarchy

The
Companys valuation techniques used to determine and disclose the fair value of its financial instruments are based on the following hierarchy:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Variables other than quoted prices in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly
(derived from prices); and



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Level 3: Variables used for the asset or liability that are not based on any observable market data (non-observable variables).

The fair value for the financial assets (excluding cash and cash equivalents) and financial
liabilities shown in the consolidated statements of financial position at December 31, 2015 and 2016 is as follows:



|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|------------------------------------------------------ |  | ---------------------------------------------- | ----------- |  | ------- | --- | ---------- | ------- |  | --- | ------- |  |  | --- | ----------- | 
|                                                       |  | Measurement of fair value at December 31, 2015 |            
|                                                       |  | Level 1                                        |             |  | Level 2 |     |            | Level 3 |  |     | Total   | 
|Assets:                                                |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Marketable securities and other short term investments |  | Ps.                                            | 44,089,801  |  |         | Ps. | 12,257,668 |         |  | Ps. |        |  |  | Ps. | 56,347,469  | 
|Derivative financialinstruments                        |  |                                                |            |  |         |     | 40,882,008 |         |  |     |        |  |  |     | 40,882,008  | 
|Pension plan assets                                    |  |                                                | 205,383,139 |  |         |     | 6,749,645  |         |  |     | 101,656 |  |  |     | 212,234,440 | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Total                                                  |  | Ps.                                            | 249,472,940 |  |         | Ps. | 59,889,321 |         |  | Ps. | 101,656 |  |  | Ps. | 309,463,917 | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Liabilities:                                           |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Debt                                                   |  | Ps.                                            | 656,026,844 |  |         | Ps. | 59,400,873 |         |  | Ps. |        |  |  | Ps. | 715,427,717 | 
|Derivative financialinstruments                        |  |                                                |            |  |         |     | 10,764,936 |         |  |     |        |  |  |     | 10,764,936  | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Total                                                  |  | Ps.                                            | 656,026,844 |  |         | Ps. | 70,165,809 |         |  | Ps. |        |  |  | Ps. | 726,192,653 | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|                                                       | 
|                                                       |  | Measurement of fair value at December 31, 2016 |            
|                                                       |  | Level 1                                        |             |  | Level 2 |     |            | Level 3 |  |     | Total   | 
|Assets:                                                |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Marketable securities and other short term investments |  | Ps.                                            | 41,463,511  |  |         | Ps. | 13,393,646 |         |  | Ps. |        |  |  | Ps. | 54,857,157  | 
|Derivative financialinstruments                        |  |                                                |            |  |         |     | 909,051    |         |  |     |        |  |  |     | 909,051     | 
|Pension plan assets                                    |  |                                                | 214,051,693 |  |         |     | 8,175,469  |         |  |     | 118,459 |  |  |     | 222,345,621 | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Total                                                  |  | Ps.                                            | 255,515,204 |  |         | Ps. | 22,478,166 |         |  | Ps. | 118,459 |  |  | Ps. | 278,111,829 | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Liabilities:                                           |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Debt                                                   |  | Ps.                                            | 666,457,233 |  |         | Ps. | 80,214,836 |         |  | Ps. |        |  |  | Ps. | 746,672,069 | 
|Derivative financialinstruments                        |  |                                                |            |  |         |     | 17,584,747 |         |  |     |        |  |  |     | 17,584,747  | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 
|Total                                                  |  | Ps.                                            | 666,457,233 |  |         | Ps. | 97,799,583 |         |  | Ps. |        |  |  | Ps. | 764,256,816 | 
|                                                       |  |                                                |             |  |         |     |            |         |  |     |         |  |  |     |             | 

Fair value of derivative financial instruments is valued using valuation techniques with market observable inputs. To
determine its Level 2 fair value, the Company applies different valuation techniques including forward pricing and swaps models, using present value calculations. The models incorporate various inputs including credit quality of counterparties,
foreign exchange spot and forward rates and interest rate curves. Fair value of debt Level 2 has been determined using a model based on present value calculation incorporating credit quality of AMX. The Companys investment in available
for sale securities, specifically the investment in KPN, is valued using the quoted prices (unadjusted) in active markets for identical assets. The net realized gains (losses) related to derivative financial instruments for the years ended
December 31, 2015 and 2016 was Ps.2,986,939 and Ps.(28,878,632), respectively.

For the years ended December 31, 2014, 2015 and 2016, no
transfers were made between Level 1 and Level 2 fair value measurement hierarchies.



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19. Shareholders Equity

a)Pursuant to the Companys bylaws, the capital stock of the Company consists of a minimum fixed portion of Ps.362,873 (nominal amount),
represented by a total of 95,489,724,196 shares (including treasury shares available for placement in accordance with the provisions of the Ley del Mercado de Valores), of which (i) 23,384,632,660 are AA shares (full voting
rights); (ii) 642,279,095 are A shares (full voting rights); and (iii) 71,462,812,441 are L shares (limited voting rights), all of them fully subscribed and paid.

b)As of December 31, 2016 and 2015, the Companys capital stock was represented by 65,798,000,000 (20,634,632,660 AA shares,
592,084,871 A shares and 44,571,282,469 L shares), and 66,000,000,000 (23,384,632,660 AA shares, 625,416,402 A shares and 41,989,950,938 L shares), respectively.

c)As of December 31, 2016 and 2015, the Companys treasury held for placement in accordance with the provisions of the Ley del Mercado de
Valores and the Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes en el Mercado de valoresissued by the Comisión Nacional Bancaria y de Valores,a total amount of (i)29,691,724,196 shares (29,691,076,321 L shares and 647,875 A shares); and 29,489,724,196 shares (29,486,009,139 L shares and 3,715,057 A shares), respectively. It is important to mention, that on
November 14, 2016, the Company placed in circulation a total amount of 397,909,031 L treasury shares as a result of the option granted to all Companys shareholders to receive the payment of a scrip dividend either in
(i) cash; (ii) L shares, or (iii) a combination thereof.

d)The holders of AA and A shares are
entitled to full voting rights. The holders of L shares may only vote in limited circumstances, and they are only entitled to appoint two members of the Board of Directors and their respective alternates. The matters in which the
shareholders who are entitled to vote are the following: extension of the term of the Company, early dissolution of the Company, change of corporate purpose of the Company, change of nationality of the Company, transformation of the Company, a
merger with another company, as well as the cancellation of the registration of the shares issued by the Company in the Registro Nacional de Valores and any other foreign stock exchanges where they may be registered, except for quotation
systems or other markets not organized as stock exchanges where they may be registered. Within their respective series, all shares confer the same rights to their holders.

The Companys bylaws contain restrictions and limitations related to the subscription and acquisition of AA shares by non-Mexican investors.

e)Pursuant to the Companys bylaws, AA shares must at all times
represent no less than 20% and no more than 51% of the Companys capital stock, and they also must represent at all times no less than 51% of the common shares (entitled to full voting rights, represented by AA and A
shares) representing said capital stock.

AA shares may only be subscribed to or acquired by Mexican investors, Mexican corporations and/or
trusts expressly empowered for such purposes in accordance with the applicable legislation in force. A shares, which may be freely subscribed, may not represent more than 19.6% of capital stock and may not exceed 49% of the common shares
representing such capital. Common shares (entitled to full voting rights, represented by AA and A shares), may represent no more than 51% of the Companys capital stock.

Lastly, L shares which have limited voting rights and may be freely subscribed, and A shares may not exceed 80% of the Companys
capital stock. For purposes of determining these restrictions, the percentages mentioned above refer only to the number of the Companys shares outstanding.

Dividends

On October 6, 2016, the Companys
shareholders approved, among others resolutions, the simultaneous grant to Companys shareholders of a right, at the election of each shareholder, to receive in either cash or series L shares (or a combination thereof), as dividend
payment.Holders of 50.3% of the outstanding shares made the election to receive shares, resulting in the issuance of 397,909,031 additional L shares.



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On April 18, 2016, the Companys shareholders approved, among others resolutions, the (i) payment
of a cash dividend of Ps.$0.28 per share to each of the shares of its capital stock AA, A and L; and (ii) allocation of Ps. 12,000 million to increase the available funds of Companys buyback
program.

On April 30, 2015, the Companys shareholders approved, among others resolutions, the (i) payment of a cash dividend of Ps.$0.26
per share to each of the shares of its capital stock AA, A and L; (ii) payment of an extraordinary cash dividend of Ps.$0.30 pesos to each of the shares of its capital stock AA, A and
L; and (iii) increase the amount of funds available for the Companys buyback program by Ps.35 billion.

Legal Reserve

According to the Ley General de Sociedades Mercantiles, companies must allocate from the net profit of each year, at least 5% to increase the
legal reserve until it reaches 20% of its capital stock at par value. This reserve may not be distributed to shareholders during the existence of the Company. As of December 31, 2015 and 2016, the legal reserve amounted to Ps. 358,440.

Restrictions on Certain Transactions

Pursuant to the
Companys bylaws any transfer of more than 10% of the full voting shares (A shares and AA shares), effected in one or more transactions by any person or group of persons acting in concert, requires prior approval by our
Board of Directors. If the Board of Directors denies such approval, however, Mexican law and the Company bylaws require it to designate an alternate transferee, who must pay market price for the shares as quoted on the Bolsa Mexicana de Valores,
S.A.B. de C.V.

Payment of Dividends

Dividends,
either in cash or in kind, paid with respect to the L Shares, A Shares, L Share ADSs or A Share ADSs will generally be subject to a 10% Mexican withholding tax (provided that no Mexican withholding tax
will apply to distributions of net taxable profits generated before 2015). Nonresident holders could be subject to a lower tax rate, to the extent that they eligible for benefits under an income tax treaty to which Mexico is a party.

Earnings per Share

The following table shows the
computation of the basic and diluted earnings per share:



|                                                                      |  |                                  |            |  |      |     |            |      |  |     |           | 
|--------------------------------------------------------------------- |  | -------------------------------- | ---------- |  | ---- | --- | ---------- | ---- |  | --- | --------- | 
|                                                                      |  | For the years ended December 31, |           
|                                                                      |  | 2014                             |            |  | 2015 |     |            | 2016 | 
|Net profit for the period attributableto equity holders of the parent |  | Ps.                              | 46,146,370 |  |      | Ps. | 35,054,772 |      |  | Ps. | 8,649,427 | 
|Weighted average shares (in millions)                                 |  |                                  | 69,254     |  |      |     | 66,869     |      |  |     | 65,693    | 
|                                                                      |  |                                  |            |  |      |     |            |      |  |     |           | 
|Earnings per share attributable toequity holders of the parent        |  | Ps.                              | 0.67       |  |      | Ps. | 0.52       |      |  | Ps. | 0.13      | 
|                                                                      |  |                                  |            |  |      |     |            |      |  |     |           | 

Undated Subordinated Fixed Rate Bond

In January 2013, Telekom Austria issued an Undated Subordinated Fixed Rate Bond with a face value of 600 million euros, which is subordinated with
indefinite maturity and which is, based on its conditions, classified as stockholders equity according to IFRS.

The bond pays an annual coupon of 5.625%.
Telekom Austria has the right (call), to redeem the bond on February 1, 2018. Telekom Austria has an early termination right under certain conditions. After that period



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(2018), the bond establishes conditions and increases the coupon rate every five years. After analyzing the conditions of the issuance, Telekom Austria recognized the instrument in equity, since
it does not meet the criteria for classification as financial liability, not because it does not represent an obligation to pay.

On the consolidated
statements of financial position, the Company recognized this bond as a component of equity (non-controlling interest), as financial instruments issued by its subsidiary are classified as equity in the
subsidiarys financial statements and are thus considered non-controlling interest in the Companys consolidated financial statements.

20. Components of other comprehensive (loss) income

The
movement on the components of the other comprehensive (loss) income for the years ended December 31, 2014, 2015 and 2016 is as follows:



|                                                                         |  |      |             |   |      |     |             |      |  |     |             |  
|------------------------------------------------------------------------ |  | ---- | ----------- | - | ---- | --- | ----------- | ---- |  | --- | ----------- | -
|                                                                         |  | 2014 |             |   | 2015 |     |             | 2016 | 
|Controlling interest:                                                    |  |      |             |   |      |     |             |      |  |     |             |  
|Valuation of the derivative financial instruments, net of deferred taxes |  | Ps.  | (329,112    | ) |      | Ps. | 37,011      |      |  | Ps. | 48,496      |  
|Available for sale securities, net of deferred taxes                     |  |      |            |   |      |     | 4,011       |      |  |     | (6,673,731  | )
|Translation effect of foreignsubsidiaries and associates                 |  |      | (5,786,883  | ) |      |     | (34,055,403 | )    |  |     | 104,178,880 |  
|Remeasurement of defined benefit plan, net of deferred taxes             |  |      | (6,625,463  | ) |      |     | (17,791,354 | )    |  |     | 14,771,770  |  
|Non-controlling interest of the items above                              |  |      | (635,804    | ) |      |     | (1,739,497  | )    |  |     | 3,322,090   |  
|                                                                         |  |      |             |   |      |     |             |      |  |     |             |  
|Other comprehensive (loss) income                                        |  | Ps.  | (13,377,262 | ) |      | Ps. | (53,545,232 | )    |  | Ps. | 115,647,505 |  
|                                                                         |  |      |             |   |      |     |             |      |  |     |             |  

21. Valuation of derivatives, interest cost from labor obligations and other financial items, net

For the years ended December 31, 2014, 2015 and 2016, valuation of derivatives and other financial items was as follows:



|                                                                    |  |      |             |   |      |     |            |      |  |     |             |  
|------------------------------------------------------------------- |  | ---- | ----------- | - | ---- | --- | ---------- | ---- |  | --- | ----------- | -
|                                                                    |  | 2014 |             |   | 2015 |     |            | 2016 | 
|Gain (loss) in valuation of derivatives, net                        |  | Ps.  | 7,397,142   |   |      | Ps. | 15,128,269 |      |  | Ps. | (9,622,233  | )
|Capitalized interest expense(Note 10 e)                             |  |      | 3,258,928   |   |      |     | 3,524,841  |      |  |     | 2,861,307   |  
|Commissions                                                         |  |      | (1,612,395  | ) |      |     | (1,399,479 | )    |  |     | (2,034,972  | )
|Interest cost of labor obligations(Note 17)                         |  |      | (4,933,083  | ) |      |     | (5,701,622 | )    |  |     | (9,178,513  | )
|Interest expense on taxes                                           |  |      | (2,115,730  | ) |      |     | (135,569   | )    |  |     | (245,922    | )
|Dividend received                                                   |  |      |            |   |      |     | 1,645,712  |      |  |     | 5,740,092   |  
|Loss on partial sale of shares in associated Company                |  |      | (5,554,612  | ) |      |     | (545       | )    |  |     |            |  
|(Loss) gain on de-recognition of equity method investment
(Note 12) |  |      | (3,172,218  | ) |      |     | 11,988,038 |      |  |     |            |  
|Other financial cost                                                |  |      | (3,458,293  | ) |      |     | (3,553,329 | )    |  |     | (3,745,600  | )
|                                                                    |  |      |             |   |      |     |            |      |  |     |             |  
|                                                                    |  | Ps.  | (10,190,261 | ) |      | Ps. | 21,496,316 |      |  | Ps. | (16,225,841 | )
|                                                                    |  |      |             |   |      |     |            |      |  |     |             |  



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##### Table of Contents

22. Segments

América Móvil operates in different countries. As mentioned in Note 1, the Company has operations in Mexico, Guatemala, Nicaragua, Ecuador, El
Salvador, Costa Rica, Brazil, Argentina, Colombia, United States, Honduras, Chile, Peru, Paraguay, Uruguay, Dominican Republic, Puerto Rico, Panama, Austria, Croatia, Bulgaria, Belarus, Macedonian, Serbia and Slovenia. The accounting policies for
the segments are the same as those described in Note 2.

The Chief Executive Officer, who is the Chief Operating Decision Maker (CODM),
analyzes the financial and operating information by operating segment. All operating segments that (i) represent more than 10% of consolidated revenues, (ii) more than the absolute amount of its reported 10% of profits or loss or
(iii) more than 10% of consolidated assets, are presented separately.

The Company presents the following reportable segments for the purposes of its
consolidated financial statements: Mexico (includes Telcel and Corporate operations and Assets), Telmex (Mexico), Brazil, Southern Cone (includes Argentina, Chile, Paraguay and Uruguay), Colombia, Andean (includes Ecuador and Perú), Central-América (which aggregates the operating segments of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama), U.S.A. (excludes Puerto Rico), Caribbean (which aggregates the operating
segments of Dominican Republic and Puerto Rico), and Europe (includes Austria, Bulgaria, Croatia, Belarus, Slovenia, Macedonia and Serbia).

The Company
considers that the quantitative and qualitative aspects of any aggregated operating segments (that is, Central America and Caribbean reportable segments) are similar in nature for all periods presented. In evaluating the appropriateness of
aggregating operating segments, the key indicators considered included but were not limited to: (i) the similarity of key financial statement measures and trends, (ii) all entities provide telecommunications services,
(iii) similarities of customer base and services, (iv) the methods to distribute services are the same, based on telephone plant in both cases, wireless and fixed lines, (v) similarities of governments and regulatory entities that
oversee the activities and services that telecom companies, (vi) inflation trends and, and (vii) currency trends.



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##### Table of Contents

|                                                               |  |        |             |   |        |  |             |        |  |  |              |   |  |          |             |   |        |  |            |                |  |  |            |  |  |           |            |   |        |  |             |              |  |  |                   |  |  |  |             |   |  |  |              |   |  |  |               |  
|-------------------------------------------------------------- |  | ------ | ----------- | - | ------ |  | ----------- | ------ |  |  | ------------ | - |  | -------- | ----------- | - | ------ |  | ---------- | -------------- |  |  | ---------- |  |  | --------- | ---------- | - | ------ |  | ----------- | ------------ |  |  | ----------------- |  |  |  | ----------- | - |  |  | ------------ | - |  |  | ------------- | -
|                                                               |  | Mexico |             |   | Telmex |  |             | Brazil |  |  | SouthernCone |   |  | Colombia |             |   | Andean |  |            | CentralAmerica |  |  | U.S.A.     |  |  | Caribbean |            |   | Europe |  |             | Eliminations |  |  | Consolidatedtotal | 
|At December 31, 2014 (in Ps.):                                 |  |        |             |   |        |  |             |        |  |  |              |   |  |          |             |   |        |  |            |                |  |  |            |  |  |           |            |   |        |  |             |              |  |  |                   |  |  |  |             |   |  |  |              |   |  |  |               |  
|External revenues                                              |  |        | 185,131,037 |   |        |  | 100,753,221 |        |  |  | 201,346,118  |   |  |          | 56,415,660  |   |        |  | 75,749,655 |                |  |  | 47,638,268 |  |  |           | 26,911,181 |   |        |  | 91,097,363  |              |  |  | 25,827,251        |  |  |  | 37,710,246  |   |  |  |             |   |  |  | 848,580,000   |  
|Intersegment revenues                                          |  |        | 10,578,487  |   |        |  | 6,764,446   |        |  |  | 3,300,831    |   |  |          | 116,703     |   |        |  | 241,953    |                |  |  | 163,908    |  |  |           | 111,963    |   |        |  |            |              |  |  | 14,521            |  |  |  |            |   |  |  | (21,292,812  | ) |  |  |              |  
|                                                               |  |        |             |   |        |  |             |        |  |  |              |   |  |          |             |   |        |  |            |                |  |  |            |  |  |           |            |   |        |  |             |              |  |  |                   |  |  |  |             |   |  |  |              |   |  |  |               |  
|Total revenues                                                 |  |        | 195,709,524 |   |        |  | 107,517,667 |        |  |  | 204,646,949  |   |  |          | 56,532,363  |   |        |  | 75,991,608 |                |  |  | 47,802,176 |  |  |           | 27,023,144 |   |        |  | 91,097,363  |              |  |  | 25,841,772        |  |  |  | 37,710,246  |   |  |  | (21,292,812  | ) |  |  | 848,580,000   |  
|Depreciation and amortization                                  |  |        | 17,656,638  |   |        |  | 15,508,063  |        |  |  | 41,054,736   |   |  |          | 6,844,209   |   |        |  | 9,636,630  |                |  |  | 5,409,431  |  |  |           | 8,497,557  |   |        |  | 564,952     |              |  |  | 4,923,004         |  |  |  | 4,916,757   |   |  |  | (18,426      | ) |  |  | 114,993,551   |  
|Operating income                                               |  |        | 73,461,741  |   |        |  | 22,284,356  |        |  |  | 12,669,105   |   |  |          | 6,592,505   |   |        |  | 17,668,690 |                |  |  | 12,131,925 |  |  |           | (212,229   | ) |        |  | 1,519,741   |              |  |  | 4,923,349         |  |  |  | 5,228,573   |   |  |  | 286,494      |   |  |  | 156,554,250   |  
|Interest income                                                |  |        | 9,202,336   |   |        |  | 306,061     |        |  |  | 4,580,129    |   |  |          | 2,914,330   |   |        |  | 678,055    |                |  |  | 1,118,629  |  |  |           | 182,037    |   |        |  | 162,890     |              |  |  | 459,998           |  |  |  | 134,899     |   |  |  | (12,687,093  | ) |  |  | 7,052,271     |  
|Interest expense                                               |  |        | 25,586,733  |   |        |  | 1,930,074   |        |  |  | 12,083,113   |   |  |          | 834,485     |   |        |  | 759,198    |                |  |  | 413,769    |  |  |           | 154,958    |   |        |  |            |              |  |  | 54,609            |  |  |  | 1,446,442   |   |  |  | (11,740,858  | ) |  |  | 31,522,523    |  
|Income tax                                                     |  |        | 21,294,488  |   |        |  | 5,361,854   |        |  |  | (860,825     | ) |  |          | 3,173,025   |   |        |  | 5,149,614  |                |  |  | 4,290,993  |  |  |           | 1,244,570  |   |        |  | 699,237     |              |  |  | 1,442,656         |  |  |  | (2,088,063  | ) |  |  |             |   |  |  | 39,707,549    |  
|Equity interest in net (loss) income of associated companies   |  |        | (2,641,390  | ) |        |  | 45,346      |        |  |  | (57,246      | ) |  |          | (4,099      | ) |        |  |           |                |  |  |           |  |  |           |           |   |        |  |            |              |  |  |                  |  |  |  | (3,415,620  | ) |  |  |             |   |  |  | (6,073,009    | )
|Net profit (loss) attributable to equity holders of the parent |  |        | 23,175,798  |   |        |  | 9,359,177   |        |  |  | (4,765,722   | ) |  |          | (2,099,324  | ) |        |  | 9,297,693  |                |  |  | 6,994,299  |  |  |           | (1,306,575 | ) |        |  | 1,245,720   |              |  |  | 3,505,502         |  |  |  | 2,319,109   |   |  |  | (1,579,307   | ) |  |  | 46,146,370    |  
|Assets by segment                                              |  |        | 943,075,916 |   |        |  | 138,855,469 |        |  |  | 365,026,179  |   |  |          | 100,358,878 |   |        |  | 98,009,919 |                |  |  | 82,779,795 |  |  |           | 57,727,606 |   |        |  | 33,018,415  |              |  |  | 72,259,136        |  |  |  | 187,958,436 |   |  |  | (800,713,080 | ) |  |  | 1,278,356,669 |  
|Plant, property and equipment, net                             |  |        | 61,653,758  |   |        |  | 94,616,938  |        |  |  | 180,062,462  |   |  |          | 51,809,436  |   |        |  | 44,986,383 |                |  |  | 26,529,773 |  |  |           | 34,803,570 |   |        |  | 3,604,645   |              |  |  | 26,481,689        |  |  |  | 63,557,526  |   |  |  |             |   |  |  | 588,106,180   |  
|Goodwill                                                       |  |        | 9,547,284   |   |        |  | 187,382     |        |  |  | 21,864,430   |   |  |          | 2,570,885   |   |        |  | 13,063,780 |                |  |  | 4,386,035  |  |  |           | 4,936,560  |   |        |  | 1,741,418   |              |  |  | 31,650,117        |  |  |  | 50,955,500  |   |  |  |             |   |  |  | 140,903,391   |  
|Trademarks, net                                                |  |        | 1,427,927   |   |        |  | 385,251     |        |  |  | 480,884      |   |  |          | 9,567       |   |        |  | 1,002      |                |  |  | 29         |  |  |           |           |   |        |  |            |              |  |  | 212,465           |  |  |  | 8,928,464   |   |  |  |             |   |  |  | 11,445,589    |  
|Licenses and rights, net                                       |  |        | 4,297,637   |   |        |  | 102,248     |        |  |  | 34,241,704   |   |  |          | 5,063,150   |   |        |  | 3,922,260  |                |  |  | 3,645,244  |  |  |           | 2,387,686  |   |        |  |            |              |  |  | 3,047,521         |  |  |  | 26,856,395  |   |  |  |             |   |  |  | 83,563,845    |  
|Investment in associated companies                             |  |        | 50,987,952  |   |        |  | 1,876,389   |        |  |  | 592          |   |  |          | 129,431     |   |        |  | 29,314     |                |  |  |           |  |  |           | 18,737     |   |        |  |            |              |  |  |                  |  |  |  | 812,895     |   |  |  | (4,592,729   | ) |  |  | 49,262,581    |  
|Liabilities by segments                                        |  |        | 662,701,177 |   |        |  | 107,172,821 |        |  |  | 235,793,721  |   |  |          | 81,439,115  |   |        |  | 45,796,322 |                |  |  | 26,833,960 |  |  |           | 27,219,970 |   |        |  | 29,029,234  |              |  |  | 31,476,106        |  |  |  | 122,601,259 |   |  |  | (326,346,064 | ) |  |  | 1,043,717,621 |  
|At December 31 2015 (in Ps.):                                  |  |        |             |   |        |  |             |        |  |  |              |   |  |          |             |   |        |  |            |                |  |  |            |  |  |           |            |   |        |  |             |              |  |  |                   |  |  |  |             |   |  |  |              |   |  |  |               |  
|External revenues                                              |  |        | 191,750,997 |   |        |  | 93,657,944  |        |  |  | 174,722,286  |   |  |          | 68,520,541  |   |        |  | 65,871,301 |                |  |  | 51,738,731 |  |  |           | 34,515,781 |   |        |  | 110,653,812 |              |  |  | 29,625,274        |  |  |  | 72,681,072  |   |  |  |             |   |  |  | 893,737,739   |  
|Intersegment revenues                                          |  |        | 13,073,782  |   |        |  | 7,420,418   |        |  |  | 3,451,846    |   |  |          | 427,609     |   |        |  | 265,474    |                |  |  | 220,094    |  |  |           | 235,779    |   |        |  |            |              |  |  | 32,699            |  |  |  |            |   |  |  | (25,127,701  | ) |  |  |              |  
|                                                               |  |        |             |   |        |  |             |        |  |  |              |   |  |          |             |   |        |  |            |                |  |  |            |  |  |           |            |   |        |  |             |              |  |  |                   |  |  |  |             |   |  |  |              |   |  |  |               |  
|Total revenues                                                 |  |        | 204,824,779 |   |        |  | 101,078,362 |        |  |  | 178,174,132  |   |  |          | 68,948,150  |   |        |  | 66,136,775 |                |  |  | 51,958,825 |  |  |           | 34,751,560 |   |        |  | 110,653,812 |              |  |  | 29,657,973        |  |  |  | 72,681,072  |   |  |  | (25,127,701  | ) |  |  | 893,737,739   |  
|Depreciation and amortization                                  |  |        | 14,261,516  |   |        |  | 15,416,456  |        |  |  | 38,219,152   |   |  |          | 8,608,518   |   |        |  | 9,279,871  |                |  |  | 6,368,233  |  |  |           | 9,699,082  |   |        |  | 741,038     |              |  |  | 5,315,349         |  |  |  | 17,938,198  |   |  |  | (132,678     | ) |  |  | 125,714,735   |  
|Operating income                                               |  |        | 70,726,013  |   |        |  | 15,947,164  |        |  |  | 10,878,548   |   |  |          | 9,185,471   |   |        |  | 13,361,859 |                |  |  | 7,853,311  |  |  |           | 1,750,027  |   |        |  | 1,293,706   |              |  |  | 3,891,263         |  |  |  | 6,205,426   |   |  |  | 320,373      |   |  |  | 141,413,161   |  
|Interest income                                                |  |        | 19,094,408  |   |        |  | 272,284     |        |  |  | 1,616,356    |   |  |          | 3,505,616   |   |        |  | 366,533    |                |  |  | 743,028    |  |  |           | 227,590    |   |        |  | 232,856     |              |  |  | 396,314           |  |  |  | 474,826     |   |  |  | (22,076,799  | ) |  |  | 4,853,012     |  
|Interest expense                                               |  |        | 27,023,466  |   |        |  | 1,413,686   |        |  |  | 16,450,388   |   |  |          | 2,599,901   |   |        |  | 577,440    |                |  |  | 713,895    |  |  |           | 349,449    |   |        |  |            |              |  |  | 48,751            |  |  |  | 2,861,655   |   |  |  | (20,841,259  | ) |  |  | 31,197,372    |  
|Income tax                                                     |  |        | 7,976,111   |   |        |  | 2,896,465   |        |  |  | (4,846,932   | ) |  |          | 2,621,598   |   |        |  | 3,997,944  |                |  |  | 2,944,548  |  |  |           | 2,257,695  |   |        |  | 605,809     |              |  |  | 1,483,187         |  |  |  | (756,774    | ) |  |  |             |   |  |  | 19,179,651    |  
|Equity interest in net (loss) income of associated companies   |  |        | (1,512,226  | ) |        |  | 65,033      |        |  |  | (5,243       | ) |  |          | 21,856      |   |        |  |           |                |  |  |           |  |  |           |           |   |        |  |            |              |  |  |                  |  |  |  | 3,884       |   |  |  |             |   |  |  | (1,426,696    | )
|Net profit (loss) attributable to equity holders of the parent |  |        | 28,660,395  |   |        |  | 5,852,674   |        |  |  | (12,785,017  | ) |  |          | (6,806,573  | ) |        |  | 3,468,029  |                |  |  | 3,766,425  |  |  |           | (680,599   | ) |        |  | 1,142,975   |              |  |  | 2,073,287         |  |  |  | 6,157,757   |   |  |  | 4,205,419    |   |  |  | 35,054,772    |  
|Assets by segment                                              |  |        | 955,534,316 |   |        |  | 163,955,665 |        |  |  | 311,838,555  |   |  |          | 118,217,618 |   |        |  | 81,170,568 |                |  |  | 87,619,264 |  |  |           | 68,425,540 |   |        |  | 36,072,729  |              |  |  | 76,084,634        |  |  |  | 182,087,483 |   |  |  | (784,519,559 | ) |  |  | 1,296,486,813 |  
|Plant, property and equipment, net                             |  |        | 57,048,006  |   |        |  | 105,177,653 |        |  |  | 147,884,562  |   |  |          | 52,735,563  |   |        |  | 44,811,656 |                |  |  | 30,254,858 |  |  |           | 37,930,783 |   |        |  | 1,783,612   |              |  |  | 29,063,549        |  |  |  | 66,838,636  |   |  |  |             |   |  |  | 573,528,878   |  
|Goodwill                                                       |  |        | 27,067,441  |   |        |  | 392,523     |        |  |  | 17,931,543   |   |  |          | 2,672,724   |   |        |  | 11,612,051 |                |  |  | 4,396,090  |  |  |           | 5,213,703  |   |        |  | 1,903,762   |              |  |  | 14,186,723        |  |  |  | 51,737,156  |   |  |  |             |   |  |  | 137,113,716   |  
|Trademarks, net                                                |  |        | 826,446     |   |        |  | 346,566     |        |  |  | 341,750      |   |  |          |            |   |        |  | 522        |                |  |  |           |  |  |           |           |   |        |  | 686,052     |              |  |  | 242,175           |  |  |  | 8,856,795   |   |  |  |             |   |  |  | 11,300,306    |  
|Licenses and rights, net                                       |  |        | 4,395,698   |   |        |  | 72,557      |        |  |  | 28,442,759   |   |  |          | 8,318,161   |   |        |  | 3,661,838  |                |  |  | 6,256,297  |  |  |           | 3,660,240  |   |        |  |            |              |  |  | 6,443,439         |  |  |  | 29,198,262  |   |  |  |             |   |  |  | 90,449,251    |  
|Investment in associated companies                             |  |        | 10,818,612  |   |        |  | 1,955,186   |        |  |  | 700          |   |  |          | 115,452     |   |        |  | 371        |                |  |  |           |  |  |           | 16,259     |   |        |  |            |              |  |  |                  |  |  |  | 908,995     |   |  |  | (10,705,005  | ) |  |  | 3,110,570     |  
|Liabilities by segments                                        |  |        | 723,559,636 |   |        |  | 139,362,960 |        |  |  | 221,907,486  |   |  |          | 101,601,641 |   |        |  | 31,254,646 |                |  |  | 33,048,503 |  |  |           | 33,514,380 |   |        |  | 31,170,822  |              |  |  | 31,727,281        |  |  |  | 121,586,194 |   |  |  | (333,100,922 | ) |  |  | 1,135,632,627 |  



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##### Table of Contents

|                                                               |  |  |               |  |  |  |             |  |  |  |             |   |  |  |             |   |  |  |             |  |  |  |             |  |  |  |            |  |  |  |             |  |  |  |            |  |  |  |             |   |  |  |              |   |  |  |               | 
|-------------------------------------------------------------- |  |  | ------------- |  |  |  | ----------- |  |  |  | ----------- | - |  |  | ----------- | - |  |  | ----------- |  |  |  | ----------- |  |  |  | ---------- |  |  |  | ----------- |  |  |  | ---------- |  |  |  | ----------- | - |  |  | ------------ | - |  |  | ------------- | 
|At December 31, 2016 (in Ps.):                                 |  |  |               |  |  |  |             |  |  |  |             |   |  |  |             |   |  |  |             |  |  |  |             |  |  |  |            |  |  |  |             |  |  |  |            |  |  |  |             |   |  |  |              |   |  |  |               | 
|External revenues                                              |  |  | 187,127,903   |  |  |  | 93,343,612  |  |  |  | 193,796,237 |   |  |  | 71,553,356  |   |  |  | 67,330,768  |  |  |  | 55,825,972  |  |  |  | 42,131,666 |  |  |  | 140,856,365 |  |  |  | 36,467,781 |  |  |  | 86,978,828  |   |  |  |             |   |  |  | 975,412,488   | 
|Intersegment revenues                                          |  |  | 16,438,858    |  |  |  | 8,872,248   |  |  |  | 3,560,388   |   |  |  | 776,719     |   |  |  | 257,767     |  |  |  | 304,834     |  |  |  | 289,465    |  |  |  |            |  |  |  | 30,210     |  |  |  |            |   |  |  | (30,530,489  | ) |  |  |              | 
|                                                               |  |  |               |  |  |  |             |  |  |  |             |   |  |  |             |   |  |  |             |  |  |  |             |  |  |  |            |  |  |  |             |  |  |  |            |  |  |  |             |   |  |  |              |   |  |  |               | 
|Total revenues                                                 |  |  | 203,566,761   |  |  |  | 102,215,860 |  |  |  | 197,356,625 |   |  |  | 72,330,075  |   |  |  | 67,588,535  |  |  |  | 56,130,806  |  |  |  | 42,421,131 |  |  |  | 140,856,365 |  |  |  | 36,497,991 |  |  |  | 86,978,828  |   |  |  | (30,530,489  | ) |  |  | 975,412,488   | 
|Depreciation and amortization                                  |  |  | 16,451,496    |  |  |  | 17,150,013  |  |  |  | 47,170,935  |   |  |  | 9,739,634   |   |  |  | 11,283,749  |  |  |  | 7,764,474   |  |  |  | 10,474,681 |  |  |  | 1,073,623   |  |  |  | 5,225,498  |  |  |  | 22,525,050  |   |  |  | (333,232     | ) |  |  | 148,525,921   | 
|Operating income                                               |  |  | 48,219,505    |  |  |  | 12,275,892  |  |  |  | 6,325,323   |   |  |  | 8,317,053   |   |  |  | 11,209,959  |  |  |  | 6,086,638   |  |  |  | 3,830,974  |  |  |  | 1,220,601   |  |  |  | 6,143,183  |  |  |  | 5,388,595   |   |  |  | 592,587      |   |  |  | 109,610,310   | 
|Interest income                                                |  |  | 28,659,372    |  |  |  | 303,915     |  |  |  | 3,747,684   |   |  |  | 2,649,539   |   |  |  | 104,304     |  |  |  | 944,945     |  |  |  | 462,779    |  |  |  | 239,797     |  |  |  | 691,132    |  |  |  | 286,784     |   |  |  | (33,897,656  | ) |  |  | 4,192,595     | 
|Interest expense                                               |  |  | 32,004,944    |  |  |  | 1,135,552   |  |  |  | 22,970,335  |   |  |  | 5,049,457   |   |  |  | 1,079,989   |  |  |  | 1,147,380   |  |  |  | 411,597    |  |  |  |            |  |  |  | 143,322    |  |  |  | 2,953,033   |   |  |  | (33,033,597  | ) |  |  | 33,862,012    | 
|Income tax                                                     |  |  | 2,502,242     |  |  |  | 921,803     |  |  |  | (4,294,040  | ) |  |  | 2,021,090   |   |  |  | 4,456,750   |  |  |  | 1,768,066   |  |  |  | 3,291,776  |  |  |  | 767,295     |  |  |  | 2,542,080  |  |  |  | (2,578,206  | ) |  |  |             |   |  |  | 11,398,856    | 
|Equity interest in net income (loss) of associated companies   |  |  | 67,472        |  |  |  | 116,368     |  |  |  | (270        | ) |  |  | (23,319     | ) |  |  |            |  |  |  |            |  |  |  | 171        |  |  |  |            |  |  |  |           |  |  |  | 29,528      |   |  |  |             |   |  |  | 189,950       | 
|Net profit (loss) attributable to equity holders of the parent |  |  | 378,150       |  |  |  | 902,282     |  |  |  | (10,357,493 | ) |  |  | 3,765,015   |   |  |  | 4,022,633   |  |  |  | 3,621,863   |  |  |  | 538,890    |  |  |  | 987,790     |  |  |  | 3,318,960  |  |  |  | 7,065,769   |   |  |  | (5,594,432   | ) |  |  | 8,649,427     | 
|Assets by segment                                              |  |  | 1,070,598,204 |  |  |  | 161,133,722 |  |  |  | 461,831,754 |   |  |  | 140,617,162 |   |  |  | 103,361,235 |  |  |  | 113,839,981 |  |  |  | 80,832,029 |  |  |  | 42,812,349  |  |  |  | 93,941,695 |  |  |  | 227,288,156 |   |  |  | (981,214,013 | ) |  |  | 1,515,042,274 | 
|Plant, property and equipment, net                             |  |  | 64,893,242    |  |  |  | 112,220,236 |  |  |  | 203,270,555 |   |  |  | 67,023,143  |   |  |  | 59,690,886  |  |  |  | 37,716,772  |  |  |  | 41,808,573 |  |  |  | 1,949,166   |  |  |  | 33,854,428 |  |  |  | 78,763,065  |   |  |  |             |   |  |  | 701,190,066   | 
|Goodwill                                                       |  |  | 27,186,328    |  |  |  | 213,926     |  |  |  | 26,106,622  |   |  |  | 3,006,448   |   |  |  | 14,659,891  |  |  |  | 5,948,335   |  |  |  | 5,652,268  |  |  |  | 3,464,217   |  |  |  | 14,186,723 |  |  |  | 52,207,877  |   |  |  |             |   |  |  | 152,632,635   | 
|Trademarks, net                                                |  |  | 615,318       |  |  |  | 307,881     |  |  |  | 366,727     |   |  |  |            |   |  |  | 194         |  |  |  |            |  |  |  |           |  |  |  | 788,228     |  |  |  | 284,665    |  |  |  | 10,203,880  |   |  |  |             |   |  |  | 12,566,893    | 
|Licenses and rights, net                                       |  |  | 5,887,092     |  |  |  | 42,867      |  |  |  | 41,496,209  |   |  |  | 8,760,860   |   |  |  | 4,603,793   |  |  |  | 12,882,210  |  |  |  | 3,993,120  |  |  |  |            |  |  |  | 7,694,798  |  |  |  | 30,670,315  |   |  |  |             |   |  |  | 116,031,264   | 
|Investment in associated companies                             |  |  | 7,605,220     |  |  |  | 2,218,824   |  |  |  | 699         |   |  |  | 81,284      |   |  |  | 470         |  |  |  |            |  |  |  | 17,390     |  |  |  |            |  |  |  |           |  |  |  | 1,072,778   |   |  |  | (7,393,181   | ) |  |  | 3,603,484     | 
|Liabilities by segments                                        |  |  | 798,044,609   |  |  |  | 117,663,161 |  |  |  | 349,915,118 |   |  |  | 124,149,687 |   |  |  | 40,811,337  |  |  |  | 52,949,608  |  |  |  | 38,095,161 |  |  |  | 41,369,767  |  |  |  | 44,790,656 |  |  |  | 121,928,202 |   |  |  | (485,698,799 | ) |  |  | 1,244,018,507 | 



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23. Future Impact of Recently Issued Accounting Standards not yet in Effect

The Company has not adopted the following standards and interpretations that have been issued, but are not effective, up to the date of issuance of the
Companys financial statements. The Company intends to adopt these standards, if applicable, when they become effective.

IFRS 15 Revenue from
Contracts with Customers

In May 2014, the IASB issued the new standard IFRS 15 Revenue from Contracts with Customers. The new standard
for revenue recognition aims at standardizing the multitude of regulations previously included in various standards, and may require more judgment and estimates than with the revenue recognition processes that are required under the existing revenue
recognition standards. The amount of revenue recognized and its timing is determined based on a five-step model. IFRS 15 contains additional qualitative and quantitative disclosure obligations. These are aimed at enabling users of the financial
statements to understand the nature, amount, timing and uncertainties of revenue and the resulting cash flows arising from contracts with customers. Under IFRS 15, revenue is recognized for an amount that reflects the consideration to which an
entity expects to be entitled in exchange for transferring goods or providing services to a customer. The principles in IFRS 15 provide a more structured approach to measuring and recognizing revenue.

IFRS allows two adoption methods under IFRS 15: retrospectively to each reporting period presented (full retrospective method), or retrospectively with the
cumulative effect of initially applying the standard in beginning retained earnings. The Company currently plans to adopt the standard using the modified retrospective method. Under that method, it expects to apply the rules to all
contracts existing as of January 1, 2018, recognizing in retained earnings an adjustment for the cumulative effect of the change and providing additional disclosures comparing results to previously recorded revenue.

IFRS 15 provides presentation and disclosure requirements which are more detailed than under current IFRS. The presentation requirements represent a
significant change from current practice and increases the volume of disclosures required in Companys financial statements. Many of the disclosure requirements in IFRS 15 are completely new.

The Company initiated a group wide two-phase project for the implementation of IFRS 15. In phase I, certain employees
were first trained, then deviations in revenue recognition, based on contractual agreements, were identified for individual business transactions and the possibility of establishing portfolios was assessed. In phase II, the analysis of contracts
will be continued with a special focus on the adaption of IT and system processes.

Based on work performed to date, we believe the key changes in the
standard that may impact our revenue recognition relate to the allocation of contract revenue services between various services and equipment and the timing when such revenues are recorded. We also expect a change in the timing of the recognition of
the commissions we pay which were approximately Ps.35,141,660 in 2016 and were expensed when paid and may be deferred and amortized over future periods under the new standard. Additionally, the requirement to defer incremental contract acquisition
costs and recognize them over the contract period or expected customer life may result in an amortizable deferred asset on the Companys consolidated statement of financial position.

IFRS 16, Leases

In January 2016, the IASB issued
the new accounting standard, IFRS 16 Leases. The fundamental changes in this new standard affect the lessees recognition of leases in the financial statements. Generally, all leases have to be recognized based on the right of use
approach.

The new standard is effective for fiscal years beginning on or after January 1, 2019, with early adoption permitted. The standard
includes two recognition exemptions for lessees  leases of low-value assets (e.g.,



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personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments
(i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be
required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future
lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

IFRS 16 also requires lessees to make more extensive disclosures than under IAS 17.

According to the initial assessment made by the Company, the primary effect of the new standard will be to require the Company to establish a liability and a
right of use asset equal to the value of most of the Companys leases that are currently accounted for as operating leases.

Based on a preliminary
analysis, the Company may need to record on the consolidated statement of financial position, liabilities and right of use assets of operating leases as disclosed in Note 16a under non-cancellable operating
leases.

IFRS 9, Financial Instruments

IFRS
9, Financial Instruments, was issued in July 2014 and relates to the classification and measurement of financial assets and financial liabilities, hedge accounting and impairment of financial assets. The new standard is effective on or after
January 1, 2018, with early adoption permitted. The Company does not expect significant changes to its existing accounting policies surrounding classification and measurement for
available-for-sale securities as they are currently recognized at fair value on the consolidated statement of financial condition with changes in fair value recognized
in other comprehensive income. As for the recognition of impairment of financial assets as they would relate to accounts receivable trade, the Company currently expects to adopt the simplified approach of IFRS 9. Although management does not expect
major measurement changes in financial instruments, the possible impact on the consolidated financial statements of the Company from the initial adoption of IFRS 9 cannot currently be estimated.

IAS 7 Disclosure Initiative  Amendments to IAS 7

In October 2015, the IASB decided to separate the liquidity portion of the project, which would require further and more extensive analysis, and proceed only
with the reconciliation of liabilities for the time being. This part of the project is now complete.

Changes Amendments to the Disclosure Initiative
(Amendments to IAS 7) are intended to enable entities to disclose information that enables users of financial statements to assess changes in liabilities arising from financing activities. To achieve this objective, the IASB requires that the
following changes in liabilities arising from financing activities be disclosed (to the extent necessary): (i) changes in financing cash flows; (ii) changes resulting from the acquisition or loss of control of subsidiaries or other businesses;
(iii) the effect of changes in foreign exchange rates; (iv) changes in fair value; and (v) other changes.

The IASB defines liabilities arising
from financing activities as liabilities for which cash flows were, or future cash flows will be, classified in the statement of cash flows as cash flows from financing activities. It also emphasizes that new disclosure requirements also relate to
changes in financial assets if they meet the same definition.

The amendments establish that a way to meet the new disclosure requirement is to provide a
reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities. This is a starting point for the draft December 2014 standard which had proposed that such
reconciliation should be required.



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Finally, the amendments stipulate that changes in liabilities arising from financing activities must be disclosed
separately from changes in other assets and liabilities.

Amendments to IAS 7 Statement of Cash Flows form part of the IASB Disclosure Initiative and
require the entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. These amendments are effective for annual periods beginning on or after January 1, 2017.

The implementation of this standard is not expected to have a material impact on the Companys consolidated financial statements.

Amendments to IAS 12, Recognition of Deferred Tax Assets for Unrealized Losses

These amendments were published in January 2016. The amendments clarify that unrealized losses on debt instruments measured at fair value in financial
instruments but at cost for tax purposes, may give rise to deductible temporary differences. The amendments also clarify that:



| |  |  | the carrying amount of an asset does not limit the estimate of probable future taxable profits; and that,
| | - |  | ---------------------------------------------------------------------------------------------------------



| |  |  | when comparing deductible temporary differences with future taxable profits, future taxable profits exclude tax deductions resulting from the reversal of those deductible temporary differences. The amendments are to be
applied retrospectively and are effective as of January 1, 2017.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24. Subsequent Events

In March 2017, the Company, Telcel, Telmex and Teléfonos del Noroeste (Telnor) were notified of a resolution issued by the IFT modifying certain
asymmetrical regulations and adding new asymmetrical regulations, for mobile and fixed services.

Functional Separation

With respect to the functional separation of the provision of wholesale regulated fixed services, the IFT ordered the incorporation of a legal entity
independent from Telmex and Telnor that will exclusively provide wholesale services related to local loop (acceso local) and shared access and use of passive infrastructure. All other wholesale services will be provided by a business unit within
Telmex-Telnor different from the one that provides telecommunication services to end users. Implementation of the functional separation will be based on a separation plan that will be presented by Telmex and Telnor for IFT approval, under the terms
and conditions determined by the IFT. América Móvil is currently reviewing the resolution and analyzing its possible effects on América Móvil and its subsidiaries. The resolution will be challenged in accordance with
applicable law. The Company cannot predict when or how these matters will be resolved or the financial effects of this resolution. However, an adverse resolution could have an impact on the Companys future revenues and results of operations.
In addition, given that under the new regulatory framework IFTs determinations are not suspended while legal challenges against them are resolved, the enforceability of the IFTs resolution cannot be suspended.

25. Supplemental Guarantor Information

The Company has
issued senior notes in certain countries. These notes are fully and unconditionally guaranteed by Telcel.

Condensed Consolidating Financial
Information

The following consolidating information presents condensed consolidating statements of financial position as of December 31, 2015 and
2016 and condensed consolidating statements of comprehensive income and cash flows for each of the three years in the period ended December 31, 2016 of the Company and Telcel (the wholly-



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owned Guarantor Subsidiary). The unconsolidated financial statements of América Móvil and Telcel reflect their investments in subsidiaries on the basis of the equity method.
These unconsolidated entities are the Guarantors of most of América Móvils consolidated obligations. The guarantees of the Guarantor are full and unconditional.

The Companys consolidating condensed financial information for the (i) Company; (ii) its wholly-owned guarantor subsidiary Telcel (on
standalone basis), which is a wholly and unconditional guarantor under the Senior Notes; (iii) the combined non-guarantor subsidiaries; iv) eliminations and v) the Companys consolidated financial
statements are as follows:

Condensed consolidating statements of financial position



|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|----------------------------------------------------- |  | ----------------------- | ----------- |  | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------- |  |  | ----------------- | -------------- | - |  | --- | ------------- | 
|                                                      |  | As of December 31, 2015 |            
|                                                      |  | Parent                  |             |  | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations  |  |  | ConsolidatedTotal |               
|Assets:                                               |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Cash and cash equivalents                             |  | Ps.                     | 13,803,586  |  |                                 | Ps. | 1,468,038   |                                   |  | Ps. | 29,888,408    |  |  | Ps.               |               |   |  | Ps. | 45,160,032    | 
|Marketable securities                                 |  |                         | 10,166,094  |  |                                 |     |            |                                   |  |     | 46,181,375    |  |  |                   |               |   |  |     | 56,347,469    | 
|Accounts receivable, net                              |  |                         | 95,232,364  |  |                                 |     | 15,262,365  |                                   |  |     | 75,742,806    |  |  |                   |               |   |  |     | 186,237,535   | 
|Related parties                                       |  |                         | 260,915,156 |  |                                 |     | 11,637,524  |                                   |  |     | 377,552,973   |  |  |                   | (649,260,020   | ) |  |     | 845,633       | 
|Inventories, net                                      |  |                         | 184,451     |  |                                 |     | 17,555,058  |                                   |  |     | 18,083,328    |  |  |                   | (245,365       | ) |  |     | 35,577,472    | 
|Other current assets                                  |  |                         |            |  |                                 |     | 742,703     |                                   |  |     | 16,535,210    |  |  |                   |               |   |  |     | 17,277,913    | 
|Property, plant and equipment, net                    |  |                         | 4,232,704   |  |                                 |     | 21,604,972  |                                   |  |     | 547,691,202   |  |  |                   |               |   |  |     | 573,528,878   | 
|Investments in associated companies                   |  |                         | 542,312,759 |  |                                 |     | 87,164,278  |                                   |  |     | 22,039,223    |  |  |                   | (648,405,690   | ) |  |     | 3,110,570     | 
|Intangible assets and other non-current assets,
net   |  |                         | 6,443,333   |  |                                 |     | 21,373,076  |                                   |  |     | 350,584,902   |  |  |                   |               |   |  |     | 378,401,311   | 
|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Total assets                                          |  | Ps.                     | 933,290,447 |  |                                 | Ps. | 176,808,014 |                                   |  | Ps. | 1,484,299,427 |  |  | Ps.               | (1,297,911,075 | ) |  | Ps. | 1,296,486,813 | 
|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Liabilities:                                          |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Short-term debt and current portion of long-term debt |  | Ps.                     | 81,442,584  |  |                                 | Ps. |            |                                   |  | Ps. | 38,147,202    |  |  | Ps.               |               |   |  | Ps. | 119,589,786   | 
|Current liabilities                                   |  |                         | 238,376,515 |  |                                 |     | 158,848,080 |                                   |  |     | 552,349,847   |  |  |                   | (643,945,315   | ) |  |     | 305,629,127   | 
|Long-term debt                                        |  |                         | 497,879,208 |  |                                 |     |            |                                   |  |     | 65,747,750    |  |  |                   |               |   |  |     | 563,626,958   | 
|Other non-current liabilities                         |  |                         | 3,314,145   |  |                                 |     | 701,377     |                                   |  |     | 149,756,035   |  |  |                   | (6,984,801     | ) |  |     | 146,786,756   | 
|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Total liabilities                                     |  | Ps.                     | 821,012,452 |  |                                 | Ps. | 159,549,457 |                                   |  | Ps. | 806,000,834   |  |  | Ps.               | (650,930,116   | ) |  | Ps. | 1,135,632,627 | 
|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Equity attributable to equity holders of the parent   |  |                         | 112,277,995 |  |                                 |     | 17,258,557  |                                   |  |     | 599,986,501   |  |  |                   | (617,245,058   | ) |  |     | 112,277,995   | 
|Non-controlling interests                             |  |                         |            |  |                                 |     |            |                                   |  |     | 78,312,092    |  |  |                   | (29,735,901    | ) |  |     | 48,576,191    | 
|Total equity                                          |  |                         | 112,277,995 |  |                                 |     | 17,258,557  |                                   |  |     | 678,298,593   |  |  |                   | (646,980,959   | ) |  |     | 160,854,186   | 
|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Total liabilities and equity                          |  | Ps.                     | 933,290,447 |  |                                 | Ps. | 176,808,014 |                                   |  | Ps. | 1,484,299,427 |  |  | Ps.               | (1,297,911,075 | ) |  | Ps. | 1,296,486,813 | 
|                                                      |  |                         |             |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 



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|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|----------------------------------------------------- |  | ----------------------- | ------------- |  | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------- |  |  | ----------------- | -------------- | - |  | --- | ------------- | 
|                                                      | 
|                                                      |  | As of December 31, 2016 |              
|                                                      |  | Parent                  |               |  | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations  |  |  | ConsolidatedTotal |               
|Assets:                                               |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Cash and cash equivalents                             |  | Ps.                     | 4,107,645     |  |                                 | Ps. | 1,948,159   |                                   |  | Ps. | 17,162,579    |  |  | Ps.               |               |   |  | Ps. | 23,218,383    | 
|Marketable securities                                 |  |                         | 11,716,039    |  |                                 |     |            |                                   |  |     | 43,141,118    |  |  |                   |               |   |  |     | 54,857,157    | 
|Accounts receivable, net                              |  |                         | 41,086,859    |  |                                 |     | 23,541,672  |                                   |  |     | 142,056,406   |  |  |                   | (1,347         | ) |  |     | 206,683,590   | 
|Related parties                                       |  |                         | 271,373,391   |  |                                 |     | 14,461,731  |                                   |  |     | 379,358,127   |  |  |                   | (664,452,757   | ) |  |     | 740,492       | 
|Inventories, net                                      |  |                         | 323,642       |  |                                 |     | 10,246,083  |                                   |  |     | 26,575,972    |  |  |                   | (274,405       | ) |  |     | 36,871,292    | 
|Other current assets                                  |  |                         |              |  |                                 |     | 951,739     |                                   |  |     | 18,586,354    |  |  |                   |               |   |  |     | 19,538,093    | 
|Property, plant and equipment, Net                    |  |                         | 2,774,540     |  |                                 |     | 24,124,644  |                                   |  |     | 674,290,882   |  |  |                   |               |   |  |     | 701,190,066   | 
|Investments in associated companies                   |  |                         | 704,272,725   |  |                                 |     | 134,150,348 |                                   |  |     | 59,589,480    |  |  |                   | (894,409,069   | ) |  |     | 3,603,484     | 
|Intangible assets and other non-current assets,
net   |  |                         | 11,734,707    |  |                                 |     | 25,653,093  |                                   |  |     | 430,951,917   |  |  |                   |               |   |  |     | 468,339,717   | 
|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Total assets                                          |  | Ps.                     | 1,047,389,548 |  |                                 | Ps. | 235,077,469 |                                   |  | Ps. | 1,791,712,835 |  |  | Ps.               | (1,559,137,578 | ) |  | Ps. | 1,515,042,274 | 
|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Liabilities:                                          |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Short-term debt and current portion of long-term debt |  | Ps.                     | 57,213,648    |  |                                 | Ps. |            |                                   |  | Ps. | 25,393,611    |  |  | Ps.               |               |   |  | Ps. | 82,607,259    | 
|Current liabilities                                   |  |                         | 222,336,894   |  |                                 |     | 178,205,640 |                                   |  |     | 643,759,333   |  |  |                   | (656,905,877   | ) |  |     | 387,395,990   | 
|Long-term debt                                        |  |                         | 555,475,368   |  |                                 |     |            |                                   |  |     | 69,718,776    |  |  |                   |               |   |  |     | 625,194,144   | 
|Other non-current liabilities                         |  |                         | 3,448,396     |  |                                 |     | 885,834     |                                   |  |     | 152,707,752   |  |  |                   | (8,220,868     | ) |  |     | 148,821,114   | 
|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Total liabilities                                     |  | Ps.                     | 838,474,306   |  |                                 | Ps. | 179,091,474 |                                   |  | Ps. | 891,579,472   |  |  | Ps.               | (665,126,745   | ) |  | Ps. | 1,244,018,507 | 
|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Equity attributable to equity holders of the parent   |  |                         | 208,915,242   |  |                                 |     | 55,985,995  |                                   |  |     | 714,469,820   |  |  |                   | (770,455,814   | ) |  |     | 208,915,243   | 
|Non-controlling interests                             |  |                         |              |  |                                 |     |            |                                   |  |     | 185,663,543   |  |  |                   | (123,555,019   | ) |  |     | 62,108,524    | 
|Total equity                                          |  |                         | 208,915,242   |  |                                 |     | 55,985,995  |                                   |  |     | 900,133,363   |  |  |                   | (894,010,833   | ) |  |     | 271,023,767   | 
|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 
|Total liabilities and equity                          |  | Ps.                     | 1,047,389,548 |  |                                 | Ps. | 235,077,469 |                                   |  | Ps. | 1,791,712,835 |  |  | Ps.               | (1,559,137,578 | ) |  | Ps. | 1,515,042,274 | 
|                                                      |  |                         |               |  |                                 |     |             |                                   |  |     |               |  |  |                   |                |   |  |     |               | 



F-95



---

##### Table of Contents

Condensed consolidating statements of comprehensive income

For the year ended December 31, 2014



|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|----------------------------------------------------------------------------------------------- |  | ------ | ----------- | - | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------ | - |  | ----------------- | ------------ | - |  | --- | ----------- | -
|                                                                                                |  | Parent |             |   | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations |   |  | ConsolidatedTotal |             
|Total revenues                                                                                  |  | Ps.    | 177,253,309 |   |                                 | Ps. | 160,813,209 |                                   |  | Ps. | 685,186,743  |   |  | Ps.               | (174,673,261 | ) |  | Ps. | 848,580,000 |  
|Total cost and operating expenses                                                               |  |        | 128,116,283 |   |                                 |     | 141,434,298 |                                   |  |     | 605,228,384  |   |  |                   | (182,753,215 | ) |  |     | 692,025,750 |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Operating income                                                                                |  |        | 49,137,026  |   |                                 |     | 19,378,911  |                                   |  |     | 79,958,359   |   |  |                   | 8,079,954    |   |  |     | 156,554,250 |  
|Interest (expense) income, net                                                                  |  |        | (28,644,460 | ) |                                 |     | (9,557,003  | )                                 |  |     | 13,877,738   |   |  |                   | (146,527     | ) |  |     | (24,470,252 | )
|Foreign currency exchange (loss) gain, net                                                      |  |        | (9,171,796  | ) |                                 |     | (1,067,727  | )                                 |  |     | (18,375,936  | ) |  |                   |             |   |  |     | (28,615,459 | )
|Other financing cost, net                                                                       |  |        | 5,940,256   |   |                                 |     |             |                                   |  |     | (16,135,030  | ) |  |                   | 4,513        |   |  |     | (10,190,261 | )
|Income tax                                                                                      |  |        | 9,988,723   |   |                                 |     | 4,917,194   |                                   |  |     | 24,801,632   |   |  |                   |             |   |  |     | 39,707,549  |  
|Equity interest in net income of associated companies                                           |  |        | 38,649,910  |   |                                 |     | (4,185,854  | )                                 |  |     | (348,866     | ) |  |                   | (40,188,199  | ) |  |     | (6,073,009  | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net profit (loss) for year                                                                      |  | Ps.    | 45,922,213  |   |                                 | Ps. | (348,867    | )                                 |  | Ps. | 34,174,633   |   |  | Ps.               | (32,250,259  | ) |  | Ps. | 47,497,720  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Distribution of the net profit (loss) to:                                                       |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Equity owners of holding company                                                                |  | Ps.    | 45,922,213  |   |                                 | Ps. | (348,867    | )                                 |  | Ps. | 32,717,012   |   |  | Ps.               | (32,143,988  | ) |  | Ps. | 46,146,370  |  
|Non-controlling interest                                                                        |  |        |            |   |                                 |     |            |                                   |  |     | 1,457,621    |   |  |                   | (106,271     | ) |  |     | 1,351,350   |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net profit (loss)                                                                               |  | Ps.    | 45,922,213  |   |                                 | Ps. | (348,867    | )                                 |  | Ps. | 34,174,633   |   |  | Ps.               | (32,250,259  | ) |  | Ps. | 47,497,720  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Other comprehensive income items:                                                               |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent
years: |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Effect of translation of foreign entities                                                       |  | Ps.    | (5,786,883  | ) |                                 | Ps. | 2,718,279   |                                   |  | Ps. | (1,209,846   | ) |  | Ps.               | (1,977,265   | ) |  | Ps. | (6,255,715  | )
|Effect of fair value of derivatives, net of deferred taxes                                      |  |        | (329,112    | ) |                                 |     | (815,484    | )                                 |  |     | (366,195     | ) |  |                   | 1,197,219    |   |  |     | (313,572    | )
|Items not to be reclassified to profit or loss in subsequent years:                             |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Remeasurement of defined benefit plan, net of income tax effect                                 |  |        | (6,625,463  | ) |                                 |     |            |                                   |  |     | (6,512,408   | ) |  |                   | 6,329,896    |   |  |     | (6,807,975  | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Total other comprehensive income items for the period                                           |  |        | (12,741,458 | ) |                                 |     | 1,902,795   |                                   |  |     | (8,088,449   | ) |  |                   | 5,549,850    |   |  |     | (13,377,262 | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Total comprehensive income for the period                                                       |  | Ps.    | 33,180,755  |   |                                 | Ps. | 1,553,928   |                                   |  | Ps. | 26,086,184   |   |  | Ps.               | (26,700,409  | ) |  | Ps. | 34,120,458  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Comprehensive income for the period attributable to:                                            |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Equity holders of the parent                                                                    |  | Ps.    | 33,180,755  |   |                                 | Ps. | 1,553,928   |                                   |  | Ps. | 25,370,638   |   |  | Ps.               | (26,700,409  | ) |  | Ps. | 33,404,912  |  
|Non-controlling interests                                                                       |  |        |            |   |                                 |     |            |                                   |  |     | 715,546      |   |  |                   |             |   |  |     | 715,546     |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|                                                                                                |  | Ps.    | 33,180,755  |   |                                 | Ps. | 1,553,928   |                                   |  | Ps. | 26,086,184   |   |  | Ps.               | (26,700,409  | ) |  | Ps. | 34,120,458  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  



F-96



---

##### Table of Contents

Condensed consolidating statements of comprehensive income

For the year ended December 31, 2015



|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|----------------------------------------------------------------------------------------------- |  | ------ | ----------- | - | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------ | - |  | ----------------- | ------------ | - |  | --- | ----------- | -
|                                                                                                |  | Parent |             |   | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations |   |  | ConsolidatedTotal |             
|Total revenues                                                                                  |  | Ps.    | 173,615,615 |   |                                 | Ps. | 157,930,068 |                                   |  | Ps. | 743,147,639  |   |  | Ps.               | (180,955,583 | ) |  | Ps. | 893,737,739 |  
|Total cost and operating expenses                                                               |  |        | 126,724,721 |   |                                 |     | 142,902,403 |                                   |  |     | 663,102,125  |   |  |                   | (180,404,671 | ) |  |     | 752,324,578 |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Operating income                                                                                |  |        | 46,890,894  |   |                                 |     | 15,027,665  |                                   |  |     | 80,045,514   |   |  |                   | (550,912     | ) |  |     | 141,413,161 |  
|Interest (expense) income, net                                                                  |  |        | (16,668,472 | ) |                                 |     | (9,031,432  | )                                 |  |     | (872,237     | ) |  |                   | 227,781      |   |  |     | (26,344,360 | )
|Foreign currency exchange (loss) gain, net                                                      |  |        | (51,209,235 | ) |                                 |     | (2,060,917  | )                                 |  |     | (25,727,836  | ) |  |                   |             |   |  |     | (78,997,988 | )
|Other financing cost, net                                                                       |  |        | 14,115,563  |   |                                 |     |             |                                   |  |     | 7,380,753    |   |  |                   |             |   |  |     | 21,496,316  |  
|Income tax                                                                                      |  |        | 1,150,992   |   |                                 |     | 1,747,302   |                                   |  |     | 16,281,357   |   |  |                   |             |   |  |     | 19,179,651  |  
|Equity interest in net income of associated companies                                           |  |        | 43,077,014  |   |                                 |     | (4,722,363  | )                                 |  |     | (2,534,350   | ) |  |                   | (37,246,997  | ) |  |     | (1,426,696  | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net profit (loss) for year                                                                      |  | Ps.    | 35,054,772  |   |                                 | Ps. | (2,534,349  | )                                 |  | Ps. | 42,010,487   |   |  | Ps.               | (37,570,128  | ) |  | Ps. | 36,960,782  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Distribution of the net profit (loss) to:                                                       |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Equity owners of holding company                                                                |  | Ps.    | 35,054,772  |   |                                 | Ps. | (2,534,349  | )                                 |  | Ps. | 41,711,424   |   |  | Ps.               | (39,177,075  | ) |  | Ps. | 35,054,772  |  
|Non-controlling interest                                                                        |  |        |            |   |                                 |     |            |                                   |  |     | 299,063      |   |  |                   | 1,606,947    |   |  |     | 1,906,010   |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net profit (loss)                                                                               |  | Ps.    | 35,054,772  |   |                                 | Ps. | (2,534,349  | )                                 |  | Ps. | 42,010,487   |   |  | Ps.               | (37,570,128  | ) |  | Ps. | 36,960,782  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Other comprehensive income (loss) items:                                                        |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent
years: |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Effect of translation of foreign entities                                                       |  | Ps.    | (34,224,932 | ) |                                 | Ps. | (4,664,901  | )                                 |  | Ps. | (34,129,089  | ) |  | Ps.               | 37,412,602   |   |  | Ps. | (35,606,320 | )
|Effect of fair value of derivatives, net of deferred taxes                                      |  |        | 37,011      |   |                                 |     |            |                                   |  |     | 22,482       |   |  |                   | (21,998      | ) |  |     | 37,495      |  
|Items not to be reclassified to profit or loss in subsequent years:                             |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Remeasurement of defined benefit plan, net of income tax effect                                 |  |        | (17,791,354 | ) |                                 |     |            |                                   |  |     | (10,750,136  | ) |  |                   | 10,561,072   |   |  |     | (17,980,418 | )
|Available for sale                                                                              |  |        | 173,540     |   |                                 |     |            |                                   |  |     | (169,529     | ) |  |                   |             |   |  |     | 4,011       |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Total other comprehensive income items for the period                                           |  |        | (51,805,735 | ) |                                 |     | (4,664,901  | )                                 |  |     | (45,026,272  | ) |  |                   | 47,951,676   |   |  |     | (53,545,232 | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Total comprehensive income for the period                                                       |  | Ps.    | (16,750,963 | ) |                                 | Ps. | (7,199,250  | )                                 |  | Ps. | (3,015,785   | ) |  | Ps.               | 10,381,548   |   |  | Ps. | (16,584,450 | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Comprehensive income for the period attributable to:                                            |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Equity holders of the parent                                                                    |  | Ps.    | (16,750,963 | ) |                                 | Ps. | (7,199,250  | )                                 |  | Ps. | (10,304,830  | ) |  | Ps.               | 17,504,080   |   |  | Ps. | (16,750,963 | )
|Non-controlling interests                                                                       |  |        |            |   |                                 |     |            |                                   |  |     | 7,289,045    |   |  |                   | (7,122,532   | ) |  |     | 166,513     |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|                                                                                                |  | Ps.    | (16,750,963 | ) |                                 | Ps. | (7,199,250  | )                                 |  | Ps. | (3,015,785   | ) |  | Ps.               | 10,381,548   |   |  | Ps. | (16,584,450 | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  



F-97



---

##### Table of Contents

Condensed consolidating statements of comprehensive income

For the year ended December 31, 2016



|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|----------------------------------------------------------------------------------------------- |  | ------ | ----------- | - | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------ | - |  | ----------------- | ------------ | - |  | --- | ----------- | -
|                                                                                                |  | Parent |             |   | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations |   |  | ConsolidatedTotal |             
|Total revenues                                                                                  |  | Ps.    | 137,236,301 |   |                                 | Ps. | 173,714,225 |                                   |  | Ps. | 857,137,822  |   |  | Ps.               | (192,675,860 | ) |  | Ps. | 975,412,488 |  
|Total cost and operating expenses                                                               |  |        | 117,835,634 |   |                                 |     | 160,949,691 |                                   |  |     | 778,483,079  |   |  |                   | (191,466,226 | ) |  |     | 865,802,178 |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Operating income                                                                                |  |        | 19,400,667  |   |                                 |     | 12,764,534  |                                   |  |     | 78,654,743   |   |  |                   | (1,209,634   | ) |  |     | 109,610,310 |  
|Interest (expense) income, net                                                                  |  |        | (12,331,095 | ) |                                 |     | 97,314      |                                   |  |     | (17,207,855  | ) |  |                   | (227,781     | ) |  |     | (29,669,417 | )
|Foreign currency exchange (loss) gain, net                                                      |  |        | (46,625,392 | ) |                                 |     | (5,853,669  | )                                 |  |     | 12,051,654   |   |  |                   |             |   |  |     | (40,427,407 | )
|Other financing cost, net                                                                       |  |        | (10,475,673 | ) |                                 |     | (11,203,533 | )                                 |  |     | 5,453,365    |   |  |                   |             |   |  |     | (16,225,841 | )
|Income tax                                                                                      |  |        | (7,712,179  | ) |                                 |     | 1,139,631   |                                   |  |     | 17,971,404   |   |  |                   |             |   |  |     | 11,398,856  |  
|Equity interest in net income of associated companies                                           |  |        | 50,968,741  |   |                                 |     | (1,342,073  | )                                 |  |     | (6,677,059   | ) |  |                   | (42,759,659  | ) |  |     | 189,950     |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net profit (loss) for year                                                                      |  | Ps.    | 8,649,427   |   |                                 | Ps. | (6,677,058  | )                                 |  | Ps. | 54,303,444   |   |  | Ps.               | (44,197,074  | ) |  | Ps. | 12,078,739  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Distribution of the net profit (loss) to:                                                       |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Equity owners of holding company                                                                |  |        | 8,649,427   |   |                                 |     | (6,677,058  | )                                 |  |     | 50,049,280   |   |  |                   | (43,372,222  | ) |  |     | 8,649,427   |  
|Non-controlling interest                                                                        |  |        |            |   |                                 |     |            |                                   |  |     | 4,254,164    |   |  |                   | (824,852     | ) |  |     | 3,429,312   |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net profit (loss)                                                                               |  | Ps.    | 8,649,427   |   |                                 | Ps. | (6,677,058  | )                                 |  | Ps. | 54,303,444   |   |  | Ps.               | (44,197,074  | ) |  | Ps. | 12,078,739  |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Other comprehensive income items:                                                               |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent
years: |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Effect of translation of foreign entities                                                       |  |        | 104,178,880 |   |                                 |     | 755,978     |                                   |  |     | 108,291,984  |   |  |                   | (105,728,134 | ) |  |     | 107,498,708 |  
|Effect of fair value of derivatives, net of deferred taxes                                      |  |        | 48,496      |   |                                 |     |            |                                   |  |     | 30,206       |   |  |                   | (29,573      | ) |  |     | 49,129      |  
|Items not to be reclassified to profit or loss in subsequent years:                             |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Remeasurement of defined benefit plan, net of income tax effect                                 |  |        | 14,771,770  |   |                                 |     | (12,300     | )                                 |  |     | 7,477,926    |   |  |                   | (7,463,997   | ) |  |     | 14,773,399  |  
|Available for sale                                                                              |  |        | (6,673,731  | ) |                                 |     |            |                                   |  |     | (6,673,731   | ) |  |                   | 6,673,731    |   |  |     | (6,673,731  | )
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Total other comprehensive income items for the period                                           |  | Ps.    | 112,325,415 |   |                                 | Ps. | 743,678     |                                   |  | Ps. | 109,126,385  |   |  | Ps.               | (106,547,973 | ) |  | Ps. | 115,647,505 |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Total comprehensive income for the period                                                       |  | Ps.    | 120,974,842 |   |                                 | Ps. | (5,933,380  | )                                 |  | Ps. | 163,429,829  |   |  | Ps.               | (150,745,047 | ) |  | Ps. | 127,726,244 |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Comprehensive income for the period attributable to:                                            |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|Equity holders of the parent                                                                    |  | Ps.    | 120,974,842 |   |                                 | Ps. | (5,933,380  | )                                 |  | Ps. | 150,900,984  |   |  | Ps.               | (144,967,604 | ) |  | Ps. | 120,974,842 |  
|Non-controlling interests                                                                       |  |        |            |   |                                 |     |            |                                   |  |     | 12,528,845   |   |  |                   | (5,777,443   | ) |  |     | 6,751,402   |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  
|                                                                                                |  | Ps.    | 120,974,842 |   |                                 | Ps. | (5,933,380  | )                                 |  | Ps. | 163,429,829  |   |  | Ps.               | (150,745,047 | ) |  | Ps. | 127,726,244 |  
|                                                                                                |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |              |   |  |     |             |  



F-98



---

##### Table of Contents

Condensed consolidating statements of cash flows

For the year ended December 31, 2014



|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|--------------------------------------------------------- |  | ------ | ----------- | - | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------ | - |  | ----------------- | ----------- | - |  | --- | ------------ | -
|                                                          |  | Parent |             |   | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations |   |  | ConsolidatedTotal |            
|Operating activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Profit before taxes                                       |  | Ps.    | 55,910,936  |   |                                 | Ps. | 4,568,327   |                                   |  | Ps. | 58,976,264   |   |  | Ps.               | (32,250,258 | ) |  | Ps. | 87,205,269   |  
|Non-cash items                                            |  |        | 76,781,705  |   |                                 |     | 20,102,297  |                                   |  |     | 62,552,178   |   |  |                   | 40,188,198  |   |  |     | 199,624,378  |  
|Changes in working capital:                               |  |        | (59,801,260 | ) |                                 |     | (24,312,700 | )                                 |  |     | 45,832,767   |   |  |                   | (7,937,940  | ) |  |     | (46,219,133  | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net cash flows provided by operating activities           |  | Ps.    | 72,891,381  |   |                                 | Ps. | 357,924     |                                   |  | Ps. | 167,361,209  |   |  | Ps.               |            |   |  | Ps. | 240,610,514  |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Investing activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Acquisition of plant, property and equipment              |  |        | 289,705     |   |                                 |     | (8,850,170  | )                                 |  |     | (117,704,832 | ) |  |                   |            |   |  |     | (126,265,297 | )
|Acquisition of licenses                                   |  |        |            |   |                                 |     | (1,225,966  | )                                 |  |     | (18,093,690  | ) |  |                   |            |   |  |     | (19,319,656  | )
|Dividends received                                        |  |        | (6,265      | ) |                                 |     | 7,070,000   |                                   |  |     | (1,497       | ) |  |                   | (6,702,825  | ) |  |     | 359,413      |  
|Investment in associates and business combinations        |  |        | 7,664,566   |   |                                 |     |            |                                   |  |     | (19,575,148  | ) |  |                   |            |   |  |     | (11,910,582  | )
|Acquisition of business, net of cash acquired             |  |        | (10,400,293 | ) |                                 |     | 24,648,037  |                                   |  |     | (12,582,000  | ) |  |                   | 10,400,293  |   |  |     | 12,066,037   |  
|Cash acquired in business combination                     |  |        |            |   |                                 |     |            |                                   |  |     | (2,654,342   | ) |  |                   |            |   |  |     | (2,654,342   | )
|Proceeds from fixed asset sales                           |  |        |            |   |                                 |     |            |                                   |  |     | 96,781       |   |  |                   |            |   |  |     | 96,781       |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net cash flows provided by (used in) investing activities |  | Ps.    | (2,452,287  | ) |                                 | Ps. | 21,641,901  |                                   |  | Ps. | (170,514,728 | ) |  | Ps.               | 3,697,468   |   |  | Ps. | (147,627,646 | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Financing activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Bank loans, net                                           |  |        | 11,556,519  |   |                                 |     |            |                                   |  |     | (4,065,730   | ) |  |                   |            |   |  |     | 7,490,789    |  
|Acquisition of no controlling interest                    |  |        |            |   |                                 |     |            |                                   |  |     | (4,696,245   | ) |  |                   |            |   |  |     | (4,696,245   | )
|Interest paid                                             |  |        | (20,818,380 | ) |                                 |     | (21,833,128 | )                                 |  |     | 9,368,090    |   |  |                   |            |   |  |     | (33,283,418  | )
|Paid-In capital                                           |  |        |            |   |                                 |     |            |                                   |  |     | 10,400,293   |   |  |                   | (10,400,293 | ) |  |     |             |  
|Repurchase of shares and others                           |  |        | (35,049,327 | ) |                                 |     |            |                                   |  |     |             |   |  |                   |            |   |  |     | (35,049,327  | )
|Increase of non-controlling Interests                     |  |        |            |   |                                 |     |            |                                   |  |     | 7,181,894    |   |  |                   |            |   |  |     | 7,181,894    |  
|Payment of dividends                                      |  |        | (16,291,799 | ) |                                 |     |            |                                   |  |     | (7,465,855   | ) |  |                   | 6,702,825   |   |  |     | (17,054,829  | )
|Financial instruments                                     |  |        |            |   |                                 |     |            |                                   |  |     | 653,116      |   |  |                   |            |   |  |     | 653,116      |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net cash flows (used in) provided by financing activities |  | Ps.    | (60,602,987 | ) |                                 | Ps. | (21,833,128 | )                                 |  | Ps. | 11,375,563   |   |  | Ps.               | (3,697,468  | ) |  | Ps. | (74,758,020  | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net increase in cash and cash equivalents                 |  |        | 9,836,107   |   |                                 |     | 166,697     |                                   |  |     | 8,222,044    |   |  |                   |            |   |  |     | 18,224,848   |  
|Adjustment to cash flow for exchange rate differences     |  |        |            |   |                                 |     |            |                                   |  |     | 85,305       |   |  |                   |            |   |  |     | 85,305       |  
|Cash and cash equivalents at beginning of the period      |  |        | 15,818,207  |   |                                 |     | 1,227,994   |                                   |  |     | 31,117,349   |   |  |                   |            |   |  |     | 48,163,550   |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Cash and cash equivalents at end of the period            |  | Ps.    | 25,654,314  |   |                                 | Ps. | 1,394,691   |                                   |  | Ps. | 39,424,698   |   |  | Ps.               |            |   |  | Ps. | 66,473,703   |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  





F-99



---

##### Table of Contents

Condensed consolidating statements of cash flows

For the year ended December 31, 2015



|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|--------------------------------------------------------- |  | ------ | ----------- | - | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------ | - |  | ----------------- | ----------- | - |  | --- | ------------ | -
|                                                          |  | Parent |             |   | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations |   |  | ConsolidatedTotal |            
|Operating activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Profit before taxes                                       |  | Ps.    | 36,205,763  |   |                                 | Ps. | (787,047    | )                                 |  | Ps. | 58,291,845   |   |  | Ps.               | (37,570,128 | ) |  | Ps. | 56,140,433   |  
|Non-cash items                                            |  |        | (4,256,606  | ) |                                 |     | 20,449,298  |                                   |  |     | 141,713,565  |   |  |                   | 37,246,997  |   |  |     | 195,153,254  |  
|Changes in working capital:                               |  |        | (72,746,155 | ) |                                 |     | (1,580,787  | )                                 |  |     | (13,562,885  | ) |  |                   | 323,131     |   |  |     | (87,566,696  | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net cash flows (used in) provided by operating activities |  | Ps.    | (40,796,998 | ) |                                 | Ps. | 18,081,464  |                                   |  | Ps. | 186,442,525  |   |  | Ps.               |            |   |  | Ps. | 163,726,991  |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Investing activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Purchase of property, plant and equipment                 |  |        | 1,498       |   |                                 |     | (6,894,071  | )                                 |  |     | (121,147,340 | ) |  |                   |            |   |  |     | (128,039,913 | )
|Acquisition of intangibles                                |  |        |            |   |                                 |     | (3,292,490  | )                                 |  |     | (20,240,336  | ) |  |                   |            |   |  |     | (23,532,826  | )
|Dividends received from associates                        |  |        | 74,901,349  |   |                                 |     |            |                                   |  |     |             |   |  |                   | (73,255,637 | ) |  |     | 1,645,712    |  
|Proceeds from sale of plant, property and equipment       |  |        |            |   |                                 |     |            |                                   |  |     | 27,329       |   |  |                   |            |   |  |     | 27,329       |  
|Acquisition of business, net of cash acquired             |  |        |            |   |                                 |     |            |                                   |  |     | (3,457,153   | ) |  |                   |            |   |  |     | (3,457,153   | )
|Partial sale of shares of associate company               |  |        |            |   |                                 |     |            |                                   |  |     | 633,270      |   |  |                   |            |   |  |     | 633,270      |  
|Spin of company                                           |  |        |            |   |                                 |     | (216,626    | )                                 |  |     | 21,216,626   |   |  |                   |            |   |  |     | 21,000,000   |  
|Investment in associates companies                        |  |        | (2,213,277  | ) |                                 |     | (1,404,489  | )                                 |  |     | 3,439,801    |   |  |                   |            |   |  |     | (177,965     | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net cash flows provided by (used in) investing activities |  | Ps.    | 72,689,570  |   |                                 | Ps. | (11,807,676 | )                                 |  | Ps. | (119,527,803 | ) |  | Ps.               | (73,255,637 | ) |  | Ps. | (131,901,546 | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Financing activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Bank loans, net                                           |  |        | 50,879,779  |   |                                 |     |            |                                   |  |     | 5,083,236    |   |  |                   |            |   |  |     | 55,963,015   |  
|Acquisition of no controlling interest                    |  |        | (34,970     | ) |                                 |     |            |                                   |  |     | (996,079     | ) |  |                   |            |   |  |     | (1,031,049   | )
|Interest paid                                             |  |        | (23,379,273 | ) |                                 |     | (6,200,848  | )                                 |  |     | (3,250,311   | ) |  |                   |            |   |  |     | (32,830,432  | )
|Paid-In capital                                           |  |        |            |   |                                 |     |            |                                   |  |     |             |   |  |                   |            |   |  |     |             |  
|Repurchase of shares and others                           |  |        | (34,684,520 | ) |                                 |     |            |                                   |  |     | 241,436      |   |  |                   |            |   |  |     | (34,443,084  | )
|Increase of non-controlling interests                     |  |        |            |   |                                 |     |            |                                   |  |     |             |   |  |                   |            |   |  |     |             |  
|Payment of dividends                                      |  |        | (36,524,317 | ) |                                 |     |            |                                   |  |     | (74,090,920  | ) |  |                   | 73,255,637  |   |  |     | (37,359,600  | )
|Financial instruments                                     |  |        |            |   |                                 |     |            |                                   |  |     | (503,444     | ) |  |                   |            |   |  |     | (503,444     | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net cash flows (used in) financing activities             |  | Ps.    | (43,743,301 | ) |                                 | Ps. | (6,200,848  | )                                 |  | Ps. | (73,516,082  | ) |  | Ps.               | 73,255,637  |   |  | Ps. | (50,204,594  | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Net (decrease) increase in cash and cash equivalents      |  |        | (11,850,729 | ) |                                 |     | 72,940      |                                   |  |     | (6,601,360   | ) |  |                   |            |   |  |     | (18,379,149  | )
|Adjustment to cash flow for exchange rate differences     |  |        |            |   |                                 |     |            |                                   |  |     | (2,934,522   | ) |  |                   |            |   |  |     | (2,934,522   | )
|Cash and cash equivalents at beginning of the period      |  |        | 25,654,313  |   |                                 |     | 1,395,096   |                                   |  |     | 39,424,294   |   |  |                   |            |   |  |     | 66,473,703   |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  
|Cash and cash equivalents at end of the period            |  | Ps.    | 13,803,584  |   |                                 | Ps. | 1,468,036   |                                   |  | Ps. | 29,888,412   |   |  | Ps.               |            |   |  | Ps. | 45,160,032   |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |             |   |  |     |              |  



F-100



---

##### Table of Contents

Condensed consolidating statements of cash flows

For the year ended December 31, 2016



|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|--------------------------------------------------------- |  | ------ | ----------- | - | ------------------------------- | --- | ----------- | --------------------------------- |  | --- | ------------ | - |  | ----------------- | ---------- | - |  | --- | ------------ | -
|                                                          |  | Parent |             |   | Wholly-ownedGuarantorSubsidiary |     |             | Combinednon-guarantorSubsidiaries |  |     | Eliminations |   |  | ConsolidatedTotal |           
|Operating activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Profit before taxes                                       |  | Ps.    | 937,247     |   |                                 | Ps. | (5,537,427  | )                                 |  | Ps. | 28,077,775   |   |  | Ps.               |           |   |  | Ps. | 23,477,595   |  
|Non-cash items                                            |  |        | (997,587    | ) |                                 |     | 19,800,396  |                                   |  |     | 209,821,118  |   |  |                   |           |   |  |     | 228,623,927  |  
|Changes in working capital:                               |  |        | 74,520,320  |   |                                 |     | 9,130,768   |                                   |  |     | (93,359,195  | ) |  |                   | (6,595,361 | ) |  |     | (16,303,468  | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Net cash flows provided by operating activities           |  | Ps.    | 74,459,980  |   |                                 | Ps. | 23,393,737  |                                   |  | Ps. | 144,539,698  |   |  | Ps.               | (6,595,361 | ) |  | Ps. | 235,798,054  |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Investing activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Purchase of property, plant and equipment                 |  |        |            |   |                                 |     | (7,860,232  | )                                 |  |     | (130,846,925 | ) |  |                   |           |   |  |     | (138,707,157 | )
|Acquisition of intangibles                                |  |        |            |   |                                 |     | (4,947,506  | )                                 |  |     | (11,369,232  | ) |  |                   |           |   |  |     | (16,316,738  | )
|Dividends received from associates                        |  |        | 21,950      |   |                                 |     |            |                                   |  |     | 5,988,938    |   |  |                   | (270,796   | ) |  |     | 5,740,092    |  
|Proceeds from sale of plant, property and equipment       |  |        | 20,078      |   |                                 |     |            |                                   |  |     | 95,522       |   |  |                   |           |   |  |     | 115,600      |  
|Acquisition of business, net of cash acquired             |  |        |            |   |                                 |     | (2,796,254  | )                                 |  |     | (1,823,813   | ) |  |                   | 2,796,254  |   |  |     | (1,823,813   | )
|Partial sale of shares of associate company               |  |        | 756,444     |   |                                 |     |            |                                   |  |     | 2,796,254    |   |  |                   | (3,552,698 | ) |  |     |             |  
|Investment in associates companies                        |  |        |            |   |                                 |     | 663,203     |                                   |  |     | (666,690     | ) |  |                   |           |   |  |     | (3,487       | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Net cash flows provided by (used in) investing activities |  | Ps.    | 798,472     |   |                                 | Ps. | (14,940,789 | )                                 |  | Ps. | (135,825,946 | ) |  | Ps.               | (1,027,240 | ) |  | Ps. | (150,995,503 | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Financing activities:                                     |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Bank loans, net                                           |  |        | (39,598,698 | ) |                                 |     |            |                                   |  |     | (21,792,115  | ) |  |                   |           |   |  |     | (61,390,813  | )
|Acquisition of no controlling interest                    |  |        |            |   |                                 |     |            |                                   |  |     | (2,280,278   | ) |  |                   |           |   |  |     | (2,280,278   | )
|Interest paid                                             |  |        | (24,826,139 | ) |                                 |     | (7,972,827  | )                                 |  |     | (5,922,267   | ) |  |                   | 6,595,361  |   |  |     | (32,125,872  | )
|Paid-In capital                                           |  |        |            |   |                                 |     |            |                                   |  |     | (756,444     | ) |  |                   | 756,444    |   |  |     |             |  
|Sale of shares of subsidiaries                            |  |        |            |   |                                 |     |            |                                   |  |     | 6,323,336    |   |  |                   |           |   |  |     | 6,323,336    |  
|Repurchase of shares and others                           |  |        | (7,092,385  | ) |                                 |     |            |                                   |  |     | 71,138       |   |  |                   |           |   |  |     | (7,021,247   | )
|Payment of dividends                                      |  |        | (13,437,168 | ) |                                 |     |            |                                   |  |     | (643,585     | ) |  |                   | 270,796    |   |  |     | (13,809,957  | )
|Financial instruments                                     |  |        |            |   |                                 |     |            |                                   |  |     | (351,213     | ) |  |                   |           |   |  |     | (351,213     | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Net cash flows (used in) financing activities             |  | Ps.    | (84,954,390 | ) |                                 | Ps. | (7,972,827  | )                                 |  | Ps. | (25,351,428  | ) |  | Ps.               | 7,622,601  |   |  | Ps. | (110,656,044 | )
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Net (decrease) increase in cash and cash equivalents      |  |        | (9,695,938  | ) |                                 |     | 480,121     |                                   |  |     | (16,637,676  | ) |  |                   |           |   |  |     | (25,853,493  | )
|Adjustment to cash flow for exchange rate differences     |  |        |            |   |                                 |     |            |                                   |  |     | 3,911,844    |   |  |                   |           |   |  |     | 3,911,844    |  
|Cash and cash equivalents at beginning of the period      |  |        | 13,803,583  |   |                                 |     | 1,468,038   |                                   |  |     | 29,888,411   |   |  |                   |           |   |  |     | 45,160,032   |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  
|Cash and cash equivalents at end of the period            |  | Ps.    | 4,107,645   |   |                                 | Ps. | 1,948,159   |                                   |  | Ps. | 17,162,579   |   |  | Ps.               |           |   |  | Ps. | 23,218,383   |  
|                                                          |  |        |             |   |                                 |     |             |                                   |  |     |              |   |  |                   |            |   |  |     |              |  



F-101