----

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|   |  ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE  SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | R | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIESEXCHANGE ACT OF 1934 |
|--------|---|------------------------------------------------------------------------------------------------|

|   |  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------|--------|-----------------------------------------------------------------------------------------|

|   |  ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------|--------|--------------------------------------------------------------------------------------------|

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|  ̈ Large accelerated filer |  ̈ Accelerated filer | R Non-accelerated filer |
|--------------------------------|--------------------------|-------------------------|

| £ U.S. GAAP | £ International Financial Reporting Standards as  | R Other |
|------------------|--------------------------------------------------------|---------|
|             | issued by the International Accounting Standards Board |    |

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| PART I                                                        | 6                                                       |
|---------------------------------------------------------------|---------------------------------------------------------|
| ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | 6                                                       |
| ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE               | 6                                                       |
| ITEM 3. KEY INFORMATION                                       | 6                                                       |
| A.                                                            | Selected financial data                                 | 6 |
| B.                                                            | Capitalization and indebtedness                         | 8 |
| C.                                                            | Reasons for the offer and use of proceeds               | 8 |
| D.                                                            | Risk factors                                            | 9 |
| ITEM 4. INFORMATION ON THE COMPANY                            | 21                                                      |
| A.                                                            | History and development of the Company                  | 21 |
| B.                                                            | Business overview                                       | 22 |
| C.                                                            | Organizational structure                                | 49 |
| D.                                                            | Property, plant and equipment                           | 50 |
| ITEM 4A. UNRESOLVED STAFF COMMENTS                            | 51                                                      |
| ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS          | 51                                                      |
| A.                                                            | Operating Results                                       | 53 |
| B.                                                            | Liquidity and capital resources                         | 66 |
| C.                                                            | Research and development, patents and licenses, etc.    | 77 |
| D.                                                            | Trend information                                       | 77 |
| E.                                                            | Off — balance sheet arrangements                  | 77 |
| F.                                                            | Tabular disclosure of contractual obligations           | 77 |
| G.                                                            | Safe Harbor                                             | 78 |
| ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES            | 78                                                      |
| A.                                                            | Directors and senior management                         | 78 |
| B.                                                            | Compensation                                            | 81 |
| C.                                                            | Board practices                                         | 83 |
| D.                                                            | Employees                                               | 86 |
| E.                                                            | Share ownership                                         | 86 |
| ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS     | 86                                                      |
| A.                                                            | Major Shareholders                                      | 86 |
| B.                                                            | Related party transactions                              | 88 |
| C.                                                            | Interests of experts and counsel                        | 88 |
| ITEM 8. FINANCIAL INFORMATION                                 | 88                                                      |
| A.                                                            | Consolidated statements and other financial information | 88 |
| B.                                                            | Significant changes                                     | 89 |
| ITEM 9. THE OFFER AND LISTING                                 | 89                                                      |

----

| ITEM 10. ADDITIONAL INFORMATION                                                       | 91                                     |
|---------------------------------------------------------------------------------------|----------------------------------------|
| A.                                                                                    | Share capital                          | 91 |
| B.                                                                                    | Memorandum and articles of association | 91 |
| C.                                                                                    | Material contracts                     | 110 |
| D.                                                                                    | Exchange Controls                      | 111 |
| E.                                                                                    | Taxation                               | 111 |
| F.                                                                                    | Dividends and paying agents            | 121 |
| G.                                                                                    | Statement by experts                   | 121 |
| H.                                                                                    | Documents on display                   | 121 |
| I.                                                                                    | Subsidiary information                 | 122 |
| ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                   | 122                                    |
| ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 123                                    |
| A.                                                                                    | Debt Securities                        | 123 |
| B.                                                                                    | Warrants and Rights                    | 123 |
| C.                                                                                    | Other Securities                       | 123 |
| D.                                                                                    | American Depositary Shares             | 123 |
| PART II                                                                               | 124                                    |
| ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | 124                                    |
| ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 124                                    |
| ITEM 15. CONTROLS AND PROCEDURES                                                      | 124                                    |
| ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT                                            | 127                                    |
| ITEM 16B. CODE OF ETHICS                                                              | 127                                    |
| ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES                                      | 127                                    |
| ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                  | 127                                    |
| ITEM 16E. PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS       | 127                                    |
| ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                          | 129                                    |
| ITEM 16G. CORPORATE GOVERNANCE                                                        | 129                                    |
| PART III                                                                              | 131                                    |
| ITEM 17. FINANCIAL STATEMENTS                                                         | 131                                    |
| ITEM 18. FINANCIAL STATEMENTS                                                         | 131                                    |
| ITEM 19. EXHIBITS                                                                     | 132                                    |
| GLOSSARY OF TELECOMMUNICATIONS TERMS                                                  | 136                                    |

----

|   | • | competition in local services, data, Internet and Voice over Internet Protocol services; |
|--------|---------|------------------------------------------------------------------------------------------|

|   | • | our ability to service our debt; |
|--------|---------|----------------------------------|

|   | • | limitations on our access to sources of financing on competitive terms; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | significant economic or political developments in Mexico and the U.S.; |
|--------|---------|------------------------------------------------------------------------|

|   | • | changes in our regulatory environment, particularly developments affecting the regulation of the telecommunications industry; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | • | our need for substantial capital; |
|--------|---------|-----------------------------------|

|   | • | general economic conditions, including the economic slow-down in the U.S. and Mexico, due to the global financial crisis; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | • | the global telecommunications downturn; |
|--------|---------|-----------------------------------------|

|   | • | our ability to service our debt; |
|--------|---------|----------------------------------|

|   | • | performance of financial markets and thus our ability to refinance our financial obligations when they come due; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | our history of operating losses; |
|--------|---------|----------------------------------|

|   | • | the risks associated with our ability to implement our strategy; |
|--------|---------|------------------------------------------------------------------|

----

|   | • | customer attrition; |
|--------|---------|---------------------|

|   | • | technological innovations; |
|--------|---------|----------------------------|

|   | • | currency fluctuations and inflation in Mexico; |
|--------|---------|------------------------------------------------|

|   | • | currency exchange rates, including the Mexican Peso — U.S. dollar exchange rate; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | changes in the policies of central banks and/or foreign governments; and |
|--------|---------|--------------------------------------------------------------------------|

|   | • | the risk factors discussed under “Risk Factors.” |
|--------|---------|--------------------------------------------------------------|

----

|                                            |   | As of and for the Year Ended December 31,                                                                                                                    |          |
|-------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|                                            |   | 2010(1)                                                                                                                                                      |          |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                            |   | (Thousands of constant December 31, 2006 and 2007 and nominal December 31, 2008, 2009 and 2010pesos and thousands of U.S. dollars(1), except per share data) |          |
| Statement of Operations Data:MFRS               |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues                                    |   | U.S.$                                                                                                                                                        |  208,527 |   |   | Ps. | 2,577,392 |   |   | Ps. | 2,562,570 |   |   | Ps. | 2,683,229 |   |   | Ps. | 2,345,719 |   |   | Ps. | 1,741,692 |   |
| Operating costs and expenses:                   |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Network operating costs                         |   |                                                                                                                                                         | (90,740       | ) |   |   | (1,121,541 | ) |   |   | (1,131,353 | ) |   |   | (1,120,167 | ) |   |   | (976,979 | ) |   |   | (676,977 | ) |
| Selling, general and administrative expenses    |   |                                                                                                                                                         | (64,008       | ) |   |   | (791,142 | ) |   |   | (798,986 | ) |   |   | (819,642 | ) |   |   | (722,618 | ) |   |   | (607,505 | ) |
| Depreciation and amortization                   |   |                                                                                                                                                         | (56,794       | ) |   |   | (701,975 | ) |   |   | (639,398 | ) |   |   | (551,889 | ) |   |   | (370,227 | ) |   |   | (300,468 | ) |
| Total operating costs and expenses              |   |                                                                                                                                                         | (211,542      | ) |   |   | (2,614,658 | ) |   |   | (2,569,737 | ) |   |   | (2,491,698 | ) |   |   | (2,069,824 | ) |   |   | (1,584,950 | ) |
| Operating (loss) income                         |   |                                                                                                                                                         | (3,015        | ) |   |   | (37,266 | ) |   |   | (7,167 | ) |   |   | 191,531 |   |   |   | 275,895 |   |   |   | 156,742 |   |
| Other expenses                                  |   |                                                                                                                                                         | (5,207        | ) |   |   | (64,353 | ) |   |   | (50,559 | ) |   |   | (12,616 | ) |   |   | (12,819 | ) |   |   | (18,777 | ) |
| Restructuring charges                           |   |                                                                                                                                                         | (5,398        | ) |   |   | (66,721 | ) |   |   | (7,282 | ) |   |   | (49,491 | ) |   |   | — |   |   |   | — |   |
| Impairment of long-lived assets                 |   |                                                                                                                                                         | (42,773       | ) |   |   | (528,672 | ) |   |   | — |   |   |   | (532,315 | ) |   |   | — |   |   |   | — |   |
| Employees’ statutory profit changes       |   |                                                                                                                                                         | (108          | ) |   |   | (1,334 | ) |   |   | (3,292 | ) |   |   | (1,173 | ) |   |   | (3,257 | ) |   |   | — |   |
| Other expense, net                              |   |                                                                                                                                                         | (53,485       | ) |   |   | (661,080 | ) |   |   | (61,133 | ) |   |   | (595,595 | ) |   |   | (16,076 | ) |   |   | (18,777 | ) |
| Comprehensive financial results:                |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense and commissions, net           |   |                                                                                                                                                         | (25,950       | ) |   |   | (320,746 | ) |   |   | (302,035 | ) |   |   | (255,662 | ) |   |   | (232,912 | ) |   |   | (144,032 | ) |
| Interest gain                                   |   |                                                                                                                                                         | 1,129         |   |   |   | 13,957 |   |   |   | 6,031 |   |   |   | 53,994 |   |   |   | 55,793 |   |   |   | 8,591 |   |
| Exchange (gain) loss, net                       |   |                                                                                                                                                         | 9,447         |   |   |   | 116,770 |   |   |   | 57,687 |   |   |   | (149,048 | ) |   |   | 4,826 |   |   |   | (6,568 | ) |
| Effects of valuation of financial instruments   |   |                                                                                                                                                         | (3,516        | ) |   |   | (43,453 | ) |   |   | (58,478 | ) |   |   | 83,323 |   |   |   | 20,421 |   |   |   | 13,324 |   |
| Gain on monetary position                       |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 25,231 |   |   |   | 21,503 |   |
| Total comprehensive financial results           |   |                                                                                                                                                         | (18,890       | ) |   |   | (233,472 | ) |   |   | (296,795 | ) |   |   | (267,393 | ) |   |   | (126,641 | ) |   |   | (107,182 | ) |
| Total income taxes                              |   |                                                                                                                                                         | (20,474       | ) |   |   | (253,061 | ) |   |   | 61,537 |   |   |   | 233,694 |   |   |   | (96,982 | ) |   |   | (60,050 | ) |
| Net (loss) income                               |   |                                                                                                                                                         | (95,864       | ) |   |   | (1,184,879 | ) |   |   | (303,558 | ) |   |   | (437,763 | ) |   |   | 36,196 |   |   |   | (29,267 | ) |
| Earnings per share:                             |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   |                                                                                                                                                         | (0.12         | ) |   |   | (1.50 | ) |   |   | (0.38 | ) |   |   | (0.55 | ) |   |   | 0.06 |   |   |   | (0.07 | ) |
| Diluted                                         |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 0.06 |   |   |   | (0.07 | ) |
| U.S. GAAP                                       |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income                         |   |                                                                                                                                                         | (9,631        | ) |   |   | (119,043 | ) |   |   | (110,740 | ) |   |   | 44,139 |   |   |   | 217,182 |   |   |   | (50,610 | ) |
| Net (loss) income                               |   |                                                                                                                                                         | (70,098       | ) |   |   | (866,409 | ) |   |   | (377,435 | ) |   |   | (240,058 | ) |   |   | 160,999 |   |   |   | 12,459 |   |
| Earnings per share:                             |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   |                                                                                                                                                         | (0.09         | ) |   |   | (1.10 | ) |   |   | (0.48 | ) |   |   | (0.30 | ) |   |   | 0.29 |   |   |   | (2.13 | ) |
| Diluted                                         |   |                                                                                                                                                         | (0.09         | ) |   |   | (1.10 | ) |   |   | (0.48 | ) |   |   | (0.30 | ) |   |   | 0.27 |   |   |   | (2.13 | ) |
| Balance Sheet Data:                             |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| MFRS                                            |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   |                                                                                                                                                         | 30,358        |   |   |   | 375,224 |   |   |   | 987,343 |   |   |   | 1,591,405 |   |   |   | 2,539,535 |   |   |   | 739,291 |   |
| Restricted cash                                 |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 23,462 |   |
| Restricted cash to long term                    |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Frequency rights, net                           |   |                                                                                                                                                         | 3,825         |   |   |   | 47,282 |   |   |   | 59,674 |   |   |   | 66,716 |   |   |   | 80,930 |   |   |   | 88,374 |   |
| Telephone network systems and equipment, net    |   |                                                                                                                                                         | 355,339       |   |   |   | 4,391,993 |   |   |   | 4,941,770 |   |   |   | 4,684,413 |   |   |   | 4,188,946 |   |   |   | 3,157,197 |   |
| Preoperating expenses, net                      |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | 50,863 |   |   |   | 77,902 |   |   |   | 98,340 |   |
| Intangible assets, net                          |   |                                                                                                                                                         | 17,250        |   |   |   | 213,212 |   |   |   | 199,224 |   |   |   | 209,683 |   |   |   | 208,802 |   |   |   | 334,489 |   |
| Labor obligations upon retirement               |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 17,650 |   |   |   | 15,068 |   |
| Rent deposits and other assets                  |   |                                                                                                                                                         | 39,891        |   |   |   | 493,047 |   |   |   | 891,674 |   |   |   | 578,401 |   |   |   | 618,524 |   |   |   | 580,600 |   |
| Total assets                                    |   |                                                                                                                                                         | 446,663       |   |   |   | 6,090,721 |   |   |   | 7,517,576 |   |   |   | 7,916,472 |   |   |   | 8,014,100 |   |   |   | 5,065,904 |   |
| Long-term liabilities                           |   |                                                                                                                                                         | 211,109       |   |   |   | 2,609,308 |   |   |   | 2,741,090 |   |   |   | 2,818,630 |   |   |   | 2,380,424 |   |   |   | 1,882,104 |   |
| Total liabilities                               |   |                                                                                                                                                         | 250,825       |   |   |   | 3,100,195 |   |   |   | 3,357,603 |   |   |   | 3,415,303 |   |   |   | 2,983,261 |   |   |   | 2,788,990 |   |
| Capital stock                                   |   |                                                                                                                                                         | 437,722       |   |   |   | 5,410,244 |   |   |   | 5,410,244 |   |   |   | 5,410,244 |   |   |   | 5,410,251 |   |   |   | 3,327,482 |   |
| Additional paid-in capital                      |   |                                                                                                                                                         | 65,788        |   |   |   | 813,135 |   |   |   | 808,566 |   |   |   | 816,443 |   |   |   | 888,056 |   |   |   | 253,096 |   |
| Accumulated deficit                             |   |                                                                                                                                                         | (261,472      | ) |   |   | (3,231,791 | ) |   |   | (2,046,912 | ) |   |   | (1,705,231 | ) |   |   | (1,267,468 | ) |   |   | (1,303,664 | ) |
| Repurchase of shares                            |   |                                                                                                                                                         | (86           | ) |   |   | (1,062 | ) |   |   | (11,925 | ) |   |   | (20,287 | ) |   |   | — |   |   |   | — |   |
| Total shareholders’ equity                |   |                                                                                                                                                         | 241,952       |   |   |   | 2,990,526 |   |   |   | 4,159,973 |   |   |   | 4,501,169 |   |   |   | 5,030,839 |   |   |   | 2,276,914 |   |
| Total number of shares                          |   |                                                                                                                                                         | 789,818,829   |   |   |   | 789,818,829 |   |   |   | 789,818,829 |   |   |   | 789,818,829 |   |   |   | 789,818,829 |   |   |   | 482,334,778 |   |
| U.S. GAAP                                       |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term liabilities                           |   |                                                                                                                                                         | 210,301       |   |   |   | 2,599,321 |   |   |   | 2,741,090 |   |   |   | 2,818,630 |   |   |   | 2,380,424 |   |   |   | 1,882,104 |   |
| Total Shareholders equity                       |   |                                                                                                                                                         | 243,046       |   |   |   | 3,004,049 |   |   |   | 3,851,883 |   |   |   | 4,214,655 |   |   |   | 4,555,341 |   |   |   | 1,676,612 |   |
| Other Operational and Financial Data:           |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| MFRS                                            |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital(3)                              |   |                                                                                                                                                         | 46,113        |   |   |   | 569,960 |   |   |   | 473,012 |   |   |   | 447,202 |   |   |   | 281,811 |   |   |   | 29,083 |   |
| Capital expenditures(4)                         |   |                                                                                                                                                         | 57,928        |   |   |   | 715,994 |   |   |   | 931,623 |   |   |   | 1,631,001 |   |   |   | 1,248,407 |   |   |   | 1,041,877 |   |
| Ratio of earnings to fixed charges(5)           |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1.51 |   |   |   | 1.05 |   |
| Resources arising from operating activities     |   |                                                                                                                                                         | 42,631        |   |   |   | 526,926 |   |   |   | 693,132 |   |   |   | 446,171 |   |   |   | 303,158 |   |   |   | 87,898 |   |
| Resources derived from financing activities     |   |                                                                                                                                                         | (33,672       | ) |   |   | (416,182 | ) |   |   | (387,205 | ) |   |   | 219,632 |   |   |   | 2,745,493 |   |   |   | 1,452,052 |   |
| Resources used in investing activities          |   |                                                                                                                                                         | (58,484       | ) |   |   | (722,864 | ) |   |   | (909,989 | ) |   |   | (1,613,933 | ) |   |   | (1,248,407 | ) |   |   | (1,041,877 | ) |
|                                            |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. GAAP                                       |   |                                                                                                                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash provided by operating activities           |   |                                                                                                                                                         | (9,407        | ) |   |   | (116,274 | ) |   |   | 137,805 |   |   |   | 438,861 |   |   |   | 164,439 |   |   |   | (120,905 | ) |
| Cash provided by (used in) financing activities |   |                                                                                                                                                         | 801           |   |   |   | 9,903 |   |   |   | (11,812 | ) |   |   | (105,440 | ) |   |   | 2,916,477 |   |   |   | 1,531,744 |   |
| Cash used in investing activities               |   | U.S.$                                                                                                                                                        | (40,918       | ) |   | Ps. | (505,748 | ) |   | Ps. | (730,055 | ) |   | Ps. | (1,281,551 | ) |   | Ps. | (1,245,081 | ) |   | Ps. | (904,888 | ) |
| Ratio of earnings to fixed charges(5)           |   |                                                                                                                                                         | —       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2.19 |   |   |   | 1.59 |   |

----

| (1) | Peso amounts were converted to U.S. dollars at the exchange rate of Ps.12.36 per U.S.$1.00 reported by the Banco de México as its buying rate for pesos on December 31, 2010. Such conversions are for the convenience of the reader and should not be construed as representations that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated, or at any other rate. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Pursuant to MFRS, statement of operations and balance sheet data for all periods up to 2007 in the financial statements have, unless otherwise indicated, been restated in constant pesos as of December 31, 2007. For items in the statements of operations, restatement into December 31, 2007 pesos is made by multiplying the relevant nominal peso amount by the inflation index for the period between the end of the period to which such nominal peso amount relates and December 31, 2007, for non-monetary balance sheet line items restatement into December 31, 2007 pesos is made by multiplying the relevant peso amounts at acquisition by the inflation index up to December 31, 2007. The inflation index used in this annual report for 2006 figures is 1.0405. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Working capital is defined by us as current assets (excluding cash and cash equivalents and restricted cash) less current liabilities (excluding short-term debt and current maturities of long-term debt, which includes interest payable) which is different from the common definition of total current assets in excess of total current liabilities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | Capital expenditures for the years 2007 and 2006 includes telephone network systems and equipment, intangible assets and other assets. Investing activities in the consolidated statements of changes in financial position for the years ended December 31, 2007 and 2006 are net of dispositions. For the years ended December 31, 2010, 2009 and 2008 the capital expenditures are presented according to the statement of cash flows and only include acquisitions. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Ratio of earnings to fixed charges is defined as fixed charges divided by earnings. Fixed charges are defined as the sum of: (a) interest expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness. Earnings are defined as the sum of: (a) pre-tax income from continuing operations; (b) fixed charges; and (c) amortization of capitalized interest; less interest capitalized. Fixed charges include interest expense, capitalized interest and the portion of operating lease rental expense that represents the interest factor. The fixed charge coverage deficiency under MFRS was Ps.910.5 million in 2010 and Ps.359.3 million in 2009. Under U.S. GAAP, the fixed charge coverage deficiency was Ps.596.2 million in 2010 and Ps.441.4 million in 2009. (See Exhibit 7.1) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   | Buying Rate(1) |   |
|---------------|--------|----------------|--------|
|          |   | Period End     |   |   | Average(2) |   |   | High |   |   | Low |   |
|          |   |           |   |   |   |   |   |   |   |   |   |   |
| May 2011      |   | Ps.            | 11.63  |   |   | Ps. | 11.65 |   |   | Ps. | 11.77 |   |   | Ps. | 11.50 |   |
| April 2011    |   |           | 11.54  |   |   |   | 11.76 |   |   |   | 11.92 |   |   |   | 11.54 |   |
| March 2011    |   |           | 11.97  |   |   |   | 12.02 |   |   |   | 12.12 |   |   |   | 11.92 |   |
| February 2011 |   |           | 12.17  |   |   |   | 12.08 |   |   |   | 12.19 |   |   |   | 11.99 |   |
| January 2011  |   |           | 12.02  |   |   |   | 12.15 |   |   |   | 12.38 |   |   |   | 12.02 |   |
| December 2010 |   |           | 12.36  |   |   |   | 12.40 |   |   |   | 12.55 |   |   |   | 12.33 |   |
| 2010          |   |           | 12.36  |   |   |   | 12.64 |   |   |   | 13.18 |   |   |   | 12.16 |   |
| 2009          |   |           | 13.06  |   |   |   | 13.57 |   |   |   | 15.37 |   |   |   | 12.60 |   |
| 2008          |   |           | 13.54  |   |   |   | 11.17 |   |   |   | 13.92 |   |   |   | 9.92 |   |
| 2007          |   |           | 10.87  |   |   |   | 10.94 |   |   |   | 11.27 |   |   |   | 10.66 |   |
| 2006          |   |           | 10.88  |   |   |   | 10.92 |   |   |   | 11.48 |   |   |   | 10.43 |   |

----

| (1) | Source: Banco de México. |
|-----|-------------------------------|

| (2) | Represents the average rates for each period indicated, calculated by using the average of the exchange rates on the last day of each month during the period. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | municipal or regional political events or local rulings; |
|--------|---------|----------------------------------------------------------|

|   | • | our ability to obtain permits to use public rights of way; |
|--------|---------|------------------------------------------------------------|

|   | • | state municipal elections and change of local government administration; |
|--------|---------|--------------------------------------------------------------------------|

|   | • | our ability to generate cash flow or to obtain future financing necessary for such build out; |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | • | unforeseen delays, costs or impediments relating to the granting of municipal and state permits for our build out; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | • | delays or disruptions resulting from physical damage, power loss, defective equipment or the failure of third party suppliers or contractors to meet their obligations in a timely and cost-effective manner; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | regulatory and political risks relating to Mexico, such as the revocation or termination of our concessions, the temporary seizure or permanent expropriation of assets, import and export controls, political instability, changes in the regulation of telecommunications and any future restrictions or easing of restrictions on the repatriation of profits or on foreign investment. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | • | physical damage; |
|--------|---------|------------------|

|   | • | power loss; |
|--------|---------|-------------|

|   | • | capacity limitations; |
|--------|---------|-----------------------|

|   | • | software defects as well as hardware and software obsolescence; |
|--------|---------|-----------------------------------------------------------------|

|   | • | breaches of security, whether by computer virus, break-in or otherwise; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | failure to interconnect with carriers linking us with our customers; |
|--------|---------|----------------------------------------------------------------------|

|   | • | denial of access to our sites for failure to obtain required municipal or other regulatory approvals; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | other factors which may cause interruptions in service or reduced capacity for our customers. |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | • | customer delinquency; |
|--------|---------|-----------------------|

|   | • | our limited coverage area that restricts our ability to continue providing service when a customer moves; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

----

|   | • | our failure to meet service levels required by our customers; |
|--------|---------|---------------------------------------------------------------|

|   | • | a decline in the national or international economic conditions (in particular with our residential customers); and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | • | promotional and pricing strategies of our competitors; |
|--------|---------|--------------------------------------------------------|

|   | • | make it more difficult for us to satisfy our obligations with respect to our indebtedness; |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | • | require us to dedicate a substantial portion of our cash flow from operations to debt service payments, reducing the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | limit our flexibility in planning for, or reacting to, changes in the telecommunications industry; |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | • | limit our ability to take advantage of opportunities for acquisitions and other business combinations; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | place us at a competitive disadvantage compared to our less leveraged competitors; |
|--------|---------|------------------------------------------------------------------------------------|

|   | • | increase our vulnerability to both general and industry-specific adverse economic conditions; and |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | • | limit our ability to obtain additional financing or obtain it on commercially reasonable terms, to fund future working capital, capital expenditures, acquisitions or other general corporate requirements and increasing our cost of borrowing. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | incur additional indebtedness; |
|--------|---------|--------------------------------|

|   | • | pay dividends or make other distributions on our capital stock or repurchase our capital stock or subordinated indebtedness; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | • | make investments or other specified restricted payments; |
|--------|---------|----------------------------------------------------------|

|   | • | create liens; |
|--------|---------|---------------|

|   | • | enter into mergers, consolidations, sales of substantially all of our assets and other forms of business combinations; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

----

|   | • | enter into change of control transactions; |
|--------|---------|--------------------------------------------|

|   | • | sell assets and subsidiary stock; and |
|--------|---------|---------------------------------------|

|   | • | enter into transactions with affiliates of the following nature: |
|--------|---------|------------------------------------------------------------------|

|   | (i) | the transaction is on terms no less favorable to Maxcom or the relevant restricted subsidiary than those that would have been obtained in a comparable transaction by the Maxcom or such restricted subsidiary with an unrelated entity; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in transactions involving in excess of U.S.$1.0 million, a majority of the disinterested directors have determined that the transaction complies with (i); and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in transactions involving in excess of U.S.$6.0 million, Maxcom shall deliver to the trustee a fairness opinion from an investment banking firm of national standing. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | increased competition and focus by our competitors on increasing market share; |
|--------|---------|--------------------------------------------------------------------------------|

|   | • | recent technological advances that permit substantial increases in the transmission capacity of both new and existing fiber-optic networks, resulting in long-distance overcapacity; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | increased participation of traditional fixed-line competitors; |
|--------|---------|----------------------------------------------------------------|

|   | • | the entrance of cable television operators into certain markets where we currently offer service; and |
|--------|---------|-------------------------------------------------------------------------------------------------------|

----

|   | • | the entrance of new competitors, such as broadcasting companies or the Comisión Federal de Electricidad. |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   | • | The merge or consolidation of some concessionaries (fix-mobile-cable) may affect market penetration |
|--------|---------|-----------------------------------------------------------------------------------------------------|

----

|   | • | rights and obligations granted under the concessions to install, operate and develop public telecommunications networks may only be assigned with the prior authorization of the SCT; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | neither the concession nor the rights thereunder or the related assets may be assigned, pledged, mortgaged or sold to any government or country; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the Mexican government (through the SCT) may permanently expropriate any telecommunications concession and claim any related asset for reason of public interest or may temporarily seize the assets related to the concessions in the event of natural disasters, war, significant public disturbance or threats to internal peace or for other reasons relating to economic or public order. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | • | inflation can adversely affect consumer purchasing power, thereby adversely affecting consumer demand for our services and products; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | to the extent inflation exceeds our price increases, our prices and revenues will be adversely affected in real terms. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | • | 450 MHz, 1.9 GHz (Personal Communications Services) and 3.4-3.7 GHz (fixed wireless local loop) nationwide and regional frequency bands; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 7, 15, 23 and 38 GHz frequency bands for nationwide point-to-point microwave transmission links; and |
|--------|---------|------------------------------------------------------------------------------------------------------|

|   | • | 10.5 GHz frequency band for regional point-to-multipoint microwave transmission service. |
|--------|---------|------------------------------------------------------------------------------------------|

|   | • | Axtel, S.A.B. de C.V.; |
|--------|---------|------------------------|

|   | • | Alestra, S. de R.L. de C.V.; |
|--------|---------|------------------------------|

|   | • | Bestel, S.A. de C.V.; |
|--------|---------|-----------------------|

|   | • | Iusatel, S.A. de C.V.; and |
|--------|---------|----------------------------|

|   | • | Marcatel, S.A. de C.V. |
|--------|---------|------------------------|

----

|   | • | Radiomóvil DIPSA, S.A. de C.V. (also known as “Telcel”) with nationwide Personal Communications Services and cellular concessions; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Grupo de Telecomunicaciones Mexicana, S.A. de C.V. (also known as “Movistar” or “Telefónica Móviles”) with nationwide Personal Communications Services and regional cellular (regions 1 through 4) concessions; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Grupo Iusacell, S.A. de C.V. (also known as “Iusacell”) with regional cellular (regions 5 through 9) and nationwide Personal Communications Services concessions; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Unefón, S.A.B. de C.V. (also known as “Unefón”), an affiliate of Grupo Iusacell, S.A.B. de C.V., with a nationwide Personal Communications Services concession; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Nextel de México, S.A. de C.V. (also known as “Nextel”), an affiliate of NII Holdings, Inc., through enhanced specialized mobile radio licenses. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | • | LineaMax Residencial. This service provides a high-quality wireline telephone line with value-added features available, including voice mail, call waiting, call forwarding, three-way calling, call blocking, speed dialing and unlisted numbers. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Larga Distancia Max. This product provides domestic and international long-distance services to those of our local telephony customers who require long-distance service. Approximately 97% of our local telephony customers also subscribe to Larga Distancia Max. We do not offer our long-distance service separately from our local telephony service. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | CentralMax. This service provides customers in residential developments with all of the functions of a private branch exchange using centrex technology (central functionality for simulating a private branch exchange), without having to acquire and maintain equipment. It allows customers to communicate with the common areas of the development with four-digit internal calling. The features offered under this product include call waiting, call forwarding, three-way calling, direct inward dialing, direct outward dialing, intercom dialing, call transfer, speed dialing, call hold, call pick up, outgoing call blocking and distinctive ringing. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | I-line. This is our Voice over Internet Protocol service, which uses an analog-to-digital telephone adapter to allow any conventional telephone to access the telephone network through any broadband connection around the world. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Internet Max. This service uses a traditional telephone line and modem to provide dial-up Internet access at speeds of up to 56 Kbps. We provide this service to customers, regardless of whether they have a Maxcom telephone line. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | SpeediMax (ADSL). This is our broadband Internet access service with speeds of 128, 256, 512 Kbps, 1Mbps, 2 Mbps, 4Mbps and 8Mbps using Asymmetric Digital Subscriber Line (ADSL) transmission technology over ordinary telephone lines. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | AsistelMax. This service provides basic telephone medical and home assistance to our residential customers in case of emergency. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | • | Pay TV services. This service provides digital television content to our residential customers over our copper network using Internet Protocol including value added features such as Video On Demand (VOD), Digital Video Recording (DVR) and interactive programming guide (EPG). |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | MaxcomCel: This is our residential mobile communication service, which is provided through a cellular network. This postpaid service is only available for our existing customers. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | LineaMax Comercial. This service is identical to LineaMax Residencial, except that it also includes multi-line hunting. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | CentralMax. This service provides business customers with all of the functions of a private branch exchange using centrex technology, without having to acquire and maintain equipment. The features offered under this product include four-digit internal calling, call waiting, call forwarding, three-way calling, direct inward dialing, direct outward dialing, intercom dialing, call transfer, speed dialing, call hold, call pick up, outgoing call blocking, single digit access to attendant and distinctive ringing. Optional solutions include voice mail, music-on-hold, multi-line hunting and operator services. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | TroncalMax Digital. This service provides digital trunks for business customers that need highly reliable access to and from the public telephone network through their existing Private Branch Exchange. This service is sold in groups of 10, 20 or 30 trunks. The groups can be configured with direct inward dial, direct outward dial, caller identification or main telephone number assignments. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | TroncalMax Analógica. This service provides business customers with connectivity to their analog private branch exchange or key systems. The features available with this product are multi-line hunting, caller identification and call barring. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | TroncalSip. This service provides sip trunks (Session Internet Protocol) for business customers that need highly reliable access to and from the public telephone network through their existing IP Private Branch Exchange. This service can be delivered through a Maxcom Internet Dedicated Access or a third party provider. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Hosted Contact Center. This service provides virtual agents infrastructure through a Maxcom outsourcing model to deliver software licenses and troncalsip sessions to customers that needs extra call agents. This services is oriented to call center that needs virtual infrastructure with no investment an gives them flexibility and scalability to grow their campaigns on demand. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Hosted Private Branch Exchange. This service provides our business customers with all of the functions of an Internet Protocol Private Branch Exchange using Voice over Internet Protocol technology, without having to acquire and maintain expensive equipment. The features offered under this service include those of CentralMax as well as other Internet Protocol enhanced services such as web portal setup, “click to dial,” hosted directory and Microsoft Outlook integration. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | I-line. This is our Voice over Internet Protocol service, which uses an analog-to-digital telephone adapter to allow any conventional telephone to access the telephone network through a customer’s broadband connection. We market this service to customers who make and receive a significant volume of international and domestic long-distance calls. This service includes additional voice features such as call waiting, caller identification and voice mail. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | MaxcomCel: This is our business mobile communication service. Which is provided through a cellular network. This postpaid service is only available for our existing customers. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 1-800 Numbers. This service is available to our customers interested in receiving toll-free calls into their call centers or businesses for domestic and international toll free services. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | SpeediMax. This is our broadband Internet access service for small businesses with speeds of 128, 256 and 512 Kbps and also 1Mbps, 2Mbps, 4Mbps and 8Mbps using Asymmetric Digital Subscriber Line transmission technology over ordinary telephone lines. An Asymmetric Digital Subscriber Line provides a secure, dedicated link to the Internet or a company’s internal data network. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Dedicated Internet Access. This service offers Internet access at high speed within a clear channel access to the Internet backbone. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Digital private lines. This service provides highly reliable dedicated circuits between two or more physical locations. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | E-Security. This service provides managed security including perimetral anti-virus, content filter and spyware solutions. Maxcom supplies all of the software and hardware equipment as an integrated solution for our customers. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | SOSMax. This service provides preventive and corrective maintenance to our customers’ IT equipment. |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

----

|   | • | Audio Conference. This service provides our business customers with operator-assisted and non-attendant teleconferencing services, with value-added features including recording of the conference, sound options, warning entry, password and e-mail notification. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Year Ended December 31 |    |
|------------------|--------|------------------------|---------|
| Segments*        |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|             |   |                   |    |   | (In millions) |   |   |   |   |
| Residential      |   | Ps.                    | 1,040.0 |   |   | Ps. | 928.7 |   |   | Ps. | 1,055.6 |   |
| Business         |   |                   | 692.7   |   |   |   | 788.0 |   |   |   | 809.1 |   |
| Public Telephony |   |                   | 378.4   |   |   |   | 460.7 |   |   |   | 428.7 |   |
| Wholesale        |   |                   | 452.9   |   |   |   | 372.2 |   |   |   | 359.5 |   |
| Other Revenue    |   |                   | 13.4    |   |   |   | 12.9 |   |   |   | 30.2 |   |
| Total Revenues   |   | Ps.                    | 2,577.4 |   |   | Ps. | 2,562.5 |   |   | Ps. | 2,683.2 |   |

----

| 2010                           |   |             |    |   |         |   |    |   |   |   |    |   |
|--------------------------------|--------|------------------|---------|--------|--------------|--------|---------|--------|--------|--------|---------|--------|
|  Services                 |   | MetropolitanArea |    |   | CentralSouth |   |    | North  |   |   | Total   |   |
|                           |   | (In millions)    |    |
| Local                          |   | Ps.              | 1,467.8 |   |         | Ps.    | 596.5   |   |   | Ps.    | 100.5   |   |   | Ps. | 2,164.8 |   |
| Long Distance                  |   |             | 237.3   |   |         |   | 123.5   |   |   |   | 3.3     |   |   |   | 364.2 |   |
| Rent of dedicated links        |   |             | 0.3     |   |         |   | — |   |   |   | — |   |   |   | 0.3 |   |
| Sale of equipment to customers |   |             | 4.0     |   |         |   | 0.3     |   |   |   | — |   |   |   | 4.3 |   |
| Capacity Leasing               |   |             | 43.9    |   |         |   | — |   |   |   | — |   |   |   | 43.9 |   |
| Total Revenues                 |   | Ps.              | 1,753.3 |   |         | Ps.    | 720.3   |   |   | Ps.    | 103.8   |   |   | Ps. | 2,577.4 |   |

----

| 2009                           |   |             |    |   |         |   |    |   |   |   |    |   |
|--------------------------------|--------|------------------|---------|--------|--------------|--------|---------|--------|--------|--------|---------|--------|
|  Services                 |   | MetropolitanArea |    |   | CentralSouth |   |    | North  |   |   | Total   |   |
|                           |   | (In millions)    |    |
| Local                          |   | Ps.              | 1,448.8 |   |         | Ps.    | 634.2   |   |   | Ps.    | 75.5    |   |   | Ps. | 2,158.6 |   |
| Long Distance                  |   |             | 256.9   |   |         |   | 63.9    |   |   |   | 3.9     |   |   |   | 324.8 |   |
| Rent of dedicated links        |   |             | 0.4     |   |         |   | — |   |   |   | — |   |   |   | 0.4 |   |
| Sale of equipment to customers |   |             | 2.2     |   |         |   | 1.4     |   |   |   | — |   |   |   | 3.7 |   |
| Capacity Leasing               |   |             | 75.2    |   |         |   | — |   |   |   | — |   |   |   | 75.2 |   |
| Total Revenues                 |   | Ps.              | 1,783.5 |   |         | Ps.    | 699.6   |   |   | Ps.    | 79.4    |   |   | Ps. | 2,562.6 |   |

| 2008                           |   |             |    |   |         |   |    |   |   |   |    |   |
|--------------------------------|--------|------------------|---------|--------|--------------|--------|---------|--------|--------|--------|---------|--------|
|  Services                 |   | MetropolitanArea |    |   | CentralSouth |   |    | North  |   |   | Total   |   |
|                           |   | (In millions)    |    |
| Local                          |   | Ps.              | 1,558.0 |   |         | Ps.    | 726.4   |   |   | Ps.    | 20.5    |   |   | Ps. | 2,304.9 |   |
| Long Distance                  |   |             | 236.7   |   |         |   | 74.4    |   |   |   | 9.0     |   |   |   | 320.1 |   |
| Rent of dedicated links        |   |             | 0.4     |   |         |   | — |   |   |   | — |   |   |   | 0.4 |   |
| Sale of equipment to customers |   |             | 8.7     |   |         |   | 1.9     |   |   |   | 0.1     |   |   |   | 10.7 |   |
| Capacity Leasing               |   |             | 47.1    |   |         |   | — |   |   |   | — |   |   |   | 47.1 |   |
| Total Revenues                 |   | Ps.              | 1,850.9 |   |         | Ps.    | 802.7   |   |   | Ps.    | 29.6    |   |   | Ps. | 2,683.2 |   |

----

|   | • | Identify clusters through market research. Our market research is designed to identify residential customers and small- and medium-sized businesses. Once we identify potential customers within the clusters, based on the marketing sales forecast we design the deployment of the access network to cover them. We perform a return on investment and profitability analysis for each cluster to assure that the investment made in such cluster meets our return benchmarks. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Deploy clusters through the implementation of a sales plan for each cluster based on our network deployment schedule. We commence promoting our services at the same time we build our network. These coordinated and parallel efforts help reduce the time between network deployment and revenue generation. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Fill in clusters by offering our services to all customers within the cluster. Marketing efforts are focused on achieving the highest penetration within our clusters. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | • | offer a flexible, large selection of services; |
|--------|---------|------------------------------------------------|

|   | • | provide tailored service packages; |
|--------|---------|------------------------------------|

|   | • | quickly introduce products and services; |
|--------|---------|------------------------------------------|

|   | • | deliver near real-time activation and disconnection; |
|--------|---------|------------------------------------------------------|

|   | • | deliver a high quality of service; |
|--------|---------|------------------------------------|

|   | • | minimize activation errors; and |
|--------|---------|---------------------------------|

|   | • | provide accurate and timely billing services. |
|--------|---------|-----------------------------------------------|

|   | • | Spanish language support for invoices and documentation; |
|--------|---------|----------------------------------------------------------|

|   | • | a high degree of integration among all operational support systems components; |
|--------|---------|--------------------------------------------------------------------------------|

|   | • | flow-through of information, provisioning and service activation; |
|--------|---------|-------------------------------------------------------------------|

|   | • | capabilities to monitor, manage and resolve network problems; |
|--------|---------|---------------------------------------------------------------|

|   | • | allowance for growth on a modular scalable basis; and |
|--------|---------|-------------------------------------------------------|

|   | • | support of administrative operations for financial controls. |
|--------|---------|--------------------------------------------------------------|

----

----

----

----

----

----

----

|   | · | enacting regulations and technical standards for the telecommunications industry; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | ensuring that holders fulfill the terms of their concessions and permits; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | suspending operators without concessions; |
|--------|--------|-------------------------------------------|

|   | · | resolving interconnection controversies between competitors; and |
|--------|--------|------------------------------------------------------------------|

|   | · | maintaining a registry of applicable rates. |
|--------|--------|---------------------------------------------|

----

|   | · | the type and technical specifications of the network, system or services that may be provided; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | the allocated spectrum frequencies, if applicable; |
|--------|--------|----------------------------------------------------|

|   | · | the geographical region in which the holder of the concession may provide the service; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | the required capital expenditure program; |
|--------|--------|-------------------------------------------|

|   | · | the term during which such service may be provided; |
|--------|--------|-----------------------------------------------------|

|   | · | the payment, where applicable, required to be made to acquire the concession, including, where applicable, the participation of the Mexican government in the revenues of the holder of the concession; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the amount of the performance bond; and |
|--------|--------|-----------------------------------------|

|   | · | rights granted to and obligations imposed on the concession holder. |
|--------|--------|---------------------------------------------------------------------|

|   | · | Mexican individuals; and |
|--------|--------|--------------------------|

|   | · | Mexican corporations in which non-Mexicans own 49% or less of the full voting stock and that are not otherwise controlled by non-Mexicans, except in the case of concessions for cellular and personal communications services, where foreign investment participation may exceed 49% of the voting stock with prior approval of the Mexican Foreign Investment Bureau of the Mexican Ministry of Economy (Secretaría de Economía). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | expiration of its term; |
|--------|--------|-------------------------|

|   | · | resignation by the concession holder or the permit holder; |
|--------|--------|------------------------------------------------------------|

|   | · | revocation; or |
|--------|--------|----------------|

|   | · | dissolution or bankruptcy of the concession holder or the permit holder. |
|--------|--------|--------------------------------------------------------------------------|

|   | · | failure to exercise the rights of the concession within 180 days of the grant; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | failure to provide interconnection services to other holders of telecommunications concessions and permits without reason; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | loss of the concession or permit holder’s Mexican nationality; |
|--------|--------|----------------------------------------------------------------------|

|   | · | unauthorized assignment, transfer or encumbrance of the concession or permit; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | unauthorized interruption of service; |
|--------|--------|---------------------------------------|

|   | · | taking any action that impairs the rights of other concessionaires or permit holders; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | failure to comply with the obligations or conditions specified in the concession or permit (including making any necessary investments and capital expenditures); and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | failure to pay to the Mexican government its fee for the concession or, where applicable, its participation in the revenues of the holder of the concession. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | basic local telephony; |
|--------|--------|------------------------|

|   | · | the sale or lease of network capacity for the generation, transmission or reception of signs, signals, writings, images, voice, sounds or other information of any nature; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the purchase and lease of network capacity from other carriers, including the lease of digital circuits; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | value-added services; |
|--------|--------|-----------------------|

|   | · | operator services; |
|--------|--------|--------------------|

|   | · | data, video, audio and video conference services, except for cable or other restricted television, continuous music or digital audio; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | credit or debit telephone cards; and |
|--------|--------|--------------------------------------|

----

|   | · | public telephony. |
|--------|--------|-------------------|

|   | · | the carrying of switched traffic between two different local calling areas that requires the use of a dialing prefix for its routing; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the sale or lease of network capacity for the generation, transmission or reception of signs, signals, writings, images, voice, sounds or other information of any nature; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the purchase and lease of network capacity from other carriers and domestic and international long-distance telephony. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | those which require a concession for frequency bands of the radio electric spectrum for specific uses; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | those which require a concession to occupy and exploit geostationary orbital positions and satellite orbits assigned to Mexico; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | · | those which require a concession to operate radio or television broadcasting systems; and |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | cable or other restricted television. |
|--------|--------|---------------------------------------|

----

|   | · | two consecutive frequency segments in the 15 GHz band, with a 56 MHz bandwidth; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | three consecutive frequency segments in the 23 GHz band, with a 56 MHz bandwidth; and |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | two consecutive frequency segments in the 23 GHz band, with a 100 MHz bandwidth. |
|--------|--------|----------------------------------------------------------------------------------|

----

|   | · | File information related to each concessionaire’s shareholders on the first quarter of every year; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Prepare a monthly report on any failures and interruptions of the services; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | Prepare quarterly quality of services reports which shall be filed before the SCT if required; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Prepare commercial practices guidelines which shall be available for review by any third party; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | Prepare an emergency response plan which shall be filed before the SCT during the following six months after the relevant concession granting date; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Notify the SCT of any relevant event that could affect the provision of the services or the performance of the network; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | Register its service fees with the COFETEL each time they are modified; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | File within the following 150 days after the last day of the preceding fiscal year (i) the corresponding audited financial statements, (ii) a description of the principal assets of the network, and (iii) a report on the employee training and teaching programs that are being implemented; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Prepare a quarterly report on the status of the expansion and coverage of the network; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | Make available the internal statistics on traffic, routing and performance of the network; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | Grant a surety bond in favor of the Federal Government to guarantee its obligations under the concession; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | File with the SCT within the following 60 days after the concession granting date a plan describing the coverage and extension of the network; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | File with the SCT the form of agreement to be entered with the concessionaire’s subscribers. |
|--------|--------|----------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| Year Ended December 31 |   | InflationRate |   |   | Average28-day Cetes |   |   | Mexican GDPAnnual GrowthRate* |   |   | Gross InternationalReserves as of theEnd of Each Year(Billion) |   |
|---------------------------------------|--------|---------------|--------|--------|--------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------|--------|
|                                  |   |          |   |   |                     |   |   |                                    |   |   |                                                                                              |   |
| 2010                                  |   |          | 4.4    | %      |                     |   | 4.4    | %                                       |   |   | 5.4                                                                                               | %      |   | U.S.$120.6 |   |
| 2009                                  |   |          | 3.6    | %      |                     |   | 5.4    | %                                       |   |   | (6.2                                                                                              | )%     |   | U.S.$99.9 |   |
| 2008                                  |   |          | 6.5    | %      |                     |   | 7.7    | %                                       |   |   | 1.2                                                                                               | %      |   | U.S.$95.3 |   |
| 2007                                  |   |          | 3.8    | %      |                     |   | 7.2    | %                                       |   |   | 3.3                                                                                               | %      |   | U.S.$87.2 |   |
| 2006                                  |   |          | 4.1    | %      |                     |   | 7.2    | %                                       |   |   | 5.2                                                                                               | %      |   | U.S.$76.3 |   |
| 2005                                  |   |          | 3.3    | %      |                     |   | 9.2    | %                                       |   |   | 3.2                                                                                               | %      |   | U.S.$74.1 |   |

----

| * | The Central Bank of Mexico no longer publishes the Mexican GDP and/or its variations according to the calculation methodology used for the figures presented for the years ended December 2007, 2006 and 2005, hence calculation methodology for the figures for the years ended December 31, 2010, 2009 and 2008 differs. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increasing the peso-carrying costs of our U.S. dollar-denominated debt and capital expenditure requirements; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | decreasing the purchasing power of Mexican consumers, resulting in a decrease in demand for telephony services; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | resulting in our inability, due to competitive pressures, to increase our prices in response to such inflation. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

----

|   | · | installation charges of voice lines; |
|--------|--------|--------------------------------------|

----

|   | · | monthly fees for the rental of voice lines, which depending on the product, include a certain number of free local calls; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | usage charges of voice lines, which can include a combination of local calls above those already included in the monthly fees, long distance minutes, as well as minutes to mobile numbers under the “Long Distance Calling Party Pays” system; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | charges relating to value-added services such as voice mail, call waiting, call forwarding, three-way calling and caller identification; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | public telephony services; |
|--------|--------|----------------------------|

|   | · | mobile services; |
|--------|--------|------------------|

|   | · | revenues derived from our strategic and commercial alliances with cable television operators, which are offset by the corresponding amount we are charged by the cable television operator; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the sale of telephone sets. |
|--------|--------|-----------------------------|

|   | · | Internet dial-up access; |
|--------|--------|--------------------------|

|   | · | asymmetric digital subscriber line; |
|--------|--------|-------------------------------------|

|   | · | dedicated Internet access; |
|--------|--------|----------------------------|

|   | · | managed services; |
|--------|--------|-------------------|

|   | · | digital private lines; and |
|--------|--------|----------------------------|

|   | · | lease of backbone capacity. |
|--------|--------|-----------------------------|

----

|   | · | network operating costs, which include: (i) technical expenses (comprised of electric power, site leases and maintenance of telecommunications equipment); (ii) installation expenses, when applicable; and (iii) disconnection expenses; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | selling, general and administrative expenses, which primarily include: (i) salaries, wages and benefits; (ii) fees, which are primarily related to consulting, legal and accounting services; (iii) leasing costs, which are primarily related to our headquarters, warehouses and other facilities; (iv) marketing expenses, which are primarily related to the implementation of our branding campaign, general advertising and promotions; and (v) allowance for doubtful accounts (related to past due accounts receivable); and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | depreciation and amortization mainly related to pre-operating expenses, frequency rights, telephone network systems and equipment and intangibles. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest expense and interest income; |
|--------|--------|---------------------------------------|

|   | · | effects of valuation of financial instruments; |
|--------|--------|------------------------------------------------|

|   | · | net foreign exchange gains or losses; and |
|--------|--------|-------------------------------------------|

|   | · | net gains or losses on monetary position up to December 31, 2007. |
|--------|--------|-------------------------------------------------------------------|

----

|   | · | it requires us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time we were making the estimate; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in the estimate or different estimates that we could have selected would have had a material impact on our financial condition or results of operations. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Year of Loss |   | Amount                  |      |   | Year of Maturity |   |
|--------------|--------|-------------------------|-----------|--------|------------------|--------|
|         |   | (in thousands of pesos) |      |
| 2009         |   | Ps.                     | 931       |   |             |   | 2019 |   |
| 2008         |   |                    | 466,647   |   |             |   | 2018 |   |
| 2007         |   |                    | 283,151   |   |             |   | 2017 |   |
| 2006         |   |                    | 77,915    |   |             |   | 2016 |   |
| 2005         |   |                    | 131,333   |   |             |   | 2015 |   |
| 2004         |   |                    | 83,660    |   |             |   | 2014 |   |
| 2003         |   |                    | 37,221    |   |             |   | 2013 |   |
| 2002         |   |                    | 280,116   |   |             |   | 2012 |   |
|         |   |                    |      |   |             |   |   |   |
| Total        |   | Ps.                     | 1,360,974 |   |             |   |   |   |

|                                         |   | Year Ended December 31 |   |
|----------------------------------------------|--------|------------------------|--------|
|                                         |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
| Net revenues                                 |   |                   | 100    | % |   |   | 100 | % |   |   | 100 | % |
| Operating cost and expenses:                 |   |                   |   |   |   |   |   |   |   |   |   |   |
| Network                                      |   |                   |   |   |   |   |   |   |   |   |   |   |
| operating costs                              |   |                   | 43.5   |   |   |   | 44.1 |   |   |   | 41.7 |   |
| Selling, general and administrative expenses |   |                   | 30.7   |   |   |   | 31.2 |   |   |   | 30.5 |   |
| Depreciation and amortization                |   |                   | 27.2   |   |   |   | 25.0 |   |   |   | 20.6 |   |
| Total operating cost and expenses            |   |                   | 101.4  |   |   |   | 100.3 |   |   |   | 92.8 |   |
| Operating profit (loss)                      |   |                   | (1.4   | ) |   |   | (0.3 | ) |   |   | 7.1 |   |
| Other expenses:                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Other expenses                               |   |                   | (2.5   | ) |   |   | (2.1 | ) |   |   | (0.6 | ) |
| Restructuring charges                        |   |                   | (2.6   | ) |   |   | (0.3 | ) |   |   | (1.8 | ) |
| Impairment of long-lived assets              |   |                   | (20.5  | ) |   |   | — |   |   |   | (19.8 | ) |
| Comprehensive cost of financing              |   |                   | 9.1    |   |   |   | 11.6 |   |   |   | 10.0 |   |
| Income tax                                   |   |                   | (9.8   | ) |   |   | 2.4 |   |   |   | 8.7 |   |
| Net loss (income) for the year               |   |                   | 46.0   | % |   |   | 11.8 | % |   |   | 16.3 | % |

----

|   | · | Residential revenues represented 40.6% of total revenues during 2010, compared with 36.2% in the previous year of 2009. Revenues in the residential business reached Ps.1,039.9 million in 2010, an increase of 12.0% or Ps.111.2 million in comparison to Ps.928.7 million in 2009. The increase in revenues is a combination of an increase in voice services by approximately Ps.34.7 million, an increase in paid TV services by approximately Ps.48.3 million, an increase in data revenues by approximately Ps.27.1 million and an increase in mobile services by Ps.1.0 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Commercial revenues represented 27.0% of total revenues during 2010, compared with 30.7% in 2009. Revenues in the commercial business totaled Ps.692.7 million in 2010, a decrease of 12.1% or Ps.95.3 million in comparison to Ps.788.0 million in the year 2009. This decrease in revenues was explained by a decrease of Ps.73 million in voice services and a decrease of Ps.21.6 million in data services. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Public Telephony represented 14.8% of total revenues during 2010 in comparison with 17.9% in 2009. Revenues in this segment totaled Ps.378.3 million in 2010, a decrease of 17.9% compared to Ps.460.7 million in 2009. The decrease in the public telephony business was primarily driven by the availability of the number of public telephones and a decrease in the average usage per phone. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In 2010, wholesale revenues totaled Ps.452.9 million, an increase of 21.7% in comparison to Ps.372.2 million in the same period in 2009. The increase in the wholesale business was mainly driven by higher traffic. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revenue from other services accounted for 0.5% or Ps.13.4 million of total revenues in 2010 an increase, from the Ps.12.9 million recorded in the same period last year. Other revenues are primarily comprised of lease of microwave frequencies and Customer Premise Equipment (CPE) sales. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Year Ended December 31 |    |
|------------------|--------|------------------------|---------|
|             |   | 2010                   |    |   | 2009 |   |   | % |   |
|             |   | (In millions)          |    |
| Residential      |   | Ps.                    | 1,040.0 |   |   | Ps. | 928.7 |   |   |   | 12.0 | % |
| Commercial       |   |                   | 692.7   |   |   |   | 788.0 |   |   |   | (12.1 | )% |
| Public Telephony |   |                   | 378.4   |   |   |   | 460.7 |   |   |   | (17.9 | )% |
| Wholesale        |   |                   | 452.9   |   |   |   | 372.2 |   |   |   | 21.7 | % |
| Other Revenue    |   |                   | 13.4    |   |   |   | 12.9 |   |   |   | 3.5 | % |
| Total revenues   |   | Ps.                    | 2,577.4 |   |   | Ps. | 2,562.5 |   |   |   | 0.6 | % |

|            |   | ARPU          |   |
|-----------------|--------|---------------|--------|
|            |   | 2010          |   |   | 2009 |   |   | % |   |
|            |   | (In millions) |   |
| Monthly charges |   | Ps.           | 158.2  |   |   | Ps. | 161.9 |   |   |   | (2.3 | )% |
| Usage           |   |          | 229.9  |   |   |   | 249.4 |   |   |   | (7.8 | )% |
| Subtotal        |   |          | 388.1  |   |   |   | 411.3 |   |   |   | (5.6 | )% |
| Non-recurring   |   |          | 3.7    |   |   |   | 5.2 |   |   |   | (28.8 | )% |
| Total           |   | Ps.           | 391.8  |   |   | Ps. | 415.3 |   |   |   | (5.6 | )% |

----

|        |   | At December 31 |    |
|------------------|--------|----------------|---------|
|             |   | 2010           |    |   | 2009 |   |   | % |   |
| Residential      |   |           | 417,756 |   |   |   | 366,001 |   |   |   | 14.1 | % |
| Commercial       |   |           | 68,600  |   |   |   | 81,081 |   |   |   | (15.4 | )% |
| Public Telephony |   |           | 41,124  |   |   |   | 41,393 |   |   |   | (0.6 | )% |
| Wholesale lines  |   |           | 29,084  |   |   |   | 25,110 |   |   |   | 15.8 | % |
| Total lines      |   |           | 556,564 |   |   |   | 513,585 |   |   |   | 8.4 | % |

|   | · | a Ps.3.8 million, or 0.4% increase in network operating services resulting mainly from: |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | o | a Ps.77.0 million higher fixed-to-mobile interconnection costs. |
|--------|---|-----------------------------------------------------------------|

|   | o | a Ps.5.1 million increase related to our paid TV content and internet services; |
|--------|---|---------------------------------------------------------------------------------|

|   | o | a Ps.4.7 million increase related to public telephony, circuit and port leases and internet services. |
|--------|---|-------------------------------------------------------------------------------------------------------|

|   | o | This increase was partially offset by a Ps.83.0 million decrease on long distance interconnection costs as a result of lower customer usage. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Ps.15.0 million, or 11.2% decrease in technical expenses primarily due to: |
|--------|--------|------------------------------------------------------------------------------|

|   | o | a Ps.4.2 million decrease in utilities costs; and, |
|--------|---|----------------------------------------------------|

|   | o | a Ps.10.8 million decrease in other technical expenses. |
|--------|---|---------------------------------------------------------|

|   | · | Installation expenses for 2010 increase Ps.1.4 million or 11.6%. |
|--------|--------|------------------------------------------------------------------|

|   | · | a Ps.62.6 million, or 9.8%, increase in depreciation and amortization expenses mainly related to |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Selling, general and administrative expenses decreased Ps.7.8 million, or 1.0% primarily due to: |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | o | a Ps.37.2 million decrease in salaries, wages and benefits; |
|--------|---|-------------------------------------------------------------|

|   | o | These expenses were partially offset by Ps.29.4 million in higher marketing expenses, leases expenses, external advisors expenses and billing expenses. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | Year Ended December 31 |   |
|---------------------------------------|--------|------------------------|--------|
|                                  |   | 2010                   |   |   | 2009 |   |   | % |   |
|                                  |   | (In millions)          |   |
| Interest expense — Net          |   | Ps.                    | (310.6 | ) |   | Ps. | (322.9 | ) |   |   | (3.8 | )% |
| Exchange gain (loss) — Net      |   |                   | 73.3   |   |   |   | 8.0 |   |   |   | 816.3 | % |
| Capitalized interest                  |   |                   | 3.8    |   |   |   | 18.1 |   |   |   | (79.0 | )% |
| Total comprehensive cost of financing |   | Ps.                    | (233.5 | ) |   | Ps. | (296.8 | ) |   |   | (21.3 | )% |

|   | · | a Ps.12.3 million or 3.8% decrease in interest paid as a result of a lower average outstanding balance of debt during 2010 compared to 2009; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Ps.73.3 million exchange rate gain compared to a net exchange rate gain of Ps.8.0 million recognized in the same period last year mainly due to an appreciation of the Mexican peso of 5.4% during 2010 compared with a peso appreciation of 3.5% during 2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Ps.14.3 million lower capitalized interest mainly due to an appreciation of the Mexican peso as previously explained and a reduction on the CAPEX program for 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Residential revenues represented 36.2% of total revenues during 2009, compared with 39.3% in the previous year of 2008. Revenues in the residential business reached Ps.928.7 million in 2009, a decrease of 12.0% or Ps. 127 million in comparison to Ps.1,055.6 million in 2008. The decrease in revenues is a combination of a decrease in usage charge for local, mobile and long distance by approximately Ps.119 million due to the duration and the number of calls and higher installation charges for the year which decrease by Ps.45 million. However, that was partially offset by an increase of Ps.37 million due to a larger contribution of data and TV products. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Commercial revenues represented 30.7% of total revenues during 2009, compared with 30.2% in 2008. Revenues in the commercial business totaled Ps.788.0 million in 2009, a decrease of 2.6% or Ps.21 million in comparison to Ps.809.1 million in the year 2008. This decrease in revenues was explained by a decrease of Ps.30 million in installation charges and a decrease of Ps.1 million in usage. However, this was partially offset by an increase of recurrent charges (rent, etc.) by Ps.10 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Public Telephony represented 17.9% of total revenues during 2009 in comparison with 16.0% in 2008. Revenues in this segment totaled Ps.460.7 million in 2009, an increase of 7.5% compared to Ps.428.7 million in 2008. The growth in the public telephony business was primarily driven by the increase in number of public telephones, which grew 16.8%. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In 2009, wholesale revenues totaled Ps.372.2 million, an increase of 3.5% in comparison to Ps.359.5 million in the same period in 2008. The increase in the wholesale business was mainly driven by higher traffic. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revenue from other services accounted for 0.5% or Ps.12.9 million of total revenues in 2009 a decrease, from the Ps.30.3 million recorded in the same period last year. Other revenues are primarily comprised of lease of microwave frequencies and Customer Premise Equipment (CPE) sales. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             |   | Year Ended December 31 |    |
|------------------|--------|------------------------|---------|
|             |   | 2009                   |    |   | 2008 |   |   | % |   |
|             |   | (In millions)          |    |
| Residential      |   | Ps.                    | 928.7   |   |   | Ps. | 1,055.6 |   |   |   | (12.0 | )% |
| Commercial       |   |                   | 788.0   |   |   |   | 809.1 |   |   |   | (2.6 | )% |
| Public Telephony |   |                   | 460.7   |   |   |   | 428.7 |   |   |   | 7.5 | % |
| Wholesale        |   |                   | 372.2   |   |   |   | 359.5 |   |   |   | 3.5 | % |
| Other Revenue    |   |                   | 12.9    |   |   |   | 30.3 |   |   |   | (57.4 | )% |
| Total revenues   |   | Ps.                    | 2,562.5 |   |   | Ps. | 2,683.2 |   |   |   | (4.5 | )% |

|            |   | ARPU          |   |
|-----------------|--------|---------------|--------|
|            |   | 2009          |   |   | 2008 |   |   | % |   |
|            |   | (In millions) |   |
| Monthly charges |   | Ps.           | 161.9  |   |   | $ | 234.2 |   |   |   | (28.3 | )% |
| Usage           |   |          | 249.4  |   |   |   | 398.1 |   |   |   | (35.4 | )% |
| Subtotal        |   |          | 411.39 |   |   |   | 632.3 |   |   |   | (32.5 | )% |
| Non-recurring   |   |          | 5.2    |   |   |   | 27.1 |   |   |   | (80 | )% |
| Total           |   | Ps.           | 415.3  |   |   | $ | 659.4 |   |   |   | (34.7 | )% |

|             |   | At December 31 |    |
|------------------|--------|----------------|---------|
|             |   | 2009           |    |   | 2008 |   |   | % |   |
| Residential      |   |           | 366,001 |   |   |   | 331,368 |   |   |   | 10.5 | % |
| Commercial       |   |           | 81,081  |   |   |   | 84,891 |   |   |   | (4.5 | )% |
| Public Telephony |   |           | 41,393  |   |   |   | 35,415 |   |   |   | 16.8 | % |
| Wholesale lines  |   |           | 25,110  |   |   |   | 22,860 |   |   |   | 9.8 | % |
| Total lines      |   |           | 513,585 |   |   |   | 474,534 |   |   |   | 8.2 | % |

|   | · | a Ps.29.1 million, or 3.0% increase in network operating services resulting mainly from: |
|--------|--------|------------------------------------------------------------------------------------------|

|   | o | a Ps.61.9 million higher fixed-to-mobile interconnection costs. |
|--------|---|-----------------------------------------------------------------|

|   | o | a Ps.14.9 million increase related to our paid TV content and internet services; |
|--------|---|----------------------------------------------------------------------------------|

|   | o | a Ps.20.9 million increase in costs related to circuit leases and ports required for our backbone and last mile connectivity as a result of the network expansion during the year; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | o | This increase was partially offset by a Ps.51.6 million decrease on long distance interconnection costs as a result of lower customer usage, Ps.10.9 million lower operational cost of public telephony services and Ps.6.1 million other cost reductions. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Ps.11.3 million, or 7.8% decrease in technical expenses primarily due to: |
|--------|--------|-----------------------------------------------------------------------------|

|   | o | a Ps.1.2 million increase in costs associated with leases of sites and poles; and, |
|--------|---|------------------------------------------------------------------------------------|

|   | o | a Ps.12.5 million decrease in other technical expenses. |
|--------|---|---------------------------------------------------------|

|   | · | Installation expenses for 2009 decrease to Ps.6.7 million or 35.7%. |
|--------|--------|---------------------------------------------------------------------|

|   | · | a Ps.87.5 million, or 15.9%, increase in depreciation and amortization expenses mainly related to: |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | o | a Ps.144.8 million increase due to new capital investments; and, |
|--------|---|------------------------------------------------------------------|

|   | o | a Ps.57.3 million decrease due to change in useful lives of long-lived assets. |
|--------|---|--------------------------------------------------------------------------------|

|   | · | Selling, general and administrative expenses decreased Ps.20.6 million, or 2.5% primarily due to: |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | o | a Ps.15.7 million decrease in marketing expenses; |
|--------|---|---------------------------------------------------|

|   | o | a Ps.9.6 million decrease in maintenance; |
|--------|---|-------------------------------------------|

|   | o | a Ps.12.4 million decrease in salaries, wages and benefits; |
|--------|---|-------------------------------------------------------------|

|   | o | a Ps. 3.4 million decrease on external sales commissions, |
|--------|---|-----------------------------------------------------------|

|   | o | These expenses were partially offset by Ps.20.5 million in higher bad debt reserve, leases expenses, insurance and other selling, general and administrative expenses. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | Year Ended December 31 |   |
|---------------------------------------|--------|------------------------|--------|
|                                  |   | 2009                   |   |   | 2008 |   |   | % |   |
|                                  |   | (In millions)          |   |
| Interest expense — Net          |   | Ps.                    | (322.9 | ) |   | Ps. | (263.7 | ) |   |   | 22.5 | % |
| Exchange gain (loss) — Net      |   |                   | 8.0    |   |   |   | (178.5 | ) |   |   | 95.5 | % |
| Capitalized interest                  |   |                   | 18.1   |   |   |   | 174.8 |   |   |   | (89.6 | )% |
| Total comprehensive cost of financing |   | Ps.                    | (296.8 | ) |   | Ps. | (267.4 | ) |   |   | (11.0 | )% |

|   | · | a Ps.59.2 million or 22.5% increase in interest paid as a result of a higher average outstanding balance of debt during 2009 compared to 2008; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Ps.8.0 million exchange rate gain compared to a net exchange rate loss of Ps.178.5 million recognized in the same period last year mainly due to an appreciation of the Mexican peso of 3.5% during 2009 compared with a peso depreciation of 24.6% during 2008; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Ps.156.7 million lower capitalized interest mainly due to an appreciation of the Mexican peso as previously explained and a reduction on the CAPEX program for 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | · | indebtedness, not to exceed U.S.$10.0 million at any time outstanding, represented by capital lease obligations, financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the purchase price or cost of design, construction, installation or improvement of property, plant or equipment used in the permitted business of the company, in an aggregate principal amount, including all permitted refinancing indebtedness incurred to renew, refund, refinance, replace, defease or discharge any such indebtedness; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | hedging obligations for the purpose of managing our exposure to fluctuations in interest rates with respect to indebtedness permitted to be incurred by us pursuant to the indenture or protecting us against currency fluctuations in the ordinary course of business and not for speculative purposes; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | indebtedness not to exceed U.S.$10.0 million in an aggregate principal amount at any time outstanding, including all permitted refinancing indebtedness incurred to renew, refund, refinance, replace, defease or discharge such indebtedness. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                          |   | As of December 31,2010(1) |        |   | As of December 31,2009(2) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|--------|---------------------------|--------|
|                                                                                                                                                          |   | Pesos                     |        |   | Dollars                   |   |   | Pesos |   |   | Dollars |   |
|                                                                                                                                                          |   | (In thousands)            |        |
| Short Term and Long Term Vendor Financing:                                                                                                                    |   |                      |        |   |                      |   |   |   |   |   |   |   |
| Vendor financing denominated in pesos                                                                                                                         |   | Ps.                       | 6,613.4     |   |                      | U.S.$  | — |   |   | Ps. | — |   |   | U.S.$ | — |   |
| Vendor financing denominated in dollars                                                                                                                       |   |                      | —     |   |                      |   | — |   |   |   | — |   |   |   | — |   |
| Total vendor financing                                                                                                                                        |   |                      | 6,613.4     |   |                      |   | — |   |   |   | — |   |   |   | — |   |
| Long Term Payable Bonds Denominated in U.S. Dollars:                                                                                                          |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| U.S.$175 million senior secured notes                                                                                                                         |   |                      |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| (U.S.$150 million issued on December 20, 2006 and U.S.$25 million issued on January 10, 2007)bearing interest at a rate of 11%, maturing on December 15, 2014 |   |                      | 2,471,420.0 |   |                      |   | 199,953.1 |   |   |   | 2,611,740.0 |   |   |   | 200,000.0 |   |
| Accrued interest                                                                                                                                              |   |                      | 12,705.0    |   |                      |   | 1,027.9 |   |   |   | 13,426.4 |   |   |   | 1,028.2 |   |
| Total long term payable bonds denominated in U.S. dollars                                                                                                     |   | Ps.                       | 2,484,125.0 |   |                      | U.S.$  | 200,981.0 |   |   | Ps. | 2,625,166.4 |   |   | U.S.$ | 201,028.2 |   |

----

----

| (1) | Nominal pesos as of December 31, 2010. Peso amounts were converted to U.S. dollars solely for the convenience of the reader at the rate of Ps.12.36 per U.S.$1.00 as reported by the Banco de México on December 31, 2010. Such conversions should not be construed as a representation that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated, or at any other rate. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Constant pesos as of December 31, 2009. Peso amounts were converted to U.S. dollars solely for the convenience of the reader at the rate of Ps.13.06 per U.S.$1.00 as reported by the Banco de México on December 31, 2009. Such conversions should not be construed as a representation that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated, or at any other rate. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | Instead of the statement of changes in financial position, the financial statements shall include the statements of cash flows for all the periods presented comparatively with those of the current year, except for financial statements of periods prior to 2008; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Cash inflows and cash outflows are reported in nominal currency units, thus not including the effects of inflation; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | iii. | Two alternative preparation methods (direct and indirect) are established, without stating preference for either method. Furthermore, cash flows from operating activities are to be reported first, followed by cash flows from investing activities and lastly by cash flows from financing activities; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | Captions of principal items are to be reported gross, with certain exceptions and require disclosure of the composition of items considered cash equivalents. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | At December 31,               |       |
|----------------------------------------------------------|--------|-------------------------------|------------|
|                                                     |   | 2010                          |       |   | 2009 |   |   | % |   |
|                                                     |   | (Thousands of constant pesos) |       |
| Net resources provided by operating activities           |   | Ps.                           | 518,737.0  |   |   | Ps. | 693,132.0 |   |   |   | (25.2 | )% |
| Net resources used in investing activities               |   |                          | (712,686.0 | ) |   |   | (909,989.0 | ) |   |   | (21.7 | )% |
| Net resources (used in) provided by financing activities |   |                          | (418,170.0 | ) |   |   | (387,205.0 | ) |   |   | 8 | % |

|                                                     |   |                          | At December 31, |   |
|----------------------------------------------------------|--------|-------------------------------|-----------------|--------|
|                                                     |   | 2009                          |            |   | 2008 |   |   | % |   |
|                                                     |   | (Thousands of constant pesos) |            |
| Net resources provided by operating activities           |   | Ps.                           | 693,132.0       |   |   | Ps. | 446,171.2 |   |   |   | 55.4 | % |
| Net resources used in investing activities               |   |                          | (909,989.0      | )      |   |   | (1,613,933.0 | ) |   |   | (43.6 | )% |
| Net resources (used in) provided by financing activities |   |                          | (387,205.0      | )      |   |   | 219,632.0 |   |   |   | (276.3 | )% |

----

|   | · | Ps.37.8 million decrease in resources resulting from a decrease in accounts receivable when compared to the Ps.19.6 million generated in 2009 with the Ps.18.1 million used in 2010; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.126.7 million decrease in resources resulting from a decrease in liabilities and increase in other assets when compared to the Ps.0.4 million used in resources provided in 2009 with the Ps.127.0 million used in resources provided in 2010; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.33.8 million decrease in resources resulting from a decrease in inventory, when compared to the Ps.24.5 million generated in 2009 with the Ps.9.3 million used in 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.218.6 million increase in resources resulting from an increase in accounts receivable when compared to the Ps.199.0 million used in 2008 with the Ps.19.6 million generated in 2009; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.24.1 million decrease in resources resulting from a decrease in liabilities and increase in other assets when compared to the Ps.23.6 million increase in resources provided in 2008 with the Ps.0.4 million used in resources provided in 2009; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.32.1 million increase in resources resulting from a decrease in inventory, when compared to the Ps.7.6 million usage in 2008 with the Ps.24.5 million generated in 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.86.1 million increase in resources resulting from an decrease in accounts receivable when compared to the Ps.285.0 million used in 2007 with the Ps.199.0 million used in 2008; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.66.4 million decrease in resources resulting from a decrease in liabilities and other assets when compared to the Ps.90.0 million increase in resources provided in 2007 with the Ps.23.6 million increase in resources provided in 2008; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.10.2 million decrease in resources resulting from an increase in inventory, when compared to the Ps. 2.5 million decrease in 2007 with the Ps. 7.6 million increase in 2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Ps.10.9 million used to the payment for the senior notes interest, |
|--------|--------|--------------------------------------------------------------------|

|   | · | Ps.12.4 million generated from the stock option program in 2010; |
|--------|--------|------------------------------------------------------------------|

|   | · | Ps.4.4 million generated from the vendor financing in 2010; |
|--------|--------|-------------------------------------------------------------|

|   | · | Ps.44.4 million decrease due to the Mexican peso appreciation during 2010, resulting from the net effect of Ps.140.3 million  of the Mexican peso appreciation, compared with the Ps.95.9 million of the Mexican peso appreciation during 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.2.5 million generated from shares repurchase program and other financing activities in 2010; and |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | Ps.5.0 million generated from other financing activities. |
|--------|--------|-----------------------------------------------------------|

|   | · | Ps.66.7 million used to the payment for the senior notes interest, |
|--------|--------|--------------------------------------------------------------------|

|   | · | Ps.63.7 million generated from the stock option program in 2009; |
|--------|--------|------------------------------------------------------------------|

|   | · | Ps.4.1 million generated from the vendor financing in 2009; and |
|--------|--------|-----------------------------------------------------------------|

|   | · | Ps.630.3 million decrease due to the Mexican peso appreciation during 2009, resulting in a net effect of Ps.95.9 million compared to the depreciation of the Mexican peso during 2008, resulting in a net effect of Ps.534.4 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.28.6 million used from shares repurchase program and other financing activities in 2009; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | Ps.2,643.4 million provided from the net proceeds of our initial public offering in 2007; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Ps.210.7 million used to the payment of Ps.214.4 million of the senior notes interest, Ps. 20.3 paid in the share repurchase program when compared with Ps.24.0 of hedging valuation on 2007; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ps.71.6 million used to exercise of the stock option program in 2008; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | Ps. 8.4 million used to pay vendor financing in 2008; and |
|--------|--------|-----------------------------------------------------------|

|   | · | Ps.408.3 million increase in resources from Ps.534.4 million senior notes revaluation compared with the payment of Ps.126.1 million of the used to redeem U.S.$11,590 of our 133/4% B series bonds maturing on April 1, 2007. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a minimum consolidated leverage ratio of less than 4.00 to 1.00 on or after January 1, 2008 and on or before December 31, 2009, and 3.50 to 1.00 on or after January 1, 2010; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a minimum fixed charge coverage ratio of 2.00 to 1.00; |
|--------|--------|--------------------------------------------------------|

|   | · | no default (as defined in the indenture) must have occurred and be continuing or result from the payment of the cash dividend; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the dividend payments together with the aggregate amount of all other restricted payments (as defined in the indenture) do not exceed certain amount determined in the indenture based on, among other things: (i) the consolidated net income of the company, (ii) the net cash flows from equity offerings, (iii) the lesser of the return on the restricted investments or the original amount of the restricted investment, (iv) the lesser of the fair market value (as defined in the indenture) of the company’s investment on a subsidiary after its redesignation as a restricted subsidiary or the original fair value as of the date in which such subsidiary was originally designated as unrestricted subsidiary. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |   |   |    |   | Inflation |   |
|--------------|--------|--------|---------|--------|-----------|--------|
| December 31, |   | NCPI   |    |   | Year      |   |   | Accumulated |   |
|         |   |   |    |   |      |   |   |   |   |
| 2010         |   |   | 144.639 |   |      |   | 4.40 | % |   |   | 15.19 | % |
| 2009         |   |   | 138.541 |   |      |   | 3.57 | % |   |   | 14.48 | % |
| 2008         |   |   | 133.761 |   |      |   | 6.53 | % |   |   | 15.01 | % |
| 2007         |   |   | 125.564 |   |      |   | 3.76 | % |   |   | 11.56 | % |
| 2006         |   |   | 121.015 |   |      |   | 4.05 | % |   |   | 13.10 | % |

----

----

|   | (a) | FRS B-5 “Segment information”- FRS B-5 is effective as of January 1, 2011. Changes as compared to superseded Bulletin B-5 “Segment Information” include the following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The information to be disclosed by operating segment is that regularly used by senior management and it does not require the segmentation into primary and secondary information, nor is it to be referred to segments identified based on products or services (economic segments), geographical areas and homogeneous groups. Additionally, disclosure of information on the whole entity’s products or services geographical areas and principal clients and suppliers is required. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS B-5 does not require that the entity's business areas be subject to different risks to qualify as operating segments. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS B-5 allows business areas in pre-operating stage to be catalogued as operating segments. |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | FRS B-5 requires disclosure by segment and separately, revenue and interest expense as well as all other components of comprehensive financial results (CFR). In specific cases, the FRS B-5 permits disclosure of net interest income. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS B-5 requires disclosure of the liability amounts included in the usual operating segment information normally used by senior management in making the entity's operating decisions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | FRS B-9 “Interim financial reporting”- FRS B-9 is effective as of January 1, 2010. Changes as compared to superseded Bulletin B-9 “Interim financial reporting” include the following: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS B-9 requires that the interim financial information includes a comparative and condensed balance sheet, income statement, statement of stockholders' equity and statement of cash flows and, for non-profit entities, it expressly requires the presentation of a statement of activities. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS B-9 establishes that the financial information at the end of an interim period should be presented comparatively with the equivalent interim period of the immediately preceding year and, in the case of the balance sheet, compared also to such financial statement at the immediately preceding year-end date. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS B-9 includes and defines new terminology. |
|--------|--------|-----------------------------------------------|

|   | (c) | FRS C-1 “Cash and cash equivalents”- FRS C-1 supersedes Bulletin C-1 “Cash” and is effective as of January 1, 2010. The principal changes with respect to the former standard include the following: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | FRS C-1 requires the presentation of cash and cash equivalents, restricted, within the balance sheet caption of "Cash and cash equivalents". |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The term “demand temporary investments” is replaced by “available demand investments”. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | To be identified as cash equivalents, the investments should be highly liquid, for example those with original maturities of three months or less when purchased. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FRS C-1 includes the definition of the terms: acquisition cost, restricted cash and cash equivalents, highly liquid investments, net realizable value, nominal value and fair value. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | · | The growth in broadband access; |
|--------|--------|---------------------------------|

|   | · | The convergence of services and industries, as evidenced by the introduction of voice, data and video bundles in the market; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Industry competitors forming alliances to sell and package bundles under one simple price strategies; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | Multi-service IP services; and |
|--------|--------|--------------------------------|

|   | · | Mobile services. |
|--------|--------|------------------|

----

|                                                                     |   | Payment Due by Period   |        |
|--------------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                                     |   | Total                   |        |   | Less Than1 Year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | More Than5 Years |   |
|                                                                     |   | (In thousands of pesos) |        |
| Contractual Obligations:                                                 |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term Debt Obligations*                                              |   | Ps.                     | 2,471,420.0 |   |   | Ps. | — |   |   | Ps. | — |   |   | Ps. | 2,471,420.0 |   |   | Ps. | — |   |
| Capital (Finance) Lease Obligation                                       |   |                    | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Vendor Financing                                                         |   |                    | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Capital Lease and Vendor Financing Accrued Interest at December 31, 2010 |   |                    | 7,940.4     |   |   |   | 2,304.7 |   |   |   | 5,635.7 |   |   |   | — |   |   |   | — |   |
| Accounts Payable to Grupo VAC**                                          |   |                    | 27,543.4    |   |   |   | 1,276.1 |   |   |   | 2,552.3 |   |   |   | 2,552.3 |   |   |   | 21,162.7 |   |
| Debt Obligations Interest                                                |   |                    | 1,144,248.1 |   |   |   | 298,568.6 |   |   |   | 571,727.0 |   |   |   | 273,952.5 |   |   |   | — |   |
| Operating Lease Obligation                                               |   |                    | 272,148.3   |   |   |   | 74,478.7 |   |   |   | 96,942.1 |   |   |   | 100,727.5 |   |   |   | — |   |
| Interest to Account Payable to Grupo VAC**                               |   |                    | 24,188.1    |   |   |   | 2,185.4 |   |   |   | 4,060.3 |   |   |   | 3,646.5 |   |   |   | 14,295.9 |   |
| Total                                                                    |   | Ps.                     | 3,947,488.3 |   |   | Ps. | 378,813.5 |   |   | Ps. | 680,917.4 |   |   | Ps. | 2,852,298.8 |   |   | Ps. | 35,458.6 |   |

----

| * | For further information see “Item 5. Operating and Financial Review and Prospects — B. Liquidity and capital resources - Financing sources and  liquidity” |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | For further information see “Item 4. Information on the Company — B. Business overview-Legal Matters and Administrative Proceedings-Mexican Federal Power Commission (Comisión Federal de Electricidad) Litigation” |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                       |         | Age |         | Position                                |
|--------------------------------------------|--------------|-----|--------------|-----------------------------------------|
| Jacques Gliksberg                          |         | 53  |         | Director and Chairman of the Board      |
| Adrián Aguirre Gómez             |         | 60  |         | Director and Vice Chairman of the Board |
| Eduardo Vázquez                       |         | 48  |         | Director                                |
| Rodrigo Guerra Botello *                   |         | 69  |         | Director                                |
| Lorenzo Barrera Segovia *                  |         | 52  |         | Director                                |
| Juan Jaime Petersen Farah *                |         | 52  |         | Director                                |
| Jorge Garcia Segovia *                     |         | 53  |         | Director                                |
| Eduardo Augusto José Molina Llovera * |         | 62  |         | Director                                |
| Juan Miguel Gandoulf Castellanos *         |         | 50  |         | Director                                |
| Salvador Álvarez Valdés          |    | 45  |    | Director (and also our CEO)             |

| * | Independent Directors pursuant to New York Stock Exchange listing standards, applicable federal U.S. securities laws including Rule 10 A-3, and the Mexican Securities Market Law. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name                              |         | Age |         | Position                 |
|-----------------------------------|--------------|-----|--------------|--------------------------|
| Salvador Álvarez Valdés |         | 45  |         | Chief Executive Officer  |
| Miguel Cabredo Benites            |         | 46  |         | Chief Financial Officer  |
| Carlos Palacios de la Cruz        |         | 44  |         | Chief Commercial Officer |
| Adolfo de la Torre Martinez       |    | 46  |    | Director of Operations   |

----

----

|   | · | our general strategy; |
|--------|--------|-----------------------|

|   | · | guidelines for the use of corporate assets; |
|--------|--------|---------------------------------------------|

|   | · | on an individual basis, any transactions with related parties, subject to certain limited exceptions; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | unusual or non-recurrent transactions and any transactions that imply the acquisition or sale of assets with a value equal to or exceeding 5% of our consolidated assets or the provision of collateral or guarantees or the assumption of liabilities equal to or exceeding 5% of our consolidated assets; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the appointment or removal of the chief executive officer; |
|--------|--------|------------------------------------------------------------|

|   | · | accounting and internal control policies; and |
|--------|--------|-----------------------------------------------|

|   | · | policies for disclosure of information. |
|--------|--------|-----------------------------------------|

----

|   | · | advise the board of directors with respect to matters assigned to it under the Mexican Securities Market Law, including: (a) our internal control and internal audit guidelines, (b) our accounting policies by referenced to financial reporting standards, (c) our financial statements, (d) the appointment of our external auditors, and (e) transactions that either are outside the ordinary course of our business or, in relation to the results of the immediately preceding fiscal quarter, constitute (i) the acquisition or disposition of assets or (ii) the provision of guaranties or the assumption of liabilities, in each case, equal to or greater than 5% of our consolidated assets; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | evaluate, analyze and supervise the work performed by our external auditors, including (a) review with them our annual and interim financial statements; (b) approve non-audit services provided by them; (c) resolve any disagreements between them and management; and (d) ensure their independence and objectivity; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | discuss our financial statements with the chief financial officer for their preparation and review and issue a recommendation to the board of directors with respect to committee’s approval; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | inform the board of directors of the status of the internal control and internal audit system, including any detected irregularities; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | advise the board of directors with respect to the annual report of our chief financial officer; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | assist the board of directors in preparation of the report on our principal accounting and financial information policies and criteria; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek the opinion of independent experts and other advisors when required or deemed necessary; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | investigate possible violations of operational guidelines and policies or of the internal control, internal audit and accounting records system; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | request periodic meetings with management and any information related to internal control and internal audit; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | call a shareholders’ meeting and request the inclusion of matters it considers appropriate on the agenda; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | supervise and discuss with the board of directors our internal control system relating to risk management and compliance with applicable laws; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ensure the existence of control mechanisms to provide that consistent unaudited financial information is presented to the board of directors; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | report to the board of directors on any detected significant irregularities and on its activities in general and review and propose amendments to its rules; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | supervise, review and discuss the audit procedures of our internal audit; |
|--------|--------|---------------------------------------------------------------------------|

----

|   | · | receive from our external auditors a report that includes an analysis of: (a) all critical accounting policies utilized by us; (b) all policies and financial reporting standards that differ from those utilized by us and that have been discussed with management, including the implications of using such policies and practices; and (c) any other written communications regarding significant matters between our external auditors and management, including the annual letter to management, in which our external auditors summarize their recommendations regarding our internal controls identified during the audit process; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | establish procedures for receiving, retaining and addressing complaints regarding accounting, internal controls and audit matters, including procedures for confidential submission of such complaints; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | review and analyze with management and our external auditors this annual report and the quarterly results presented to the Securities and Exchange Commission, or SEC; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | oversee the execution of resolutions adopted at shareholders’ meetings by the board of directors; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | perform any other functions pursuant to its mandate or expressly conferred by the board of directors. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

----

|                                                         |   | Series A Common Stock |        |
|--------------------------------------------------------------|--------|-----------------------|-------------|
|                                                         |   | Beneficial Ownership  |        |   | Shares |   |
| Shareholders                                                 |   | Number                |        |   | Percentage |   |   | Underlying CPOs |   |
| Jacques Gliksberg(1)                                         |   |                  | 320,143,614 |   |   |   | 40.5 | % |   |   | 288,143,613 |   |
| Marco Viola(1)**                                             |   |                  | 320,026,098 |   |   |   | 40.5 | % |   |   | 288,026,097 |   |
| Eduardo Vázquez (2)                                     |   |                  | 71,382,446  |   |   |   | 9.03 | % |   |   | 43,382,445 |   |
| Jesus Gustavo Martinez (2)**                                 |   |                  | 71,382,446  |   |   |   | 9.03 | % |   |   | 43,382,445 |   |
| Efrain Ruvalcaba (2)**                                       |   |                  | 71,382,446  |   |   |   | 9.03 | % |   |   | 43,382,445 |   |
| Adrián Aguirre Gómez                               |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Maria Guadalupe Aguirre Gómez**                         |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Rodrigo Guerra Botello                                       |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Salvador Alvarez                                             |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Lorenzo Barrera Segovia                                      |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Juan Jaime Petersen Farah                                    |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Jorge Garcia Segovia                                         |   |                  | *           |   |   |   | * |   |   |   | — |   |
| Eduardo Molina                                               |   |                  | *           |   |   |   | * |   |   |   | — |   |
| All executive officers and directors as a group (14 persons) |   |                  | 391,526,060 |   |   |   | 49.53 | % |   |   | 331,526,058 |   |

----

|   | * | Less than one percent. Pursuant to the Instruction to Item 6E of Form 20-F, individual share ownership is not disclosed. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------|

|   | ** | Alternate director. |
|--------|----|---------------------|

----

|                           |   | Series A Common Stock |        |
|--------------------------------|--------|-----------------------|-------------|
|                           |   | Beneficial Ownership  |        |   | Shares |   |
| Shareholders                   |   | Number                |        |   | Percentage |   |   | Underlying CPOs |   |
| Bank of America Corporation(1) |   |                  | 320,143,614 |   |   |   | 40.5 | % |   |   | 288,143,613 |   |
| Nexus Maxcom Holdings (1)      |   |                  | 320,143,614 |   |   |   | 40.5 | % |   |   | 288,143,613 |   |

----

| * | Less than one percent. Pursuant to the Instruction to Item 6E of Form 20-F, individual share ownership is not disclosed. |
|---|--------------------------------------------------------------------------------------------------------------------------|

| (1) | Based upon information set forth in the Schedule 13G/A filed on February 10, 2010, includes shares of Series A common stock beneficially owned, directly or indirectly by the following reporting persons: Nexus-Maxcom Holdings I, LLC, Nexus Partners I, LLC, Nexus-Banc of America Fund II, L.P., Nexus Partners II, L.P., Jacques Gliksberg, Marco Viola. Additionally, Bank of America Corporation has retained Nexus Partners and Messrs. Gliksberg and Viola to manage all shares of Series A Common Stock beneficially owned by BAS Capital Funding Corporation (“BAS Capital”), which is the direct beneficial owner of 3,055,038 shares of Series A Common Stock, or approximately 0.4% of the total outstanding Series A Common Stock, BankAmerica Investment Corporation (“BAIC”), which is the direct beneficial owner of 338,331 shares of Series A Common Stock, or approximately 0.04% of the total outstanding Series A Common Stock, BASCFC-Maxcom Holdings I, LLC (“BASCFC”), which is the direct beneficial owner of 85,741,824 shares of Series A Common Stock, or approximately 10.9% of the total outstanding Series A Common Stock and Nexus-Maxcom Holdings. As a result, Nexus Partners and Messrs. Gliksberg and Viola may be deemed to be the indirect beneficial owners of the shares beneficially owned directly by BAS Capital, BAIC, BASCFC and Nexus-Maxcom Holdings. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                        |   | Mexican Stock Exchange(Mexican pesos per CPO) |   |   | New York Stock Exchange(U.S. dollars per ADS) |   |
|---------------------------------------------|--------|-----------------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                        |   | High                                          |   |   | Low                                           |   |   | High |   |   | Low |   |
| Annual Highs and Lows                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |
| 2011 (through June 17, 2011)                |   | Ps.                                           | 4.80   |   |                                          | Ps.    | 4.60 |   |   | $ |  2.73 |   |   | $ |  2.50 |   |
| 2010                                        |   |                                          | 11.74  |   |                                          |   | 5.99 |   |   |   | 6.49 |   |   |   | 3.24 |   |
| 2009                                        |   |                                          | 12.40  |   |                                          |   | 4.20 |   |   |   | 6.49 |   |   |   | 1.70 |   |
| 2008                                        |   |                                          | 23.70  |   |                                          |   | 5.29 |   |   |   | 16.03 |   |   |   | 2.16 |   |
| 2007                                        |   |                                          | 31.00  |   |                                          |   | 19.00 |   |   |   | 19.98 |   |   |   | 12.17 |   |
| Quarterly Highs and Lows:                   |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| 2011:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter                               |   | Ps.                                           | 5.90   |   |                                          | Ps.    | 5.78 |   |   | $ | 3.40 |   |   | $ | 3.33 |   |
| Second Quarter (through June 17, 2011)      |   |                                          | 4.80   |   |                                          |   | 4.60 |   |   |   | 2.73 |   |   |   | 2.50 |   |
| 2010:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter                               |   | Ps.                                           | 12.10  |   |                                          | Ps.    | 8.20 |   |   | $ | 6.58 |   |   | $ | 4.32 |   |
| Second Quarter                              |   |                                          | 9.11   |   |                                          |   | 6.97 |   |   |   | 5.24 |   |   |   | 3.76 |   |
| Third Quarter                               |   |                                          | 8.06   |   |                                          |   | 5.99 |   |   |   | 4.47 |   |   |   | 3.24 |   |
| Fourth Quarter                              |   |                                          | 7.27   |   |                                          |   | 6.25 |   |   |   | 4.06 |   |   |   | 3.35 |   |
| 2009:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter                               |   | Ps.                                           | 8.35   |   |                                          | Ps.    | 4.20 |   |   | $ | 4.26 |   |   | $ | 1.86 |   |
| Second Quarter                              |   |                                          | 6.90   |   |                                          |   | 4.51 |   |   |   | 3.50 |   |   |   | 1.70 |   |
| Third Quarter                               |   |                                          | 7.50   |   |                                          |   | 4.95 |   |   |   | 3.99 |   |   |   | 2.52 |   |
| Fourth Quarter                              |   |                                          | 12.40  |   |                                          |   | 6.00 |   |   |   | 6.49 |   |   |   | 3.14 |   |
| 2008:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter                               |   | Ps.                                           | 20.39  |   |                                          | Ps.    | 16.50 |   |   | $ | 13.25 |   |   | $ | 9.89 |   |
| Second Quarter                              |   |                                          | 23.70  |   |                                          |   | 16.10 |   |   |   | 16.03 |   |   |   | 9.44 |   |
| Third Quarter                               |   |                                          | 18.91  |   |                                          |   | 11.00 |   |   |   | 12.75 |   |   |   | 7.01 |   |
| Fourth Quarter                              |   |                                          | 12.86  |   |                                          |   | 5.29 |   |   |   | 8.00 |   |   |   | 2.16 |   |
| 2007:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Fourth Quarter (beginning October 19, 2007) |   | Ps.                                           | 31.00  |   |                                          | Ps.    | 19.00 |   |   | $ | 19.98 |   |   | $ | 12.17 |   |
| Monthly 2011:                               |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| January                                     |   | Ps.                                           | 6.44   |   |                                          | Ps.    | 6.22 |   |   | $ | 3.75 |   |   | $ | 3.46 |   |
| February                                    |   |                                          | 6.18   |   |                                          |   | 5.91 |   |   |   | 3.45 |   |   |   | 3.35 |   |
| March                                       |   |                                          | 5.90   |   |                                          |   | 5.78 |   |   |   | 3.40 |   |   |   | 3.33 |   |
| April                                       |   |                                          | 5.44   |   |                                          |   | 5.23 |   |   |   | 3.16 |   |   |   | 3.13 |   |
| May                                         |   |                                          | 5.15   |   |                                          |   | 4.96 |   |   |   | 2.95 |   |   |   | 2.95 |   |
| Monthly 2010:                               |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| January                                     |   | Ps.                                           | 12.10  |   |                                          | Ps.    | 9.50 |   |   | $ | 6.58 |   |   | $ | 4.92 |   |
| February                                    |   |                                          | 10.85  |   |                                          |   | 9.60 |   |   |   | 5.87 |   |   |   | 5.00 |   |
| March                                       |   |                                          | 10.55  |   |                                          |   | 8.20 |   |   |   | 5.86 |   |   |   | 4.32 |   |
| April                                       |   |                                          | 9.40   |   |                                          |   | 8.00 |   |   |   | 4.36 |   |   |   | 4.45 |   |
| May                                         |   |                                          | 8.22   |   |                                          |   | 6.85 |   |   |   | 4.64 |   |   |   | 3.00 |   |
| June                                        |   |                                          | 8.30   |   |                                          |   | 6.97 |   |   |   | 4.43 |   |   |   | 3.76 |   |
| July                                        |   |                                          | 6.95   |   |                                          |   | 6.07 |   |   |   | 3.86 |   |   |   | 3.40 |   |
| August                                      |   |                                          | 8.06   |   |                                          |   | 5.99 |   |   |   | 4.47 |   |   |   | 3.24 |   |
| September                                   |   |                                          | 7.47   |   |                                          |   | 6.61 |   |   |   | 4.09 |   |   |   | 3.55 |   |
| October                                     |   |                                          | 7.00   |   |                                          |   | 6.34 |   |   |   | 3.86 |   |   |   | 3.52 |   |
| November                                    |   |                                          | 7.27   |   |                                          |   | 6.33 |   |   |   | 4.06 |   |   |   | 3.41 |   |
| December                                    |   |                                          | 7.11   |   |                                          |   | 6.25 |   |   |   | 3.94 |   |   |   | 3.35 |   |
| Monthly 2009:                               |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| January                                     |   | Ps.                                           | 8.35   |   |                                          | Ps.    | 6.20 |   |   | $ | 4.26 |   |   | $ | 3.03 |   |
| February                                    |   |                                          | 7.50   |   |                                          |   | 5.80 |   |   |   | 3.43 |   |   |   | 2.74 |   |
| March                                       |   |                                          | 6.19   |   |                                          |   | 4.20 |   |   |   | 2.90 |   |   |   | 1.86 |   |
| April                                       |   |                                          | 6.50   |   |                                          |   | 4.55 |   |   |   | 3.06 |   |   |   | 2.13 |   |
| May                                         |   |                                          | 6.90   |   |                                          |   | 4.51 |   |   |   | 3.50 |   |   |   | 1.70 |   |
| June                                        |   |                                          | 6.53   |   |                                          |   | 5.06 |   |   |   | 3.45 |   |   |   | 2.61 |   |
| July                                        |   |                                          | 5.80   |   |                                          |   | 4.95 |   |   |   | 3.04 |   |   |   | 2.52 |   |
| August                                      |   |                                          | 7.28   |   |                                          |   | 4.99 |   |   |   | 3.87 |   |   |   | 2.65 |   |
| September                                   |   |                                          | 7.50   |   |                                          |   | 6.10 |   |   |   | 3.99 |   |   |   | 3.07 |   |
| October                                     |   |                                          | 7.60   |   |                                          |   | 6.00 |   |   |   | 4.04 |   |   |   | 3.14 |   |
| November                                    |   |                                          | 8.70   |   |                                          |   | 6.04 |   |   |   | 4.67 |   |   |   | 3.20 |   |
| December                                    |   |                                          | 12.40  |   |                                          |   | 8.45 |   |   |   | 6.49 |   |   |   | 4.02 |   |
| 2008:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| January                                     |   | Ps.                                           | 19.94  |   |                                          | Ps.    | 16.50 |   |   | $ | 12.90 |   |   | $ | 9.89 |   |
| February                                    |   |                                          | 20.39  |   |                                          |   | 18.53 |   |   |   | 13.25 |   |   |   | 11.76 |   |
| March                                       |   |                                          | 19.28  |   |                                          |   | 17.29 |   |   |   | 12.52 |   |   |   | 11.02 |   |
| April                                       |   |                                          | 19.20  |   |                                          |   | 16.38 |   |   |   | 12.53 |   |   |   | 9.44 |   |
| May                                         |   |                                          | 21.80  |   |                                          |   | 16.10 |   |   |   | 14.66 |   |   |   | 10.61 |   |
| June                                        |   |                                          | 23.70  |   |                                          |   | 17.51 |   |   |   | 16.03 |   |   |   | 11.79 |   |
| July                                        |   |                                          | 18.91  |   |                                          |   | 14.10 |   |   |   | 12.75 |   |   |   | 9.73 |   |
| August                                      |   |                                          | 14.54  |   |                                          |   | 11.05 |   |   |   | 10.02 |   |   |   | 7.60 |   |
| September                                   |   |                                          | 14.39  |   |                                          |   | 11.00 |   |   |   | 9.56 |   |   |   | 7.01 |   |
| October                                     |   |                                          | 12.86  |   |                                          |   | 5.80 |   |   |   | 8.00 |   |   |   | 2.52 |   |
| November                                    |   |                                          | 8.90   |   |                                          |   | 5.29 |   |   |   | 5.03 |   |   |   | 2.16 |   |
| December                                    |   |                                          | 9.00   |   |                                          |   | 7.16 |   |   |   | 4.66 |   |   |   | 3.55 |   |
| 2007:                                       |   |                                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| October (beginning October 19, 2007)        |   | Ps.                                           | 31.00  |   |                                          | Ps.    | 26.60 |   |   | $ | 19.98 |   |   | $ | 17.01 |   |
| November                                    |   |                                          | 27.70  |   |                                          |   | 22.67 |   |   |   | 18.80 |   |   |   | 14.35 |   |
| December                                    |   |                                          | 26.32  |   |                                          |   | 19.00 |   |   |   | 17.83 |   |   |   | 12.17 |   |

----

| Class of Shares       |   | Numberof Shares |        |   | % of TotalCapitalStructure |   |
|-----------------------|--------|-----------------|-------------|--------|----------------------------|--------|
| Series A common stock |   |            | 789,818,829 |   |                       |   | 100 | % |
| Total                 |   |            | 789,818,829 |   |                       |   | 100 | % |

----

|   | · | our board of directors and the president or secretary of the board; |
|--------|--------|---------------------------------------------------------------------|

|   | · | shareholders representing at least 10% of our outstanding capital stock who request the board of directors or the audit and corporate practices committee to call a shareholders meeting; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a Mexican court of competent jurisdiction, in the event the board of directors does not comply with a valid request of the shareholders described immediately above; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the audit and corporate practices committee; and |
|--------|--------|--------------------------------------------------|

----

|   | · | any shareholder, provided that no annual ordinary meeting has been held for two consecutive years or the annual shareholders meeting did not to address the matters required to be addressed in an annual shareholders’ meeting. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approve the financial statements for the preceding fiscal year; |
|--------|--------|-----------------------------------------------------------------|

|   | · | elect directors; |
|--------|--------|------------------|

|   | · | discuss and approve the audit and corporate practices committees, the board of directors’ and the chief executive officer’s annual report; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | determine how to allocate net profits for the preceding year (including, if applicable, the payment of dividends); and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | determine the maximum amount of resources allocated to share repurchases. |
|--------|--------|---------------------------------------------------------------------------|

|   | · | an extension of our duration or voluntary dissolution; |
|--------|--------|--------------------------------------------------------|

|   | · | an increase or decrease in the fixed portion of our capital stock; |
|--------|--------|--------------------------------------------------------------------|

|   | · | any change in our corporate purpose or nationality; |
|--------|--------|-----------------------------------------------------|

|   | · | any merger or transformation into another type of company; |
|--------|--------|------------------------------------------------------------|

|   | · | any issuance of preferred stock; |
|--------|--------|----------------------------------|

|   | · | the redemption of shares with retained earnings; |
|--------|--------|--------------------------------------------------|

|   | · | any amendments to our bylaws; |
|--------|--------|-------------------------------|

----

|   | · | any other matters provided for by law or our bylaws; or |
|--------|--------|---------------------------------------------------------|

|   | · | the cancellation of the registration of our class A common stock or CPOs representing such shares at the Mexican National Securities Registry or any stock exchange (except for automated quotation systems). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Holders of at least 5% of our outstanding shares, whether directly or through CPOs or ADSs, are required to initiate action against some or all of our directors for violations of their duty of care or duty of loyalty, for our benefit, in an amount equal to the damages or losses caused to us. Actions initiated on these grounds have a five year statute of limitations. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Holders of at least 10% of our outstanding share capital, whether directly or through CPOs or ADSs, are able to: |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | o | request a call for a shareholders’ meeting; |
|--------|---|---------------------------------------------------|

|   | o | request that resolutions with respect to any matter on which they were not sufficiently informed be postponed; and |
|--------|---|--------------------------------------------------------------------------------------------------------------------|

|   | o | appoint one member of our board of directors and one alternate member of our board of directors except that for non-Mexican holders of CPOs or ADSs this right will only be exercisable if a majority of our directors are appointed by Mexican investors. See “Description of the CPO Trust.” |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Holders, whether directly or through CPOs or ADSs, of 20% of our outstanding share capital to oppose any resolution adopted at a shareholders’ meeting and file a petition for a court order to suspend the resolution within 15 days following the adjournment of the meeting at which the action was taken, provided that the challenged resolution violates Mexican law or our bylaws, the opposing shareholders either did not attend the meeting or voted against the challenged resolution, and the opposing shareholders deliver a bond to the court to secure payment of any damages that we may suffer as a result of suspending the resolution in the event that the court ultimately rules against the opposing shareholder. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | the average quotation price on the Mexican Stock Exchange for the 30 days prior to the date of the offer; or |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | the book value, as reflected in the report filed with the CNBV and the Mexican Stock Exchange. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | concurrently with the termination of the CPO trust and distribution of the underlying shares, the registration of the Series A common stock with the Mexican National Securities Registry maintained by the CNBV and, if necessary, the registration of the distribution of such shares under the Securities Act; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the listing of the shares on the Mexican Stock Exchange; |
|--------|--------|----------------------------------------------------------|

|   | · | those required to modify our bylaws to permit unrestricted foreign ownership and/or control of our capital stock (and the CPOs); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | the preparation of proxy materials for and the solicitation of shareholder, and CPO holder, approval of the termination of CPO trust and any required or advisable amendments to our bylaws; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | causing all filings, notices, applications and permits related to, and obtaining approvals and authorizations of, such termination and distribution. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the impossibility of continuing with our current line of business; |
|--------|--------|--------------------------------------------------------------------|

|   | · | the resolution of our shareholders at an extraordinary general shareholders’ meeting; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | the reduction of the number of our shareholders to fewer than two; and |
|--------|--------|------------------------------------------------------------------------|

|   | · | the loss of two-thirds of our capital stock. |
|--------|--------|----------------------------------------------|

----

|   | · | the CPO trust agreement between us and the CPO trustee (and persons contributing shares of Series A common stock to the trust from time to time); and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a CPO trust deed, pursuant to which the CPO trustee will issue CPOs in accordance with the CPO trust agreement. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

----

----

|   | • | a split or a consolidation of our Series A common stock; |
|--------|---------|----------------------------------------------------------|

|   | • | a capitalization affecting or redemption of our Series A common stock; |
|--------|---------|------------------------------------------------------------------------|

|   | • | any other reclassification or restructuring of our Series A common stock; or |
|--------|---------|------------------------------------------------------------------------------|

|   | • | any merger, consolidation, or spin-off. |
|--------|---------|-----------------------------------------|

----

|   | • | verification of the due execution and terms of the CPO trust; |
|--------|---------|---------------------------------------------------------------|

|   | • | verification of the existence of the shares Series A common stock being held in the CPO trust; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | authentication, by its signature, of the certificates evidencing the CPOs; |
|--------|---------|----------------------------------------------------------------------------|

|   | • | exercise the rights of CPO holders in connection with the payment of any dividend to which they are entitled; |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   | • | undertaking of any other action required to protect the rights, actions or remedies to which they are entitled; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | calling and presiding over general meetings of CPO holders; and |
|--------|---------|-----------------------------------------------------------------|

|   | • | execution of decisions adopted at general meetings of CPO holders. |
|--------|---------|--------------------------------------------------------------------|

----

|   | • | the right to cause the CPO trustee to distribute dividends or other distributions it has received; |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | • | the right to cause the common representative to enforce and protect rights of CPO holders; and |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | the right to bring action against the common representative, for civil liabilities in the event of willful misconduct. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

|   | • | distribute the shares of Series A common stock underlying CPOs held by Mexican holders of on a pro rata basis; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | • | with respect to shares of Series A common stock underlying CPOs held by non-Mexicans, the CPO trustee will: |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   | o | sell or distribute the applicable shares Series A common stock in the CPO trust, and then distribute the proceeds to CPO holders on a pro rata basis; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | extend the period for the CPO trust agreement; or |
|--------|---|---------------------------------------------------|

|   | o | create a new trust similar to the CPO trust to which it will transfer all of the applicable shares of Series A common stock, so that the non-Mexican holders may be the beneficiaries of economic rights in respect of such shares on a pro rata basis. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | • | Change the nominal or par value of the CPOs; |
|--------|---------|----------------------------------------------|

|   | • | Reclassify, split or consolidate any of the deposited securities; |
|--------|---------|-------------------------------------------------------------------|

|   | • | Distribute securities on the CPOs that are not distributed to ADS holders; |
|--------|---------|----------------------------------------------------------------------------|

|   | • | Recapitalize, reorganize, merge, liquidate, sell all or substantially all of our assets, or take any similar action |
|--------|---------|---------------------------------------------------------------------------------------------------------------------|

|   | • | The cash, shares or other securities received by the depositary will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The depositary may, and will if we ask it to, distribute some or all of the cash, shares or other securities it received. It may also deliver new ADRs or ask ADR holders to surrender their outstanding ADRs in exchange for new ADRs identifying the new deposited securities. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | are not liable if either of us is prevented or delayed by law or circumstances beyond our control from performing our obligations under the deposit agreement; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | are not liable if either of us exercises discretion permitted under the deposit agreement; |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | • | are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the deposit agreement; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | are not liable for any special, consequential or punitive damages for any breach of the terms of the deposit agreement; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on an ADS holders behalf or on behalf of any other person; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | may rely upon any documents we believe in good faith to be genuine and to have been signed or presented by the proper person. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | • | payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any CPOs or other deposited securities; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | compliance with regulations it may establish, from time to time, consistent with the deposit agreement, including presentation of transfer documents. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | when temporary delays arise because: (i) the depositary, the CPO trustee or the Foreign Registrar has closed its transfer books or we have closed our transfer books; (ii) the transfer of CPOs is blocked to permit voting at a shareholders’ meeting; or (iii) we are paying a dividend on our Series A common stock or any other security deposited with the CPO trustee; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | if the ADS holder owes money to pay fees, taxes and similar charges; and |
|--------|---------|--------------------------------------------------------------------------|

|   | • | when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to the ADSs or to the withdrawal of CPOs or other deposited securities. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | a minimum consolidated leverage ratio of less than 4.25 to 1.00 on or before December 31, 2007, 4.00 to 1.00 on or after January 1, 2008 and on or before December 31, 2009 and 3.50 to 1.00 on or after January 1, 2010; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | no default (as defined in the indenture) must have occurred and be continuing or result from the payment of the cash dividend; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the dividend payments together with the aggregate amount of all other restricted payments (as defined in the indenture) do not exceed a certain amount determined in the indenture based on, among other things: (i) the consolidated net income of the company, (ii) the net cash flows from equity offerings, (iii) the lesser of the return on the restricted investments or the original amount of the restricted investment, (iv) the lesser of the fair market value (as defined in the indenture) of the company’s investment on a subsidiary after its re-designation as a restricted subsidiary or the original fair value as of the date in which such subsidiary was originally designated as unrestricted subsidiary. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | the senior notes are placed through banks or brokerage houses in a country with which Mexico has entered into a tax treaty for the avoidance of double taxation that is in force; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we have delivered notice of the offering of the senior notes to the Mexican National Banking and Securities Commission (Comisión NacionalBancaria y de Valores) pursuant to article 7 of the Mexican Securities Market Law (Ley del Mercado de Valores); and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | certain periodic information requirements by the Mexican Ministry of Finance (Secretaría de Hacienda y Crédito Público) are complied with. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | our shareholders who own, directly or indirectly, individually or jointly with related parties, more than 10% of our voting stock; or |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | • | legal entities 20% or more of whose stock is owned, directly or indirectly, individually or jointly with related parties, by us or by persons related to us. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Persons Depositing or Withdrawing CPOs or ADR Holders Must Pay:                                                                                                                          |   | For:   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                     |   |   |   |
| U.S.$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)                                                                                                                                |   | · | Issuance of ADSs, including issuances resulting from a distribution of shares, CPOs or rights or other property |
|                                                                                                                                                                                     |   |   |   |
|                                                                                                                                                                                     |   | · | Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates |
|                                                                                                                                                                                     |   |   |   |
| U.S.$.02 (or less) per ADS                                                                                                                                                          |   | · | Any cash distribution to you  |
|                                                                                                                                                                                     |   |   |   |
| A fee equivalent to the fee that would be payable if seeurities distributed to you had been CPOs and the CPOs had been deposited for issuance of ADSs                                    |   | · | Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS holders  |
|                                                                                                                                                                                     |   |   |   |
| U.S.$.02 (or less) per ADS per calendar year                                                                                                                                             |   | · | Depositary services |
|                                                                                                                                                                                     |   |   |   |
| Registration or transfer fees                                                                                                                                                            |   | · | Transfer and registration of CPOs on our CPO register to or from the name of the depositary or its agent when you deposit or withdraw CPOs |
|                                                                                                                                                                                     |   |   |   |
| Expenses of the depositary                                                                                                                                                               |   | · | Cable, telex and facsimile transmission (when expressly provided in the deposit agreement) |
|                                                                                                                                                                                     |   |   |   |
|                                                                                                                                                                                     |   | · | Converting foreign currency to U.S. dollars |
|                                                                                                                                                                                     |   |   |   |
| Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or CPO underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes |   | · | As necessary |
|                                                                                                                                                                                     |   |   |   |
| Any charges incurred by the depositary or its agents for servicing deposited securities                                                                                                  |   | · | As necessary |

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|          |   | Year Ended December 31 |   |
|--------------------|--------|---------------------------------------|--------|
|               |   | 2010                                  |   |   | 2009 |   |
|               |   | (In millions)                    |   |
| Audit Fees(1)      |   | Ps.                                   | 6.6    |   |   | Ps. | 5.7 |   |
| All Other Fees (2) |   | Ps.                                   | 0.0    |   |   | Ps. | 0.0 |   |
| Total              |   | Ps.                                   | 6.6    |   |   | Ps. | 5.7 |   |

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| (1)    | Audit Fees include fees associated with the annual audit of our consolidated financial statements. Audit fees also include fees associated with Securities and Exchange Commission statutory, annual reporting audit requirements and internal control over financial reporting. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                             |
| (2)    | Other Fees includes fees for advisory and training services.                                                                                                                                                                                                                     |

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|    |   |                                   |   |   | Total number of |      |   | Average price paid |   |          | Total number of CPOspurchased for the repurchase |   |   | Approximate value ofCPOs that may yet bepurchased under the |   |
|--------------|--------|----------------------------------------|--------|--------|---------------------------|-----------|--------|------------------------------|--------|---------------|--------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------|--------|
| Period       |   | Dates                                  |   |   | CPOs purchased       |      |   | per CPO (1)        |   |          | program                                                                        |   |   | repurchase program (2)                                                                    |   |
| 2008:        |   |                                   |   |   |                      |      |   |                         |   |          |                                                                           |   |   |                                                                                                |   |
| January      |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| February     |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| March        |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   | Ps. | 36.2 |   |
| April        |   | From April 15 to April 29, 2008        |   |   |                      | 1,841,900 |   |                         | Ps.    |  17.7094 |                                                                           |   |   | 1,841,900                                                                                           |   |   | Ps. | 29.2 |   |
| May          |   | From May 5 to May 30, 2008             |   |   |                      | 2,198,800 |   |                         | Ps.    |  18.3854 |                                                                           |   |   | 2,198,800                                                                                           |   |   | Ps. | 24.5 |   |
| June         |   | From June 3 to June 30, 2008           |   |   |                      | 702,800   |   |                         | Ps.    |  19.4713 |                                                                           |   |   | 702,800                                                                                             |   |   | Ps. | 22.2 |   |
| July         |   | From July 2 to July 31, 2008           |   |   |                      | 387,100   |   |                         | Ps.    |  16.8034 |                                                                           |   |   | 387,100                                                                                             |   |   | Ps. | 18.1 |   |
| August       |   | From August 1 to August 28, 2008       |   |   |                      | 580,800   |   |                         | Ps.    |  12.9328 |                                                                           |   |   | 580,800                                                                                             |   |   | Ps. | 11.1 |   |
| September    |   | From September 9 to September 29, 2008 |   |   |                      | 272,800   |   |                         | Ps.    | 12.4724       |                                                                           |   |   | 272,800                                                                                             |   |   | Ps. | 10.9 |   |
| October      |   | From October 1 to October 27, 2008     |   |   |                      | 388,800   |   |                         | Ps.    | 9.8259        |                                                                           |   |   | 388,800                                                                                             |   |   | Ps. | 9.1 |   |
| November     |   | From November 4 to November 21, 2008   |   |   |                      | 89,900    |   |                         | Ps.    | 7.0312        |                                                                           |   |   | 89,900                                                                                              |   |   | Ps. | 8.5 |   |
| December     |   | From December 1 to December 31, 2008   |   |   |                      | 147,100   |   |                         | Ps.    | 7.8380        |                                                                           |   |   | 147,100                                                                                             |   |   | Ps. | 8.5 |   |
| 2009:        |   |                                   |   |   |                      |      |   |                         |   |          |                                                                           |   |   |                                                                                                |   |   |   |   |   |
| January      |   | From January 7 to January 29, 2009     |   |   |                      | 196,200   |   |                         | Ps.    | 7.0726        |                                                                           |   |   | 196,200                                                                                             |   |   | Ps. | 7.8 |   |
| February     |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| March        |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| April        |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| May          |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| June         |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| July         |   | From July 30 to July 31, 2009          |   |   |                      | 160,100   |   |                         | Ps.    | 5.1756        |                                                                           |   |   | 160,100                                                                                             |   |   | Ps. | 7.9 |   |
| August       |   | From August 4 to August 26, 2009       |   |   |                      | 547,100   |   |                         | Ps.    | 5.7586        |                                                                           |   |   | 547,100                                                                                             |   |   | Ps. | 7.6 |   |
| September    |   | From September 9 to September 30, 2009 |   |   |                      | 352,300   |   |                         | Ps.    | 6.9345        |                                                                           |   |   | 352,300                                                                                             |   |   | Ps. | 7.6 |   |
| October      |   | From October 1 to October 26, 2009     |   |   |                      | 309,300   |   |                         | Ps.    | 6.9268        |                                                                           |   |   | 309,300                                                                                             |   |   | Ps. | 7.7 |   |
| November     |   | From November 3 to November 11, 2009   |   |   |                      | 30,000    |   |                         | Ps.    | 6.3680        |                                                                           |   |   | 30,000                                                                                              |   |   | Ps. | 8.1 |   |
| December     |   | From December 1 to December 31, 2009   |   |   |                      | 250,500   |   |                         | Ps.    | 9.5015        |                                                                           |   |   | 250,500                                                                                             |   |   | Ps. | 7.0 |   |
| 2010:        |   |                                   |   |   |                      |      |   |                         |   |          |                                                                           |   |   |                                                                                                |   |   |   |   |   |
| January      |   | From January 11 to January 14, 2010    |   |   |                      | 96,200    |   |                         | Ps.    | 11.0100       |                                                                           |   |   | 96,200                                                                                              |   |   | Ps. | 7.7 |   |
| February     |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| March        |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| April        |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| May          |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| June         |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| July         |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| August       |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| September    |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| October      |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| November     |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| December     |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |
| 2011:        |   |                                   |   |   |                      |      |   |                         |   |          |                                                                           |   |   |                                                                                                |   |   |   |   |   |
| January      |   | —                                |   |   |                      | —   |   |                         |   | —       |                                                                           |   |   | —                                                                                             |   |   |   | — |   |

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| (1) | Average price paid is presented in nominal pesos. |
|-----|---------------------------------------------------|

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| (2) | Approximate value of CPOs that may yet be purchased under the repurchase program is presented in millions of nominal pesos. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| NYSE Standards                                                                                                                                                                                                                                                                  |   | Our Corporate Governance Practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Director Independence. Majority of board of directors must be independent. §303A.01                                                                                                                                                                                        |   | Director Independence. Pursuant to the Mexican Securities Market Law and our bylaws, 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 se non-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. There is no exemption from the independence requirement for controlled companies. |
|                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Executive Sessions. Non-management directors must meet regularly in executive sessions without management. Independent directors should meet alone in an executive session at least once a year. §303A.03                                                                  |   | Executive Sessions. Our non-management directors have not held executive sessions without management in the past, and under our bylaws and applicable Mexican law, they are not required to do so.                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Nominating/Corporate GovernanceCommittee. Nominating/corporate governance committee of independent directors is required. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.04                            |   | Nominating Committee. We currently do not have, and are not required to have, a nominating committee. However, Mexican law requires us to have one or more committees that oversee the corporate governance function. We have an audit and corporate practices committee which performs corporate governance functions.                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Compensation Committee. Compensation committee 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.05 |   | Compensation Committee. We are not required to have a compensation committee. We have an audit and corporate practices committee, which assists our board of directors in evaluating and compensating our senior executives. All of the members of the audit and corporate practices committee are independent.                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Audit Committee. Audit committee satisfying the independence and other requirements of Exchange Act Rule 10A-3 and the more stringent requirements under the NYSE standards is required. §§303A.06, 303A.07                                                           |   | Audit Committee. We have an audit and corporate practices committee of three members. Each member of this committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Exchange Act Rule 10A-3. Our audit committee operates primarily pursuant to (1) a written charter adopted by our board of directors and (2) Mexican law. For a detailed description of the duties of our audit and corporate practices committee, see “Management — Committees — Audit and Corporate Practices Committee.”                                                        |

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| Equity Compensation Plans. Equity compensation plans require shareholder approval, subject to limited exemptions. §§303A.08 & 312.03                                                                                                                                                                                                                                                                                                                                                                                   |   | Equity Compensation Plans. Shareholder approval is required for the adoption and amendment of an equity-compensation plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Shareholder Approval for Issuance ofSecurities. 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% 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% of the number of outstanding shares before such issuance require shareholder approval. §§312.03(b)-(d) |   | Shareholder Approval for Issuance ofSecurities. Mexican law and our bylaws require us to obtain shareholder approval of the issuance of equity securities. Treasury stock, however, may be issued by the board of directors without shareholder approval.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Corporate Governance Guidelines. Listed companies are required to adopt and maintain corporate governance guidelines, addressing, among other things, director qualification standards, director responsibilities, director access to management and independent advisors, management succession and annual performance evaluations of the board. §303A.09                                                                                                                                                                      |   | Corporate Governance Guidelines We operate under corporate governance principles that we believe are consistent with the principles of Rule 303A.09, and which are described in the Company’s website under “Corporate Governance”.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Code of Business Conduct and Ethics. A code of business conduct and ethics is 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                                                                                                                                                                                                                                         |   | Code of Business Conduct and Ethics. We have adopted a code of ethics, which has been accepted by all of our directors and executive officers and other personnel. We also will post all waivers therefrom by any of our directors or executive officers on our website. We will provide a complimentary copy of our code of ethics upon request.                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 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. §307.00. Certain issuances of common stock to a related party require shareholder approval. §312.03(b)                                                                                                                                                                           |   | Conflicts of Interest. In accordance with Mexican law and our bylaws, the audit and corporate practices committee must provide an opinion regarding any transaction with a related party that is outside of the ordinary course of business, which transactions must also be approved by the board of directors. Pursuant to the Mexican Securities Market Law, our Board of Directors will establish certain guidelines regarding related party transactions that do not require 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. §§402.00 & 402.04                                                                                                                                                                                                                                                                                                       |   | Solicitation of Proxies. We are required under Mexican law to solicit proxies and provide proxy materials for meetings of shareholders. In accordance with Mexican law and our bylaws, we are also required to inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting, provides a mechanism by which shareholders can vote by proxy and makes proxies available. Under the deposit agreement relating to the ADSs, holders of the ADSs receive notices of shareholders’ meetings and, where applicable, instructions on how to vote at the shareholders’ meeting either in person or through a person having a proxy specifically designated by the shareholder. |

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|                                                                                                                  | Page  |
|-----------------------------------------------------------------------------------------------------------------------|------------|
| Maxcom Telecomunicaciones, S.A.B. de C.V. and Subsidiaries                                                            | F-1        |
| Report of Independent Registered Public Accounting Firm                                                               | F-2        |
| Consolidated Balance Sheets as of December 31, 2010 and 2009                                                          | F-3        |
| Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008                            | F-4        |
| Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2010, 2009 and 2008 | F-5        |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009                                  | F-6        |
| Notes to the Consolidated Financial Statements for the years ended December 31, 2010, 2009 and 2008                   | F-7        |

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|                                                                                                       |   | 2010   |       |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Assets                                                                                                     |   |   |       |   |   |   |
| Current assets:                                                                                            |   |   |       |   |   |   |
| Cash and cash equivalents                                                                                  |   | $      | 375,224    |   |   |   | 987,343 |   |
| Derivative financial instruments (Note 13)                                                                 |   |   | 3          |   |   |   | 35,121 |   |
| Accounts receivable:                                                                                       |   |   |       |   |   |   |   |   |
| Customers, net of allowance for doubtful accounts of $316,018 and $232,905 for 2010 and 2009, respectively |   |   | 714,661    |   |   |   | 696,557 |   |
| Value added tax recoverable                                                                                |   |   | 206,744    |   |   |   | 210,819 |   |
| Other accounts receivable                                                                                  |   |   | 67,719     |   |   |   | 87,079 |   |
|                                                                                                       |   |   | 989,124    |   |   |   | 994,455 |   |
| Inventory — Net                                                                                      |   |   | 25,678     |   |   |   | 16,374 |   |
| Prepaid expenses — Net                                                                               |   |   | 31,647     |   |   |   | 30,149 |   |
| Total current assets                                                                                       |   |   | 1,421,676  |   |   |   | 2,063,442 |   |
| Long lived assets:                                                                                         |   |   |       |   |   |   |   |   |
| Telephone network systems and equipment — Net (Note 7)                                               |   |   | 4,391,993  |   |   |   | 4,941,770 |   |
| Intangible assets — Net (Note 8)                                                                     |   |   | 213,212    |   |   |   | 199,224 |   |
| Frequency rights — Net (Note 9)                                                                      |   |   | 47,282     |   |   |   | 59,674 |   |
| Other assets:                                                                                              |   |   |       |   |   |   |   |   |
| Deferred income taxes — Net (Note 19)                                                                |   |   | —    |   |   |   | 230,324 |   |
| Prepaid expenses — Net                                                                               |   |   | 6,881      |   |   |   | 10,524 |   |
| Guaranty deposits                                                                                          |   |   | 7,526      |   |   |   | 7,269 |   |
| Derivative financial instruments (Note 13)                                                                 |   |   | —    |   |   |   | 3,198 |   |
| Other assets                                                                                               |   |   | 2,151      |   |   |   | 2,151 |   |
| Total assets                                                                                               |   | $      | 6,090,721  |   |   |   | 7,517,576 |   |
| Liabilities and Shareholders’ Equity                                                                 |   |   |       |   |   |   |   |   |
| Current liabilities:                                                                                       |   |   |       |   |   |   |   |   |
| Trade accounts payable                                                                                     |   | $      | 346,204    |   |   |   | 485,687 |   |
| Accruals                                                                                                   |   |   | 33,724     |   |   |   | 45,526 |   |
| Current installments of obligations under capital leases                                                   |   |   | 1,693      |   |   |   | — |   |
| Customer deposits                                                                                          |   |   | 2,158      |   |   |   | 2,214 |   |
| Other taxes payable                                                                                        |   |   | 94,403     |   |   |   | 69,660 |   |
| Accrued interest (Note 11)                                                                                 |   |   | 12,705     |   |   |   | 13,426 |   |
| Total current liabilities                                                                                  |   |   | 490,887    |   |   |   | 616,513 |   |
| Long-term liabilities :                                                                                    |   |   |       |   |   |   |   |   |
| Derivative financial instruments (note 13)                                                                 |   |   | 5,137      |   |   |   | — |   |
| Senior notes (Note 11)                                                                                     |   |   | 2,471,420  |   |   |   | 2,611,740 |   |
| Installments of obligations under capital leases                                                           |   |   | 4,920      |   |   |   | — |   |
| Other accounts payable                                                                                     |   |   | 91,782     |   |   |   | 97,887 |   |
| Labor obligations upon retirement (Note 14)                                                                |   |   | 27,294     |   |   |   | 31,463 |   |
| Deferred income taxes – net (note 19)                                                                |   |   | 8,755      |   |   |   | — |   |
| Total long-term liabilities                                                                                |   |   | 2,609,308  |   |   |   | 2,741,090 |   |
| Total liabilities                                                                                          |   |   | 3,100,195  |   |   |   | 3,357,603 |   |
| Shareholders’ equity (Notes 15 and 16) :                                                             |   |   |       |   |   |   |   |   |
| Capital stock                                                                                              |   |   | 5,410,244  |   |   |   | 5,410,244 |   |
| Additional paid-in capital                                                                                 |   |   | 813,135    |   |   |   | 808,566 |   |
| Deficit                                                                                                    |   |   | (3,231,791 | )      |   |   | (2,046,912 | ) |
| Repurchase of shares                                                                                       |   |   | (1,062     | )      |   |   | (11,925 | ) |
| Total shareholders’ equity                                                                           |   |   | 2,990,526  |   |   |   | 4,159,973 |   |
| Commitments and contingencies (Note 20)                                                                    |   |   |       |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                           |   | $      | 6,090,721  |   |   |   | 7,517,576 |   |

----

|                                                |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Net revenues (Note 17)                              |   | $      | 2,577,392  |   |   |   | 2,562,570  |   |   |   | 2,683,229 |   |
| Operating costs and expenses (Note 10):             |   |   |       |   |   |   |       |   |   |   |   |   |
| Network operating costs                             |   |   | (1,121,541 | )      |   |   | (1,131,353 | )      |   |   | (1,120,167 | ) |
| Selling, general and administrative expenses        |   |   | (791,142   | )      |   |   | (798,986   | )      |   |   | (819,642 | ) |
| Depreciation and amortization                       |   |   | (701,975   | )      |   |   | (639,398   | )      |   |   | (551,889 | ) |
| Total operating costs and expenses                  |   |   | (2,614,658 | )      |   |   | (2,569,737 | )      |   |   | (2,491,698 | ) |
| Operating (loss) income                             |   |   | (37,266    | )      |   |   | (7,167     | )      |   |   | 191,531 |   |
| Other expenses:                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Other expenses                                      |   |   | (64,353    | )      |   |   | (50,559    | )      |   |   | (12,616 | ) |
| Restructuring charges (Notes 5(n) and 14)           |   |   | (66,721    | )      |   |   | (7,282     | )      |   |   | (49,491 | ) |
| Impairment of long-lived assets (Note 5i)           |   |   | (528,672   | )      |   |   | —    |   |   |   | (532,315 | ) |
| Employees’ statutory profit sharing (Note 5m) |   |   | (1,334     | )      |   |   | (3,292     | )      |   |   | (1,173 | ) |
| Other expenses, net                                 |   |   | (661,080   | )      |   |   | (61,133    | )      |   |   | (595,595 | ) |
| Comprehensive financing cost — Net (Note 18)  |   |   | (233,472   | )      |   |   | (296,795   | )      |   |   | (267,393 | ) |
| (Loss) income before income taxes                   |   |   | (931,818   | )      |   |   | (365,095   | )      |   |   | (671,457 | ) |
| Income taxes (Note 19):                             |   |   |       |   |   |   |       |   |   |   |   |   |
| Current tax expense                                 |   |   | (13,982    | )      |   |   | (7,934     | )      |   |   | (12,162 | ) |
| Deferred tax benefit (expense)                      |   |   | (239,079   | )      |   |   | 69,471     |   |   |   | 245,856 |   |
| Total income tax benefit (expense)                  |   |   | (253,061   | )      |   |   | 61,537     |   |   |   | 233,694 |   |
| Net (loss) income for the year                      |   | $      | (1,184,879 | )      |   |   | (303,558   | )      |   |   | (437,763 | ) |
|  (Loss) earnings per share (Note 5t):          |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic loss (earnings) per common share (pesos)      |   | $      | (1.50      | )      |   |   | (0.38      | )      |   |   | (0.55 | ) |
| Diluted earnings per common share (pesos)           |   | $      | —    |   |   |   | —    |   |   |   | — |   |
| Weighted average basic shares (thousands)           |   |   | 789,819    |   |   |   | 789,819    |   |   |   | 789,819 |   |
| Weighted average diluted shares (thousands)         |   |   | 833,588    |   |   |   | 833,543    |   |   |   | 829,337 |   |

----

|                                |   | CapitalStock |      |   | Additionalpaid-incapital |   |    | Retainedearnings(deficit) |   |   | Repurchaseof shares |   |   | Totalstockholders’equity |    |
|-------------------------------------|--------|--------------|-----------|--------|--------------------------|--------|---------|---------------------------|--------|--------|--------------------------|--------|--------|--------------------------------|---------|
| Balances as of December 31, 2007    |   | $            | 5,410,251 |   |                     |   | 888,056 |                      |   |   | (1,267,468               | )      |   |                           | — |   |   |   | 5,030,839 |   |
| Decrease in capital stock (Note 15) |   |         | (7        | )      |                     |   | — |                      |   |   | —                  |   |   |                           | — |   |   |   | (7 | ) |
| Stock option plan (Notes 15 and 16) |   |         | —   |   |                     |   | (71,613 | )                         |   |   | —                  |   |   |                           | — |   |   |   | (71,613 | ) |
| Repurchase of shares (Note 15)      |   |         | —   |   |                     |   | — |                      |   |   | —                  |   |   |                           | (20,287 | ) |   |   | (20,287 | ) |
| Comprehensive net loss (Note 15)    |   |         | —   |   |                     |   | — |                      |   |   | (437,763                 | )      |   |                           | — |   |   |   | (437,763 | ) |
| Balances as of December 31, 2008    |   |         | 5,410,244 |   |                     |   | 816,443 |                      |   |   | (1,705,231               | )      |   |                           | (20,287 | ) |   |   | 4,501,169 |   |
| Stock option plan (Notes 15 and 16) |   |         | —   |   |                     |   | (7,877  | )                         |   |   | —                  |   |   |                           | — |   |   |   | (7,877 | ) |
| Repurchase of shares (Note 15)      |   |         | —   |   |                     |   | — |                      |   |   | —                  |   |   |                           | 8,362   |   |   |   | 8,362 |   |
| Comprehensive net loss (Note 15)    |   |         | —   |   |                     |   | — |                      |   |   | (341,681                 | )      |   |                           | — |   |   |   | (341,681 | ) |
| Balances as of December 31, 2009    |   |         | 5,410,244 |   |                     |   | 808,566 |                      |   |   | (2,046,912               | )      |   |                           | (11,925 | ) |   |   | 4,159,973 |   |
| Stock option plan (Notes 15 and 16) |   |         | —   |   |                     |   | 4,569   |                      |   |   | —                  |   |   |                           | — |   |   |   | 4,569 |   |
| Repurchase of shares (Note 15)      |   |         | —   |   |                     |   | — |                      |   |   | —                  |   |   |                           | 10,863  |   |   |   | 10,863 |   |
| Comprehensive net loss              |   |         | —   |   |                     |   | — |                      |   |   | (1,184,879               | )      |   |                           | — |   |   |   | (1,184,879 | ) |
| Balances as of December 31, 2010    |   | $            | 5,410,244 |   |                     |   | 813,135 |                      |   |   | (3,231,791               | )      |   |                           | (1,062  | ) |   |   | 2,990,526 |   |

----

|                                                                                                                                    |   | 2010   |     |   | 2009   |   |      | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|
| Cash flows from operating activities:                                                                                                   |   |   |     |   |   |   |      |   |   |
| Loss before taxes                                                                                                                       |   | $      | (931,818 | )      |   |   | (365,095  | )      |   |   | (671,457 | ) |
| Items related to investing activities:                                                                                                  |   |   |     |   |   |   |      |   |   |   |   |   |
| Depreciation and amortization                                                                                                           |   |   | 701,975  |   |   |   | 639,398   |   |   |   | 551,889 |   |
| Impairment of long-lived assets                                                                                                         |   |   | 528,672  |   |   |   | —   |   |   |   | 532,315 |   |
| Loss on sale of telephone network systems and equipment                                                                                 |   |   | 40,141   |   |   |   | 42,113    |   |   |   | 82,496 |   |
|     Profit on sale of subsidiary company                                                                            |   |   | —  |   |   |   | (6,126    | )      |   |   | — |   |
| Items related to financing activities:                                                                                                  |   |   |     |   |   |   |      |   |   |   |   |   |
| Financial instruments                                                                                                                   |   |   | 43,453   |   |   |   | 58,479    |   |   |   | (83,323 | ) |
| Interest expense                                                                                                                        |   |   | 290,765  |   |   |   | 280,649   |   |   |   | 217,210 |   |
| Subtotal                                                                                                                                |   |   | 673,188  |   |   |   | 649,418   |   |   |   | 629,130 |   |
| Customer accounts receivable                                                                                                            |   |   | (18,104  | )      |   |   | 19,646    |   |   |   | (198,949 | ) |
| Recoverable value added tax                                                                                                             |   |   | 4,075    |   |   |   | (46,371   | )      |   |   | 34,135 |   |
| Other accounts receivable                                                                                                               |   |   | 19,360   |   |   |   | (3,055    | )      |   |   | (22,974 | ) |
| Inventory                                                                                                                               |   |   | (9,304   | )      |   |   | 24,502    |   |   |   | (7,627 | ) |
| Prepaid expenses                                                                                                                        |   |   | 2,145    |   |   |   | 5,486     |   |   |   | 9,563 |   |
| Trade accounts payable, provisions and other acumulated liabilities                                                                     |   |   | (151,778 | )      |   |   | 16,380    |   |   |   | 1,238 |   |
| Income taxes paid                                                                                                                       |   |   | (13,982  | )      |   |   | (14,308   | )      |   |   | (7,320 | ) |
| Customer deposits                                                                                                                       |   |   | (56      | )      |   |   | (304      | )      |   |   | (283 | ) |
| Other liabilities and taxes payable                                                                                                     |   |   | 17,362   |   |   |   | 31,901    |   |   |   | (3,436 | ) |
| Changes in employees benfits and provisions                                                                                             |   |   | (4,169   | )      |   |   | 9,837     |   |   |   | 12,694 |   |
| Net cash provided by operating activities                                                                                               |   |   | 518,737  |   |   |   | 693,132   |   |   |   | 446,171 |   |
| Cash flows from investing activities:                                                                                                   |   |   |     |   |   |   |      |   |   |   |   |   |
| Capital expenditures (including interest capitalized in the amount of $3,847, $18,104 and $62,029 in 2010, 2009 and 2008, respectively) |   |   | (715,994 | )      |   |   | (931,623  | )      |   |   | (1,631,001 | ) |
| Proceeds from sale of telephone network systems and equipment                                                                           |   |   | 3,565    |   |   |   | 10,256    |   |   |   | 4,364 |   |
| Proceeds from sale of subsidiary company                                                                                                |   |   | —  |   |   |   | 6,126     |   |   |   | — |   |
| (Increase) decrease in guarantee deposits and other non-current assets. net                                                             |   |   | (257     | )      |   |   | 5,252     |   |   |   | 12,704 |   |
| Net cash used in investing activities                                                                                                   |   |   | (712,686 | )      |   |   | (909,989  | )      |   |   | (1,613,933 | ) |
| Cash to be obtained from financing activities                                                                                           |   |   | (193,949 | )      |   |   | (216,857  | )      |   |   | — |   |
| Cash flows from financing activities:                                                                                                   |   |   |     |   |   |   |      |   |   |   |   |   |
| Bonds payable                                                                                                                           |   |   | (140,320 | )      |   |   | (95,920   | )      |   |   | 534,420 |   |
| Decrease in capital stock                                                                                                               |   |   | —  |   |   |   | —   |   |   |   | (7 | ) |
| Stock option plan                                                                                                                       |   |   | 4,569    |   |   |   | (7,877    | )      |   |   | (71,613 | ) |
| Interest paid                                                                                                                           |   |   | (292,006 | )      |   |   | (281,142  | )      |   |   | (214,462 | ) |
| Capital lease, payment of credits                                                                                                       |   |   | —  |   |   |   | (4,354    | )      |   |   | (8,419 | ) |
| Repurchase of shares                                                                                                                    |   |   | 10,863   |   |   |   | 8,362     |   |   |   | (20,287 | ) |
| Other financing activities                                                                                                              |   |   | (1,276   | )      |   |   | (6,274    | )      |   |   | — |   |
| Net cash (used in) provided by financing activities                                                                                     |   |   | (418,170 | )      |   |   | (387,205  | )      |   |   | 219,632 |   |
| Net decrease in cash and equivalents                                                                                                    |   |   | (612,119 | )      |   |   | (604,062  | )      |   |   | (948,130 | ) |
| Cash and cash equivalents:                                                                                                              |   |   |     |   |   |   |      |   |   |   |   |   |
| At beginning of year                                                                                                                    |   |   | 987,343  |   |   |   | 1,591,405 |   |   |   | 2,539,535 |   |
| At end of year                                                                                                                          |   | $      | 375,224  |   |   |   | 987,343   |   |   |   | 1,591,405 |   |

----

----

----

| Subsidiary company                                   |   | %     |   | Line of business                          |
|------------------------------------------------------|--------|-------|--------|-------------------------------------------|
| Asesores Telcoop, S.A. de C.V. (i)                   |   | 99.9  |   | Business advisory services                |
| Celmax Móvil, S.A. de C.V. (iii)                |   | 99.0  |   | Telecommunication services                |
| Corporativo en Telecomunicaciones, S. A. de C. V.    |   | 99.9  |   | Technical personnel services              |
| Fundación Maxcom, A.C. (iii)                    |   | 99.9  |   | Donee                                     |
| Maxcom Servicios Administrativos, S. A. de C. V.     |   | 99.9  |   | Administrative personnel services         |
| Maxcom SF, S. A. de C. V.                            |   | 99.9  |   | Financial services                        |
| Maxcom TV, S. A. de C. V. (i)                        |   | 99.9  |   | Cable television services                 |
| Maxcom USA, Inc. (i)                                 |   | 100.0 |   | International telecommunications services |
| Outsourcing Operadora de Personal, S. A. de C. V.    |   | 99.9  |   | Technical personnel services              |
| Sierra Comunicaciones Globales, S. A. de C. V.       |   | 99.9  |   | Infrastructure leasing                    |
| Sierra USA Communications, Inc. (ii)                 |   | 100.0 |   | International telecommunication services  |
| TECBTC Estrategias de Promoción, S. A. de C. V. |   | 99.9  |   | Technical personnel services              |
| Telereunion, S. A. de C. V. (ii)                     |   | 99.9  |   | Long distance and infrastructure leasing  |
| Telscape de México, S. A. de C. V. (ii)         |   | 99.9  |   | Real estate services                      |

----

----

|   | a. | Recognition of the effects of the inflation |
|--------|----|---------------------------------------------|

|         |   |   |    |   | Inflation |   |
|--------------|--------|--------|---------|--------|-----------|--------|
| December 31, |   | NCPI   |    |   | Year      |   |   | Accumulated |   |
| 2010         |   |   | 144.639 |   |      |   | 4.40 | % |   |   | 15.19 | % |
| 2009         |   |   | 138.541 |   |      |   | 3.57 | % |   |   | 14.48 | % |
| 2008         |   |   | 133.761 |   |      |   | 6.53 | % |   |   | 15.01 | % |

| b. | Cash and cash equivalents |
|----|---------------------------|

| c. | Inventories |
|----|-------------|

| d. | Telephone network systems and equipment |
|----|-----------------------------------------|

----

| e. | Intangible assets |
|----|-------------------|

| f. | Concessions |
|----|-------------|

|   | As previously mentioned (Note 2), the SCT awarded the Company, at no cost, a concession to install and operate a public telecommunications network for a 30-year period. In accordance with Statement C-8 “Intangible Assets” of NIF, this concession has no recorded value for financial reporting purposes and it is only disclosed in a Note to these consolidated financial statements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g. | Frequency rights |
|----|------------------|

|   | Frequency rights are recorded at their acquisition cost and until and up to December 31, 2007 were restated by applying factors derived from the NCPI as from the acquisition date. Amortization is calculated by the straight-line method over 20 years, which is the term of the frequency rights. See Note 9. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h. | Pre-operating expenses |
|----|------------------------|

|   | All expenses incurred during the development stage or in specific projects in progress up to December 31, 2002 were capitalized. Those expenses are amortized by the straight-line method over a 10-year period. The amortization period begins when the corresponding project begins operations. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | For the year ended December 31, 2008, the Company recorded amortization expenses in the amounts of $22,123. Also as of December 31, 2008 the Company recorded an impairment of $4,915. Accumulated amortization was $334,767 as of December 31, 2008. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i. | Impairment of long-lived assets. |
|----|----------------------------------|

|   | The Company evaluates values of long-lived assets when there are events or changes that reveal an indication of potential impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net income expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated net income, an impairment charge is recognized by the amount that the carrying amount of the asset exceeds the fair value of the asset. Given the current economic situation there is a strong reliance on judgment to evaluate if the indication of potential impairment to long-lived assets should give rise to an impairment valuation. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of December 31, 2010 and 2008, the carrying amount of long-lived assets was higher than the expected discounted income at the Company’s theoretical rate for weighted average cost of capital under current market conditions. The impairment charge (a non-cash item) calculated for 2010 and 2008 amounted to $528,672 and $532,315, respectively. Said charge was proportionately distributed throughout the different asset classes. There were no impairments in 2009. See Notes 5(h), 7, 8, and 9. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j. | Liabilities and accruals |
|----|--------------------------|

|   | The Company’s liabilities and accruals recognized in the balance sheet represent current obligations which will probably require disbursement of economic resources. These provisions have been recorded based on management’s best estimate to cover the current obligation; however, actual results could differ from the provisions recognized. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k. | Transactions in foreign currencies |
|----|------------------------------------|

|   | Transactions in foreign currencies are recorded at the prevailing exchange rates at the date of the transaction, with the related exchange gain or loss recorded within the statement of operations. Assets and liabilities denominated in said currencies are valued at the exchange rate in force at the close of the period, with the related exchange gain or loss recognized as part of the comprehensive financing cost. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l. | Income Tax (IT), Asset Tax (AT), Flat Rate Business Tax (IETU), and Employees’ Statutory Profit Sharing (ESPS) |
|----|----------------------------------------------------------------------------------------------------------------------|

|   | IT, IETU and ESPS payable for the year are determined in conformity with the tax provisions in effect. |
|--------|--------------------------------------------------------------------------------------------------------|

|   | Deferred IT, IETU and, from January 1, 2008 deferred ESPS, are accounted for under the asset and liability method. Deferred tax and ESPS assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and in the case of IT and IETU, for tax loss and credit carryforwards. Deferred tax and ESPS assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax and ESPS assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 19. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m. | Employees’ Statutory Profit Sharing (“ESPS”) |
|----|----------------------------------------------------------------|

|   | As of December 31, 2010, 2009 and 2008, the Company recorded a provision of $1,334, $3,292 and $1,173 respectively for ESPS, which in accordance with NIF B-3 “Income Statement” was included under other income and expenses in the statement of operations. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| n. | Employee benefits |
|----|-------------------|

|   | Termination benefits for reasons other than restructuring and retirement to which employees are entitled are charged to operations for each year, based on actuarial computations using the projected unit credit method considering projected salaries. At December 31, 2010 and for purposes of recognizing benefits upon retirement, the remaining average service life of employees entitled to plan benefits approximates 29.3 years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Actuarial gain or loss is recognized directly in profit or loss as accrued. |
|--------|-----------------------------------------------------------------------------|

|   | In conformity with NIF D-3 “Employee benefits” restructuring costs are presented in other expenses in the statement of operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

| o. | Primary and derivative financial instruments |
|----|----------------------------------------------|

|   | Primary Financial Instruments |
|--------|-------------------------------|

|   | All rights and obligations of primary financial instruments, are disclosed in the Balance Sheet and are classified as trading and available for sale. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The primary financial instruments are valuated to its fair market value, determined using quoted market prices. Changes in the primary financial instruments fair valued classified as trading (including accrued interests), and trading costs are recognized in the comprehensive financing cost within the results of operations. Changes in the primary financial instruments fair value classified as available for sale are recognized in other comprehensive income. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The financial liability arising from the debt issuance is recognized at its respective obligation value. Issuance costs of debt are amortized using the straight-line method over the life of the debt. The total capitalized cost for this item to December 31, 2010 and 2009 was $64,342, See Note 8. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Derivative financial instruments |
|--------|----------------------------------|

|   | Changes in the fair value of such assets or liabilities not qualified solely as hedging instruments according to NIF C-10 are registered in the comprehensive financing cost within the results of operations. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Risk Coverage |
|--------|---------------|

|   | To mitigate exposure to Peso/Dollar foreign exchange fluctuation risks, the Company sparingly uses derivative financial instruments such as interest rate and cross currency swaps. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For accounting purposes, these derivative instruments, although intended for hedging purposes from an economic perspective, have been designated as trading instruments as they do not comply with all the requirements to qualify for hedge accounting. Changes in the fair value of these derivative instruments are recognized in the statement of operations for the year in which such changes occur, under comprehensive financing cost. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Embedded Derivatives |
|--------|----------------------|

|   | The Company reviews the contracts it enters into to identify the existence of embedded derivatives. Identified embedded derivatives are subject to assessment under NIF C-10 to determine compliance with the required segregation conditions. If conditions are met, they are segregated from the host contract and valued at their fair value. Where the embedded derivative is classified as being for trading purposes, the gain or loss from changes in fair value is recognized in the comprehensive financing cost in the statement of operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| p. | Revenue recognition |
|----|---------------------|

|   | Revenues from the sale of telephone equipment to clients are recognized at the time of delivery of said equipment and the risk and rewards are transferred to the customer. Revenues from services are recognized as rendered. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Generally installation expenses are charged to our residential customers and related revenues are recognized when installation is complete. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenues from public telephony services are recognized based on the cash collected and the estimated uncollected cash from services rendered at the date of the financial statements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenues from interconnection services are recognized on accrual basis. The Company entered into local interconnection agreements with various telephone companies under the “bill and keep” compensatory clause. In accordance with these agreements, if the imbalance between local calls originated from the other telephony concessionaire and completed by Maxcom, and the calls originated from Maxcom and completed by the other telephony company over the course of one month do not exceed an established percentage, there will be no payment of an interconnection rate charge to the user for interconnection services. However, if the imbalance exceeds that percentage in a particular month, the Company or the telephony concessionaire is subject to a charge per minute. The aforementioned percentage of imbalance was 5% during 2010, 2009 and 2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company also has interconnection agreements for long-distance and mobile services with other concessionary telephony companies. However, they do not include the clause of the “bill and keep” compensatory agreement. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenues from pay television services are recognized as rendered. |
|--------|-------------------------------------------------------------------|

|   | Revenues from mobile telephone services are recognized on monthly basis when the traffic with suppliers of mobile telephony has been reconciled and the charge to the client has been recorded. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Also, for the mobile telephony revenues the Company recognizes through the suppletory application of the ASC 605 -25 “Revenue Recognition Multiple-Element Arrangements” that evaluates the time and manner in which revenues for the different accounting units should be recognized. For the Company the separated accounting units are the sale of mobile telephony equipment and mobile services. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenue from bundled services is recognized in the month in which the services are provided. Bundle revenues are distributed among voice, data, pay TV or mobile services. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenues from lease of transmission capacity through the fiber optic ring are recorded in deferred revenue when billed in advance and then recognized ratably into revenue over the term of the contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company records an allowance in the amount of 90% of accounts receivable with balances due over 90 but less than 119 days old, and of 100% of accounts receivable due over 120 days old, except when there is a collection agreement with a client. In such cases, the allowance amount is 30% with balances due over 90 days if there is not a settlement negotiated with the client. Accounts handed over to the company’s legal collection services are reserved up to a 100%, or less depending on the success rate indicated by the attorney handling the account. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| q. | Business and credit concentration |
|----|-----------------------------------|

|   | The Company provides its services to a vast array of customers, thus avoiding dependency on any single customer. |
|--------|------------------------------------------------------------------------------------------------------------------|

|   | The Company’s main suppliers are Radiomóvil Dipsa, S.A. de C.V., Telmex and Pegaso PCS, S.A. de C.V. The cost percentage related to them for the years 2010, 2009 and 2008 were 68%, 69% and 72%, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| r. | Stock-options compensation |
|----|----------------------------|

|   | In July 2006, the Company decided to amend its different stock option plans to give better benefits to the holders of the options of those plans. Consequently, the Company changed the requisite service period as well as the strike price and vesting period on the different stock option plans. Granting conditions are included in the assumptions regarding the number of shares that are expected to become payable or the number of shares that employees receive. This estimate is revised annually and differences, if any, are charged or credited to the statement of operations, with an adjustment to shareholders’ equity. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Stock options are granted to members of the Board of Directors, Company officers and employees, as described in Note 16. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | From January 1, 2009, the Company applies Mexican Financial Reporting Standard (MFRS) D-8 “Share-based Payments”, for recognition, valuation and recording of the costs of these plans. The adoption of this MFRS generated no effect, because the Company suppletorily applied IFRS-2 “Share-based Payments”, which was effective since 2005, until December 31, 2008, as established by MFRS A-8 “Suppletory”. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | MFRS requires that valuation of the cost of stock options granted to employees must be estimated by applying the fair value method. The cost of the plans granted options estimated under this method is amortized throughout the period granted, excluding the impact of any situation not related to market performance. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For the years ended December 31, 2010, 2009 and 2008, the Company recognized stock option plan costs of $4,253, $1,669 and $5,114, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volatility of expected price per share |   |   | 93.90  | %*     |   |   | 85.20  | %      |   |   | 30.00 | % |
| Risk-free interest rate                |   |   | 0.13   | %      |   |   | 0.20   | %      |   |   | 3.07 | % |
| Expected life of options               |   |   | 1.50   |   |   |   | 2.00   |   |   |   | 4.00 |   |

| s. | Segment information |
|----|---------------------|

|   | MFRS B-5 “Financial Information by Segments”, requires that the Company analyze its organizational structure and its financial reporting process, in order to identify segments. In regards the years shown, the Company has solely operated in the telecommunications business segment, and at the same time identifying the following business segments: residential, business, public telephony, wholesale and others. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The abovementioned segments are grouped within the telecommunications business sector, thus the majority of the infrastructure has a common use by both, the business segments and equally specific telecommunications services, such as local service, long distance and “calling party pays” (CPP) that can be provided in one or more business segments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In Note 17 the revenues are shown by segments that the senior Management uses to analyze, manage and control the business and the operating income. Additionally, the information is displayed by geographic area, in compliance with the applicable MFRS and a specific disclosure is required by the SCT which is described in the Company ́s concession right agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| t. | (Loss) earnings per share |
|----|---------------------------|

|   | Net basic (loss) earnings per common share is calculated dividing the net (loss) income for the year by the weighted-average outstanding shares. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Diluted (loss) earnings per share are calculated by dividing the net (loss) income for the year by the weighted-average outstanding shares, plus stock options issued. The diluted earnings per common share is not calculated nor disclosed, when the income from continuing operations is a loss. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| u. | New accounting standards |
|----|--------------------------|

|   | (i.) | The information to be disclosed by operating segment is the information regularly used by senior management and does not require the segmentation into primary and secondary information, nor it to be referred to segments identified based on products or services (economic segments), geographical areas, and homogeneous customer groups. Additionally, disclosure of information on its products or services, geographical areas and principal customers and suppliers is required. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii.) | MFRS B-5 does not require that the entity’s business areas be subject to different risks to qualify as operating segments. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (iii.) | MFRS B-5 allows business areas in pre-operating stage may be catalogued as operating segments. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | (iv.) | MFRS B-5 requires disclosure by segment and separately, revenue and interest expense as well as all other components of comprehensive financial results (CFR). In specific cases, the MFRS B-5 permits disclosure of net interest income. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v.) | MFRS B-5 requires disclosure of the liability amounts included in the usual operating segment information normally used by senior management for making the entity’s operating decisions. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i.) | MFRS B-9 requires that the interim financial information, in addition to the balance sheet and income statement, include a comparative and condensed statement of stockholders’ equity and statement of cash flows, and, for not-for-profit entities, the presentation of the statement of activities is expressly required. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii.) | MFRS B-9 establishes that the financial information reported at the end of an interim period should be presented comparatively with the equivalent interim period of the immediately preceding year and, in the case of the balance sheet, compared also to such financial statement at the immediately preceding year-end date. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii.) | New terminology is included and defined. |
|--------|--------|------------------------------------------|

|   | (i) | MFRS C-4 eliminates: a) direct costing as a valuation system and, b) the inventory cost assignment formula (formerly method) referred to as Last In – First Out (LIFO). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Inventory cost can only be modified solely to “Lower of cost or market value, except that the net realizable value is not to exceed market value.” |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iii) | Rules for valuation of inventories of providers of services are established. |
|--------|-------------|------------------------------------------------------------------------------|

|   | (iv)  | For inventories acquired on an installment payment basis, the difference between the purchase price under normal credit conditions and the amount paid must be recognized as financial cost during the financing period. |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (v)  | Format under certain circumstances, estimates of impairment losses on inventories recognized in a prior period may be deducted or charged off against results of operations for the period in which such modifications occur. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi)  | Items whose benefits and risks have already been transferred to the entity must be recognized as inventories; therefore, prepayments are not part of inventory. |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Advances for purchase of inventories (current assets) or property, plant and equipment and intangible assets (non-current assets), among others, must be reported under prepayments provided the benefits and risks inherent in the assets to be acquired or the services to be received have not yet been transferred to the entity.  Furthermore, prepaid expenses must be reported based on the nature of the item to be acquired, either under current assets or non-current assets. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | When an impairment loss on the value of prepayments occurs, the unrecoverable amount must be reported in the income statement. Additionally, if the necessary conditions exist, the impairment effect may be reversed and recorded on the income statement for the related future period. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Among other things, the following must be disclosed in notes to financial statements: breakdown of prepayments, accounting policies for recognition and impairment losses, as well as relevant reversal of impairments. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Property, plant and equipment to develop or maintain biological and extraction industry assets are within the scope of this FRS. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The treatment for asset exchanges based on the economic substance is included. |
|--------|------|--------------------------------------------------------------------------------|

|   | (iii) | The bases for determination of the residual value of a component are added. |
|--------|-------|-----------------------------------------------------------------------------|

|   | (iv) | The requirement to assign an appraised value to property, plant and equipment acquired at no cost or at an inadequate cost is eliminated. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Depreciation for components representative of a property, plant and equipment item is mandatory, independently of the depreciation of the rest of the item as if it were a single component. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Depreciation of idle components must continue, unless depreciation is determined based on the activity. |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | MFRS C-18 “Property, plant and equipment retirement obligations” - MFRS C-18 is effective beginning January 1, 2011, and primarily provides for the following: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Requirements that must be considered for valuation of a (Fixed Asset) component retirement obligation. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (ii) | Requirement to recognize retirement obligations as a provision that increases the acquisition cost of a component. |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | How changes in the valuation of retirement obligations (provisions) resulting from revisions to the cash flows, the periodicity for settlement and the suitable discount rate to be used must be recognized for accounting purposes. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Use of a suitable discount rate on estimated future cash flows, incorporating the cost of money and the entity’s credit risk. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Use of the expected present value technique to determine the best estimate for retirement obligations. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (vi) | Disclosures that are to be made in case an entity has component retirement obligation. |
|--------|------|----------------------------------------------------------------------------------------|

|   | Management estimates that the initial effects of this new MFRS will not be material. |
|--------|--------------------------------------------------------------------------------------|

|   | MFRS C-10 “Derivative financial instruments and hedging activities” - MFRS C-10 is effective beginning January 1, 2011 with retrospective effect and includes mainly the following changes: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Certain effects of hedge effectiveness may be excluded. |
|--------|-----|---------------------------------------------------------|

|   | (ii) | An intra-group transaction may be recognized as hedging only when the functional currencies of the related parties are different from each other. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Reporting of the effect of the hedged interest rate risk is required, when a portfolio portion is the hedged position. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Account margins must be reported separately. |
|--------|------|----------------------------------------------|

|   | (v) | In a hedge relationship, a proportion of the total amount of the hedging instrument may be designated as the hedging instrument. The impossibility of designating a hedge relationship for a portion of the term of the hedging instrument is specified. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                 |   |  2010 |       |   |  2009 |   |       | Estimatedusefullife (years) |   |
|------------------------------------------------------|--------|------------|------------|--------|------------|--------|------------|----------------------------------|--------|
| Telecommunications network and equipment             |   | $          | 4,228,286  |   |       |   | 3,808,104  |                             |   | Between23 and 24 |   |
| Public telephony equipment                           |   |       | 713,911    |   |       |   | 701,665    |                             |   |   | 8 |   |
| Leasehold improvements                               |   |       | 1,299,228  |   |       |   | 1,313,573  |                             |   | Between2 and 20* |   |
| Radio equipment                                      |   |       | 412,084    |   |       |   | 409,836    |                             |   |   | 30 |   |
| Line installation cost                               |   |       | 774,408    |   |       |   | 636,620    |                             |   |   | 20 |   |
| Electronic equipment                                 |   |       | 259,832    |   |       |   | 266,047    |                             |   |   | 25 |   |
| Capitalized expenses due to construction of networks |   |       | 586,720    |   |       |   | 511,232    |                             |   |   | 30 |   |
| Capitalized comprehensive financing cost             |   |       | 263,090    |   |       |   | 259,243    |                             |   |   | 10 |   |
| Computer equipment                                   |   |       | 261,698    |   |       |   | 246,709    |                             |   |   | 5 |   |
| Transportation equipment                             |   |       | 64,935     |   |       |   | 65,581     |                             |   |   | 4 |   |
| Office furniture                                     |   |       | 49,135     |   |       |   | 47,397     |                             |   |   | 10 |   |
| Other                                                |   |       | 40,850     |   |       |   | 36,846     |                             |   |   | 10 |   |
| Engineering equipment                                |   |       | 21,266     |   |       |   | 21,046     |                             |   |   | 10 |   |
|                                                 |   |       |       |   |       |   |       |                             |   |   |   |   |
| Subtotal                                             |   |       | 8,975,443  |   |       |   | 8,323,899  |                             |   |   |   |   |
|                                                 |   |       |       |   |       |   |       |                             |   |   |   |   |
| Accumulated depreciation and amortization            |   |       | (3,619,965 | )      |       |   | (3,023,371 | )                                |   |   |   |   |
| Impairment charge (See notes 5i, 8 and 9)            |   |       | (1,001,493 | )      |       |   | (500,684   | )                                |   |   |   |   |
|                                                 |   |       |       |   |       |   |       |                             |   |   |   |   |
| Subtotal                                             |   |       | 4,353,985  |   |       |   | 4,799,844  |                             |   |   |   |   |
|                                                 |   |       |       |   |       |   |       |                             |   |   |   |   |
| Construction in progress                             |   |       | 38,008     |   |       |   | 141,926    |                             |   |   |   |   |
|                                                 |   | $          | 4,391,993  |   |       |   | 4,941,770  |                             |   |   |   |   |

----

|                     |   | 2010   |   |   | 2009   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|
| Transportation equipment |   | $      | 4,959  |   |   |   | 6,327 |   |
| Accumulated depreciation |   | $      | (367   | )      |   |   | (4,918 | ) |
|                     |   |   |   |   |   |   |   |   |
| Total                    |   | $      | 4,592  |   |   |   | 1,409 |   |

|                                                              |   | 2010   |     |   | 2009   |   |     | Usefullife (years) |   |
|-------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------------------|--------|
| Infrastructure rights                                             |   | $      | 180,040  |   |   |   | 180,040  |               |   | 30 and 15 |   |
| Debt issuance costs                                               |   |   | 64,342   |   |   |   | 64,342   |               |   | 8 |   |
| Software licenses                                                 |   |   | 411,297  |   |   |   | 313,087  |               |   | 3.3 |   |
|                                                              |   |   |     |   |   |   |     |               |   |   |   |
| Subtotal                                                     |   |   | 655,679  |   |   |   | 557,469  |               |   |   |   |
|                                                              |   |   |     |   |   |   |     |               |   |   |   |
| Accumulated amortization                                          |   |   | (399,687 | )      |   |   | (337,978 | )                  |   |   |   |
| Cumulative impairment charges for intangible assets (See Note 5i) |   |   | (42,780  | )      |   |   | (20,267  | )                  |   |   |   |
|                                                              |   |   |     |   |   |   |     |               |   |   |   |
| Total                                                        |   | $      | 213,212  |   |   |   | 199,224  |               |   |   |   |

|                                  |   | 2010   |    |   | 2009   |   |
|---------------------------------------|--------|--------|---------|--------|--------|--------|
| Frequency rights                      |   | $      | 155,309 |   |   |   | 155,309 |   |
| Less — Accumulated amortization |   |   | (96,228 | )      |   |   | (89,186 | ) |
| Impairment charges (See Note 5i)      |   |   | (11,799 | )      |   |   | (6,449 | ) |
|                                  |   |   |    |   |   |   |   |   |
| Total                                 |   | $      | 47,282  |   |   |   | 59,674 |   |

----

|                                                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Expenses paid to:                                                |   |   |    |   |   |   |    |   |   |
| BBG Wireless (1)                                                 |   | $      | 26,165  |   |   |   | 45,841  |   |   |   | 7,709 |   |
| GS Comunicación (6)                                         |   |   | 3,930   |   |   |   | 3,326   |   |   |   | 1,063 |   |
| Telecomunicaciones Móviles de México, S.A. de C.V. (2) |   |   | 3,543   |   |   |   | — |   |   |   | — |   |
| Vázquez Gabriel Agustín (8)                            |   |   | 706     |   |   |   | 589     |   |   |   | 480 |   |
| Vázquez Eduardo (8)                                         |   |   | 691     |   |   |   | 591     |   |   |   | 480 |   |
| Automotriz Rio Sonora (3)                                        |   |   | 485     |   |   |   | 324     |   |   |   | 5,122 |   |
| Bank of America, Co. (9)                                         |   |   | 386     |   |   |   | 422     |   |   |   | 315 |   |
| Autokam Regiomontana, S. A. de C. V. (3)                         |   |   | 111     |   |   |   | 3,262   |   |   |   | 844 |   |
| Servicios corporativos VAC (11)                                  |   |   | 101     |   |   |   | 584     |   |   |   | — |   |
| MG Radio (4)                                                     |   |   | 95      |   |   |   | 86      |   |   |   | 101 |   |
| Aguirre Adrián (10)                                         |   |   | 75      |   |   |   | 91      |   |   |   | 31 |   |
| Inmobiliaria AutoKam, S. A. de C. V. (8)                         |   |   | 67      |   |   |   | 100     |   |   |   | 101 |   |
| Road Telco & Consulting, S. A. de C. V. (5)                  |   |   | 49      |   |   |   | 319     |   |   |   | 1,975 |   |
| Electromecánica de Guadalajara, S. A. de C. V. (2)          |   |   | — |   |   |   | 4,262   |   |   |   | 5,697 |   |
| Inmobiliaria Radio Centro (8)                                    |   |   | — |   |   |   | 280     |   |   |   | 264 |   |
| Sierra Madre Automotriz, S. A. de C. V. (3)                      |   |   | — |   |   |   | 219     |   |   |   | — |   |
| Ingeniería Avanzada en Construcción, S.A. de C.V. (7)  |   |   | — |   |   |   | 211     |   |   |   | 765 |   |
| Solís Gilberto (6)                                          |   |   | — |   |   |   | 201     |   |   |   | 332 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Total                                                            |   | $      | 36,404  |   |   |   | 60,708  |   |   |   | 25,279 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Revenues from telephony services collected from related parties  |   | $      | 523     |   |   |   | 772     |   |   |   | 966 |   |

----

| (1) | Corresponds to cluster construction. |
|-----|--------------------------------------|

| (2) | Corresponds to interest payments and a portion of the capital pertaining to a loan to settle Telereunion’s debt with the Comisión Federal de Electricidad (CFE). See Note 20. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Corresponds to costs related to the purchase of vehicles. |
|-----|-----------------------------------------------------------|

| (4) | Corresponds to advertising services. |
|-----|--------------------------------------|

| (5) | Mr. Adrián Aguirre (Maxcom shareholder) is also a shareholder of Road Telco & Consulting, S. A. de C. V. The transactions correspond to administrative services and sale of telephone lines. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Corresponds to payments regarding marketing consulting services. |
|-----|------------------------------------------------------------------|

| (7) | Corresponds to the installation of public telephones. |
|-----|-------------------------------------------------------|

| (8) | Corresponds to lease of sites and offices owned by a relative of a Maxcom shareholder. |
|-----|----------------------------------------------------------------------------------------|

| (9) | Corresponds to expenses related to the debt restructuring and travel expenses related to a risk capital investment fund of Bank of America (Maxcom shareholder). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Corresponds to expenses reimbursed. |
|------|-------------------------------------|

| (11) | Corresponds to representation expenses. |
|------|-----------------------------------------|

|                                                |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Accounts Receivable:                                |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |
| Difusión Panorámica, S. A. de C. V.       |   | $      | 15     |   |   |   | 16 |   |
| Porcelanatto, S. A. de C. V.                        |   |   | 11     |   |   |   | 12 |   |
| Proa Mensaje y Comunicación, S. A. de C. V.    |   |   | 11     |   |   |   | 10 |   |
| Guijarro de Pablo y Asociados, S.C.                 |   |   | 6      |   |   |   | 12 |   |
| Shareholder María Guadalupe Aguirre Gómez |   |   | 1      |   |   |   | 2 |   |
| Shareholder María Elena Aguirre Gómez     |   |   | 1      |   |   |   | 1 |   |
|                                                |   | $      | 45     |   |   |   | 53 |   |

|                                                             |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Accounts Payable:                                                |   |   |    |   |   |   |
|                                                             |   |   |    |   |   |   |
| Telecomunicaciones Móviles de México, S.A. de C.V. (1) |   | $      | 27,868  |   |   |   | — |   |
| BBG Wireless                                                     |   |   | 9,278   |   |   |   | 7,539 |   |
| Autokam Regiomontana, S. A. de C. V.                             |   |   | 107     |   |   |   | 1,272 |   |
| GS Comunicación, S. A. de C. V.                             |   |   | 142     |   |   |   | 343 |   |
| MG Radio                                                         |   |   | 5       |   |   |   | — |   |
| Electromecánica de Guadalajara, S. A. de C. V. (1)          |   |   | — |   |   |   | 29,153 |   |
| Nexus Partners                                                   |   |   | — |   |   |   | 65 |   |
| Servicios corporativos VAC                                       |   |   | — |   |   |   | 58 |   |
| Inmobiliaria Autokam, S. A. de C. V.                             |   |   | — |   |   |   | 19 |   |
|                                                             |   | $      | 37,400  |   |   |   | 38,449 |   |

----

----

| (1) | On January 5, 2010, Electromecanica de Guadalajara, S. A. de C. V. gave the rights of the loan to Telecomunicaciones Móviles de Mexico, S. A. de C. V. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                       |   | 2010   |      |   | 2009   |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Long term:                                                                                                                 |   |   |      |   |   |   |
| Senior Notes maturing in 2014, bearing interest at a fixed annual rate of 11%, payable semiannually as from June 15, 2007. |   | $      | 2,471,240 |   |   |   | 2,611,740 |   |

----

|                                                     |   | 2010   |     |   | 2009   |   |
|----------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Assets                                                   |   |   | 35,597   |   |   |   | 74,852 |   |
| Liabilities                                              |   |   | (215,868 | )      |   |   | (213,696 | ) |
| Net (liabilities) assets in dollars                      |   |   | (180,271 | )      |   |   | (138,844 | ) |
| Exchange rate at end of the year ($1 to the 1.00 dollar) |   | $      | 12.36    |   |   | $      | 13.06 |   |

|              |   |         |   |                                                         |   | Effects in operations |    |
|-------------------|--------|--------------|--------|--------------------------------------------------------------|--------|-----------------------|---------|
| Counter-party     |   | Notional     |   | Basic conditions                                             |   | 2010                  |    |   | 2009 |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |
| Bank Morgan       |   | 37,500       |   | Interest Received: 11%                                       |   |                  | (8,737  | ) |   |   | 799 |   |
| Stanley AG        |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2014          |   |                  |    |   |   |   |   |   |
|              |   | (478,125)MXP |   | Interest Paid: TIIE 28 days + 4.570%Periodicity: Semi-annual |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2014                                  |   |                  |    |   |   |   |   |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |   |   |
| Bank Morgan       |   | 37,500       |   | Interest Received: 11%                                       |   |                  | 23,311  |   |   |   | (1,170 | ) |
| Stanley AG        |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2014          |   |                  |    |   |   |   |   |   |
|              |   | (478,125)MXP |   | Interest Paid: 12.75%Periodicity: Semi-annual                |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2014                                  |   |                  |    |   |   |   |   |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |   |   |
| Bank Morgan       |   | 37,500       |   | Interest Received: 11%                                       |   |                  | (15,350 | ) |   |   | — |   |
| Stanley AG        |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2014          |   |                  |    |   |   |   |   |   |
|              |   | (474,375)MXP |   | Interest Paid: TIIE 28 days + 4.85%Periodicity: Semi-annual  |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2014                                  |   |                  |    |   |   |   |   |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |   |   |
| Bank Morgan       |   | 37,500       |   | Interest Received: 11%                                       |   |                  | 14,310  |   |   |   | — |   |
| Stanley AG        |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2014          |   |                  |    |   |   |   |   |   |
|              |   | (474,375)MXP |   | Interest Paid: 12.91%Periodicity: Semi-annual                |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2014                                  |   |                  |    |   |   |   |   |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |   |   |
| Bank Morgan       |   | 37,500       |   | Interest Received: 11%                                       |   |                  | — | * |   |   | (8,489 | ) |
| Stanley AG        |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2010          |   |                  |    |   |   |   |   |   |
|              |   | (478,125)MXP |   | Interest Paid: 9.92%Periodicity: Semi-annual                 |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2010                                  |   |                  |    |   |   |   |   |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |   |   |
| Bank Morgan       |   | 37,500       |   | Interest Received: 11%                                       |   |                  | — | * |   |   | (10,284 | ) |
| Stanley AG        |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2010          |   |                  |    |   |   |   |   |   |
|              |   | (478,125)MXP |   | Interest Paid: TIIE 28 days + 4.010%Periodicity: Semi-annual |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2010                                  |   |                  |    |   |   |   |   |   |
|              |   |         |   |                                                         |   |                  |    |   |   |   |   |   |
| Merrill Lynch     |   | 75,000       |   | Interest Received: 11%                                       |   |                  | — | ** |   |   | (16,338 | ) |
| Capital MarketsAG |   | USD          |   | Periodicity: Semi-annualMaturity: December 15, 2010          |   |                  |    |   |   |   |   |   |
|              |   | (808,200)MXP |   | Interest Paid: 11.505%Periodicity: Semi-annual               |   |                  |    |   |   |   |   |   |
|              |   |         |   | Maturity: December 15, 2010                                  |   |                  |    |   |   |   |   |   |

----

| * | These two CCS outstanding at December 31, 2009, expired in 2010. The impact made​​by these swaps recognized in the comprehensive cost of financing corresponded to a gain of $12,035. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Additionally, the Company had in effect at December 31, 2009 this swap with Merrill Lynch, which had expired in December 2010. On 4 March 2010, the Company decided to close this transaction, for which he received from Merrill Lynch a total of $12,128. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Host Leasing Contract |   | Notional |   | Maturity       |   | Effects in operations |   |
|-----------------------|--------|----------|--------|----------------|--------|-----------------------|--------|
|                  |   |     |   |           |   | 2010                  |   |   | 2009 |   |
|                  |   |     |   |           |   |                  |   |   |   |   |
| Grupo Promotor        |   | 161.1    |   | December 2012  |   |                  | (7,505 | ) |   |   | (2,410 | ) |
| Jomer                 |   | USD      |   |           |   |                  |   |   |   |   |   |   |
|                  |   |     |   |           |   |                  |   |   |   |   |   |   |
| MATC Digital          |   | 0.6      |   | October 2011   |   |                  | (0.5   | ) |   |   | (10 | ) |
| (San Marcos)          |   | USD      |   |           |   |                  |   |   |   |   |   |   |
|                  |   |     |   |           |   |                  |   |   |   |   |   |   |
| Deutsche Bank         |   | 0.5      |   | June 2011      |   |                  | (2     | ) |   |   | — |   |
| México           |   | USD      |   |           |   |                  |   |   |   |   |   |   |
|                  |   |     |   |           |   |                  |   |   |   |   |   |   |
| MATC Digital          |   | 0.3      |   | June 2011      |   |                  | (1     | ) |   |   | — |   |
| (Chiquihuite)         |   | USD      |   |           |   |                  |   |   |   |   |   |   |
|                  |   |     |   |           |   |                  |   |   |   |   |   |   |
| BBG Wireless          |   | 2.0      |   | August 2015    |   |                  | (109   | ) |   |   | — |   |
|                  |   | USD      |   |           |   |                  |   |   |   |   |   |   |
|                  |   |     |   |           |   |                  |   |   |   |   |   |   |
| Enlace Digital        |   | 3.0      |   | September 2014 |   |                  | (297   | ) |   |   | (119 | ) |
| Telecomunicaciones    |   | USD      |   |           |   |                  |   |   |   |   |   |   |
|                  |   |     |   |           |   |                  |   |   |   |   |   |   |
| Hotelera Galerias     |   | 3.9      |   | December 2013  |   |                  | (486   | ) |   |   | (298 | ) |
|                  |   | USD      |   |           |   |                  |   |   |   |   |   |   |

|               |   | Book Value |    |   | Fair Value |   |   | Interest Rate |   |
|--------------------|--------|------------|---------|--------|------------|--------|--------|---------------|--------|
| Held to maturity   |   |       |    |   |       |   |   |          |   |
|               |   |       |    |   |       |   |   |          |   |
| Corporate Debt     |   | $          | — |   |       |   | 388    |          |   |   | — |   |
|               |   |       |    |   |       |   |   |          |   |   |   |   |
| For trading        |   |       |    |   |       |   |   |          |   |   |   |   |
|               |   |       |    |   |       |   |   |          |   |   |   |   |
| Share Certificates |   | $          | — |   |       |   | 97     |          |   |   | — |   |

|                                 |   | Book Value |    |   | Fair Value |   |    | Interest Rate |   |
|--------------------------------------|--------|------------|---------|--------|------------|--------|---------|---------------|--------|
| For trading                          |   |       |    |   |       |   |    |          |   |
|                                 |   |       |    |   |       |   |    |          |   |
| Repurchase agreement (governmental)  |   | $          | 22,333  |   |       |   | 22,333  |          |   |   | 4.49 | % |
| Repurchase agreement (governmental)  |   |       | 72,500  |   |       |   | 72,500  |          |   |   | 4.55 | % |
| Institutional Fund Treasury Reserves |   |       | 756     |   |       |   | 756     |          |   |   | 0.03 | % |
| AIM Fund Treasury PF Corporate       |   |       | 817,747 |   |       |   | 817,805 |          |   |   | 0.05 | % |
|                                 |   |       |    |   |       |   |    |          |   |   |   |   |
|                                 |   | $          | 913,336 |   |       |   | 913,394 |          |   |   |   |   |

----

|                                 |   | Benefits    |   |
|--------------------------------------|--------|-------------|--------|
|                                 |   | Termination |   |   | Retirement |   |
|                                 |   | 2010        |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Net cost for the year:               |   |        |   |   |   |   |   |   |   |   |   |   |
| Labor cost                           |   | $           | 2,033  |   |   |   | 1,967 |   |   |   | 4,340 |   |   |   | 3,313 |   |
| Financial cost                       |   |        | 876    |   |   |   | 824 |   |   |   | 2,647 |   |   |   | 2,108 |   |
| Actuarial (gain) loss, net           |   |        | 3,377  |   |   |   | (2,160 | ) |   |   | 26 |   |   |   | 26 |   |
| Prior service:                       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of transition liability |   |        | 964    |   |   |   | 964 |   |   |   | 2,794 |   |   |   | 2,794 |   |
| Reduction effect                     |   |        | (5,827 | ) |   |   | — |   |   |   | (13,474 | ) |   |   | — |   |
|                                 |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cost for the year                |   | $           | 1,423  |   |   |   | 1,595 |   |   |   | (3,667 | ) |   |   | 8,241 |   |

|                             |   | Benefits    |    |
|----------------------------------|--------|-------------|---------|
|                             |   | Termination |    |   | Retirement |   |
|                             |   | 2010        |    |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Current benefit obligation (CBO) |   | $           | 9,940   |   |   |   | 12,145 |   |   |   | 27,950 |   |   |   | 32,433 |   |
| Unrecognized items:              |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transition liability             |   |        | (1,188  | ) |   |   | (2,892 | ) |   |   | (3,238 | ) |   |   | (8,381 | ) |
| Actuarial loss                   |   |        | — |   |   |   | — |   |   |   | (6,170 | ) |   |   | (1,842 | ) |
| Projected liability, net         |   | $           | 8,752   |   |   |   | 9,253 |   |   |   | 18,542 |   |   |   | 22,210 |   |

|                                          |   | Benefits    |        |
|-----------------------------------------------|--------|-------------|-------------|
|                                          |   | Termination |        |   | Retirement |   |
|                                          |   | 2010        |        |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| CBO at the beginning of the year              |   | $           | 12,145      |   |   |   | 11,514 |   |   |   | 32,433 |   |   |   | 25,836 |   |
| Current labor cost                            |   |        | 2,033       |   |   |   | 1,967 |   |   |   | 4,340 |   |   |   | 3,313 |   |
| Financial cost                                |   |        | 876         |   |   |   | 824 |   |   |   | 2,647 |   |   |   | 2,108 |   |
| Yearly real payments charged to the allowance |   |        | (1,924      | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Reductions to the reserve                     |   |        | (6,567      | ) |   |   | — |   |   |   | (20,665 | ) |   |   | — |   |
| Actuarial (loss) gain for the period          |   |        |  3,377 |   |   |   | 2,160 |   |   |   |  9,195 |   |   |   | ( 1,176 | ) |
| CBO at the end of the year                    |   | $           | 9,940       |   |   |   | 12,145 |   |   |   | 27,950 |   |   |   | 32,433 |   |

|                          |   | 2010   |   |   | 2009   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
| Retirement/Seniority Premium: |   |   |   |   |   |   |
| CBO                           |   | $      | 1,897  |   |   |   | 2,129 |   |
| Total actuarial loss (gain)   |   |   | 1,362  |   |   |   | (267 | ) |

----

|                                                                         |   | Benefits   |   |
|------------------------------------------------------------------------------|--------|------------|--------|
|                                                                         |   | 2010       |   |   | 2009 |   |
| Discount rate reflecting the value of the current obligations                |   |       | 7.64   | % |   |   | 8.16 | % |
| Compensation increase rate                                                   |   |       | 5.05   | % |   |   | 5.56 | % |
| Employee Remnant Average Labor Life (Applicable to benefits upon retirement) |   | 29.3 years |   |   | 33.4 years |   |

| • | 6,088,896 Series “A-1” shares to Series “A” shares, at a one to one ratio; |
|---------|----------------------------------------------------------------------------------------------------|

| • | 10,181,950 Series “B-1” shares to Series “B” shares, at a one to one ratio; |
|---------|-----------------------------------------------------------------------------------------------------|

| • | 220,714,874 Series “N-1” shares to Series “N” shares, at a one to one ratio, and |
|---------|----------------------------------------------------------------------------------------------------------|

| • | 26,867,820 Series “N-2” shares to Series “N” shares, at a one to one ratio. |
|---------|-----------------------------------------------------------------------------------------------------|

| 1. | To make a public offering of Ordinary Participation Certificates (CPO) in Mexico, in the form of shares by offering these securities at the Bolsa Mexicana de Valores, S.A. B. de C.V. and other foreign markets in the form of American Depositary Shares (ADS) or other securities or instruments representing the CPOs or the Company ́s shares, in accordance with applicable laws, including, without limitation, the US Securities Act of 1933, and upon registration of the corresponding securities with the SEC, so that the necessary funds may be raised in order to continue the development and growth of the Company and pay its debts. The CPOs are equivalent to three shares and the ADSs are equivalent to seven CPOs. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | The conversion and/or reclassification of all the shares under the Series “A”, “B”, and “N”, into new common and registered Series “A” shares with no par value, representing both the fixed and the variable portion of the capital stock, as applicable. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Amend the Company’s overall bylaws, including the creation of a number of intermediate management bodies, and other changes required under the Mexican Stock Market Law to convert the Company to a publicly traded company (“Sociedad Anónima Bursátil” or S. A. B.), mode with variable capital. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Cancel 45,768,803 of the Company’s treasury shares. |
|----|-----------------------------------------------------------|

| 5. | Increase the variable capital stock by issuing up to 260,000,000 common and registered Series “A” shares with no par value, representing the variable portion of the capital stock of the Company and 45,768,803 registered Series “A” shares, with no par value, representing the variable portion of the capital stock, to be kept at the treasury. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Series and Class of Shares                         |   | 2010   |        |   | 2009   |   |        | 2008   |   |
|----------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Issued and outstanding:                            |   |   |        |   |   |   |        |   |   |
| Series “A” Class I (fixed portion)     |   |   | 1,528,827   |   |   |   | 1,528,827   |   |   |   | 1,528,827 |   |
| Series “A” Class II (variable portion) |   |   | 788,290,002 |   |   |   | 788,290,002 |   |   |   | 788,290,002 |   |
|                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Subtotal                                           |   |   | 789,818,829 |   |   |   | 789,818,829 |   |   |   | 789,818,829 |   |

|                    |   | 2010   |        |   | 2009   |   |        | 2008   |   |
|-------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                    |   |   |        |   |   |   |        |   |   |
| Series “A”  |   |   | 11,000,000  |   |   |   | 11,000,000  |   |   |   | 11,000,000 |   |
|                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Total authorized shares |   |   | 800,818,829 |   |   |   | 800,818,829 |   |   |   | 800,818,829 |   |

----

|                |   | 2010   |      |   | 2009   |   |
|---------------------|--------|--------|-----------|--------|--------|--------|
| Capital stock       |   | $      | 4,814,428 |   |   |   | 4,814,428 |   |
| Restatement effect  |   |   | 595,816   |   |   |   | 595,816 |   |
| Total capital stock |   | $      | 5,410,244 |   |   |   | 5,410,244 |   |

|                          |   | 2010   |       |   | 2009   |   |     | 2008 |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|----------|------|--------|
| Net loss for the year         |   | $      | (1,184,879 | )      |   |   | (303,558 | )    |   |   | (437,763 | ) |
| MFRS C-8 recognition (Note 6) |   |   | —    |   |   |   | (38,123  | )    |   |   | — |   |
| Comprehensive loss            |   | $      | (1,184,879 | )      |   |   | (341,681 | )    |   |   | (437,763 | ) |

| a. | Executive plan - under the aforesaid plan, there were 575,000 stock options available as a grant for officer’s performance for the years of 1998, 1999 and 2000. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b. | New stock option plan for executives - As of December 31, 2005, the Board of Directors and shareholders of the Company authorized an aggregate of 17,998,500 options to remunerate officers for the services they rendered during the years 2002, 2003 and 2004. Also, part of these options served as extraordinary remunerations granted to certain key officers in case of a change in the control of the Company. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c. | Members of the Board of Directors and members of various committees - For each meeting of the Board or of the different committees of the Company where directors and members of the different committees attend, they receive an option to purchase 2,500 shares at an exercise price of 0.01 dollars per share. The chairman of the Board or of the different committees is entitled to receive options to subscribe 5,000 shares at the same above mentioned exercise price. Options granted in each meeting may be exercised immediately and expire three years after, beginning on the date when granted, except when the same Board or the shareholders’ meeting provides another mechanism. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d. | Signing bonuses and other bonuses for officers or directors - From time to time the Company has granted signing bonuses, special bonuses and other bonuses by way of stock options. There was a reserve of 246,215 N1 Series, Class II treasury shares, available so that the management or the Board of Directors may grant options on these shares as part of the signing bonuses negotiated and signed to contract new key officers with the Company. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                               |   | 2010    |    |   | 2009                            |   |    | 2008    |   |
|-----------------------------------------------------------------------------------------|--------|---------|---------|--------|---------------------------------|--------|---------|---------|--------|
|                                                                                    |   | Options |    |   | WeighedAverageExercisePrice USD |   |    | Options |   |   | WeighedAverageExercisePrice USD |   |   | Options |   |   | WeighedAverageExercisePrice USD |   |
| Outstanding at beginning of year                                                        |   |    | 20,723  |   |                            | $      | 0.31    |    |   |   | 17,916 |   |   | $ | 0.31 |   |   |   | 28,405 |   |   | $ | 0.37 |   |
| Granted                                                                                 |   |    | 1,267   |   |                            |   | 0.31    |    |   |   | 2,807 |   |   |   | 0.31 |   |   |   | 552 |   |   |   | 0.01 |   |
| Exercised                                                                               |   |    | — |   |                            |   | — |    |   |   | — |   |   |   | — |   |   |   | (11,041 | ) |   |   | 0.06 |   |
| Cancelled                                                                               |   |    | (688    | )      |                            |   | — |    |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Outstanding at the end of the year                                                      |   |    | 21,302  |   |                            |   | 0.31    |    |   |   | 20,723 |   |   |   | 0.31 |   |   |   | 17,916 |   |   |   | 0.31 |   |
| Options exercisable at the end of the year                                              |   |    | 18,668  |   |                            |   | 0.31    |    |   |   | 16,459 |   |   |   | 0.31 |   |   |   | 14,176 |   |   |   | 0.31 |   |
| Weighted average price of options granted during the year (denominated in U.S. dollars) |   |    |    |   |                            | $      | 0.31    |    |   |   |   |   |   | $ | 0.31 |   |   |   |   |   |   | $ | 0.01 |   |

|                                      |   | Modified plan |   |   | Previous  |   |
|-------------------------------------------|--------|---------------|--------|--------|-----------|--------|
|                                      |   | 2007          |   |   | Plan      |   |
| Requisite service period                  |   | 3 years       |   |   | 5 years * |   |
| Fair value on modification date (dollars) |   | 0.149         |   |   | 0.000     |   |
| Exercise price (dollars)                  |   | 0.31          |   |   | 0.50      |   |

----

| * | At the modification date most options had been already vested. |
|---|----------------------------------------------------------------|

|                                               |   | Dollars |   |
|----------------------------------------------------|--------|---------|--------|
|                                               |   |    |   |
| Fair value of modified option at July 2007         |   |    | 0.149  |   |
|                                               |   |    |   |   |
| Incremental value of modified option at July 2007  |   |    | 0.149  |   |
|                                               |   |    |   |   |
| Incremental value of modified option at July 2007  |   |    | 0.149  |   |
|                                               |   |    |   |   |
| Unrecognized compensation cost for original option |   |    | 0.000  |   |
|                                               |   |    |   |   |
| Total compensation cost to be recognized in 2007   |   |    | 0.149  |   |

----

|                           |   | Newemployee stockoption plan |       |   | Plan for theChairmanof the Board |   |      | Options for Boardmembers andexecutives |   |   |  Total |   |
|--------------------------------|--------|------------------------------|------------|--------|----------------------------------|--------|-----------|----------------------------------------|--------|--------|-------------|--------|
| Granted                        |   |                         | 21,301,910 |   |                             |   | 4,475,781 |                                   |   |   | 2,332,680   |   |   |   | 28,110,371 |   |
| Expected forfeitures           |   |                         | (4,029,365 | )      |                             |   | —   |                                   |   |   | —     |   |   |   | (4,029,365 | ) |
| Outstanding options authorized |   |                         | 9,910,584  |   |                             |   | —   |                                   |   |   | 3,900,775   |   |   |   | 13,811,359 |   |
| Options vested during the year |   |                         | —    |   |                             |   | —   |                                   |   |   | —     |   |   |   | — |   |

|               |   | 2010   |       |   | 2009   |   |
|--------------------|--------|--------|------------|--------|--------|--------|
| Authorized options |   |   | 41,921,730 |   |   |   | 43,579,491 |   |
| Options granted    |   |   | 28,110,371 |   |   |   | 27,433,532 |   |
| Available options  |   |   | 13,811,359 |   |   |   | 16,145,959 |   |

| Vesting Period |   | Volatility |   | Exercise Price |         | Risk Free Rate |   | Fair value |
|----------------|--------|------------|--------|----------------|--------------|----------------|--------|------------|
| 3.25 years     |   |       | 30     | %              | 0.31 dollars |           |   | 4.89       | % | 0.149 dollars |

|   | A) | Employee Incentive Program. |
|--------|----|-----------------------------|

|   | a. | The yearly incentive goal, which may be given to the Company’s officers and employees who are eligible under the scope of the Executive Incentive Program, is to reward management for value generation to the Company in a given period of time. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The minimum requirement for the incentives to be awarded is a value generation of 15% year versus year. The following formula is how value generation is calculated: Value Generation for the year = EBITDA * 8 (eight) - net indebtedness + shareholders’ dividends - shareholders’ increase to the capital stock. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The amount of the yearly incentive is allocated individually and is subject to the yearly performance evaluation. |
|--------|----|-------------------------------------------------------------------------------------------------------------------|

|   | d. | The yearly incentive is divided into three parts: |
|--------|----|---------------------------------------------------|

|   | i. | One part will be awarded through cash. |
|--------|----|----------------------------------------|

|   | ii. | One part will be awarded through stock options in order to receive ADRs, CPOs or any other instrument whose underlying values represent Maxcom’s capital stock. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | One part will be awarded through stock options in order to receive ADR’s, CPO’s or any other instrument whose underlying values represent Maxcom’s capital stock. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | B) | Compensation for Directors and Committee members. |
|--------|----|---------------------------------------------------|

|   | a. | Directors and Committee members will receive each year options to purchase up to $120 in the form of CPOs, with the exception of the Chairman of the Board who will receive each year options to purchase up to $240 in the form of CPOs. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | 2010   |    |   | 2009   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
| Stock option plan cost |   | $      | 4,253   |   |   |   | 1,669 |   |
| Exercised options      |   |   | — |   |   |   | (9,546 | ) |
|                   |   | $      | 4,253   |   |   |   | (7,877 | ) |

| Segment                      |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Residential                  |   | $      | 1,039,973  |   |   |   | 928,686    |   |   |   | 1,055,639 |   |
| Business                     |   |   | 692,722    |   |   |   | 788,033    |   |   |   | 809,130 |   |
| Public Telephony             |   |   | 378,340    |   |   |   | 460,687    |   |   |   | 428,733 |   |
| Wholesale                    |   |   | 452,925    |   |   |   | 372,184    |   |   |   | 359,518 |   |
| Others                       |   |   | 13,432     |   |   |   | 12,980     |   |   |   | 30,209 |   |
| Total revenues               |   | $      | 2,577,392  |   |   |   | 2,562,570  |   |   |   | 2,683,229 |   |
| Operating costs and expenses |   |   | (2,614,658 | )      |   |   | (2,569,737 | )      |   |   | (2,491,698 | ) |
| Operating (loss) income      |   | $      | (37,266    | )      |   |   | (7,167     | )      |   |   | 191,531 |   |

|  Services                                                      |   | MetropolitanArea |      |   | Central-South |   |      | North  |   |   | Total   |   |
|---------------------------------------------------------------------|--------|------------------|-----------|--------|---------------|--------|-----------|--------|--------|--------|---------|--------|
| Year ended December 31, 2010:                                       |   |             |      |   |          |   |      |   |   |   |    |   |
| Local                                                               |   | $                | 1,467,785 |   |          |   | 596,455   |   |   |   | 100,535 |   |   |   | 2,164,775 |   |
| Long distance                                                       |   |             | 237,303   |   |          |   | 123,531   |   |   |   | 3,341   |   |   |   | 364,175 |   |
| Rent of dedicated links                                             |   |             | 324       |   |          |   | —   |   |   |   | — |   |   |   | 324 |   |
| Sale of equipment to customers                                      |   |             | 3,951     |   |          |   | 302       |   |   |   | 10      |   |   |   | 4,263 |   |
| Capacity leasing                                                    |   |             | 43,855    |   |          |   | —   |   |   |   | — |   |   |   | 43,855 |   |
| Total revenue                                                       |   | $                | 1,753,218 |   |          |   | 720,288   |   |   |   | 103,886 |   |   |   | 2,577,392 |   |
| Total assets as of December, 2010                                   |   | $                | 4,515,985 |   |          |   | 1,202,604 |   |   |   | 372,132 |   |   |   | 6,090,721 |   |
| Acquisition of telephone network systems and equipment during 2010* |   | $                | 588,291   |   |          |   | 122,506   |   |   |   | 11,810  |   |   |   | 722,607 |   |

----

|  Services                                                     |   | MetropolitanArea |      |   | Central-South |   |      | North  |   |   | Total   |   |
|--------------------------------------------------------------------|--------|------------------|-----------|--------|---------------|--------|-----------|--------|--------|--------|---------|--------|
| Year ended December 31, 2009:                                      |   |             |      |   |          |   |      |   |   |   |    |   |
| Local                                                              |   | $                | 1,448,810 |   |          |   | 634,220   |   |   |   | 75,532  |   |   |   | 2,158,562 |   |
| Long distance                                                      |   |             | 256,897   |   |          |   | 63,954    |   |   |   | 3,947   |   |   |   | 324,798 |   |
| Rent of dedicated links                                            |   |             | 377       |   |          |   | —   |   |   |   | — |   |   |   | 377 |   |
| Sale of equipment to customers                                     |   |             | 2,219     |   |          |   | 1,437     |   |   |   | — |   |   |   | 3,656 |   |
| Capacity leasing                                                   |   |             | 75,177    |   |          |   | —   |   |   |   | — |   |   |   | 75,177 |   |
| Total revenue                                                      |   | $                | 1,783,480 |   |          |   | 699,611   |   |   |   | 79,479  |   |   |   | 2,562,570 |   |
| Total assets as of December, 2009                                  |   | $                | 5,966,289 |   |          |   | 1,152,262 |   |   |   | 399,025 |   |   |   | 7,517,576 |   |
| Acquisition of telephone network systems and equipment during 2009 |   | $                | 597,558   |   |          |   | 178,155   |   |   |   | 155,910 |   |   |   | 931,623 |   |

|  Services                                                     |   | MetropolitanArea |      |   | Central-South |   |      | North  |   |   | Total   |   |
|--------------------------------------------------------------------|--------|------------------|-----------|--------|---------------|--------|-----------|--------|--------|--------|---------|--------|
| Year ended December 31, 2008:                                      |   |             |      |   |          |   |      |   |   |   |    |   |
| Local                                                              |   | $                | 1,558,015 |   |          |   | 726,438   |   |   |   | 20,488  |   |   |   | 2,304,941 |   |
| Long distance                                                      |   |             | 236,706   |   |          |   | 74,374    |   |   |   | 9,014   |   |   |   | 320,094 |   |
| Rent of dedicated links                                            |   |             | 402       |   |          |   | —   |   |   |   | — |   |   |   | 402 |   |
| Sale of equipment to customers                                     |   |             | 8,740     |   |          |   | 1,873     |   |   |   | 77      |   |   |   | 10,690 |   |
| Capacity leasing                                                   |   |             | 47,102    |   |          |   | —   |   |   |   | — |   |   |   | 47,102 |   |
| Total revenue                                                      |   | $                | 1,850,965 |   |          |   | 802,685   |   |   |   | 29,579  |   |   |   | 2,683,229 |   |
| Total assets as of December 31, 2008                               |   | $                | 6,629,134 |   |          |   | 1,066,352 |   |   |   | 220,986 |   |   |   | 7,916,472 |   |
| Acquisition of telephone network systems and equipment during 2008 |   | $                | 1,339,919 |   |          |   | 269,019   |   |   |   | 22,063  |   |   |   | 1,631,001 |   |

|                                                             |   | 2010   |     |   | 2009   |   |     | 2008   |   |
|------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Comprehensive financial results:                                 |   |   |     |   |   |   |     |   |   |
| Interest expense and commissions (Note 11)                       |   | $      | (324,593 | )      |   |   | (328,949 | )      |   |   | (317,633 | ) |
| Interest income                                                  |   |   | 13,957   |   |   |   | 6,031    |   |   |   | 53,994 |   |
| Exchange gain (loss) - Net                                       |   |   | 116,770  |   |   |   | 66,498   |   |   |   | (261,787 | ) |
| Effect of valuation of financial instruments                     |   |   | (43,453  | )      |   |   | (58,479  | )      |   |   | 83,323 |   |
| Gain on monetary position                                        |   |   | —  |   |   |   | —  |   |   |   | — |   |
|                                                             |   | $      | (237,319 | )      |   |   | (314,899 | )      |   |   | (442,103 | ) |
| Capitalized in telecommunications equipment and network (Note 7) |   | $      | 3,847    |   |   |   | 18,104   |   |   |   | 174,710 |   |
| Total recorded in results of operations                          |   | $      | (233,472 | )      |   |   | (296,795 | )      |   |   | (267,393 | ) |

----

|                                            |   | December 31, |     |
|-----------------------------------------------------------|--------|--------------|----------|
|                                                      |   | 2010         |     |   | 2009 |   |
| (Loss) profit before income tax expense                   |   | $            | (931,818 | ) |   |   | (365,095 | ) |
| Statutory income tax rate                                 |   |         | 30       | % |   |   | 28 | % |
| Income tax benefit                                        |   |         | (279,545 | ) |   |   | (102,226 | ) |
|                                                      |   |         |     |   |   |   |   |   |
| ESPS expense                                              |   |         | 400      |   |   |   | 922 |   |
|                                                      |   |         |     |   |   |   |   |   |
| Increase (decrease) on income tax expense resulting from: |   |         |     |   |   |   |   |   |
| Inflationary effects                                      |   |         | (14,092  | ) |   |   | (39,194 | ) |
| Non-deductible expenses                                   |   |         | 10,940   |   |   |   | 14,167 |   |
| Change in valuation allowance                             |   |         | 471,638  |   |   |   | 35,409 |   |
| Change in rates                                           |   |         | —  |   |   |   | (30,045 | ) |
| Other income non accumulative                             |   |         | 826      |   |   |   | — |   |
| Tax losses expired                                        |   |         | 31,259   |   |   |   | — |   |
| Tax effect for sale of subsidiary                         |   |         | —  |   |   |   | 56,035 |   |
| Others permanent items                                    |   |         | 8,898    |   |   |   | 3,395 |   |
|                                                      |   |         |     |   |   |   |   |   |
| Income tax expense (benefit)                              |   |         | 230,324  |   |   |   | (61,537 | ) |
|                                                      |   |         |     |   |   |   |   |   |
| Effective income tax rate                                 |   |         | (25      | )% |   |   | 17 | % |
| Effect of current and deferred IETU                       |   |         | 22,737   |   |   |   | — |   |
|                                                      |   |         |     |   |   |   |   |   |
| Expense (benefit) for income taxes                        |   | $            | 253,061  |   |   |   | (61,537 | ) |

|                                                                                                       |   | 2010   |     |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                       |   |   |     |   |   |   |
| Balance at beginning of year                                                                               |   | $      | (230,324 | )      |   |   | (148,114 | ) |
| Debit (credit) to income                                                                                   |   |   | 239,079  |   |   |   | (69,471 | ) |
| Cancellation of deferred tax liability in recognition of NIF C-8 “Intangible Assets” (Note 5h) |   |   | —  |   |   |   | (12,739 | ) |
| Balance at December 31                                                                                     |   | $      | 8,755    |   |   |   | (230,324 | ) |

|                                                                                                              |   | 2010   |    |   | 2009   |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                              |   | IT     |    |   | ESPS   |   |   | IT |   |   | ESPS |   |
| Deferred assets:                                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Allowance for doubtful accounts                                                                                   |   | $      | 81,591  |   |   |   | — |   |   |   | 60,928 |   |   |   | — |   |
| Provisions                                                                                                        |   |   | 63,319  |   |   |   | 3,286 |   |   |   | 66,359 |   |   |   | 4,011 |   |
| Telephone network system and equipment, frequency rights, intangible assets                                       |   |   | 112,051 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Tax credit carryforwards                                                                                          |   |   | 39,272  |   |   |   | — |   |   |   | 39,272 |   |   |   | — |   |
| Tax loss carryforwards                                                                                            |   |   | 408,292 |   |   |   | — |   |   |   | 433,158 |   |   |   | — |   |
| Total gross deferred assets                                                                                       |   |   | 704,525 |   |   |   | 3,286 |   |   |   | 599,717 |   |   |   | 4,011 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less valuation allowance                                                                                          |   |   | 691,995 |   |   |   | 2,753 |   |   |   | 220,357 |   |   |   | 3,915 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred assets, net                                                                                              |   |   | 12,530  |   |   |   | 533 |   |   |   | 379,360 |   |   |   | 96 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred liabilities:                                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepaid expenses and advances to suppliers                                                                        |   |   | 10,009  |   |   |   | 533 |   |   |   | 15,126 |   |   |   | 96 |   |
| Telephone network system and equipment, frequency rights, intangible assets and preoperating expenses – Net |   |   | — |   |   |   | — |   |   |   | 133,059 |   |   |   | — |   |
| Derivative financial instruments                                                                                  |   |   | 2,521   |   |   |   | — |   |   |   | 851 |   |   |   | — |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total gross deferred liabilities                                                                                  |   |   | 12,530  |   |   |   | 533 |   |   |   | 149,036 |   |   |   | 96 |   |
| Net deferred assets                                                                                               |   | $      | — |   |   |   | — |   |   |   | 230,324 |   |   |   | — |   |

----

| Year ofloss |   | Amount |      |   | Year ofexpiration |   |
|-------------|--------|--------|-----------|--------|-------------------|--------|
| 2002        |   | $      | 280,116   |   |              |   | 2012 |   |
| 2003        |   |   | 37,221    |   |              |   | 2013 |   |
| 2004        |   |   | 83,660    |   |              |   | 2014 |   |
| 2005        |   |   | 131,333   |   |              |   | 2015 |   |
| 2006        |   |   | 77,915    |   |              |   | 2016 |   |
| 2007        |   |   | 283,151   |   |              |   | 2017 |   |
| 2008        |   |   | 466,647   |   |              |   | 2018 |   |
| 2009        |   |   | 931       |   |              |   | 2019 |   |
|        |   | $      | 1,360,974 |   |              |   |   |   |

| a. | Operating lease agreements: |
|----|-----------------------------|

| 2011                |   | $      | 74,479  |   |
|---------------------|--------|--------|---------|--------|
| 2012                |   |   | 49,271  |   |
| 2013                |   |   | 47,671  |   |
| 2014                |   |   | 49,148  |   |
| 2015 and thereafter |   |   | 51,579  |   |
|                |   | $      | 272,148 |   |

| b. | Lease agreement for the building currently housing the Company’s corporate offices. |
|----|-------------------------------------------------------------------------------------------|

----

| 2011                |   | $      | 27,533 |   |
|---------------------|--------|--------|--------|--------|
| 2012                |   |   | 2,150  |   |
| 2013                |   |   | 1,443  |   |
| 2014                |   |   | 1,115  |   |
| 2015 and thereafter |   |   | 2,880  |   |
|                |   | $      | 35,121 |   |

| c. | Geographic expansion commitment: |
|----|----------------------------------|

| d. | Commitment related to frequency rights: |
|----|-----------------------------------------|

| e. | Commitment pertaining to the sale of capacity: |
|----|------------------------------------------------|

| f. | Comisión Federal de Electricidad (CFE): |
|----|----------------------------------------------|

----

| g. | Tax audit by the Secretaría de Hacienda y Crédito Público of Maxcom Telecomunications for the fiscal year 2005: |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| h. | Tax audit by the Secretaría de Hacienda y Crédito Público as a result of Maxcom Telecomunications for the fiscal year 2004: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------|

| i. | Claim brought by the Secretaría de Hacienda y Crédito Público as a result of a tax audit of Telereunión for the fiscal year 2004: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          |   |         |    |   | Quoted prices |   |    |        |   |   |         |   |
|-------------------------------|--------|--------------|---------|--------|---------------|--------|---------|-------------|--------|--------|--------------|--------|
|                          |   |         |    |   | in active     |   |    | Significant |   |   |         |   |
|                          |   |         |    |   | markets for   |   |    | other       |   |   | Significant  |   |
|                          |   | Balance at   |    |   | identical     |   |    | observable  |   |   | unobservable |   |
|                          |   | December 31, |    |   | assets        |   |    | inputs      |   |   | inputs       |   |
|                          |   | 2010         |    |   | (Level 1)     |   |    | (Level 2)   |   |   | (Level 3)    |   |
| Short-term investments(1)     |   |         | 314,362 |   |          |   | 3,893   |        |   |   | 310,469      |   |   |   | — |   |
| Derivative Instruments, (net) |   |         | 5,134   |   |          |   | — |        |   |   | 5,134        |   |   |   |   |   |
|                          |   |         |    |   |          |   |    |        |   |   |         |   |   |   |   |   |
| Total                         |   | $            | 319,496 |   |          | $      | 3,893   |        |   | $      | 315,603      |   |   | $ | — |   |

| (1) | Short-term investments are classified in the balance sheet as cash and cash equivalents. The carrying value and fair value of cash and cash equivalents as of December 31, 2010 is $375,224 of which $314,462 represents the fair value of the short term investments. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                    |   | Years Ended December 31, |       |
|---------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                                                    |   | 2010                     |       |   | 2009 |   |   | 2008 |   |
| Net (loss) income under MFRS                                                                       |   | $                        | (1,184,879 | ) |   | $ | (303,558 | ) |   | $ | (437,763 | ) |
| Adjustments:                                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |
| Amortization of pre-operating expenses (a)                                                              |   |                     | —    |   |   |   | — |   |   |   | 22,123 |   |
| Capitalization of interest (b)                                                                          |   |                     | 6,337      |   |   |   | 8,810 |   |   |   | (112,738 | ) |
| Amortization of capitalized interest (b)                                                                |   |                     | (2,100     | ) |   |   | (516 | ) |   |   | (12,118 | ) |
| Installation revenues and related costs (c)                                                             |   |                     | 23,748     |   |   |   | 9,231 |   |   |   | (2,824 | ) |
| Installation costs not charged to customers (d)                                                         |   |                     | (103,568   | ) |   |   | (111,616 | ) |   |   | (154,716 | ) |
| Capitalized internal compensation cost (e)                                                              |   |                     | 143        |   |   |   | 143 |   |   |   | 143 |   |
| Impairment charge (f)                                                                                   |   |                     | 528,672    |   |   |   | — |   |   |   | 532,315 |   |
| Severance Indemnity liability (g)                                                                       |   |                     | —    |   |   |   | (815 | ) |   |   | 2,405 |   |
| Recognition of deferred taxes (j)                                                                       |   |                     | (134,762   | ) |   |   | 20,886 |   |   |   | (76,885 | ) |
| Total US GAAP adjustments                                                                               |   |                     | 318,470    |   |   |   | (73,877 | ) |   |   | 197,705 |   |
| Net (loss) income under U.S. GAAP                                                                  |   | $                        | (866,409   | ) |   | $ | (377,435 | ) |   | $ | (240,058 | ) |
| Basic and diluted earnings per share:                                                                   |   |                     |       |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                              |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net (loss) income under U.S. GAAP                                                                  |   | $                        | (866,409   | ) |   | $ | (377,435 | ) |   | $ | (240,058 | ) |
| Net (loss) Income under U.S. GAAP available for common shareholders, used for dilutive computation |   |                     | (866,409   | ) |   |   | (377,435 | ) |   |   | (240,058 | ) |
| Denominator:                                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |
| Weighted average of common shares used in basic computation (thousand)                                  |   |                     | 789,819    |   |   |   | 789,819 |   |   |   | 560,176 |   |
| Add: dilutive impact of stock options and warrants(1)                                                   |   |                     | —    |   |   |   | — |   |   |   | 45,968 |   |
| Weighted average of common shares used in dilutive computation (thousand)                               |   |                     | 789,819    |   |   |   | 789,819 |   |   |   | 606,144 |   |
| Earnings per share, basic                                                                               |   |                     | (1.10      | ) |   |   | (0.30 | ) |   |   | 0.29 |   |
| Earnings per share, diluted                                                                             |   |                     | (1.10      | ) |   |   | (0.30 | ) |   |   | 0.27 |   |

| (1) | According to ASC 260. |
|-----|-----------------------|

----

|                                            |   | As of December 31, |      |
|-------------------------------------------------|--------|--------------------|-----------|
|                                            |   | 2010               |      |   | 2009 |   |
| Shareholders’ equity under MFRS           |   | $                  | 2,990,526 |   |   | $ | 4,159,972 |   |
| Accumulated adjustments:                        |   |               |      |   |   |   |   |   |
| Preoperating expenses (a)                       |   |               | (391,951  | ) |   |   | (391,951 | ) |
| Amortization of preoperating expenses (a)       |   |               | 391,951   |   |   |   | 391,951 |   |
| Capitalization of interest (b)                  |   |               | 23,587    |   |   |   | 17,250 |   |
| Amortization of capitalized interest (b)        |   |               | (67,081   | ) |   |   | (64, 981 | ) |
| Installation revenues and related costs (c)     |   |               | (43,827   | ) |   |   | (67,574 | ) |
| Installation costs not charged to customers (d) |   |               | (953,596  | ) |   |   | (850,028 | ) |
| Capitalized internal compensation cost (e)      |   |               | (1,714    | ) |   |   | (1,857 | ) |
| Impairment charge (f)                           |   |               | 1,056,072 |   |   |   | 527,400 |   |
| Severance Indemnity liability (g)               |   |               | (9,987    | ) |   |   | (10,404 | ) |
| SAB 108 initial effects (h)                     |   |               | 7,034     |   |   |   | 7,034 |   |
| SAB 108 effects for the year 2006 (i)           |   |               | 3,035     |   |   |   | 3,035 |   |
| Recognition of deferred taxes (j)               |   |               | —   |   |   |   | 132,036 |   |
| Total U.S. GAAP adjustments                     |   | $                  | 13,523    |   |   | $ | (308,089 | ) |
| Shareholders’ equity under U.S. GAAP      |   | $                  | 3,004,049 |   |   | $ | 3,851,883 |   |

|                                                                  |   | Year Ended   |      |
|-----------------------------------------------------------------------|--------|--------------|-----------|
|                                                                  |   | December 31, |      |
|                                                                  |   | 2010         |      |   | 2009 |   |
| Balance at the beginning of the year                                  |   | $            | 3,851,883 |   |   | $ | 4,214,655 |   |
| Net loss under U.S. GAAP                                              |   |         | (866,409  | ) |   |   | (377,435 | ) |
| Decrease in capital stock                                             |   |         | —   |   |   |   | — |   |
| Stock option plan                                                     |   |         | 4,569     |   |   |   | (7,877 | ) |
| Repurchase of shares                                                  |   |         | 10,863    |   |   |   | 8,362 |   |
| Adoption NIF                                                          |   |         | —   |   |   |   | 12,740 |   |
| Severance Indemnity liability (FAS 158 effects), net of tax of $2,996 |   |         | 3,143     |   |   |   | 1,438 |   |
| Balance at the end of the year                                        |   | $            | 3,004,049 |   |   | $ | 3,851,883 |   |

----

----

|                                               |   | MEX GAAP |     |   | US GAAP           |   |
|----------------------------------------------------|--------|----------|----------|--------|-------------------|--------|
|                                               |   | D3       |     |   | FASB 87 & 112 |   |
|                                               |   |     |     |   |              |   |   |   |
| Seniority Premium — Severance Payment        |   | $        | (1,122)  |   |              | $      | (17,217) |   |
| Severance Payment                                  |   |     | (17,689) |   |              |   | (8,887) |   |
| Seniority Premium — Severance Benefits       |   |     | (853)    |   |              |   | (1,799) |   |
| Severance Benefits                                 |   |     | (7,630)  |   |              |   | — |   |
| Total                                              |   |     | (27,294) |   |              |   | (27,903 | ) |
| Difference US GAAP vs MEX GAAP                     |   |     | —  |   |              |   | (609 | ) |
| Amortization of net loss (gaing)                   |   |     | —  |   |              |   | (25 | ) |
| Amortization of transition obligation              |   |     | —  |   |              |   | (2,433 | ) |
| Amortization of prior service cost                 |   |     |     |   |              |   | 363 |   |
| Effect of early settlement / reduction obligations |   |     |     |   |              |   | (7,645 | ) |
| Others                                             |   |     | —  |   |              |   | (5,290) |   |
| Total Severance Benefits                           |   |     |     |   |              |   | (15,639 | ) |

|                                                                     |   | OCI    |     |   | AOCI   |   |
|--------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| AOCI beginning balance at January 1, 2008                           |   |   |     |   |   |   |
| Net loss                                                                 |   | $      | (398,051 | )      |   |   |   |
| ASC 715 effect of the year (net of deferred income tax effect of $3,121) |   |   | 1,277    |   |   | $      | (8,721 | ) |
| Other comprehensive income                                               |   |   | 1,277    |   |   |   | 1,277 |   |
| Comprehensive income                                                     |   | $      | (396,774 | )      |   |   |   |   |
| AOCI ending balance at December 31, 2008                            |   |   |     |   |   | $      | (7,444 | ) |

----

|                                |   | Period in which the |    |   | Period in which the |   |     | Period in which the |   |   |                |   |
|-------------------------------------|--------|---------------------|---------|--------|---------------------|--------|----------|---------------------|--------|--------|---------------------|--------|
|                                |   | Misstatement        |    |   | Misstatement        |   |     | Misstatement        |   |   |                |   |
|                                |   | Originated (1)      |    |   | Originated (1)      |   |     | Originated (1)      |   |   | Adjustment recorded |   |
|                                |   | Year Ended          |    |   | Year Ended          |   |     | Year Ended          |   |   | as of               |   |
|                                |   | December 31, 2003   |    |   | December 31, 2004   |   |     | December 31, 2005   |   |   | January 1, 2006     |   |
| Labor liabilities (2)               |   | $                   | (15,977 | )      |                | $      | —  |                |   | $      | (647                | )      |   | $ | (16,624 | ) |
| Capitalized interest (3)            |   |                | (4,576  | )      |                |   | (1,310   | )                   |   |   | 613                 |   |   |   | (5,273 | ) |
| Increasing-debt rate (4)            |   |                | — |   |                |   | (3,682   | )                   |   |   | (8,321              | )      |   |   | (12,003 | ) |
| Stock-option plan (5)               |   |                | — |   |                |   | (603     | )                   |   |   | (2,890              | )      |   |   | (3,493 | ) |
| Embedded derivatives (6)            |   |                | — |   |                |   | —  |                |   |   | 7,292               |   |   |   | 7,292 |   |
| Debt restructuring (7)              |   |                | — |   |                |   | 137,597  |                |   |   | 6                   |   |   |   | 137,603 |   |
| Installation costs not charged (7)  |   |                | — |   |                |   | (111,511 | )                   |   |   | 1,593               |   |   |   | (109,918 | ) |
| Installation revenues and costs (8) |   |                | — |   |                |   | —  |                |   |   | 11,593              |   |   |   | 11,593 |   |
| Other (9)                           |   |                | 11,346  |   |                |   | (9,534   | )                   |   |   | (3,955              | )      |   |   | (2,143 | ) |
| Deferred income taxes (10)          |   |                | — |   |                |   | —  |                |   |   | —             |   |   |   | — |   |
| Impact on net income(11)            |   | $                   | (9,207  | )      |                | $      | 10,957   |                |   | $      | 5,284               |   |   |   |   |   |
| Retained earnings(12)               |   |                |    |   |                |   |     |                |   |   |                |   |   | $ | 7,034 |   |

| (1) | We previously quantified these errors under the roll-over method and concluded that they were immaterial, individually and in the aggregate. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We were not recognizing this difference for severance indemnity as required by U.S. generally accepted accounting principles (see reconciling item h.). As a result of this error, our severance indemnity expense was understated by $16.0 million in 2003 and by $0.6 million in 2005, no expense recognition is applicable for 2004. We recorded a $16.6 million increase in our liability for severance indemnity as of January 1, 2006 with a corresponding reduction in retained earnings to correct these misstatements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | We incorrectly amortized capitalized interest expenses in 2005 and prior years. As a result of this error, our expenses were understated in 2003 by $4.6 million, in 2004 by $1.3 and overstated by $0.6 million in 2005. We recorded a $5.3 million decrease in our capitalized interest as of January 1, 2006 with a corresponding reduction in retained earnings to correct these misstatements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | We were not adjusting our expenses for increasing-debt rate as required by U.S. generally accepted accounting principles to the interest method. As a result of this error, our interest expense was understated by $3.7 million in 2004 and by $8.3 million in 2005. We recorded a $12.0 million increase in our liability for interest payable as of January 1, 2006 with a corresponding reduction in retained earnings to correct these misstatements (see item j. below for reversal in 2006). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | We were not recognizing compensation cost expense as required by U.S. generally accepted accounting principles. As a result of this error, our compensation expense was understated by $0.6 million in 2004 and by $2.9 million in 2005. We recorded a $3.5 million increase in our additional-paid in capital for stock-option plans as of January 1, 2006 with a corresponding reduction in retained earnings to correct these misstatements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | We were not recognizing the effect in income generated by embedded derivatives as required by U.S. generally accepted accounting principles. As a result of this error in both GAAPs in 2005, our income was understated by $7.3 million. We recorded a $7.3 million increase in our assets as of January 1, 2006 with a corresponding increase in retained earnings to correct these misstatements. This balance does not represent a difference between GAAPs, however for MFRS purposes this effect was immaterial for being adjusted (see item j. below for reversal in 2006). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | We were incorrectly presenting the accumulated amortization related to debt restructuring and installation costs not charged to customers. As a result of both reclassification errors, our income was understated by $26.1 million in 2004 and by $1.6 million in 2005 (amounts presented net). We recorded a $27.7 million increase in our assets as of January 1, 2006 with a corresponding increment in retained earnings to correct these misstatements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | We were incorrectly recognizing the effect in income generated by the amortization installation revenues and costs. As a result of this error, our income was understated by $11.6 million in 2005. We recorded a $11.6 million increase in our assets as of January 1, 2006 with a corresponding increment in retained earnings to correct these misstatements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | We incorrectly recorded minor entries representing preoperating expenses, leasehold improvements and revenue recognition. As a result of these errors, our expense was overstated by $11.3 million in 2003 and understated by $9.5 million in 2004 and $4.0 million in 2005. We recorded a $2.2 million increase in the Company’s liabilities for these concepts as of January 1, 2006 with a corresponding reduction in retained earnings to correct these misstatements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | No deferred taxes were calculated in the application of the SAB 108 as those balances would represent a deferred tax asset for the net balance to be adjusted on January 1, 2006, that is not deemed recoverable and should be fully reserved for accounting purposes. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Represents the net over-statement of net income for the indicated periods resulting from these misstatements |
|------|--------------------------------------------------------------------------------------------------------------|

| (12) | Represents the net reduction to retained earnings recorded as of January 1, 2006 to record the initial application of SAB 108. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | December 31, 2006 |   |
|--------------------------|--------|-------------------|--------|
| Preoperating expenses    |   | $                 | (1,676 | ) |
| Increasing debt rate (1) |   |              | 12,003 |   |
| Embedded derivatives (2) |   |              | (7,292 | ) |
|                     |   | $                 | 3,035  |   |

| (1) | These notes were called in advance during 2006 and thus, outstanding payable balances under U.S. GAAP were eliminated. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (2) | In 2006, the Company started recognizing embedded derivatives in their local books, therefore, this reconciling item is reversed. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

| • |   | borrow money;                                      |
|---------|--------|----------------------------------------------------|
|    |   |                                               |
| • |   | pay dividends on our capital stock;                |
|    |   |                                               |
| • |   | purchase stock or repay subordinated indebtedness; |
|    |   |                                               |
| • |   | sell assets; and                                   |
|    |   |                                               |
| • |   | consolidate or merge into other companies.         |

|            |   |          |      |   | Quoted prices    |   |      | Significant |   |   |         |   |
|-----------------|--------|---------------|-----------|--------|------------------|--------|-----------|-------------|--------|--------|--------------|--------|
|            |   | Fair value at |      |   | in active        |   |      | other       |   |   | Significant  |   |
|            |   | December 31,  |      |   | markets for      |   |      | observable  |   |   | unobservable |   |
|            |   | 2010          |      |   | identical assets |   |      | inputs      |   |   | inputs       |   |
|            |   |          |      |   | (Level 1)        |   |      | (Level 2)   |   |   | (Level 3)    |   |
| Senior Notes(1) |   | $             | 2,075,746 |   |             |   | 2,075,746 |        |   |   | —      |   |   |   | — |   |

| (1) | Senior notes are carried at amortized cost and their carrying value as of December 31, 2009 is $ 2,471,420. The $ 2,075,746 represents the estimated fair value of the notes. See Note 11 “Bonds Payable”. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                              |   | ASC 740    |     |   | ASC 740    |   |     |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|----------|--------|--------|
|                                                                                                                              |   | Applied to |     |   | Applied to |   |     |   |   |
|                                                                                                                              |   | MFRS       |     |   | U.S. GAAP  |   |     |   |   |
| December 31, 2010:                                                                                                                |   | Balances   |     |   | Balances   |   |     | Total  |   |
|                                                                                                                              |   |       |     |   |       |   |     |   |   |
| Deferred tax assets                                                                                                               |   |       |     |   |       |   |     |   |   |
| Allowance for doubtful accounts                                                                                                   |   | $          | 81,591   |   |       |   | —  |   |   | $ | 81,591 |   |
| Labor obligations upon retirement                                                                                                 |   |       |     |   |       |   | —  |   |   |   | — |   |
| Provisions                                                                                                                        |   |       | 63,319   |   |       |   | —  |   |   |   | 63,319 |   |
| Installation revenues                                                                                                             |   |       | —  |   |       |   | 13,148   |   |   |   | 13,148 |   |
| Installation costs not charged to customers                                                                                       |   |       | —  |   |       |   | 286,079  |   |   |   | 286,079 |   |
| Telephone network equipment and leasehold improvements, frequency rights, intangible assets, impairment and preoperating expenses |   |       | 112,051  |   |       |   | (303,285 | )      |   |   | (191,234 | ) |
| Tax loss carryforwards                                                                                                            |   |       | 447,564  |   |       |   | —  |   |   |   | 447,564 |   |
| Total gross deferred tax assets                                                                                                   |   |       | 704,525  |   |       |   | (4,058   | )      |   |   | 700,467 |   |
| Less valuation allowance                                                                                                          |   |       | (691,995 | )      |       |   | 4,058    |   |   |   | (687,937 | ) |
| Net deferred tax assets                                                                                                           |   | $          | 12,530   |   |       |   | —  |   |   |   | 12,530 |   |
| Deferred tax liabilities                                                                                                          |   |       |     |   |       |   |     |   |   |   |   |   |
| Prepaid expenses                                                                                                                  |   | $          | (10,009  | )      |       |   | —  |   |   |   | (10,009 | ) |
| Derivative financial instruments                                                                                                  |   |       | (2,521   | )      |       |   | —  |   |   |   | (2,521 | ) |
| Total gross deferred tax liabilities                                                                                              |   |       | (12,530  | )      |       |   | —  |   |   |   | (12,530 | ) |
| Net deferred tax asset                                                                                                            |   | $          | —  |   |       |   | —  |   |   |   | — |   |

----

|                                                                                                                              |   | ASC 740    |     |   | ASC 740    |   |     |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|----------|--------|--------|
|                                                                                                                              |   | Applied to |     |   | Applied to |   |     |   |   |
|                                                                                                                              |   | MFRS       |     |   | U.S. GAAP  |   |     |   |   |
| December 31, 2009:                                                                                                                |   | Balances   |     |   | Balances   |   |     | Total  |   |
|                                                                                                                              |   |       |     |   |       |   |     |   |   |
| Deferred tax assets                                                                                                               |   |       |     |   |       |   |     |   |   |
| Allowance for doubtful accounts                                                                                                   |   | $          | 60,928   |   |       |   | —  |   |   | $ | 60,928 |   |
| Labor obligations upon retirement                                                                                                 |   |       | 9,439    |   |       |   | —  |   |   |   | 9,439 |   |
| Provisions                                                                                                                        |   |       | 56,920   |   |       |   | —  |   |   |   | 56,920 |   |
| Installation revenues                                                                                                             |   |       | —  |   |       |   | 20,272   |   |   |   | 20,272 |   |
| Installation costs not charged to customers                                                                                       |   |       | —  |   |       |   | 255,008  |   |   |   | 255,008 |   |
| Tax loss carryforwards                                                                                                            |   |       | 472,430  |   |       |   | —  |   |   |   | 472,430 |   |
| Total gross deferred tax assets                                                                                                   |   |       | 599,717  |   |       |   | 275,280  |   |   |   | 874,997 |   |
| Less valuation allowance                                                                                                          |   |       | (220,357 | )      |       |   | —  |   |   |   | (220,357 | ) |
| Net deferred tax assets                                                                                                           |   | $          | 379,360  |   |       |   | 275,280  |   |   |   | 654,640 |   |
| Deferred tax liabilities                                                                                                          |   |       |     |   |       |   |     |   |   |   |   |   |
| Telephone network equipment and leasehold improvements, frequency rights, intangible assets, impairment and preoperating expenses |   | $          | (133,059 | )      |       |   | (143,244 | )      |   |   | (276,303 | ) |
| Derivative financial instruments                                                                                                  |   |       | (851     | )      |       |   | —  |   |   |   | (851 | ) |
| Prepaid expenses                                                                                                                  |   |       | (15,126  | )      |       |   | —  |   |   |   | (15,126 | ) |
| Total gross deferred tax liabilities                                                                                              |   |       | (149,036 | )      |       |   | (143,244 | )      |   |   | (292,280 | ) |
| Net deferred tax asset                                                                                                            |   | $          | 230,324  |   |       |   | 132,036  |   |   |   | 362,360 |   |

|                                                                                                                             |   | Year Ended December 31, |     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
|                                                                                                                             |   | 2010                    |     |   | 2009 |   |   | 2008 |   |
| Operating activities:                                                                                                            |   |                    |     |   |   |   |   |   |   |
| Net (loss) income under U.S. GAAP                                                                                           |   | $                       | (866,409 | ) |   | $ | (377,435 | ) |   | $ | (240,058 | ) |
| Adjustments to reconcile net income (loss) to net cash flow provided by operating activities: Depreciation and amortization |   |                    | 594,225  |   |   |   | 562,643 |   |   |   | 476,813 |   |
| Hedging valuation                                                                                                                |   |                    | 43,453   |   |   |   | 58,479 |   |   |   | (83,323 | ) |
| Allowance for doubtful accounts                                                                                                  |   |                    | 49,361   |   |   |   | 32,269 |   |   |   | 39,956 |   |
| Monetary gain                                                                                                                    |   |                    | —  |   |   |   | — |   |   |   | — |   |
| Deferred income tax                                                                                                              |   |                    | 134,762  |   |   |   | (90,357 | ) |   |   | (168,971 | ) |
| Severance indemnity                                                                                                              |   |                    | (2,244   | ) |   |   | 10,652 |   |   |   | 14,669 |   |
| Stock option plan                                                                                                                |   |                    | 4,253    |   |   |   | 1,669 |   |   |   | 5,114 |   |
| Loss on sale of fixed assets                                                                                                     |   |                    | 40,141   |   |   |   | 42,113 |   |   |   | 82,496 |   |
| Gain on sale of subsidiary                                                                                                       |   |                    | —  |   |   |   | (6,126 | ) |   |   | — |   |
| Other                                                                                                                            |   |                    | —  |   |   |   | — |   |   |   | — |   |
| Foreign currency exchange (loss) gain                                                                                       |   |                    | (140,320 | ) |   |   | (95,920 | ) |   |   | 534,420 |   |
|                                                                                                                             |   |                    | (142,778 | ) |   |   | 137,987 |   |   |   | 661,116 |   |
| Changes in operating assets and liabilities:                                                                                     |   |                    |     |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                                                              |   |                    | (113,836 | ) |   |   | (62,049 | ) |   |   | (227,744 | ) |
| Inventory                                                                                                                        |   |                    | (9,304   | ) |   |   | 24,502 |   |   |   | (7,627 | ) |
| Prepaid expenses                                                                                                                 |   |                    | 2,145    |   |   |   | 5,486 |   |   |   | 9,563 |   |
| Other assets and liabilities                                                                                                     |   |                    | 147,499  |   |   |   | 31,879 |   |   |   | 3,353 |   |
| Cash flow provided by (used in) operating activities                                                                             |   |                    | (116,274 | ) |   |   | 137,805 |   |   |   | 438,861 |   |
| Investing activities:                                                                                                            |   |                    |     |   |   |   |   |   |   |   |   |   |
| Acquisition of fixed assets                                                                                                      |   |                    | (509,056 | ) |   |   | (751,689 | ) |   |   | (1,298,619 | ) |
| Proceeds on sale of fixed assets                                                                                                 |   |                    | 3,565    |   |   |   | 10,256 |   |   |   | 4,364 |   |
| Proceeds on sale of subsidiary                                                                                                   |   |                    | —  |   |   |   | 6,126 |   |   |   | — |   |
| (Increase) decrease in guarantee deposits and other non-current assets, net                                                      |   |                    | (257     | ) |   |   | 5,252 |   |   |   | 12,704 |   |
| Cash flow used in investing activities                                                                                           |   |                    | (505,748 | ) |   |   | (730,055 | ) |   |   | (1,281,551 | ) |
| Financing activities:                                                                                                            |   |                    |     |   |   |   |   |   |   |   |   |   |
| Restricted cash                                                                                                                  |   |                    | —  |   |   |   | — |   |   |   | — |   |
| Capital (decrease) increase — Net of equity issuance cost                                                             |   |                    | —  |   |   |   | — |   |   |   | (7 | ) |
| Cost of shares acquired for issuance upon exercise of stock options, and issuance costs                                          |   |                    | 316      |   |   |   | (9,546 | ) |   |   | (76,727 | ) |
| Bank financing and debt payments                                                                                                 |   |                    | —  |   |   |   | (4,354 | ) |   |   | (8,419 | ) |
| Repurchase of shares                                                                                                             |   |                    | 10,863   |   |   |   | 8,362 |   |   |   | (20,287 | ) |
| Other financing items                                                                                                            |   |                    | (1,276   | ) |   |   | (6,274 | ) |   |   | — |   |
| Senior notes issued — Net of debt issuance cost                                                                            |   |                    | —  |   |   |   | — |   |   |   | — |   |
| Cash flow (used in) provided by financing activities                                                                             |   |                    | 9,903    |   |   |   | (11,812 | ) |   |   | (105,440 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                                                     |   |                    | —  |   |   |   | — |   |   |   | — |   |
| Net decrease in cash and cash equivalents                                                                                   |   |                    | (612,119 | ) |   |   | (604,062 | ) |   |   | (948,130 | ) |
| Cash and cash equivalents at beginning of the year                                                                               |   |                    | 987,343  |   |   |   | 1,591,405 |   |   |   | 2,539,535 |   |
| Cash and cash equivalents at end of the year                                                                                     |   |                    | 375,224  |   |   |   | 987,343 |   |   |   | 1,591,405 |   |
| Interest paid                                                                                                                    |   | $                       | 292,006  |   |   | $ | 281,142 |   |   | $ | 276,434 |   |
| Income taxes paid                                                                                                                |   | $                       | 13,982   |   |   | $ | 14,308 |   |   | $ | 7,320 |   |
| Increase (decrease) on fixed assets acquired under capital lease                                                            |   |                    | 6,613    |   |   |   | 6,327 |   |   |   | 4,740 |   |

----

----

|                                                  |   | Maxcom |      |   | MSA    |   |    | CTE    |   |   | OOP    |   |   | TECBTC |   |   | MSF    |   |   | MaxcomUSA |   |   | MaxcomTV |   |   | Telereunión |   |   | SierraUSA |   |   | Telscape |   |   | SCG     |   |   | ATE    |   | Celmax  |   | Elimination |   |   | Consolidated |   |
|-------------------------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|----------|--------|--------|------------------|--------|--------|-----------|--------|--------|----------|--------|--------|---------|--------|--------|--------|--------|--------------|--------|-------------|--------|--------|--------------|--------|
| Balance sheet as of December 31, 2010:                |   |   |      |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |   |   |         |   |        |   |   |         |   |
| Cash and cash equivalents and Current restricted cash |   | $      | 370,423   |   |   |   | 899     |   |   |   | 94     |   |   |   | 130    |   |   |   | 514    |      |   |   | 120      |   |   |             | -      |   |      |   | -      |     |   |   | 231     |   |   |   | 2,774  |         |   |        | -      |   |         |   | 27 |   |   |   | 11 |   | - |   |   | - |   |   |   | 375,223 |   |
| Accounts receivable - net                             |   |   | 1,163,277 |   |   |   | 108,901 |   |   |   | 20,461 |   |   |   | 12,763 |   |   |   | 10,990 |      |   |   | 7,103    |   |   |             | 110    |   |      |   | 271    |     |   |   | 169,382 |   |   |   | 5,037  |         |   |        | 3,999  |   |         |   | 4,188 |   |   |   | 90 |   | 50 |   |   | (518,067 | ) |   |   | 988,555 |   |
| Inventory - net                                       |   |   | 25,678    |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 25,678 |   |
| Prepaid expenses                                      |   |   | 25,785    |   |   |   | 4,011   |   |   |   | 1,204  |   |   |   | 10     |   |   |   | 104    |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | 519     |   |   |   | 15     |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 31,648 |   |
| Investment in subsidiaries                            |   |   | 46,932    |   |   |   | 9,567   |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | (56,499 | ) |   |   | - |   |
| Frequency rights - net                                |   |   | 47,282    |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 47,282 |   |
| Telephone network system and Equipment net            |   |   | 4,291,478 |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | 63,450  |   |   |   | 6,559  |         |   |        | 20,985 |   |         |   | 9,521 |   |   |   | - |   | - |   |   | - |   |   |   | 4,391,993 |   |
| Intangible assets - net                               |   |   | 213,212   |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 213,212 |   |
| Deposits                                              |   |   | 6,466     |   |   |   | -       |   |   |   | 407    |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | 635     |   |   |   | 17     |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 7,525 |   |
| Prepaid expenses long term                            |   |   | 6,881     |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 6,881 |   |
| Derivative financial instruments                      |   |   | 8,402     |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 8,402 |   |
| Deferred taxes                                        |   |   | -         |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | -      |         |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | - |   |
| Other assets                                          |   |   | 2,152     |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -       |   |   |   | (1     | )            |   |        | -      |   |         |   | - |   |   |   | - |   | - |   |   | - |   |   |   | 2,151 |   |
| Total assets                                          |   | $      | 6,207,968 |   |   |   | 123,378 |   |   |   | 22,166 |   |   |   | 12,903 |   |   |   | 11,608 |      |   |   | 7,223    |   |   |             | 110    |   |      |   | 271    |     |   |   | 234,217 |   |   |   | 14,401 |         |   |        | 24,984 |   |         |   | 13,736 |   |   |   | 101 |   | 50 |   |   | (574,516 | ) |   |   | 6,098,550 |   |
| Total liabilities                                     |   | $      | 3,218,012 |   |   |   | 110,912 |   |   |   | 23,811 |   |   |   | 6,425  |   |   |   | 8,570  |      |   |   | 409      |   |   |             | 10     |   |      |   | 699    |     |   |   | 252,015 |   |   |   | 4,167  |         |   |        | 928    |   |         |   | 602 |   |   |   | 51 |   | - |   |   | (518,017 | ) |   |   | 3,108,594 |   |

----

|                                          |   | Maxcom |       |   | MSA    |   |    | CTE    |   |   | OOP    |   |   | TECBTC |   |   | MSF    |   |   | MaxcomUSA |   |   | MaxcomTV |   |   | Telereunión |   |   | SierraUSA |   |   | Telscape |   |   | SCG      |   |   | ATE    |   | Celmax  |   | Elimination |    |   | Consolidated |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|----------|--------|--------|------------------|--------|--------|-----------|--------|--------|----------|--------|--------|----------|--------|--------|--------|--------|--------------|--------|-------------|---------|--------|--------------|--------|
| Shareholders’ Equity:                   |   |   |       |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |     |   |   |   |   |         |   |        |    |   |         |   |
| Capital Stock and Additional Paid- In Capital |   |   | 6,223,379  |   |   |   | 66      |   |   |   | 96     |   |   |   | 55     |   |   |   | 53     |      |   |   | 171,497  |   |   |             | 127    |   |      |   | 55     |     |   |   | 717,173  |   |   |   | 13,044 |         |   |        | 97,874  |   |         |   | 11,308 |   |   |   | 50 |   | 50 |   |   | (1,011,448 | ) |   |   | 6,223,379 |   |
| Accumulated deficit                           |   |   | (3,232,359 | )      |   |   | 12,400  |   |   |   | (1,741 | )      |   |   | 6,423  |   |   |   | 2,985  |      |   |   | (164,683 | )      |   |             | (27    | )      |      |   | (483   | )        |   |   | (734,971 | )      |   |   | (2,810 | )            |   |        | (73,818 | )      |         |   | 1,826 |   |   |   | - |   | - |   |   | 954,899 |    |   |   | (3,232,359 | ) |
| Repurchase of shares                          |   |   | (1,064     | )      |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |      |   |   | -        |   |   |             | -      |   |      |   | -      |     |   |   | -        |   |   |   | -      |         |   |        | -       |   |         |   | - |   |   |   | - |   | - |   |   | (56,549 | )  |   |   | (1,064 | ) |
| Total shareholders’ equity              |   |   | 2,989,956  |   |   |   | 12,466  |   |   |   | (1,645 | )      |   |   | 6,478  |   |   |   | 3,038  |      |   |   | 6,814    |   |   |             | 100    |   |      |   | (428   | )        |   |   | (17,798  | )      |   |   | 10,234 |         |   |        | 24,056  |   |         |   | 13,134 |   |   |   | 50 |   | 50 |   |   | (574,566 | ) |   |   | 2,989,956 |   |
| Total liabilities and shareholders - equity   |   |   | 6,207,968  |   |   |   | 123,378 |   |   |   | 22,166 |   |   |   | 12,903 |   |   |   | 11,608 |      |   |   | 7,223    |   |   |             | 110    |   |      |   | 271    |     |   |   | 234,217  |   |   |   | 14,401 |         |   |        | 24,984  |   |         |   | 13,736 |   |   |   | 101 |   | 50 |   |   | (574,566 | ) |   |   | 6,098,550 |   |

----

|                                                |   | Maxcom |      |   | MSA    |   |   | CTE    |   |   | OOP    |   |   | TECBTC |   |   | MSF    |   |   | MaxcomUSA |   |   | MaxcomTV |   |   | Telereunión |   |   | SierraUSA |   |   | Telscape |   |   | SCG     |   |   |   ATE |   | Celmax |   | Elimination |   |   | Consolidated |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|----------|--------|--------|------------------|--------|--------|-----------|--------|--------|----------|--------|--------|---------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------------|--------|
| Total shareholders’ equity under Mexican GAAP |   | $      | 2,989,956 |   |   |   | 12,466 |   |   |   | (1,645 | )      |   |   | 6,478  |   |   |   | 3,038  |      |   |   | 6,814    |   |   |             | 100    |   |      |   | (428   | )        |   |   | (17,798 | )      |   |       | 10,234 |   |   |        | 24,056 |   |         |   | 13,134 |   |   |   | 50 |   | 50 |   |   | (56,549 | ) |   |   | 2,989,956 |   |
| Preoperating expenses                               |   |   | (391,951  | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (391,951 | ) |
| Amortization of preoperating expenses               |   |   | 391,951   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 391,951 |   |
| Capitalization of interest                          |   |   | 23.587    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 23.587 |   |
| Amortization of capitalized interest                |   |   | (67,081   | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (67,081 | ) |
| Installation revenues                               |   |   | (43,827   | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (43,827 | ) |
| Installation costs                                  |   |   | (953,596  | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (953,596 | ) |
| Capitalized internal compensation cost              |   |   | (1,714    | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,714 | ) |
| Impairment charge                                   |   |   | 1,056,072 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,056,072 |   |
| Severance indemnity liability                       |   |   | (9,987    | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9,987 | ) |
| SAB 108 initial effect                              |   |   | 7,034     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,034 |   |
| SAB effects for the year                            |   |   | 3,035     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,035 |   |
| Recognition of deferred taxes                       |   |   | -         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Total shareholders’ equity under US. GAAP     |   | $      | 3,003,479 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |     |   |   |             |   |   |      |   |   |     |   |   |    |   |   |       |   |   |   |        |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 3,003,479 |   |

----

|                                                      |   | Maxcom |       | MSA    |   | CTE      |   | OOP    |    | TECBTC |   | MSF     |   | MaxcomUSA |    | MaxcomTV |   | Telereunión |   | SierraUSA |   | Telscape |   | SCG    |   | ATE    |    | Celmax |   | Elimination |   | Consolidated |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|----------|--------|--------|---------|--------|--------|---------|--------|-----------|---------|----------|--------|------------------|--------|-----------|--------|----------|--------|--------|--------|--------|---------|--------|--------|-------------|--------|--------------|--------|
| Statements of Operations for the year ended December 31, 2010: |   |   |       |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |   |    |   |   |        |   |         |   |
| Revenues                                                       |   | $      | 2,577,457  |   |   | 431,235  |   |   | 103,474 |   |   | 21,486  |   |      | 92,663  |     |   | 14               |   |      | -      |     |   | 178    |   |   | 42,644  |   |   | 1,358       |   |         | 1,158  |   |   | 866 |   |   | 31 |   |  - |   |   | (695,172 | ) |   | 2,577,457 |   |
| Operating cost and expenses                                    |   |   | (2,717,222 | )      |   | (370,313 | )      |   | (86,008 | )      |   | (19,528 | )      |      | (86,227 | )        |   | (12              | )      |      | (3     | )        |   | (167   | )      |   | (30,778 | )      |   | (1,293      | )      |         | (15    | ) |   | (826 | ) |   | (10 | ) |  - |   |   | 697,744 |   |   | (2,614,658 | ) |
| Integral (cost) income of financing                            |   |   | (220,144   | )      |   | (526     | )      |   | (177    | )      |   | (45     | )      |      | (97     | )        |   | 504              |   |      | -      |     |   | -      |   |   | (12,781 | )      |   | (198        | )      |         | -      |   |   | (1 | ) |   | (7 | ) |  - |   |   | - |   |   | (233,472 | ) |
| Other income (expenses)                                        |   |   | (635,040   | )      |   | (52,231  | )      |   | (12,698 | )      |   | (1,261  | )      |      | (3,480  | )        |   | (14              | )      |      | -      |     |   | (14    | )      |   | (48,363 | )      |   | -           |   |         | (14    | ) |   | (14 | ) |   | (14 | ) |  - |   |   | 92,063 |   |   | (661,080 | ) |
| Taxes                                                          |   |   | (184,394   | )      |   | (24,281  | )      |   | (6,129  | )      |   | (1,814  | )      |      | (2,746  | )        |   | (7               | )      |      | -      |     |   | (6     | )      |   | (29,995 | )      |   | -           |   |         | (528   | ) |   | (3,161 | ) |   | - |   |  - |   |   | - |   |   | (253,061 | ) |
| Net (loss) income                                              |   |   | (1,179,343 | )      |   | (16,116  | )      |   | (1,538  | )      |   | (1,162  | )      |      | 113     |     |   | 485              |   |      | (3     | )        |   | (9     | )      |   | (79,273 | )      |   | (133        | )      |         | 601    |   |   | (3,136 | ) |   | - |   |  - |   |   | 94,635 |   |   | (1,184,879 | ) |
|                                                           |   |   |       |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |   |    |   |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income for the year under Mexican GAAP              |   |   | (1,179,343 | )      |   | (16,116  | )      |   | (1,538  | )      |   | (1,162  | )      |      | 113     |     |   | 485              |   |      | (3     | )        |   | (9     | )      |   | (79,273 | )      |   | (133        | )      |         | 601    |   |   | (3,136 | ) |   | - |   |  - |   |   | 94,635 |   |   | (1,184,879 | ) |
| Capitalization of interest                                     |   |   | 6,337      |   |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | 6,337 |   |
| Amortization of capitalized Interest                           |   |   | (2,100     | )      |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | (2,100 | ) |
| Installation revenues                                          |   |   | 23,748     |   |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | 23,748 |   |
| Installation costs                                             |   |   | (103,568   | )      |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | (103,568 | ) |
|                                                           |   |   |       |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |   |    |   |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalized internal compensation cost                         |   |   | 143        |   |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | 143 |   |
| Impairment charge                                              |   |   | 528,672    |   |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | 528,672 |   |
| Severance indemnity liability                                  |   |   | -          |   |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | - |   |
| Recognition at deferred taxes                                  |   |   | (134,762   | )      |   | -        |   |   | -       |   |   | -       |   |      | -       |     |   | -                |   |      | -      |     |   | -      |   |   | -       |   |   | -           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | - |   |   | (134,762 | ) |
|                                                           |   |   |       |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |   |    |   |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss (income) for the year Under U.S. GAAP                 |   | $      | (860,873   | )      |   | (16,116  | )      |   | (1,538  | )      |   | (1,162  | )      |      | 113     |     |   | 485              |   |      | (3     | )        |   | (9     | )      |   | (79,273 | )      |   | (133        | )      |         | 601    |   |   | (3,136 | ) |   | - |   |  - |   |   | 94,635 |   |   | (866,409 | ) |

----

|                                                                                    |   | Maxcom |     | MSA    |   | CTE    |   | OOP    |   | TECBTC |   | MSF    |   | Maxcom USA |   | Maxcom TV |   | TRE    |   | SUS    |   | Telscape |   | SCG    |   |   ATE |    | Celmax |   | Elimination |   | Consolidated |   |
|-----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|-----------|--------|--------|--------|--------|--------|----------|--------|--------|--------|------------|---------|--------|--------|-------------|--------|--------------|--------|
| Statement of Cash Flows under U.S. GAAP for the Year Ended December 31, 2010: |   |   |     |   |   |   |   |   |   |   |   |   |   |       |   |      |   |   |   |   |   |     |   |   |   |       |    |   |   |        |   |         |   |
| Net (loss) income the year under U.S. GAAP                                              |   | $      | (830,421 | )      |   | 8,165  |   |   | 4,591  |   |   | 652    |   |       | 2,860  |      |   | 492    |   |   | (3     | )        |   | (3     | )      |       | (49,278 | )      |   | (133        | )      |         | 1,129  |   |   | 25 |   |   | - |   | - |   |   | 4,485 |   |   | (866,409 | ) |
| Depreciation and amortization                                                           |   |   | 581,075  |   |   | -      |   |   | -      |   |   | -      |   |       | -      |      |   | -      |   |   | -      |     |   | -      |   |       | 14,053  |   |   | 857         |   |         | -      |   |   | 812 |   |   | - |   | - |   |   | 2,572 |   |   | 594,225 |   |
| Other adjustments to reconcile net income to cash provided by operating activities      |   |   | -        |   |   | -      |   |   | -      |   |   | -      |   |       | -      |      |   | -      |   |   | -      |     |   | -      |   |       | 48,031  |   |   | -           |   |         | -      |   |   | - |   |   | - |   | - |   |   | 48,031 |   |   | - |   |
| Net change in working capital                                                           |   |   | 129,477  |   |   | 1,049  |   |   | -      |   |   | -      |   |       | -      |      |   | -      |   |   | -      |     |   | -      |   |       | (1      | )      |   | -           |   |         | -      |   |   | - |   |   | - |   | (50 | )  |   | 1,039 |   |   | 129,406 |   |
| Resources (used in) provided by Operating activities                                    |   |   | 56,791   |   |   | (8,727 | )      |   | (4,703 | )      |   | (699   | )      |       | (2,642 | )         |   | (568   | )      |   | -      |     |   | 3      |   |       | (16,851 | )      |   | (1,263      | )      |         | (863   | ) |   | (838 | ) |   | 11 |   |  - |   |   | (6,853 | ) |   | 26,504 |   |
| Resources used in financing activities                                                  |   |   | (63,108  | )      |   | 488    |   |   | (112   | )      |   | (47    | )      |       | 218    |      |   | (76    | )      |   | (3     | )        |   | -      |   |       | (4,046  | )      |   | (539        | )      |         | 266    |   |   | (1 | ) |   | 11 |   | (50 | )  |   | 49,275 |   |   | (116,274 | ) |
| Resources (used in) provided by investing activities                                    |   |   | 11,177   |   |   | -      |   |   | -      |   |   | -      |   |       | 50     |      |   | -      |   |   | 3      |     |   | -      |   |       | 3,082   |   |   | -           |   |         | (266   | ) |   | - |   |   | - |   | 50 |   |   | 4,193 |   |   | 9,903 |   |
| Cash and cash equivalents:                                                              |   |   | (559,356 | )      |   | -      |   |   | -      |   |   | -      |   |       | -      |      |   | -      |   |   | -      |     |   | -      |   |       | 139     |   |   | 1           |   |         | -      |   |   | - |   |   | - |   |  - |   |   | (53,468 | ) |   | (505,748 | ) |
| Net increase (decrease) in cash and cash equivalents                                    |   |   | (611,287 | )      |   | 488    |   |   | (112   | )      |   | (47    | )      |       | 268    |      |   | (76    | )      |   | -      |     |   | -      |   |       | (825    | )      |   | (538        | )      |         | -      |   |   | (1 | ) |   | 11 |   |  - |   |   | - |   |   | (612,119 | ) |
| Beginning balances                                                                      |   |   | 981,710  |   |   | 411    |   |   | 206    |   |   | 177    |   |       | 246    |      |   | 196    |   |   | -      |     |   | -      |   |       | 1,056   |   |   | 3,312       |   |         | -      |   |   | 28 |   |   | - |   | - |   |   | - |   |   | 987,342 |   |
| Ending balances                                                                         |   | $      | 370,423  |   |   | 899    |   |   | 94     |   |   | 130    |   |       | 514    |      |   | 120    |   |   | -      |     |   | -      |   |       | 231     |   |   | 2,774       |   |         | -      |   |   | 27 |   |   | 11 |   | -  |   |   | - |   |   | 375,223 |   |

----

|                                             |   | Maxcom |      | MSA    |   | CTE     |   | OOP    |   | TECBTC |   | MSF    |   | MaxcomUSA |   | MaxcomTV |   | Telereunión |   | SierraUSA |   | Telscape |   | SCG    |   | NonGuarantorATE |    | Elimination |   | Consolidated |   |
|-------------------------------------------------------|--------|--------|-----------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|----------|--------|------------------|--------|-----------|--------|----------|--------|--------|--------|-----------------|---------|-------------|--------|--------------|--------|
| Balance sheet as of December 31, 2009:                |   |   |      |   |   |    |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |
| Cash and cash equivalents and Current restricted cash |   | $      | 981,710   |   |   | 412     |   |   | 206    |   |   | 177    |   |      | 246    |     |   | 196              |   |      | -      |     |   | -      |   |            | 1,056   |        |   | 3,312        |   |   | - |   |   | 28 |   |   | - |   |   | - |   |   | 987,343 |   |
| Accounts receivable - net                             |   |   | 1,130,668 |   |   | 95,738  |   |   | 16,978 |   |   | 12,593 |   |      | 8,958  |     |   | 6,124            |   |      | 110    |     |   | 50     |   |            | 120,909 |        |   | 4,010        |   |   | 2,659 |   |   | 3,184 |   |   | 50 |   |   | (407,576 | ) |   | 994,455 |   |
| Inventory - net                                       |   |   | 16,374    |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 16,374 |   |
| Prepaid expenses                                      |   |   | 28,927    |   |   | 660     |   |   | 211    |   |   | 2      |   |      | 2      |     |   | 1                |   |      | -      |     |   | 4      |   |            | 327     |        |   | 15           |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 30,149 |   |
| Investment in subsidiaries                            |   |   | 150,183   |   |   | 11,183  |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | (161,366 | ) |   | - |   |
| Frequency rights - net                                |   |   | 59,674    |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 59,674 |   |
| Telephone network system and Equipment net            |   |   | 4,780,074 |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | 122,963 |        |   | 7,416        |   |   | 20,985 |   |   | 10,332 |   |   | - |   |   | - |   |   | 4,941,770 |   |
| Intangible assets - net                               |   |   | 199,224   |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 199,224 |   |
| Deposits                                              |   |   | 6,209     |   |   | -       |   |   | 407    |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | 635     |        |   | 18           |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 7,269 |   |
| Prepaid expenses long term                            |   |   | 10,524    |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 10,524 |   |
| Derivative financial instruments                      |   |   | 38,319    |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 38,319 |   |
| Deferred taxes                                        |   |   | 184,394   |   |   | 9,808   |   |   | 1,714  |   |   | 106    |   |      | 118    |     |   | 7                |   |      | -      |     |   | -      |   |            | 29,995  |        |   | -            |   |   | 528 |   |   | 3,654 |   |   | - |   |   | - |   |   | 230,324 |   |
| Other assets                                          |   |   | 2,152     |   |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -       |        |   | (1           | )      |   | - |   |   | - |   |   | - |   |   | - |   |   | 2,151 |   |
| Total assets                                          |   | $      | 7,588,432 |   |   | 117,801 |   |   | 19,516 |   |   | 12,878 |   |      | 9,324  |     |   | 6,328            |   |      | 110    |     |   | 54     |   |            | 275,885 |        |   | 14,770       |   |   | 24,172 |   |   | 17,198 |   |   | 50 |   |   | (568,942 | ) |   | 7,517,576 |   |
| Total liabilities                                     |   | $      | 3,428,459 |   |   | 83,431  |   |   | 17,508 |   |   | 4,670  |   |      | 6,400  |     |   | -                |   |      | 7      |     |   | 466    |   |            | 218,684 |        |   | 4,403        |   |   | 716 |   |   | 435 |   |   | - |   |   | (407,576 | ) |   | 3,357,603 |    |

----

|                                     |   | Maxcom |       | MSA    |   | CTE     |   | OOP    |   | TECBTC |   | MSF    |   | MaxcomUSA |   | MaxcomTV |   | Telereunión |   | SierraUSA |   | Telscape |   | SCG    |   | NonGuarantorATE |     | Elimination |   | Consolidated |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|----------|--------|------------------|--------|-----------|--------|----------|--------|--------|--------|-----------------|----------|-------------|--------|--------------|--------|
| Shareholders’ Equity:                   |   |   |       |   |   |    |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |     |        |   |         |   |
| Capital Stock and Additional Paid- In Capital |   |   | 6,218,810  |   |   | 66      |   |   | 96     |   |   | 55     |   |      | 53     |     |   | 171,497          |   |      | 127    |     |   | 55     |   |            | 715,200  |        |   | 13,044       |   |   | 97,874 |   |   | 11,308 |   |   | 50 |   |   | (1,009,427 | ) |   | 6,218,808 |   |
| Accumulated deficit                           |   |   | (2,046,912 | )      |   | 34,304  |   |   | 1,912  |   |   | 8,153  |   |      | 2,871  |     |   | (165,169         | )      |      | (24    | )        |   | (467   | )      |            | (657,999 | )           |   | (2,677       | )      |   | (74,418 | ) |   | 5,455 |   |   | - |   |   | 848,061 |   |   | (2,046,910 | ) |
| Repurchase of shares                          |   |   | (11,925    | )      |   | -       |   |   | -      |   |   | -      |   |      | -      |     |   | -                |   |      | -      |     |   | -      |   |            | -        |        |   | -            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (11,925 | ) |
| Total shareholders’ equity              |   |   | 4,159,973  |   |   | 34,370  |   |   | 2,008  |   |   | 8,208  |   |      | 2,924  |     |   | 6,328            |   |      | 103    |     |   | (412   | )      |            | 57,201   |        |   | 10,367       |   |   | 23,456 |   |   | 16,763 |   |   | 50 |   |   | (161,366 | ) |   | 4,159,973 |   |
| Total liabilities and shareholders - equity   |   |   | 7,588,432  |   |   | 117,801 |   |   | 19,516 |   |   | 12,878 |   |      | 9,324  |     |   | 6,328            |   |      | 110    |     |   | 54     |   |            | 275,885  |        |   | 14,770       |   |   | 24,172 |   |   | 17,198 |   |   | 50 |   |   | (568,942 | ) |   | 7,517,576 |   |

----

|                                           |   | Maxcom |      | MSA    |   | CTE    |   | OOP    |   | TECBTC |   | MSF    |   | MaxcomUSA |   | MaxcomTV |   | Telereunión |   | SierraUSA |   | Telscape |   | SCG    |   | NonGuarantorATE |   | Elimination |   | Consolidated |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|----------|--------|------------------|--------|-----------|--------|----------|--------|--------|--------|-----------------|--------|-------------|--------|--------------|--------|
| Total shareholders’ equity under Mexican GAAP |   |   | 4,159,973 |   |   | 34,370 |   |   | 2,008  |   |   | 8,208  |   |      | 2,924  |     |   | 6,328            |   |      | 103    |     |   | (412   | )      |            | 57,201 |        |   | 10,367       |   |   | 23,456 |   |   | 16,763 |   |   | 50 |   |   | (161,366 | ) |   | 4,159,973 |   |
| Preoperating expenses                               |   |   | (391,951  | )      |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (391,951 | ) |
| Amortization of preoperating expenses               |   |   | 391,951   |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 391,951 |   |
| Capitalization of interest                          |   |   | 17,252    |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17,252 |   |
| Amortization of capitalized interest                |   |   | (64,981   | )      |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (64,981 | ) |
| Installation revenues                               |   |   | (67,574   | )      |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (67,574 | ) |
| Installation costs                                  |   |   | (850,028  | )      |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (850,028 | ) |
| Capitalized internal compensation cost              |   |   | (1,857    | )      |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,857 | ) |
| Impairment charge                                   |   |   | 527,400   |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 527,400 |   |
| Severance indemnity liability                       |   |   | (14,009   | )      |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (14,009 | ) |
| SAB 108 initial effect                              |   |   | 7,034     |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,034 |   |
| SAB effects for the year                            |   |   | 3,035     |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,035 |   |
| Recognition of deferred taxes                       |   |   | 133,117   |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 133,117 |   |
| Total shareholders’ equity under US. GAAP     |   |   | 3,849,362 |   |   |   |   |   |   |   |   |   |   |      |   |     |   |             |   |      |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,849,362 |   |

----

|                                                      |   | Maxcom |       | MSA    |   | CTE      |   | OOP    |    | TECBTC |   | MSF     |   | MaxcomUSA |    | MaxcomTV |   | Telereunión |   | SierraUSA |   | Telscape |   | SCG    |   | NonGuarantorATE |    | Elimination |   | Consolidated |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|----------|--------|--------|---------|--------|--------|---------|--------|-----------|---------|----------|--------|------------------|--------|-----------|--------|----------|--------|--------|--------|-----------------|---------|-------------|--------|--------------|--------|
| Statements of Operations for the year ended December 31, 2009: |   |   |       |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |
| Revenues                                                       |   |   | 2,563,577  |   |   | 435,839  |   |   | 88,639  |   |   | 23,851  |   |      | 74,827  |     |   | -                |   |      | -      |     |   | -      |   |            | 42,644  |        |   | 1,568        |   |   | 1,148 |   |   | 2,556 |   |   | - |   |   | (672,079 | ) |   | 2,562,570 |   |
| Operating cost and expenses                                    |   |   | (2,603,978 | )      |   | (421,946 | )      |   | (85,329 | )      |   | (23,165 | )      |      | (71,821 | )        |   | 8                |   |      | -      |     |   | (152   | )      |            | (33,052 | )           |   | (1,484       | )      |   | (68 | ) |   | (830 | ) |   | - |   |   | 672,080 |   |   | (2,569,737 | ) |
| Integral (cost) income of financing                            |   |   | (297,606   | )      |   | (164     | )      |   | (55     | )      |   | (85     | )      |      | (70     | )        |   | 13,797           |   |      | -      |     |   | -      |   |            | (12,478 | )           |   | (133         | )      |   | - |   |   | (1 | ) |   | - |   |   | - |   |   | (296,795 | ) |
| Other income (expenses)                                        |   |   | (44,125    | )      |   | (1,175   | )      |   | (1,702  | )      |   | 184     |   |      | (131    | )        |   | (200,128         | )      |      | -      |     |   | (22    | )      |            | (1,363  | )           |   | 15           |   |   | 1 |   |   | 111 |   |   | - |   |   | 187,202 |   |   | (61,133 | ) |
| Taxes                                                          |   |   | 80,658     |   |   | (2,266   | )      |   | (390    | )      |   | (150    | )      |      | (788    | )        |   | (15,187          | )      |      | -      |     |   | 1      |   |            | -       |        |   | -            |   |   | (288 | ) |   | 508 |   |   | - |   |   | (561 | ) |   | 61,537 |   |
| Net (loss) income                                              |   |   | (301,474   | )      |   | 10,288   |   |   | 1,163   |   |   | 635     |   |      | 2,017   |     |   | (201,510         | )      |      | -      |     |   | (173   | )      |            | (4,249  | )           |   | (34          | )      |   | 793 |   |   | 2,344 |   |   | - |   |   | 186,642 |   |   | (303,558 | ) |
| Net (loss) income for the year under Mexican GAAP              |   |   | (301,474   | )      |   | 10,288   |   |   | 1,163   |   |   | 635     |   |      | 2,017   |     |   | (201,510         | )      |      | -      |     |   | (173   | )      |            | (4,249  | )           |   | (34          | )      |   | 793 |   |   | 2,344 |   |   | - |   |   | 186,642 |   |   | (303,558 | ) |
| Capitalization of interest                                     |   |   | 8,810      |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,810 |   |
| Amortization of capitalized Interest                           |   |   | (516       | )      |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (516 | ) |
| Installation revenues                                          |   |   | 9,231      |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,231 |   |
| Installation costs                                             |   |   | (111,616   | )      |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (111,616 | ) |
| Capitalized internal compensation cost                         |   |   | 143        |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 143 |   |
| Severance indemnity liability                                  |   |   | (2,712     | )      |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,712 | ) |
| Recognition at deferred taxes                                  |   |   | 21,455     |   |   |     |   |   |    |   |   |    |   |      |    |     |   |             |   |      |   |     |   |   |   |            |    |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 21,455 |   |
| Net loss (income) for the year Under U.S. GAAP                 |   |   | (376,679   | )      |   | 10,288   |   |   | 1,163   |   |   | 635     |   |      | 2,017   |     |   | (201,510         | )      |      | -      |     |   | (173   | )      |            | (4,249  | )           |   | (34          | )      |   | 793 |   |   | 2,344 |   |   | - |   |   | 186,642 |   |   | (378,763 | ) |

----

|                                                                                    |   | Maxcom |      | MSA    |   | CTE    |   | OOP    |   | TECBTC |   | MSF    |   | Maxcom USA |   | Maxcom TV |   | TRE      |   | SUS    |   | Telscape |   | SCG    |   | NonGuarantorATE |   | Elimination |   | Consolidated |   |
|-----------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|-----------|--------|----------|--------|--------|--------|----------|--------|--------|--------|-----------------|--------|-------------|--------|--------------|--------|
| Statement of Cash Flows under U.S. GAAP for the Year Ended December 31, 2009: |   |   |      |   |   |   |   |   |   |   |   |   |   |       |   |      |   |     |   |   |   |     |   |   |   |            |   |        |   |         |   |
| Net (loss) income the year under U.S. GAAP                                              |   |   | (185,296  | )      |   | 10,288 |   |   | 1,163  |   |   | 635    |   |       | 2,017  |      |   | (201,510 | )      |   |   |     | (173   | )      |   | (4,249          | )      |        | (31    | )            |   | 793 |   |   | 2,344 |   |   |   |   | (4,744 | ) |   | (378,763 | ) |
| Depreciation and amortization                                                           |   |   | 544,757   |   |   |   |   |   |   |   |   |   |   |       |   |      |   |     |   |   |   |     |   |   |   | 24,058          |   |        | 1,124  |         |   |   |   |   | 811 |   |   |   |   | (8,107 | ) |   | 562,643 |   |
| Other adjustments to reconcile net income to cash provided by operating activities      |   |   | (61,742   | )      |   | (2,650 | )      |   |   |   |   |   |   |       |   |      |   |     |   |   |   |     |   |   |   | (7,093          | )      |        |   |         |   |   |   |   |   |   |   |   |   | 26,014 |   |   | (45,471 | ) |
| Net change in working capital                                                           |   |   | (152,213  | )      |   | (8,263 | )      |   | (1,142 | )      |   | (835   | )      |       | (1,941 | )         |   | 196,984  |   |   |   |     | 173    |   |   | (8,495          | )      |        | (1,581 | )            |   | (793 | ) |   | (3,156 | ) |   | (50 | ) |   | (19,342 | ) |   | (604 | ) |
| Resources (used in) provided by Operating activities                                    |   |   | 145,506   |   |   | (625   | )      |   | 21     |   |   | (200   | )      |       | 76     |      |   | (4,526   | )      |   | 0      |     |   | 0      |   |            | 4,221  |        |   | (488         | )      |   | 0 |   |   | (1 | ) |   | (50 | ) |   | (6,179 | ) |   | 137,805 |   |
| Resources used in financing activities                                                  |   |   | (5,537    | )      |   |   |   |   |   |   |   |   |   |       |   |      |   |     |   |   |   |     |   |   |   |            | (3,888 | )           |   |         |   |   |   |   |   |   |   |   | 50 |   |   | (2,387 | ) |   | (11,812 | ) |
| Resources (used in) provided by investing activities                                    |   |   | (743,729  | )      |   |   |   |   |   |   |   |   |   |       |   |      |   | 4,497    |   |   |   |     |   |   |   |            | 611    |        |   |         |   |   |   |   |   |   |   |   |   |   |   | 8,566 |   |   | (730,055 | ) |
| Cash and cash equivalents:                                                              |   |   |      |   |   |   |   |   |   |   |   |   |   |       |   |      |   |     |   |   |   |     |   |   |   |            |   |        |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                    |   |   | (603,760  | )      |   | (625   | )      |   | 21     |   |   | (200   | )      |       | 76     |      |   | (29      | )      |   | 0      |     |   | 0      |   |            | 944    |        |   | (488         | )      |   | 0 |   |   | (1 | ) |   | 0 |   |   | 0 |   |   | (604,062 | ) |
| Beginning balances                                                                      |   |   | 1,585,470 |   |   | 1,037  |   |   | 185    |   |   | 377    |   |       | 170    |      |   | 225      |   |   |   |     |   |   |   |            | 112    |        |   | 3,800        |   |   |   |   |   | 29 |   |   |   |   |   | 0 |   |   | 1,591,405 |   |
| Ending balances                                                                         |   |   | 981,710   |   |   | 412    |   |   | 206    |   |   | 177    |   |       | 246    |      |   | 196      |   |   | 0      |     |   | 0      |   |            | 1,056  |        |   | 3,312        |   |   | 0 |   |   | 28 |   |   | 0 |   |   | 0 |   |   | 987,343 |   |

----

|                                             |   |   |      |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   | NON-GUARANTORSUBSIDIARIES |   |      |   |     |   |
|-------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|----------|---------|--------|--------|--------|--------|---------------------------|--------|-----------|--------|----------|--------|
|                                                  |   | Maxcom |      | CTE    |   | MSA    |   | OOP    |   | MSF    |   | MaxcomUSA |   | MaxcomTV |    | TECBTC |   | SCG    |   | Telereunión          |   | SierraUSA |   | Telscape |   | Elimination |   | Consolidated |   |
| Balance sheet as of December 31, 2008:                |   |   |      |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |
| Cash and cash equivalents and Current restricted cash |   | $      | 1,585,470 |   |   | 185    |   |   | 1,037  |   |   | 377       |   |     | 225     |   |   |   |   |                      |   | 170       |   |     | 29     |   |   | 112 |   |   | 3,800 |   |   |   |   | 0 |   |   | 1,591,405 |   |
| Accounts receivable - net                             |   |   | 1,061,998 |   |   | 12,140 |   |   | 75,368 |   |   | 15,948    |   |     | 191,314 |   |   | 110    |   |                      | 50     |      |   | 2,427    |   |   | 212 |   |   | 71,902 |   |   | 2,609 |   |   | 1,163 |   |   | (476,940 | ) |   | 958,301 |   |
| Inventory - net                                       |   |   | 40,876    |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40,876 |   |
| Prepaid expenses                                      |   |   | 24,167    |   |   | 1,124  |   |   | 4,985  |   |   | 92        |   |     |    |   |   |   |   |                      |   |      |   | 22       |   |   |   |   |   | 373 |   |   | 15 |   |   |   |   |   |   |   |   | 30,778 |   |
| Investment in subsidiaries                            |   |   | 341,530   |   |   |   |   |   | 8,820  |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (350,350 | ) |   | 0 |   |
| Frequency rights - net                                |   |   | 66,716    |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 66,716 |   |
| Telephone network system and Equipment net            |   |   | 4,503,806 |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   | 11,143 |   |   | 139,939 |   |   | 8,540 |   |   | 20,985 |   |   |   |   |   | 4,684,413 |   |
| Preoperating expenses - net                           |   |   | 50,595    |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      | 268    |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 50,863 |   |
| Intangible assets - net                               |   |   | 209,683   |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 209,683 |   |
| Deposits                                              |   |   | 2,151     |   |   | 406    |   |   | 7      |   |   |      |   |     | 4,497   |   |   |   |   |                      |   |      |   |     |   |   |   |   |   | 1,235 |   |   | 19 |   |   |   |   |   |   |   |   | 8,315 |   |
| Prepaid expenses long term                            |   |   | 15,381    |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 15,381 |   |
| Derivative financial instruments                      |   |   | 105,270   |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 105,270 |   |
| Deferred taxes                                        |   |   | 90,996    |   |   | 864    |   |   | 5,931  |   |   | 77        |   |     | 16,280  |   |   |   |   |                      | 1      |      |   | 8        |   |   | 3,145 |   |   | 29,995 |   |   |   |   |   | 817 |   |   |   |   |   | 148,114 |   |
| Other assets                                          |   |   | 6,377     |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   | (20 | ) |   |   |   |   |   |   |   | 6,357 |   |
| Total assets                                          |   | $      | 8,105,016 |   |   | 14,719 |   |   | 96,148 |   |   | 16,494    |   |     | 212,316 |   |   | 110    |   |                      | 319    |      |   | 2,627    |   |   | 14,529 |   |   | 243,556 |   |   | 14,963 |   |   | 22,965 |   |   | (827,290 | ) |   | 7,916,472 |   |
| Total liabilities                                     |   | $      | 3,603,847 |   |   | 13,777 |   |   | 70,834 |   |   | 8,633     |   |     | 3,394   |   |   | 7      |   |                      | 292    |      |   | 1,669    |   |   | 111 |   |   | 184,491 |   |   | 4,565 |   |   | 624 |   |   | (476,941 | ) |   | 3,415,303 |   |

----

|                                     |   |   |       |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   | NON-GUARANTORSUBSIDIARIES |   |      |   |     |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|----------|---------|--------|--------|--------|--------|---------------------------|--------|-----------|--------|----------|--------|
|                                          |   | Maxcom |       | CTE    |   | MSA    |   | OOP    |   | MSF    |   | MaxcomUSA |   | MaxcomTV |    | TECBTC |   | SCG    |   | Telereunión          |   | SierraUSA |   | Telscape |   | Elimination |   | Consolidated |   |
|                                          |   |   |       |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |
| Shareholders’ Equity:                   |   |   |       |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |
| Capital Stock and Additional Paid- In Capital |   |   | 6,226,687  |   |   | 96     |   |   | 66     |   |   | 55        |   |     | 171,497 |   |   | 127    |   |                      | 56     |      |   | 54       |   |   | 11,308 |   |   | 712,814 |   |   | 13,044 |   |   | 97,874 |   |   | (1,006,991 | ) |   | 6,226,687 |   |
| Accumulated deficit                           |   |   | (1,705,231 | )      |   | 846    |   |   | 25,248 |   |   | 7,806     |   |     | 37,425  |   |   | (24    | )      |                      | (29    | )         |   | 904      |   |   | 3,110 |   |   | (653,749 | ) |   | (2,646 | ) |   | (75,533 | ) |   | 656,642 |   |   | (1,705,231 | ) |
| Repurchase of shares                          |   |   | (20,287    | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |                      |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (20,287 | ) |
| Total shareholders’ equity              |   |   | 4,501,169  |   |   | 942    |   |   | 25,314 |   |   | 7,861     |   |     | 208,922 |   |   | 103    |   |                      | 27     |      |   | 958      |   |   | 14,418 |   |   | 59,065 |   |   | 10,398 |   |   | 22,341 |   |   | (350,349 | ) |   | 4,501,169 |   |
| Total liabilities and shareholders - equity   |   | $      | 8,105,016  |   |   | 14,719 |   |   | 96,148 |   |   | 16,494    |   |     | 212,316 |   |   | 110    |   |                      | 319    |      |   | 2,627    |   |   | 14,529 |   |   | 243,556 |   |   | 14,963 |   |   | 22,965 |   |   | (827,290 | ) |   | 7,916,472 |   |

----

|                                           |   |   |      |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   | NON-GUARANTOR    |   |      |   |     |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|----------|---------|--------|--------|--------|--------|------------------|--------|-----------|--------|----------|--------|
|                                                |   |   |      |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   | SUBSIDIARIES     |   |      |   |     |   |
|                                                |   | Maxcom |      | CTE    |   | MSA    |   | OOP    |   | MSF    |   | MaxcomUSA |   | MaxcomTV |    | TECBTC |   | SCG    |   | Telereunión |   | SierraUSA |   | Telscape |   | Elimination |   | Consolidated |   |
|                                                |   |   |      |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |
| Total shareholders’ equity under Mexican GAAP |   | $      | 4,501,169 |   |   | 942    |   |   | 25,314 |   |   | 7,861     |   |     | 208,922 |   |   | 103    |   |             | 27     |      |   | 958      |   |   | 14,418 |   |   | 59,065 |   |   | 10,398 |   |   | 22,341 |   |   | (350,349 | ) |   | 4,501,169 |   |
| Preoperating expenses                               |   | $      | (391,951  | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (391,951 | ) |
| Amortization of preoperating expenses               |   |   | 336,172   |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 336,172 |   |
| Capitalization of interest                          |   |   | 8,440     |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,440 |   |
| Amortization of capitalized interest                |   |   | (64,465   | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (64,465 | ) |
| Installation revenues                               |   |   | (76,805   | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (76,805 | ) |
| Installation costs                                  |   |   | (738,412  | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (738,412 | ) |
| Capitalized internal compensation cost              |   |   | (2,000    | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,000 | ) |
| Impairment charge                                   |   |   | 532,315   |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 532,315 |   |
| Severance indemnity liability                       |   |   | (11,297   | )      |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (11,297 | ) |
| SAB 108 initial effect                              |   |   | 7,034     |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,034 |   |
| SAB effects for the year                            |   |   | 3,035     |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,035 |   |
| Recognition of deferred taxes                       |   |   | 111,420   |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 111,420 |   |
| Total shareholders’ equity under US. GAAP     |   | $      | 4,214,655 |   |   |   |   |   |   |   |   |      |   |     |    |   |   |   |   |             |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,214,655 |   |

----

|                                                           |   |   |       |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   | NON-GUARANTORSUBSIDIARIES |   |      |    |     |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|---------|--------|--------|----------|--------|--------|-----------|--------|----------|--------|--------|--------|--------|--------|---------------------------|--------|-----------|---------|----------|--------|
|                                                           |   | Maxcom |       | CTE    |   | MSA     |   | OOP    |     | MSF    |   | MaxcomUSA |   | MaxcomTV |   | TECBTC |   | SCG    |   | Telereunión          |   | SierraUSA |    | Telscape |   | Elimination |   | Consolidated |   |
|                                                           |   |   |       |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |
| Statements of Operations for the year ended December 31, 2008: |   |   |       |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |
| Revenues                                                       |   | $      | 2,676,392  |   |   | 80,022  |   |   | 502,434  |   |   | 90,880    |   |     |   |   |   |   |   |                      | 17,535 |      |    | 213      |   |   | 42,644 |   |   | 2,535 |   |   | 1,164 |   |   | (730,590 | ) |   | 2,683,229 |   |
| Operating cost and expenses                                    |   |   | (2,581,692 | )      |   | (75,630 | )      |   | (424,476 | )      |   | (86,651   | )      |     | (11    | )      |   |   |   | (11                       | )      |      | (16,725 | )        |   | (203 | ) |   | (35,321 | ) |   | (2,092 | ) |   | (15 | ) |   | 731,129 |   |   | (2,491,698 | ) |
| Integral (cost) income of financing                            |   |   | (267,025   | )      |   | (126    | )      |   | (1,683   | )      |   | (159      | )      |     | 17,728 |   |   |   |   |                      |   |      | (35     | )        |   | 3 |   |   | (16,066 | ) |   | (29 | ) |   | (1 | ) |   |   |   |   | (267,393 | ) |
| Other income (expenses)                                        |   |   | (265,438   | )      |   | (3,368  | )      |   | (51,066  | )      |   | (999      | )      |     | 15,284 |   |   |   |   | (3                        | )      |      | 4       |     |   | 3,126 |   |   | (18,206 | ) |   | 74 |   |   | (1,590 | ) |   | (39,719 | ) |   | (361,901 | ) |
| Net (loss) income                                              |   | $      | (437,763   | )      |   | 898     |   |   | 25,209   |   |   | 3,071     |   |     | 33,001 |   |   | 0      |   |                      | (14    | )         |    | 779      |   |   | 3,139 |   |   | (26,949 | ) |   | 488 |   |   | (442 | ) |   | (39,180 | ) |   | (437,763 | ) |
| Net (loss) income for the year under Mexican GAAP              |   | $      | (437,763   | )      |   | 898     |   |   | 25,209   |   |   | 3,071     |   |     | 33,001 |   |   | 0      |   |                      | (14    | )         |    | 779      |   |   | 3,139 |   |   | (26,949 | ) |   | 488 |   |   | (442 | ) |   | (39,180 | ) |   | (437,763 | ) |
| Amortization of preoperating expenses                          |   |   | 22,123     |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 22,123 |   |
| Capitalization of interest                                     |   |   | (112,738   | )      |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (112,738 | ) |
| Amortization of capitalized Interest                           |   |   | (12,118    | )      |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (12,118 | ) |
| Installation revenues                                          |   |   | (2,824     | )      |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,824 | ) |
| Installation costs                                             |   |   | (154,716   | )      |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (154,716 | ) |
| Capitalized internal compensation cost                         |   |   | 143        |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 143 |   |
| Impairment                                                     |   |   | 532,315    |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 532,315 |   |
| Severance indemnity liability                                  |   |   | 2,405      |   |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,405 |   |
| Recognition at deferred taxes                                  |   |   | (76,885    | )      |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (76,885 | ) |
| Net loss (income) for the year Under U.S. GAAP                 |   | $      | (240,058   | )      |   |    |   |   |     |   |   |      |   |     |   |   |   |   |   |                      |   |      |    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (240,058 | ) |

----

|                                                        |   |   | Balance atBeginning ofPeriod |   |   | Charged toCost andExpenses |   |   | Deductions |   |   | Balance at Endof Period |   |
|-------------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------------------------------|--------|--------|------------|--------|--------|----------------------------------------|--------|
| Allowance for doubtful accounts                             | 2010   |   | $                                      | 233.3  |   |                                 | $      | 168.5  |       |   | $      | (85.7                                  | )      |   | $ | 316.0 |   |
|                                                        | 2009   |   | $                                      | 161.9  |   |                                 | $      | 184.1  |       |   | $      | (112.8                                 | )      |   | $ | 233.3 |   |
|                                                        | 2008   |   | $                                      | 107.7  |   |                                 | $      | 106.3  |       |   | $      | (52.0                                  | )      |   | $ | 161.9 |   |
| Allowance for obsolete and slow- moving supply inventories  | 2010   |   | $                                      | 7.1    |   |                                 | $      | 0.9    |       |   | $      | —                                |   |   | $ | 8.0 |   |
|                                                        | 2009   |   | $                                      | 0.0    |   |                                 | $      | 7.1    |       |   | $      | —                                |   |   | $ | 7.1 |   |
|                                                        | 2008   |   | $                                      | 0.3    |   |                                 | $      | (0.3   | )          |   | $      | —                                |   |   | $ | — |   |
| Allowance for obsolete and slow- moving network inventories | 2010   |   | $                                      | 6.7    |   |                                 | $      | 3.4    |       |   | $      | —                                |   |   | $ | 10.0 |   |
|                                                        | 2009   |   | $                                      | 13.7   |   |                                 | $      | (7.0   | )          |   | $      | —                                |   |   | $ | 6.7 |   |
|                                                        | 2008   |   | $                                      | 9.3    |   |                                 | $      | 21.7   |       |   | $      | (17.3                                  | )      |   | $ | 13.7 |   |

----

| 1.1    |   | Amended and Restated Bylaws (estatutos) of Maxcom Telecomunicaciones, S.A. de C.V. (English translation).                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.1    |   | Senior Note Indenture, dated December 20, 2006, among Maxcom Telecomunicaciones, S.A. de C.V., Maxcom Servicios Administrativos, S.A. de C.V., Outsourcing Operadora de Personal, S.A. de C.V., Técnicos Especializados en Telecomunicaciones, S.A. de C.V., Corporativo en Telecomunicaciones, S.A. de C.V., Maxcom SF, S.A. de C.V., Maxcom TV, S.A. de C.V., Maxcom USA, Inc. and Deutsche Bank Trust Company Americas, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 26, 2007, is incorporated herein by reference. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.2    |   | First Supplemental Indenture, dated September 5, 2007, among Maxcom, the guarantors a party thereto and Deutsche Bank Trust Company Americas, as trustee, filed as an exhibit to our registration statement on Form F-1/A (No. 333-145800), filed with the SEC on November 1, 2007, is incorporated herein by reference.                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.3 *  |   | Second Supplemental Indenture, dated January 25, 2008, among Sierra Comunicaciones Globales, S.A. de C.V., the existing guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee.                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.4    |   | Form of Deposit Agreement among Maxcom, the Depositary named therein and all holders of American Depositary Shares issued thereunder, filed as an exhibit to our registration statement on Form F-1/A (No. 333-144771), filed with the SEC on October 2, 2007, is incorporated herein by reference.                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.5    |   | Form of Registration Rights Agreement by and among Maxcom, Nexus-Maxcom Holdings I, LLC, BASCFC-Maxcom Holding I, LLC, BAS Capital Funding Corporation, BankAmerica Investment Corporation and the other stockholders party thereto, filed as an exhibit to our registration statement on Form F-1/A (No. 333-144771), filed with the SEC on October 2, 2007, is incorporated herein by reference.                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.6    |   | Third Amended and Restated Securityholders Agreement, dated July 20, 2006, among Maxcom Telecomunicaciones, S.A. de C.V. and certain of its shareholders, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 26, 2007, is incorporated herein by reference.                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.7    |   | Third Supplemental Indenture dated as of December 31, 2008, among Telereunion, S.A. de C.V., Telescape, S.A. de C.V., Sierra US Communication, Inc. an each a direct or indirect subsiciary of Maxcom Telecomunicaciones S.A.B. de C.V., a limited liability public stock corporation.                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 2.8    |   | Fourth Supplemental Indenture dated as of February 23, 2010, among Asesores Telcoop, S.A. de C.V. an indirect subsiciary of Maxcom Telecomunicaciones S.A.B. de C.V., a limited liability public stock corporation.                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.1    |   | CPO Trust Agreement effective April 25, 2002 among Maxcom., its shareholders and Banco Nacional de México, S.A., Institución de Banca Múltiple, Grupo Financiero Banamex Accival, as trustee, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on July 1, 2002, is incorporated herein by reference.                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.2    |   | CPO Trust Agreement, dated October 17, 2007, among Maxcom Telecomunicaciones, S.A. de C.V., its shareholders and Nacional Financiera, S.N.C. (English translation), filed as an exhibit to our registration statement on Form F-1/A (No. 333-144771), filed with the SEC on October 17, 2007, is incorporated herein by reference.                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.3    |   | CPO Deed, dated October 17, 2007, among Nacional Financiera, S.N.C., Institución de Banca de Desarrollo, Monex Casa de Bolsa, S.A. de C.V., Grupo Financiero Monex and Comisíon Nacional Bancaria y de Valores (English translation), filed as an exhibit to our registration statement on Form F-1/A (No. 333-144771), filed with the SEC on October 17, 2007, is incorporated herein by reference.                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.1    |   | Agreement for the use of infrastructure and installation of fiber optic cable on the highways between Puebla and Mexico, dated August 18, 1998, between Amaritel, S.A. de C.V. (the predecessor of Maxcom Telecomunicaciones, S.A. de C.V.) and Iusatel, S.A. de C.V., filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.2    |   | Interconnection Agreement for long-distance services, dated January 22, 1999, between Amaritel and Teléfonos de México (Telmex) valid for an initial period of two years between February 1, 1999 and January 1, 2001, and in effect thereafter in accordance with article 42 of the Mexican Telecommunications law, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                            |

----

| 4.3    |   | Local Interconnection Service Agreement, dated November 24, 1998, between Amaritel, S.A. de C.V. and Teléfonos de México, S.A. de C.V., filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.4    |   | Amendment to Local Interconnection Service Agreement, dated February 25, 1999, between Amaritel, S.A. de C.V. and Teléfonos de México, S.A. de C.V., originally entered into on November 24, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.5    |   | Metropolitan Network Capacity Sale Agreement, dated April 28, 2000, between Maxcom Telecomunicaciones, S.A. de C.V. and Metro Net, S.A. de C.V., as amended on December 21, 2000, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 29, 2001, is incorporated herein by reference.                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.6    |   | Telecommunications Service Agreement, dated November 15, 1999, between Maxcom and Teléfonos de México, S.A. de C.V. , filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.7    |   | Telecommunications Service Agreement, dated March 9, 1999, between Maxcom and Bestel S.A. de C.V., pursuant to which Bestel will provide long-distance and private call services to Maxcom, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.8    |   | Concession for the installation and operation of telecommunications services granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on December 20, 1996, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.9    |   | Amendment to Concession for the installation and operation of telecommunications services granted to Amaritel by the Secretary of Telecommunications and Transport on December 20, 1996, dated September 8, 1999, extending the coverage of such concession to include various additional municipalities of the State of Mexico, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.10   |   | Amendment to Concession for the installation and operation of telecommunications services granted to Amaritel by the Secretary of Telecommunications and Transport on December 20, 1996, dated December 7, 1999, authorizing Maxcom to employ whatever technologies it deems appropriate in providing telecommunications services to various municipalities, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.11   |   | Amendment to Annex A and B of Concession for the installation and operation of telecommunications services granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on December 20, 1996, dated September 27, 2001, extending the coverage of such concession to include all of Mexico, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.12   |   | Concession for a public telecommunications network in telecommunications regions 3, 5 and 8 granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on April 29, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.13   |   | Concession for the operation of point-to-multipoint microwave telecommunications services in Region 5 granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on April 23, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                                                                              |

----

| 4.14   |   | Concession for the operation of point-to-multipoint microwave telecommunications services in Region 3 granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on April 23, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.15   |   | Concession for the operation of point-to multipoint microwave telecommunications services in Region 8 granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on April 29, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.16   |   | Concessions for the nationwide operation of point-to-point microwave telecommunications services using five frequency bands in the 56 MHz bandwidth, each granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on June 4, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.17   |   | Concessions for the nationwide operation of point-to-point microwave telecommunications services using two frequency bands in the 100 MHz bandwidth, each granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on June 4, 1998, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.18   |   | Amendment to Concession for the operation of point-to-multipoint telecommunications services in Regions 3, 5, 8 granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on April 1, 1998, dated October 12, 1999, regarding the start date for the initiation of services, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.19   |   | Amendment to Concession for the installation and operation of telecommunications services granted to Amaritel, S.A. de C.V. by the Secretary of Telecommunications and Transport on December 20, 1996, dated September 24, 1999 eliminating financial restrictions, filed as an exhibit to our registration statement on Form F-4 (No. 333-11910), filed with the SEC on May 5, 2000, is incorporated herein by reference.                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.20   |   | Warrant Agreement, dated as of March 17, 2000, between Maxcom Telecomunicaciones, S.A. de C.V. and The Bank of New York, as warrant agent, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 29, 2001, is incorporated herein by reference.                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.21   |   | Dark Fiber Optic Purchase Agreement, dated as of August 13, 2002, between Maxcom Telecomunicaciones, S.A. de C.V. and Bestel S.A. de C.V., filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2003, is incorporated herein by reference.                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.22   |   | Transactional Lease Termination Agreement, dated as of May 20, 2003, among Maxcom Telecomunicaciones, S.A. de C.V. and Jacobo Zaga Romano, Jacobo Zaga Buzali, et.al., filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2003, is incorporated herein by reference.                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.23   |   | Capacity Sale Agreement, dated as of October 15, 2003, between Maxcom Telecomunicaciones, S.A. de C.V. and Axtel, S.A. de C.V., filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 24, 2004, is incorporated herein by reference.                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.24   |   | Credit Agreement, dated April 28, 2004, by and among Banco Santander Mexicano, S.A., Institución de Banca Mútiple Grupo Financiero Santander Serfin, as lenders, and Maxcom, as borrower, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2005, is incorporated herein by reference.                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.25   |   | Credit Agreement, dated April 13, 2005, by and among Ixe Banco, S.A., Institución de Banca Mútiple, Ixe Grupo Financiero., as lenders, and Maxcom, as borrower, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2005, is incorporated herein by reference.                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.26   |   | Amendment dated August 5, 2004 to Exhibit B of the Master Agreement to Supply Local Interconnection Services, dated February 25, 1999, between Maxcom and Telefonos de México, S.A. de C.V., filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2005, is incorporated herein by reference.                                                                                                                               |

----

| 4.27   |         | Credit Agreement, dated April 13, 2005, by and among Ixe Banco, S.A., Institución de Banca Múltiple, Ixe Grupo Financiero, as lenders, and Maxcom, as borrower, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference.                                                                                                                                                                                                                                                     |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.28   |         | Credit Agreement, dated October 25, 2005, by and among Ixe Banco, S.A., Institución de Banca Múltiple, Ixe Grupo Financiero, as lenders, Maxcom, as borrower and Maxcom SF, S.A. de C.V. as joint and several obligor, and amendment dated December 13, 2005, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference.                                                                                                                                                       |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.29   |         | Credit Agreement, dated October 21, 2005, by and among Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte, as lenders and Maxcom, as borrower, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference.                                                                                                                                                                                                                                |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.30   |         | Irrevocable Trust Agreement, dated November 21, 2005, by and among Maxcom, as settlor, Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte and Ixe Banco, S.A., Institución de Banca Múltiple, Ixe Grupo Financiero, as trust beneficiaries and HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, Trust Division, as trustees, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference. |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.31   |         | Minutes of Maxcom Shareholders Meeting dated August 31, 2005 approving the spin-off, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                          |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.32   |         | Stock Purchase Agreement, dated November 22, 2005, by and among Maxcom and Maxcom SF, S.A. de C.V., as sellers and Tiendas Comercial Mexicana, S.A. de C.V. and Controladora Comercial Mexicana, S.A. de C.V., as buyers, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference.                                                                                                                                                                                                     |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.33   |         | Supply and Installation Agreement of Video Through DSL (IPTV) System dated December 15, 2006 by and among Maxcom Telecomunicaciones, S.A. de C.V., Alcatel Bell N.V. and Alcatel México, S.A. de C.V., filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 26, 2007, is incorporated herein by reference.                                                                                                                                                                                                                   |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.34   |         | The First Executive Stock Option Plan, which includes a Trust Agreement, dated May 31, 1999, among Maxcom Telecomunicaciones, S.A. de C.V. and Banco Nacional de México (English translation) , filed as an exhibit to our registration statement on Form F-1/A (No. 333-144771), filed with the SEC on September 12, 2007, is incorporated herein by reference.                                                                                                                                                                                          |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.35   |         | Second Executive Stock Option Plan, dated July 17, 2006 (English translation), filed as an exhibit to our registration statement on Form F-1/A (No. 333-144771), filed with the SEC on September 12, 2007, is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 6.1 *  |         | Computation of earnings per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 7.1 *  |         | Computation of ratio of earnings to fixed charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 8.1 *  |         | Subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 11.1   |         | Maxcom’s Code of Ethics adopted March 2006, filed as an exhibit to our annual report on Form 20-F, filed with the SEC on June 30, 2006, is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                             |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 12.1 * |         | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 12.2 * |         | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 13.1 * |         | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 13.2 * |    | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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| ADSL                      |   | (Asymmetrical Digital Subscriber Line) ADSL is a physical-layer protocol that supports up to 8 Mbps bandwidth downstream and up to 1 Mbps upstream. The asymmetrical aspect of ADSL technology makes it ideal for Internet browsing, video on demand, and remote LAN access. Users of these applications typically download more information than they send. ADSL also allows simultaneous voice communication by transmitting data signals outside of the voice frequency range.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Band                      |   | A range of frequencies between two defined limits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Bandwidth                 |   | The relative range of analog frequencies or digital signals that can be passed through a transmission medium, such as glass fibers, without distortion. The greater the bandwidth, the greater the information carrying capacity. Bandwidth is measured in Hertz (analog) or Bits Per Second (digital).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Capacity                  |   | Refers to the ability to transmit voice or data over telecommunications networks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Carrier                   |   | A licensed provider of telecommunications transmission services by fiber, wire or radio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Centrex service           |   | A business telephone service developed originally by Lucent Technologies which offers private branch exchange type features directly from the local telephone company central office, such as voicemail, call pick-up group, abbreviated dialing and multi-line hunting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Churn                     |   | Refers to customer line attrition and is measured as the percentage of disconnects from service relative to the total subscriber base over a given period of time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| COFETEL                   |   | Comisión Federal deTelecomunicaciones, the Mexican Federal Telecommunications Commission.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Digital                   |   | Describes a method of storing, processing and transmitting information through the use of distinct electronic or optical pulses that represent the binary digits 0 and 1. Digital transmission/switching technologies employ a sequence of discrete, distinct pulses to represent information, as opposed to the continuously variable analog signal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| DSLAM                     |   | Digital Subscriber Line Access Multiplexer. A technology to concentrate traffic in ADSL implementations through time division multiplexing at the central office.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| E1                        |   | A digital telephony format that carries data at the rate of 2.048 Mbps (DS-1 level). E-1 is the European and Latin American version of North American T-1, though T-1 is 1.544 Mbps.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Fiber optic technology    |   | Fiber optic systems use laser-generated light to transmit voice, data and video in digital format through ultra-thin strands of glass. Fiber optic systems are characterized by large circuit capacity, good sound quality, resistance to external signal interference and direct interface to digital switching equipment and digital microwave systems. A pair of fiber optic strands using advanced transmission technologies is capable of carrying multiple 2.5 or 10 Gbps communication streams. Because optical signals disperse over distance, they must be regenerated/amplified at sites located along the fiber optic cable. Fiber optic systems using earlier generation fiber require frequent intervals between regeneration/amplifier sites. Greater distances between regeneration/amplifier sites afforded by the use of advanced fiber generally translate into substantially lower installation and operating costs and fewer potential points of failure. |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Fixed wireless local loop |   | A wireless local telephony service using the 3.4-3.7 GHz frequency band.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| FTTH                      |   | Fiber-to-the-home, reference to an all fiber-optic public telephone network design, where broadband services are delivered to the customer premises/network interface by fiber optic.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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| Gbps                                        |   | Gigabits per second. A measurement of speed for digital signal transmission expressed in billions of bits per second (Gbps).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Gulf region                                 |   | 115 cities and towns in eleven states in eastern Mexico, which includes the cities of Puebla, Tampico, Veracruz, Reynosa, Cancun, Chetumal, Merida, Ciudad del Carmen, Campeche, Coatzacoalcos and Tuxtla Gutiérrez, among others.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Hertz                                       |   | The unit measuring the frequency with which an alternating electromagnetic signal cycles through the zero-value state between lowest and highest states. One hertz(abbreviated Hz) equals one cycle per second. KHz (kilohertz) stands for thousands of hertz; MHz (megahertz) stands for millions of hertz and GHz (gigahertz) stands for billions of hertz.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ISDN                                        |   | Integrated Services Digital Network ISDN is an international standard that provides end-to-end digital connectivity to support a wide range of voice, data and video services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| IPTV                                        |   | Internet Protocol Television is also called Internet Television or TV over IP and it refers to the transmission of television signals through the Internet using Internet Protocol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Kbps                                        |   | Kilobits per second, a measurement of speed for digital signal transmission expressed in thousands of bits per second.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Lambdas                                     |   | Lambdas are used as the symbol for wavelength in lightwave systems. Fiber optic systems may use multiple wavelengths of light, with each range of wavelengths appearing in a “window,” roughly corresponding to a color in the visible light spectrum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| LAN                                         |   | Local area network, a private data communications network linking a variety of data devices, such as computer terminals, personal computer terminals, personal computers and microcomputers, all housed in a defined building, plant or geographic area.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Microwave technology                        |   | Although limited in capacity compared with fiber optic systems, digital microwave systems offer an effective and reliable means of transmitting lower volume and narrower bandwidths of voice, data and video signals over short and intermediate distances. Microwaves are very high frequency radio waves that can be reflected, focused and beamed in a line-of-sight transmission path. As a result of their electro-physical properties, microwaves can be used to transmit signals through the air, with relatively little power. To create a communications circuit, microwave signals are transmitted through a focusing antenna, received by an antenna at the next station in the network, then amplified and retransmitted. Because microwaves disperse as they travel through the air, this transmission process must be repeated at repeater stations, which consist of radio equipment, antennae and back-up power sources, located on average every 30 kilometers along the transmission route. |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Mbps                                        |   | MegaBits per second. A measurement of speed for digital signal transmission expressed in millions of bits per second (Mbps).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Multi-line hunting                          |   | A value-added service that allows for multiple calls to be received with a single telephone number.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| PCS                                         |   | Personal Communications Services. PCS has come to represent two things: first, a digital wireless communications service operating over the 1.9 GHz band; and second, more generically, a wireless communications service utilizing a digital network that offers typical features such as voice, video and data applications, short messaging, voicemail, caller identification, call conferencing and call forwarding. Generic PCS suppliers promote this service on the ability of its features to be customized, or “bundled,” to the needs of the individual customers.                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Point- to-multipoint microwave transmission |   | A transmission using microwave technology by which a single signal goes from one origination point to many destination points.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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| Point-to-point microwave transmission |         | A transmission using microwave technology by which a signal goes from one point to another, usually connected by a dedicated transmission line.                                                                                                                                                                                              |
|---------------------------------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| POTS                                  |         | Plain Old Telephone Service. The basic service supplying standard single line telephones, telephone lines and access to the public switched network.                                                                                                                                                                                         |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| Revenue Generated Unit (RGU)          |         | Represents an individual service subscriber who generates recurrent revenue for the Company.                                                                                                                                                                                                                                                 |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| SCT                                   |         | Secretaría de Comunicaciones yTransportes, the Mexican Ministry of Communications and Transportation.                                                                                                                                                                                                                                   |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| Switch                                |         | A device that opens or closes circuits or selects the paths or circuits to be used for transmission of information. Switching is the process of interconnecting circuits to form a transmission path between users.                                                                                                                          |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| Teledensity                           |         | Teledensity is a measure of telephony service in a population. It is calculated by dividing the total subscriber base (number of lines in service) by the inhabitants and multiplying by 100. It is generally used as a comparative measure of network development. All teledensity figures are reported in subscribers per 100 inhabitants. |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| Triple play services                  |         | Triple play services consist combination of voice, data, and video services offered as a bundled service for a price that is less than the price of the individual services acquired individually.                                                                                                                                           |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| VoIP                                  |         | Voice over Internet Protocol services consist in the technology that provides telephone companies with the ability to carry normal telephony-style voice over an Internet Protocol-based Internet with POTS-like functionality, reliability, and voice quality.                                                                              |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| VPN                                   |         | Virtual Private Network. A network design offering the appearance and functionality of a dedicated private network.                                                                                                                                                                                                                          |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| Web-hosting                           |         | A service performed by Internet service providers (also known as ISPs) and Internet access providers (also known as IAPs) consisting in the hosting of outside companies web pages to be displayed on the Internet.                                                                                                                          |
|                                  |         |                                                                                                                                                                                                                                                                                                                                         |
| xDSL                                  |    | XDSL is a physical-layer protocol that supports bandwidth downstream and upstream.                                                                                                                                                                                                                                                           |

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|   | MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. |
|--------|-------------------------------------------|
|   |                                      |
|   | By:                                       | /s/ Miguel Cabredo Benites |
|   |                                      | Miguel Cabredo Benites |
|   |                                      | Chief Financial Officer |

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| 6.1  |         | Computation of earnings per share.                                                                                                                    |
|------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.1  |         | Computation of ratio earnings to fixed charges                                                                                                        |
| 8.1  |         | Subsidiaries of the Registrant.                                                                                                                       |
| 12.1 |         | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).                                                                              |
| 12.2 |         | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).                                                                              |
| 13.1 |         | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 13.2 |    | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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