20-F - AMX - Equibles

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As filed with the Securities and Exchange Commission on

April 2 9

, 2022

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 20-F

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

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year

ended December 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report______________

For the transition period from _______________ to ________________

Commission file number: 1-16269

AMÉRICA MÓVIL, S.A.B. DE C.V.

(exact name of registrant as specified in its charter)

America Mobile

(translation of registrant’s name into English)

United Mexican States

(jurisdiction of incorporation)

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

(address of principal executive offices)

Daniela Lecuona Torras

Lago Zurich 245 ,

Plaza Carso / Edificio Telcel, Piso 16, Colonia Ampliación Granada, Miguel Hidalgo 11529 Mexico City,

Telephone: (5255) 2581-3700 / Facsimile: (5255) 2581-4422

E-mail: daniela.lecuona@americamovil.com

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

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

Title of each class:	Trading symbol	Name of each exchange on which registered
A Shares, without par value	AMOV	New York Stock Exchange
L Shares, without par value	AMX	New York Stock Exchange
3.625% Senior Notes Due 2029	AMX29	New York Stock Exchange
2.875% Senior Notes Due 2030	AMX30	New York Stock Exchange
6.375% Notes Due 2035	AMX35	New York Stock Exchange
6.125% Notes Due 2037	AMX37	New York Stock Exchange
6.125% Senior Notes Due 2040	AMX40	New York Stock Exchange
4.375% Senior Notes Due 2042	AMX42	New York Stock Exchange
4.375% Senior Notes Due 2049	AMX49	New York Stock Exchange

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

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

The number of outstanding shares of each of the registrant’s classes of capital or common stock as of December 31, 2021:

20,555 million	AA Shares
502 million	A Shares
45,582 million	L Shares
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.	Yes	✓	No
---	---	---	---	---
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.	Yes		No	✓
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act <br>of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject <br>to such filing requirements for the past 90 days.	Yes	✓	No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation <br>S-T<br> (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).	Yes	✓	No

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

✓	Large accelerated filer	Accelerated filer	Non-accelerated<br> filer	Emerging growth company
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal <br>control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that <br>prepared or issued its audit report.	Yes	✓	No
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Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing

U.S. GAAP	✓	International Financial Reporting Standards as issued by the International Accounting Standards Board	Other

If “other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 Item 18

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

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TABLE OF CONTENTS
(See Form <br>20-F<br> Cross Reference Guide on page 89)
6	SELECTED FINANCIAL DATA
9	PART I: INFORMATION ON THE COMPANY
10	About América Móvil
16	Our Networks
17	Our Competitors
18	Acquisitions, Other Investments and Divestitures
20	Marketing, Sales and Distribution, Customer Services
22	PART II: OPERATING AND FINANCIAL REVIEW AND PROSPECTS
23	Overview
25	Results of Operations
31	Liquidity and Capital Resources
36	PART III: RISK FACTORS
48	PART IV: SHARE OWNERSHIP AND TRADING
49	Major Shareholders
50	Related Party Transactions
50	Dividends
51	Trading Markets
51	Bylaws
52	Purchases of Equity Securities by the Issuer and Affiliated Purchasers
53	Taxation of Shares and ADSs
58	PART V: CORPORATE GOVERNANCE
59	Management
63	Corporate Governance
65	Controls and Procedures
67	Corporate Sustainability Report
68	Code of Ethics
70	PART VI: REGULATION
85	PART VII: ADDITIONAL INFORMATION
86	Employees
86	Legal Proceedings
87	Principal Accountant Fees and Services
87	Additional Information
88	Forward-Looking Statements
89	Form 20-F Cross Reference Guide
91	Signatures
93	PART VIII: CONSOLIDATED FINANCIAL STATEMENTS

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SELECTED FINANCIAL DATA We prepared our audited consolidated financial statements included in this annual report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The selected financial information should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements. We present our consolidated financial statements in Mexican pesos. This annual report contains translations of various peso amounts into U.S. dollars at specified rates solely for your convenience. You should not construe these translations as representations that the peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, we have translated U.S. dollar amounts from pesos at the exchange rate of Ps.20.5835 to U.S.$1.00, which was the rate reported by Banco de México on December 30, 2021, as published in the Official Gazette of the Federation ( Diario Oficial de la Federación , or “Official Gazette”). On November 23, 2021, we completed the sale of our U.S. operations to Verizon Communications Inc. (“Verizon”), as previously disclosed in our press release furnished on a report on Form 6-K on November 23, 2021. As a result, in accordance with IFRS 5, TracFone Wireless Inc.’s (“TracFone”) operations are classified as discontinued operations for all years presented in the consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes TracFone, including for periods prior to the sale. We have not included earnings or dividends on a per American Depositary Share (“ADS”) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares.

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	FOR THE YEAR ENDED DECEMBER 31,
			2019			2020			2021			2021
		(in millions of Mexican pesos, except share and per share amounts)									(in millions of U.S. dollars, <br>except share and per<br> share amounts)
STATEMENT OF COMPREHENSIVE INCOME DATA:
Operating revenues		Ps.		851,483	Ps.		839,707	Ps.		855,535	U.S.		41,564
Operating costs and expenses				707,685			694,204			689,402			33,494
Depreciation and amortization				157,519			162,682			162,627			7,901
Operating income				143,798			145,503			166,133			8,070
Net profit for the year continued		Ps.		60,468	Ps.		34,034	Ps.		74,615	U.S.		3,625
Net profit for the year discontinued				9,845			16,993			121,711			5,913
Net profit for the year		Ps.		70,313	Ps.		51,027	Ps.		196,326	U.S.		9,538
Net profit attributable for the year to:
Equity holders of the parent continued		Ps.		57,886	Ps.		29,860	Ps.		70,712	U.S.		3,435
Equity holders of the parent discontinued				9,845			16,993			121,711			5,913
Equity holders of the parent		Ps.		67,731	Ps.		46,853	Ps.		192,423	U.S.		9,348
Non-controlling<br> interests				2,582			4,174			3,903			190
Net profit for the year		Ps.		70,313	Ps.		51,027	Ps.		196,326	U.S.		9,538
Earnings per share:
Basic diluted continued		Ps.		0.88	Ps.		0.45	Ps.		1.07	U.S.		0.05
Basic diluted discontinued		Ps.		0.15	Ps.		0.26	Ps.		1.85	U.S.		0.09
Dividends declared per share <br>(1)		Ps.		0.35	Ps.		0.38	Ps.		0.40	U.S.		0.02
Weighted average number of shares outstanding (millions):
Basic				66,016			66,265			65,967	-
Diluted				66,016			66,265			65,967	-
BALANCE SHEET DATA:
Property, plant and equipment, net		Ps.		639,343	Ps.		722,930	Ps.		731,197	U.S.		35,523
Right of use assets				118,003			101,977			90,372			4,391
Total assets				1,531,934			1,625,048			1,689,650			82,086
Short-term debt and current portion of long-term<br> <br>debt				129,172			148,083			145,223			7,055
Short-term lease debt				25,895			25,068			27,632			1,342
Long-term debt				495,082			480,300			418,807			20,347
Long-term lease debt				94,702			84,259			71,022			3,450
Capital stock				96,338			96,342			96,333			4,680
Total equity		Ps.		226,907	Ps.		315,118	Ps.		454,042	U.S.		22,057
NUMBER OF OUTSTANDING SHARES (MILLIONS):
AA Shares				20,607			20,578			20,555			-
A Shares				531			520			502			-
L Shares				44,872			45,764			43,633			-
(1)	Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting that year. For information on dividends paid per share translated into U.S. dollars, see “Share Ownership and Trading—Dividends” under Part IV of this annual report.
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(2)	For the years 2019 to 2020 the financial statements were modified for the sale of TracFone. See Note 2 Ac to our audited consolidated financial statements included in this annual report.
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BUSINESS OVERVIEW

We provide telecommunications services in 24 countries. We are a leading telecommunications services provider in Latin America, ranking first in wireless, fixed-line, broadband and Pay TV services based on the number of revenue generating units (“RGUs”).

Our largest operations are in Mexico and Brazil, which together account for over half of our total RGUs and where we have the largest market share based on RGUs. We also have operations in 15 other countries in the Americas and seven countries in Central and Eastern Europe as of December 31, 2021. For a list of our principal subsidiaries, see Note 2 a(ii) to our audited consolidated financial statements and “Additional Information—Exhibit 8.1” under Part VII of this annual report.

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

On November 23, 2021, we completed the sale of our U.S. operations to Verizon, as previously disclosed in our press release furnished on a report on Form 6-K on November 23, 2021. As a result, in accordance with IFRS 5, TracFone’s operations are classified as discontinued operations for all years presented in the consolidated financial information included in this report. Accordingly, results are presented in a single amount as profit after tax from discontinued operations in the consolidated financial information included in this annual report. Operating and financial information presented herein therefore excludes Tracfone, including for periods prior to the sale.

The following map illustrates the geographic diversity of our operations and certain key performance indicators (“KPIs”) as of December 31, 2021.

HISTORY AND CORPORATE INFORMATION

América Móvil, S.A.B. de C.V. (“América Móvil,” “we” or the “Company”) is a

Sociedad Anónima Bursátil de Capital Variable

organized under the laws of Mexico.

We were established in 2000 when Teléfonos de México, S.A.B. de C.V. (“Telmex”), a fixed-line Mexican telecommunications operator privatized in 1990, spun off to us its wireless operations in Mexico and other countries. We have made significant acquisitions throughout Latin America, the United States, the Caribbean and Europe, and we have also expanded our businesses organically.

Our principal executive offices are located at Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico. Our telephone number at this location is (5255) 2581-3700.

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KEY PERFORMANCE INDICATORS

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

•	Mexico Wireless;
•	Mexico Fixed;
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•	Brazil;
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•	Colombia;
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•	Southern Cone (Argentina, Chile, Paraguay and Uruguay);
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•	Andean Region (Ecuador and Peru);
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•	Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama);
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•	the Caribbean (the Dominican Republic and Puerto Rico); and
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•	Europe (Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia).
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	AS OF DECEMBER 31,
---	---	---	---	---	---	---
	2019		2020		2021
			(in thousands)
WIRELESS SUBSCRIBERS
Mexico		76,918		77,789		80,539
Brazil		54,488		63,140		70,541
Colombia		31,104		33,009		35,062
Southern Cone		31,507		30,669		33,322
Andean Region		20,104		18,877		20,774
Central America		15,488		15,044		16,508
Caribbean		6,244		6,422		7,020
Europe		21,296		21,864		22,766
Total Wireless Subscribers		257,149		266,814		286,532
FIXED RGUS:
Mexico		21,992		21,925		21,408
Brazil		34,048		32,648		31,287
Colombia		7,613		8,318		8,876
Southern Cone		2,514		2,836		3,349
Andean Region		2,049		2,158		2,444
Central America		4,409		4,247		4,412
Caribbean		2,528		2,558		2,608
Europe		6,143		6,050		6,082
Total Fixed RGUs		81,296		80,740		80,466
Total RGUs		338,445		347,554		366,998

PRINCIPAL BRANDS

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

COUNTRY	PRINCIPAL BRANDS	SERVICES AND PRODUCTS
Mexico	Telcel	Wireless voice
		Wireless data
	Telmex Infinitum	Fixed voice
		Fixed data
Europe	A1	Wireless voice
		Wireless data
		Fixed voice
		Fixed data
		Pay TV

SERVICES AND PRODUCTS

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

Wireless Operations

In 2021, our wireless voice and data operations generated revenues of Ps.549.7 billion, representing 54.5% of our consolidated revenues. As of December 31, 2021, our wireless operations represented approximately 78.1% of our total RGUs, the same as of December 31, 2020.

VOICE AND DATA.

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

The voice and data plans are either “postpaid,” where the customer is billed monthly for the previous month, or “prepaid,” where the customer pays in advance for a specified volume of use over a specified period. Postpaid plans increased as a percentage of the wireless base from 34.0% in December 2020 to 37.6% as of December 31, 2021, while prepaid plans represented 62.4% as of December 31, 2021.

Our wireless voice services are offered under a variety of plans to meet the needs of different market segments. In addition, we often bundle wireless data communications services together with wireless voice services. Our wireless subsidiaries had approximately 286.5 million wireless voice and data subscribers as of December 31, 2021.

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

In general, our average rates per minute of wireless voice are very competitive for both prepaid and postpaid plans. On average, rates per minute of wireless voice used in 2021 decreased by approximately 1.1% at constant exchange rates relative to 2020.

In addition, the plans we offer our retail customers include selective discounts and promotions that reduce the rates our customers pay.

VALUE-ADDED SERVICES.

As part of our wireless data business, our subsidiaries offer value-added services that include Internet access, messaging and other wireless entertainment and corporate services through GSM/EDGE, 3G and 4G LTE networks.

Internet services include roaming capability and wireless Internet connectivity for feature phones, smartphones, tablets and laptops, including data transmission, e-mail services, instant messaging, content streaming and interactive applications. For example, in Mexico, our website for our wireless services (www.telcel.com) through Radiomóvil Dipsa, S.A. de C.V (”Telcel“), offers a wide range of services and content such as video, music, games and other applications, which our subscribers can access from mobile devices. In addition, we offer other wireless services, including wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network (”VPN“) services, video calls and personal communications services (”PCS“).

Fixed Operations

In 2021, our fixed voice, data, broadband and IT solutions had revenues of Ps.272.3 billion, representing 27.0% of our consolidated revenues. As of December 31, 2021, our fixed operations represented approximately 21.9% of our total RGUs, the same as of December 31, 2020.

VOICE.

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

DATA.

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

BROADBAND.

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

IT SOLUTIONS.

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

Pay TV

We offer Pay TV through cable and satellite TV subscriptions to both retail and corporate customers under a variety of plans. As of December 31, 2021, we had approximately 19.8 million Pay TV RGUs, a decrease of approximately 309 thousand Pay TV RGUs from the prior year.

Equipment, accessories and computer sales

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

Other Services

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

OTT Services

We sell video, audio and other media content that is delivered through the internet directly from the content provider to the viewer or end user. Our most important service is ClaroVideo, an on-demand internet streaming video provider with more than 20,900 content titles sold across all the Latin American and Caribbean markets in which we operate. We offer bundled packages of ClaroVideo, which may include:

•	Subscription video on demand, providing unlimited access to a catalogue of over 20,900 titles for a fixed monthly subscription fee;
•	Transactional video on demand and electronic sell-through, offering the option to rent or buy new content releases; and
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•	Add-on<br> services such as subscription and other OTT services through a platform payment system, including access to FOX, HBO, Noggin and Paramount+, among others.
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We also offer an advertised and unlimited music streaming and downloading service in 16 countries in Latin America and Europe through ClaroMúsica, with access to approximately 50 million titles across all music genres.

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Services and Products by Country

The following table is a summary of our principal services rendered and products produced as of December 31, 2021 in the countries in which we operate.

	WIRELESS VOICE, DATA AND<br>VALUE ADDED SERVICES<br><br>(1)	FIXED VOICE, BROADBAND,<br>DATA AND IT SERVICES<br><br>(2)	PAY TV	OTT SERVICES<br><br>(3)
Argentina	🌑	🌑	🌑	🌑
Austria	🌑	🌑	🌑	🌑
Belarus	🌑	🌑	🌑	🌑
Brazil	🌑	🌑	🌑	🌑
Bulgaria	🌑	🌑	🌑	🌑
Chile	🌑	🌑	🌑	🌑
Colombia	🌑	🌑	🌑	🌑
Costa Rica	🌑	🌑	🌑	🌑
Croatia	🌑	🌑	🌑	🌑
Dominican Republic	🌑	🌑	🌑	🌑
Ecuador	🌑	🌑	🌑	🌑
El Salvador	🌑	🌑	🌑	🌑
Guatemala	🌑	🌑	🌑	🌑
Honduras	🌑	🌑	🌑	🌑
Macedonia	🌑	🌑	🌑	🌑
Mexico	🌑	🌑		🌑<br><br>(4)
Nicaragua	🌑	🌑	🌑	🌑
Panama	🌑	🌑	🌑	🌑
Paraguay	🌑	🌑	🌑	🌑
Peru	🌑	🌑	🌑	🌑
Puerto Rico	🌑	🌑	🌑	🌑
Serbia	🌑			🌑
Slovenia	🌑	🌑	🌑	🌑
Uruguay	🌑			🌑
(1)<br> Includes voice communication and international roaming services, interconnection and termination services, SMS, MMS, <br>e-mail,<br> mobile browsing, entertainment and gaming applications.<br><br>(2)<br> Includes local calls, national and international long distance.<br><br>(3)<br> Includes ClaroVideo and ClaroMúsica.<br><br>(4)<br> Services provided by <br>non-concessionaire<br> subsidiaries.

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

INFRASTRUCTURE

For the year ended December 31, 2021, our capital expenditures totaled Ps.158.1 billion, which allowed us to increase our network, to expand our capacity and to upgrade our systems to operate with the latest technologies. With fully convergent platforms, we are able to deliver high-quality voice, video and data products.

As of December 31, 2021, the main components of our infrastructure were comprised of:

•	Cell sites:<br>102,818 sites with 2G, 3G and 4G technologies across Latin America and Europe. Tower space for our cell sites is a combination of towers we own and tower spaces leased from third parties. Additionally, we have been expanding our coverage and improving quality and speed with a number of street cells and indoor solutions. Our Board of Directors and Stockholders’ Meeting have approved a <br>spin-off<br> of our towers and related passive infrastructure in Latin America outside of Mexico. See “Acquisitions, Other Investments and Divestitures.”
•	Fiber-optic network:<br>More than 1,035 km. Our network passed approximately 88 million homes.
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•	Submarine cable systems:<br>Capacity in more than 197 thousand km of submarine cables, including the <br>AMX-1<br> submarine cable that extends 18,300 km and connects the United States to Central and South America with 13 landing points and also the South Pacific Submarine Cable that extends 7,300 km along the Latin American Pacific coast, connecting Guatemala, Ecuador, Peru and Chile with 5 landing points. Both systems provide international connectivity to all of our subsidiaries in these geographic areas.
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•	Satellites:<br>Five. Star One S.A. (“Star One”) has the most extensive satellite system in Latin America, with a fleet that covers the United States, Mexico, Central America and South America. We use these satellites to supply capacity for DTH services for Claro TV throughout Brazil and in other DTH Operations, as well as cellular backhaul, video broadcast and corporate data networks.
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•	Data centers:<br>32. We use our data centers to manage a number of cloud solutions, such as Infrastructure as a
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Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications.
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TECHNOLOGY

Our primary wireless networks use GSM/EDGE, 3G and 4G LTE technologies, which we offer in most of the countries where we operate. We aim to increase the speed of transmission of our data services and have been expanding our 3G and 4G LTE coverage. We have begun our 5G rollout in some countries. In February 2022, we launched 5G through Telcel, which is the largest data infrastructure deployment in Latin America. At launch, we cover 18 cities in the country and by end of the year we will cover 120 cities.

We transmit wireless calls and data through radio frequencies that we use under spectrum licenses. Spectrum is a limited resource, and, as a result, we may face spectrum and capacity constraints on our wireless network. We continue to invest significant capital in expanding our network capacity and reach and to address spectrum and capacity constraints on a market-by-market basis.

The table below presents a summary of the population covered by our network, by country, as of December 31, 2021.

GENERATION TECHNOLOGY
	GSM			UMTS			LTE			5G
	(% of covered population)
Argentina		99	%		98	%		97	%		-
Austria		100	%		96	%		99	%		62	%
Belarus		100	%		100	%		0	%		-
Brazil		94	%		95	%		87	%		17	%
Bulgaria		100	%		100	%		99	%		52	%
Chile		97	%		97	%		98	%		-
Colombia		91	%		80	%		73	%		-
Costa Rica		85	%		86	%		96	%		-
Croatia		99	%		99	%		99	%		13	%
Dominican Republic		100	%		99	%		97	%		6	%
Ecuador		96	%		80	%		78	%		-
El Salvador		91	%		88	%		87	%		-
Guatemala		89	%		89	%		88	%		-
Honduras		81	%		82	%		72	%		-
Macedonia		100	%		100	%		99	%		-
Mexico		94	%		95	%		93	%		-
Nicaragua		72	%		72	%		50	%		-
Panama		82	%		90	%		86	%		-
Paraguay		77	%		80	%		83	%		-
Peru		88	%		83	%		83	%		18	%
Puerto Rico		82	%		94	%		99	%		49	%
Serbia		99	%		98	%		98	%		-
Slovenia		100	%		100	%		99	%		19	%
Uruguay		100	%		99	%		98	%		-

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We operate in an intensely competitive industry. Competitive factors within our industry include pricing, brand recognition, service and product offerings, customer experience, network coverage and quality, development and deployment of technologies, availability of additional spectrum licenses and regulatory developments.

Our principal competitors differ, depending on the geographical market and the types of service we offer. We compete against other providers of wireless, broadband and Pay TV that operate on a multi-national level, such as AT&T Inc., Teléfonica and Millicom, as well as various providers that operate on a nationwide level, such as Telecom Argentina in Argentina and Telecom Italia in Brazil.

Competition remains intense as a result of saturation in the fixed and wireless market, increased network investment by our competitors, the development and deployment of new technologies, the introduction of new products and services, new market entrants, the availability of additional spectrum, both licensed and unlicensed, and regulatory changes.

The effects of competition on our subsidiaries depend, in part, on the size, service offerings, financial strength and business strategies of their competitors, regulatory developments and the general economic and business climate in the countries in which they operate, including demand growth, interest rates, inflation and exchange rates. The effects could include loss of market share and pressure to reduce rates. See “Regulation” under Part VI and “Risk Factors” under Part III of this annual report.

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Geographic diversification has been a key to our financial success, as it has provided for greater stability in our cash flow and profitability and has contributed to our strong credit ratings. In recent years, we have been evaluating the expansion of our operations to regions outside of Latin America. We believe that Europe and other areas beyond Latin America present opportunities for investment in the telecommunications sector that could benefit us and our shareholders over the long term.

We continue to seek ways to optimize our portfolio, including by finding investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often have several possible acquisitions under consideration. We may pursue opportunities in Latin America or in other areas in the world. Some of the assets that we acquire may require significant funding for capital expenditures. We can give no assurance as to the extent, timing or cost of such investments. We also periodically evaluate opportunities for dispositions, in particular for businesses and in geographies that we no longer consider strategic. The following are recent developments relating to acquisitions, other investments and divestitures:

•	On September 13, 2020, we entered into an agreement to sell our wholly-owned subsidiary TracFone to Verizon. On November 23, 2021, we completed the sale of TracFone to Verizon. We received the closing consideration of U.S.$3,625.7 million in cash, which included U.S.$500.7 million of customary adjustment for TracFone’s cash and working capital and 57,596,544 shares of Verizon’s common stock, par value U.S.$0.10 per share. Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in payments by us. Subject to TracFone continuing to achieve certain operating metrics <br>(earn-out),<br> Verizon will be required pay up to an additional U.S.$650 million of cash consideration within two years from November 23, 2021.
•	In December 2020, our Brazilian subsidiary, Claro S.A. (“Claro Brasil”), together with two other offerors, won a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro Brasil will pay R$3.6 billion for 32% of Oi Group’s mobile business and approximately 4.7 thousand mobile access sites (representing 32% of Oi Group’s mobile business access sites). Claro Brasil also committed to enter into long term
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agreements with Oi Group for the supply of data transmission capacity. This transaction closed on April 20, 2022.
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•	In February 2021, our Board of Directors approved a plan to spin off our telecommunications towers and other related passive infrastructure in Latin America outside of Mexico. The <br>spin-off<br> was approved by our shareholders in an extraordinary shareholders’ meeting on September 29, 2021. In the <br>spin-off<br> and the associated corporate restructuring, we will contribute to Sitios a portion of our capital stock, assets and liabilities, mainly consisting of the shares of our subsidiaries holding telecommunications towers and other associated infrastructure in Latin America outside of Mexico, other than Colombia and our telecommunications towers existing in Peru prior to the <br>spin-off.<br> This operation is intended to maximize the infrastructure’s value, as the resulting entity, to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), will be separate from América Móvil and will have its own management and personnel, who will be exclusively focused on developing, building and leasing telecommunications towers for wireless services. We will have master services agreements with subsidiaries of Sitios under which we will have access to and use of the tower space to provide wireless services. Completion of the <br>spin-off<br> is subject to the fulfillment of conditions that are typical in these type of transactions, as well as the implementation of several previous steps in several of the countries involved in the transaction, including receipt of confirmation from the Mexican Tax Administration Service (<br>Servicio de Administración Tributaria<br>) that the <br>spin-off<br> and the transactions contemplated thereby, among other things, comply with all requirements under Mexican tax law and regulations so that the <br>spin-off<br> and the corporate reorganization arising from it are considered neutral for Mexican tax purposes, and the receipt of all necessary approvals in the applicable countries and the expiration of all legal or statutory waiting periods for its effectiveness in all applicable countries, all of which are outside of our control.
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•	On September 15, 2021, we announced that we entered into an agreement with Cable & Wireless Panama, S.A., an affiliate of Liberty Latin America LTD., to sell 100% of our interest in our subsidiary Claro Panama, S.A. The transaction excludes (i) all telecommunication towers owned indirectly by América Móvil in Panama and (ii) the Claro trademarks. The agreed purchase price is U.S.$200 million on a cash/ debt free basis. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals, and we expect closing to occur during the first half of 2022.
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•

On September 29, 2021, we announced an agreement with Liberty Latin America LTD. to combine our respective Chilean operations, VTR Communicaciones SpA (“VTR”) and Claro Chile, to form a 50- 50 joint venture. The proposed transaction combines the complementary operations of VTR, a leading provider of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers nationwide, and Claro Chile, one of Chile’s leading telecommunications service providers with over 6.5 million mobile customers. Completion of the transaction is subject to certain customary closing conditions, including obtaining required regulatory approvals, and we expect closing to occur during the second half of 2022.

For additional information on our acquisitions and investments, see Note 12 to our audited consolidated financial statements included in this annual report.

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MARKETING

We advertise our services and products through different channels with consistent and distinct branding and targeted marketing. We advertise via print, radio, television, digital media, sports event sponsorships and other outdoor advertising campaigns. In 2021, our efforts were mainly focused on promoting our 4.5G LTE services, leveraging the speed and quality of our networks and our fixed bundled offers, which compete on broadband speed and premium content.

We build on the strength of our well-recognized brand names to increase consumer awareness and customer loyalty. Building brand recognition is crucial for our business, and we have managed to position our brands as those of a premium carrier in most countries where we operate. According to the 2021 Brand Finance Telecom 150 report, Claro and Telcel rank among the top fifty strongest brands in the telecom sector worldwide. Also, in the Brand Finance Latin America report Claro was named the most valuable telecom brand in the Latin America region and Telcel one of the top ten strongest brands. In addition, a year-end 2021 study by Austrian Brand Monitor found that A1, the brand name behind Telekom Austria AG (“Telekom Austria” or “TKA”), ranked number one in the Austrian telecommunications market for brand preference.

SALES AND DISTRIBUTION

Our extensive sales and distribution channels help us attract new customers and develop new business opportunities. We primarily sell our services and products through a network of retailers and service centers for retail customers and a dedicated sales force for corporate customers, with more than 402,000 points of sale and more than 3,300 customer service centers. Our subsidiaries also sell their services and products online.

CUSTOMER SERVICE

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

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INTRODUCTION

Effects of the COVID-19 Pandemic

The unprecedented health crisis arising from the COVID-19 pandemic has resulted in a severe global economic downturn and has caused significant volatility, uncertainty, and disruption. We continue to monitor the evolution of the COVID-19 pandemic in the countries where we operate to take preventive measures to ensure the continuity of operations and safeguard the health and safety of our personnel and customers.

During 2021, there were lockdowns and other measures implemented to control the spread of COVID-19 in our region of operations, resulting in the closure of shops and customer-care centers, the imposition of constraints on the mobility of our clients and the disruption of our supply chain for handsets and other equipment. In order to mitigate the effects of supply-chain disruption and handset scarcity, we began ordering excess quantities of handsets in each country in which we operate in October, November and December of 2021. Most major smartphone manufacturers were able to respond to our increased handset orders.

Our investments in capital expenditures are expected to return to pre-pandemic levels in 2022.

Segments

We have operations in 24 countries, which are aggregated for financial reporting purposes into ten reportable segments. Our operations in Mexico are presented in two segments—Mexico Wireless and Mexico Fixed, which consist principally of Telcel and Telmex, respectively. Our headquarters operations are allocated to the Mexico Wireless segment. Financial information about our segments is presented in Note 23 to our audited consolidated financial statements included in this annual report.

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

Constant Currency Presentation

Our financial statements are presented in Mexican pesos, but our operations outside Mexico account for a significant portion of our revenues. Currency variations between the Mexican peso and the currencies of our non-Mexican subsidiaries, especially the Euro, U.S. dollar, Brazilian real, Colombian and Argentine peso, affect our results of operations as reported in Mexican pesos. In the following discussion regarding our operating results, we include a

discussion of the change in the different components of our revenues between periods at constant exchange rates, i.e., using the same exchange rate to translate the local-currency results of our non-Mexican operations for both periods. We believe that this additional information helps investors better understand the performance of our non-Mexican operations and their contribution to our consolidated results.

Effects of Exchange Rates

Our results of operations are affected by changes in currency exchange rates. In 2021 compared to 2020, the Mexican peso was stronger against some of our operating currencies, including the U.S. Dollar and the Euro.

Since most of our debt is issued by América Móvil out of Mexico, to the extent that our functional currency, the Mexican peso, appreciates or depreciates against the currencies in which our indebtedness is denominated, we may incur foreign exchange gains or losses that are recorded as other comprehensive income in our consolidated statements of financial position.

Changes in exchange rates also affect the fair value of derivative financial instruments that we use to manage our currency-risk exposure, which are generally not accounted for as hedging instruments. In 2021, the Mexican peso strengthened against the currencies in which most of our indebtedness is denominated, and we recorded net foreign exchange losses of Ps.17.0 and net fair value losses on derivatives of Ps.6.8. In 2020, the Mexican peso weakened against the currencies in which most of our indebtedness is denominated, and we recorded net foreign exchange losses of Ps.65.4 billion and net fair value gains on derivatives of Ps.12.4 billion. See Note 7 to our audited consolidated financial statements included in this annual report.

Effects of Regulation

We operate in a regulated industry. Our results of operations and financial condition have been, and will continue to be, affected by regulatory actions and changes. Significant regulatory developments are presented in more detail in “Regulation” under Part VI and “Risk Factors” under Part III of this annual report.

Comparison of Results of Operations Between 2020 and 2019

Discussions of year-over-year comparisons between 2020 and 2019 that are not included in this report can be found in under Part II, Operating and Financial Review and Prospects of our Form 20-F for the fiscal year ended December 31, 2020 as filed on April 29, 2021.

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Composition of Operating Revenues

In 2021, our total operating revenues were Ps.855.5.

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

Revenues from wireless and fixed data services primarily include charges for data, cloud, internet, machine-to-machine, OTT services and data center services. In addition, revenues from value-added services and IT solutions, including revenues from dedicated links and VPN services to our corporate clients, also contribute to our results for wireless and fixed data services.

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

Equipment, accessories and computer sales revenues primarily include revenues from the sale of handsets, accessories and other equipment such as smart devices. Most of our sales in handsets are driven by the number of new customers and contract renewals.

Other services primarily include revenues from software and system development, call center services, entertainment content and news, telephone directories, advertising, cybersecurity services, mobile banking and corporate IT solutions.

Seasonality of our Business

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

General Trends Affecting Operating Results

Our results of operations in 2021 reflected several continuing long-term trends, including:

•	intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as declining customer prices;

•	developments in the telecommunications regulatory environment;
•	growing demand for data services over fixed and wireless networks, as well as for smartphones and devices with data service capabilities;
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•	declining demand for voice services;
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•	increasing capital expenditures in line with our historical capital expenditure levels after a decrease in capital expenditures in 2020 due to pressures from the <br>COVID-19<br> pandemic;
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•	our continued strategic focus on controlling operating costs in view of pressures from costs of customer care, the growing size and complexity of our infrastructure and general price inflation; and
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•	instability in economic conditions caused by political uncertainty, inflation and volatility in financial markets and exchange rates.
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These trends are broadly characteristic of our businesses in all regions in recent years, and they have affected comparable telecommunications providers as well.

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CONSOLIDATED RESULTS OF OPERATIONS FOR 2021 AND 2020

Operating Revenues

Total operating revenues for 2021 increased by 1.9%, or Ps.15.8 billion, over 2020. At constant exchange rates, total operating revenues for 2021 increased by 7.8% over 2020. This increase principally reflects an increase in one-off items including the impact of the sale of towers by our subsidiary Telmex and an increase in equipment sales and handset financing revenues, partially offset by a decrease in Pay TV service revenues.

SERVICE REVENUES.

Service revenues for 2021 increased by 0.8%, or Ps.5.8 billion, over 2020. At constant exchange rates, service revenues for 2021 increased by 6.8% over 2020. This increase principally reflects increases in revenues from our postpaid mobile services, fixed broadband and corporate networks, which were partially offset by a decrease in revenues from our Pay TV services.

SALES OF EQUIPMENT.

Sales of equipment revenues for 2021 increased by 7.7%, or Ps.10.1 billion, over 2020. At constant exchange rates, sales of equipment revenues for 2021 increased by 12.8% over 2020. This increase principally reflects higher sales of smartphones, data-enabled devices and accessories.

Operating Costs and Expenses

TOTAL OPERATING COSTS AND EXPENSES.

Total operating costs and expenses for 2021 decreased by 0.9%, or Ps.4.8 billion, over 2020. At constant exchange rates, total operating costs and expenses for 2021 increased by 4.9% over 2020. This increase in operating costs and expenses at constant exchange rates principally reflects increased network maintenance, infrastructure, lease space and electric energy costs and certain one-off items, including a write-off of certain uncollectible accounts.

COST OF SALES AND SERVICES.

Cost of sales and services increased by 1.8%, or Ps.6.2 billion, over 2020. At constant exchange rates, cost of sales and services for 2021 increased by 7.3% over 2020. This increase principally reflects an increase in sales of higher-end smartphones and handset financing plans as well as increased network maintenance, infrastructure, lease space and electricity costs. This increase, which was also due to inflationary pressures, was partially offset by the success of our continued cost savings program.

COMMERCIAL, ADMINISTRATIVE AND GENERAL EXPENSES.

Commercial, administrative and general expenses for 2021 decreased by 5.8%, or Ps.11.1 billion, over 2020. As a percentage of operating revenues, commercial, administrative and general expenses were 21.1% for 2021, as compared to

22.9% for 2020. At constant exchange rates, commercial, administrative and general expenses for 2021 increased by 0.7% over 2020. This increase principally reflects one-off items, including a write-off of certain uncollectible accounts, which decreased our balance of expenditures.

OTHER EXPENSES.

Other expenses for 2021 increased by Ps.0.1 billion over 2020.

DEPRECIATION AND AMORTIZATION.

Depreciation and amortization for 2021 decreased by 0.03%, or Ps.0.1 billion, over 2020. As a percentage of operating revenues, depreciation and amortization were 19.0% for 2021, as compared to 19.4% for 2020. At constant exchange rates, depreciation and amortization for 2021 increased by 8.5% over 2020. This increase principally reflects depreciation and amortization expenses resulting from the revaluation of the passive infrastructure of the telecommunications towers, which became effective as of December 31, 2020.

Operating Income

Operating income for 2021 increased by 14.2%, or Ps.20.6 billion, over 2020. Operating margin (operating income as a percentage of operating revenues) was 19.4% for 2021, as compared to 17.3% for 2020.

Non-Operating Items

NET INTEREST EXPENSE.

Net interest expense (interest expense less interest income) for 2021 decreased by 4.2%, or Ps.1.4 billion, over 2020. This decrease principally reflects a decrease in interest expense on lease liabilities and a decrease in interest on debt.

FOREIGN CURRENCY EXCHANGE LOSSES,

NET. We recorded a net foreign currency exchange loss of Ps.17.0 billion for 2021, compared to our net foreign currency exchange loss of Ps.65.4 billion for 2020. The loss principally reflects the appreciation of some of the currencies in which our indebtedness is denominated, particularly the euro and the U.S. dollar.

VALUATION OF DERIVATIVES, INTEREST COST FROM LABOR OBLIGATIONS AND OTHER FINANCIAL ITEMS, NET.

We recorded a net loss of Ps.14.3 billion for 2021 on the valuation of derivatives, interest cost from labor obligations and other financial items, net, compared to a net gain of Ps.1.3 billion for 2020. The change in 2021 principally reflects a loss on hedging instruments as a result of the depreciation of some of the currencies in which our indebtedness is denominated.

INCOME TAX.

Our income tax expense related to continuing operations for 2021 increased by 108.3%, or Ps.14.6 billion, over 2020. This increase principally reflects higher profit before income tax due to a decrease in our net foreign currency exchange loss of Ps.48.3 billion compared to 2020.

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Our income tax expense related to discontinued operations for 2021 resulted from the sale of 100% of our ownership in TracFone as described above.

Our effective corporate income tax rate as a percentage of profit before income tax was 22.5% for 2021, compared to 24.3% for 2020. This rate differed from the Mexican statutory rate of 30.0% and changed year over year principally due to our discontinued operations, local tax inflation effects and registry of benefits related to tax losses credits in Brazil and Chile and impairment related to subsidiaries in Europe, which lowered our income tax expense and our effective corporate income tax for 2021.

Net Profit

We recorded a net profit of our continuing operations of Ps.74.6 billion for 2021, an increase of 119.2%, or Ps.40.6 billion over 2020.

The net profit obtained through both the operation of TracFone until its sale on November 23, 2021 and the sale itself is classified as net profit for the period discontinued, which totaled Ps.121.7 billion in 2021. Together with the net income of our continuing operations, in 2021, we recorded a net profit of Ps.196.3 billion, compared to Ps.51.0 billion in 2020.

SEGMENT RESULTS OF OPERATIONS

We discuss below the operating results of each reportable segment. Notes 2. z) and 23 to our audited consolidated financial statements describe how we translate the financial statements of our non-Mexican subsidiaries. Exchange rate changes between the Mexican peso and the currencies in which our subsidiaries operate affect our reported results in Mexican pesos and the comparability of reported results between periods.

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

MEXICAN PESOS PER FOREIGN CURRENCY UNIT (AVERAGE FOR THE<br> <br>PERIOD) FOR THE YEARS ENDED DECEMBER 31,
	2020		2021		% CHANGE
Brazilian real		4.1850		3.7625		(10.1	)
Colombian peso		0.0058		0.0054		(7.1	)
Argentine peso		0.3070		0.2137		(30.4	)
U.S. dollar		21.4859		20.2768		(5.6	)
Euro		24.5080		23.9834		(2.1	)

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

	YEAR ENDED DECEMBER 31, 2021
	OPERATING REVENUES				OPERATING INCOME
	(in millions of<br>Mexican pesos)		(as a% of to-<br> <br>tal operating<br>revenues)		(in millions of<br>Mexican pesos)		(as a% of<br>total operat-<br>ing income)
Mexico Wireless	Ps.	243,261		28.4%	Ps.	77,784		46.8%
Mexico Fixed		102,427		12.0		21,100		12.7
Brazil		152,774		17.9		21,867		13.2
Colombia		79,673		9.3		15,165		9.1
Southern Cone		62,359		7.3		2,145		1.3
Andean Region		52,962		6.2		7,458		4.5
Central America		48,567		5.7		8,217		4.9
Caribbean		39,929		4.7		8,661		5.2
Europe		113,838		13.3		13,421		8.1
Eliminations		(40,255)		(4.7)		(9,685)		(5.8)
Total	Ps.	855,535		100.0%	Ps.	166,133		100.0%
	YEAR ENDED DECEMBER 31, 2020
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	OPERATING REVENUES				OPERATING INCOME
	(in millions of<br>Mexican pesos)		(as a% of to-<br> <br>tal operating<br>revenues)		(in millions of<br>Mexican pesos)		(as a% of<br>total operat-<br>ing income)
Mexico Wireless	Ps.	232,242		27.7%	Ps.	70,852		48.7%
Mexico Fixed		91,589		10.9		11,204		7.7
Brazil		168,073		20.0		25,204		17.3
Colombia		77,635		9.2		15,112		10.4
Southern Cone		56,705		6.8		1,877		1.3
Andean Region		53,935		6.4		8,699		6.0
Central America		48,195		5.7		4,005		2.8
Caribbean		38,624		4.6		6,701		4.6
Europe		111,472		13.3		13,160		9.0
Eliminations		(38,763)		(4.6)		(11,311)		(7.8)
Total	Ps.	839,707		100%	Ps.	145,503		100%

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Interperiod Segment Comparaions

The following discussion addresses the financial performance of each of our reportable segments by comparing results for 2021 and 2020. In the year-to-year comparisons for each segment, we include percentage changes in operating revenues, percentage changes in operating income and operating margin (operating income as a percentage of operating revenues), in each case calculated based on the segment financial information presented in Note 23 to our audited consolidated financial statements, which is prepared in accordance with IFRS.

Each reportable segment includes all income, cost and expense eliminations that occurred between subsidiaries within the reportable segment. The Mexico Wireless segment also includes corporate income, costs and expenses.

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

Discussions of year-over-year comparisons between 2020 and 2019 that are not included in this report can be found under Part II, Operating and Financial Review and Prospects of our Form 20-F for the fiscal year ended December 31, 2020 as filed on April 29, 2021.

2021 Compared to 2020

Mexico Wireless

The number of prepaid wireless subscribers for 2021 increased by 4.3% over 2020, and the number of postpaid wireless subscribers increased by 0.1%, resulting in an increase in the total number of wireless subscribers in Mexico of 3.5%, or 2.7 million, to approximately 80.5 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 4.7% over 2020. Adjusted segment operating revenues for 2021 increased by 5.0% over 2020. This increase in segment operating revenues principally reflects an increase in prepaid, postpaid and equipment sales and handset financing plans.

Segment operating income for 2021 increased by 9.8% over 2020. Adjusted segment operating income for 2020 increased by 11.9% over 2020.

Segment operating margin was 32.0% in 2021, as compared to 30.5% in 2020. Adjusted segment operating margin for this segment was 39.1% in 2021, as compared to 36.7% in 2020. This increase in segment operating margin for 2021 principally reflects the success of our corporate cost savings program in operations, optimization in networks and maintenance costs, which we successfully continue to implement without affecting the quality of our services and coverage.

Mexico Fixed

The number of fixed voice RGUs in Mexico for 2021 decreased by 4.6% over 2020, and the number of broadband RGUs in Mexico increased by 0.3%, resulting in a decrease in total fixed RGUs in Mexico of 2.4% over 2020, or 517 thousand, to approximately 21.4 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 11.8% over 2020. Adjusted segment operating revenues for 2021 increased by 11.9% over 2020. This increase in segment operating revenues principally reflects an increase in corporate networks services by 2.8% and broadband by 3.2%, which was partially offset by a decrease in fixed voice revenues of 2.6%.

Segment operating income for 2021 increased by 88.3% over 2020. Adjusted segment operating income for 2021 increased by 298.2% over 2020. This increase principally reflects an increase in services provided and one-off revenue due to the sale of towers, partially set off by increases in the contractual salary of our employees and higher information technology and customer service costs.

Segment operating margin was 20.6% in 2021, as compared to 12.2% in 2020. Adjusted segment operating margin was 10.6% in 2021, as compared to 3.0% in 2020. The increase in segment operating margin for 2021 principally reflects an increase in revenues from voice services, partially offset by a decrease in segment depreciation expenses.

Brazil

The number of prepaid wireless subscribers for 2021 increased by 6.0% over 2020, and the number of postpaid wireless subscribers increased by 16.2%, resulting in an increase in the total number of wireless subscribers in Brazil of 11.7%, or 7.4 million, to approximately 70.5 million as of December 31, 2021. The increase in the number of postpaid wireless subscribers is due primarily to commercial efforts aimed at converting prepaid subscribers to postpaid subscribers. The number of fixed voice RGUs for 2021 decreased by 5.7% over 2020, the number of broadband RGUs decreased by 1.2%, and the number of Pay TV RGUs decreased by 5.3%, resulting in a decrease in total fixed RGUs in Brazil of 4.2%, or 1.4 million, to approximately 31.3 million as of December 31, 2021.

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Segment operating revenues for 2021 decreased by 9.1% over 2020. Adjusted segment operating revenues for 2021 increased by 0.9% over 2020. This increase in adjusted segment operating revenues principally reflects higher mobile data and fixed data revenues in 2021 over 2020. The increase in mobile data revenues in 2021 principally reflects the increased usage of social networking platforms, cloud services and other content, and fixed data revenues increased principally due to an increase in broadband revenues, which were, in each case, partially offset by a decrease in Pay TV revenues.

Segment operating income for 2021 decreased by 13.2% over 2020. Adjusted segment operating income for 2021 increased by 4.5% over 2020.

Segment operating margin was 14.3% in 2021, as compared to 15.0% in 2020. Adjusted segment operating margin was 14.6% in 2021, as compared to 14.1% in 2020. This increase in adjusted segment operating margin for 2021 principally reflects an increase in doubtful accounts allowances and optimization of call centers, mainly as a result of our cost savings program.

Colombia

The number of prepaid wireless subscribers for 2021 increased by 4.2% over 2020, and the number of postpaid wireless subscribers increased by 12.7%, resulting in an increase in the total number of wireless subscribers in Colombia of 6.2%, or 2.0 million, to approximately 35.1 million as of December 31, 2021. The number of fixed voice RGUs for 2021 increased by 8.5% over 2020, the number of broadband RGUs increased by 6.4% and the number of Pay TV RGUs increased by 5.5%, resulting in an increase in total fixed RGUs in Colombia of 6.7%, or 558 thousand, to approximately 8.9 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 2.6% over 2020. Adjusted segment operating revenues for 2021 increased by 10.0% over 2020. This increase in segment operating revenues principally reflects increases in fixed data revenues, mobile data revenues, both in prepaid and postpaid mobile data, and Pay TV revenues.

Segment operating income for 2021 increased by 0.4% over 2020. Adjusted segment operating income for 2021 increased by 16.2% over 2020.

Segment operating margin was 19.0% in 2021, as compared to 19.5% in 2020. Adjusted segment operating margin was 26.1% in 2021, as compared to 24.7% in 2020. This increase is due to an amortization expenses caused by investments in spectrum and submarine cables.

Southern Cone - Argentina, Chile, Paraguay and Uruguay

The number of prepaid wireless subscribers for 2021 increased by 9.0% over 2020, and the number of postpaid wireless subscribers increased by 8.1%, resulting in an increase in the total number of wireless subscribers in our Southern Cone segment of 8.7%, or 2.7 million, to approximately 33.3 million as of December 31, 2021. The number of fixed voice RGUs for 2021 increased by 22.7% over 2020, the number of broadband RGUs increased by 23.4%, and the number of Pay TV RGUs increased by 6.6%, resulting in an increase in total fixed RGUs in our Southern Cone segment of 18.1%, or 513 thousand, to approximately 3.3 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 10.0% over 2020. Adjusted segment operating revenues for 2021 decreased by 1.6% over 2020. This decrease principally reflects a decrease in adjusted operating revenues in Argentina and Paraguay. In Argentina, we experienced a decrease in revenues from prepaid and postpaid wireless voice and corporate networks, which were attributable to adverse economic conditions and which were partially offset by an increase in broadband, fixed voice and Pay TV. In Chile, we experienced an increase in postpaid and Pay TV revenues. For this segment, we analyze results in Argentina, Paraguay and Uruguay in terms of the Argentine peso, because Argentina accounts for the major portion of the operations in these three countries.

Segment operating income for 2021 increased by 14.3% over 2020. Adjusted segment operating income for 2021 increased by 1.3% over 2020.

Segment operating margin was 3.4% in 2021, as compared to 3.3% in 2020. Adjusted segment operating margin was 17.4% in 2021, as compared to 15.7% in 2020. This increase in the segment operating margin for 2021 principally reflects a decrease in revenues, as described above, coupled with a decrease in costs and expenses, including as a result of inflation or exchange rates.

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Andean Region - Ecuador and Peru

The number of prepaid wireless subscribers for 2021 increased by 7.3% over 2020, and the number of postpaid wireless subscribers increased by 15.7%, resulting in an increase in the total number of wireless subscribers in our Andean Region segment of 10.0%, or 1.9 million, to approximately 21.0 million as of December 31, 2021. The number of fixed voice RGUs for 2021 increased by 13.6% over 2020, the number of broadband RGUs increased by 15.6% and the number of Pay TV RGUs increased by 4.0%, resulting in an increase in total fixed RGUs in our Andean Region segment of 13.2%, or 286 thousand, to approximately 2.5 million as of December 31, 2021.

Segment operating revenues for 2021 decreased by 1.8% over 2020. Adjusted segment operating revenues for 2021 increased by 11.0% over 2020. This increase principally reflects an increase in revenues in Peru, partially offset by a decrease in Ecuador. The increase in revenues in Peru reflects an increase in revenues from prepaid and postpaid wireless, broadband, corporate networks, fixed voice and Pay TV services. The decrease in revenues in Ecuador reflects a decrease in revenues from postpaid mobile.

Segment operating income for 2021 decreased by 14.3% over 2020. Adjusted segment operating income for 2021 increased by 17.1% over 2020. This increase principally reflects an operating income increase of 55.9% in Peru partially offset by a decrease of 10.2% in Ecuador.

Segment operating margin was 14.1% in 2021, as compared to 16.1% in 2020. Adjusted segment operating margin was 19.6% in 2021, as compared to 18.4% in 2020. This increase in the segment operating margin for 2021 principally reflects a recovery in Peru, partially offset by a decrease in operating income in Ecuador.

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

The number of prepaid wireless subscribers for 2021 increase by 10.7% over 2020, and the number of postpaid wireless subscribers increased by 4.4%, resulting in an increase in the total number of wireless subscribers in our Central America segment of 9.7%, or 1.5 million, to approximately 16.5 million as of December 31, 2021. The number of fixed voice RGUs for 2021 decreased by 2.1% over 2020, the number of broadband RGUs increased by 7.1%, and the number of Pay TV RGUs increased by 10.6%, resulting in an increase in total fixed RGUs in our Central America segment of 3.9%, or 165 thousand, to approximately 4.4 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 0.8% over 2020. Adjusted segment operating revenues for 2021 increased by 6.5% over 2020.

Segment operating income for 2021 increased by 105.2% over 2020. Adjusted segment operating income for 2021 increased by 102.2% over 2020. This increase in segment operating income for 2021 principally reflects a decrease in depreciation expenses as a result of the exhaustion of the useful life of certain assets in Guatemala in 2021 and the recognition of asset impairment in Panama and Honduras in the prior year, which was not recognized in 2021.

Segment operating margin was 16.9% in 2021, as compared to 8.3% in 2020. Adjusted segment operating margin was 19.1% in 2021, as compared to 10.1% in 2020. This increase in segment operating margin for 2021 principally reflects an increase in income, particularly in El Salvador, Honduras, Guatemala, Nicaragua and Costa Rica.

Caribbean - The Dominican Republic & Puerto Rico

The number of prepaid wireless subscribers for 2021 increased by 12.1% over 2020, and the number of postpaid wireless subscribers increased by 3.3%, resulting in an increase in the total number of wireless subscribers in our Caribbean segment of 9.3%, or 600 thousand, to approximately 7.0 million as of December 31, 2021. The number of fixed voice RGUs for 2021 decreased by 1.2% over 2020, the number of broadband RGUs increased by 4.6% and the number of Pay TV RGUs increased by 5.3%, resulting in an increase in total fixed RGUs in our Caribbean segment of 1.9%, or 50 thousand, to approximately 2.6 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 3.4% over 2020. Adjusted segment operating revenues for 2021 increased by 7.5% over 2020. This increase in segment operating revenues principally reflects increase in operating revenues in Puerto Rico and the Dominican Republic. We analyze segment results in U.S. dollars because it is the functional currency of our operations in Puerto Rico.

Segment operating income for 2021 increased by 29.2% over 2020. Adjusted segment operating income for 2021 increased by 32.4% over 2020. This increase principally reflects an increase of 34.3% in Puerto Rico and 22.4% in the Dominican Republic.

Segment operating margin was 21.7% in 2021, as compared to 17.3% in 2020. Adjusted segment operating margin was 18.4% in 2021, as compared to 14.9% in 2020. This increase in segment operating margin for 2021 principally reflects an increase in service revenues in Puerto Rico in postpaid and Pay TV and in the Dominican Republic, in broadband and fixed data services, and the effects of the cost savings program, partially offset by the depreciation of the Dominican Peso.

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Europe

The number of prepaid wireless subscribers for 2021 decreased by 4.1% over 2020, and the number of postpaid wireless subscribers increased by 6.0%, resulting in an increase in the total number of wireless subscribers in our Europe segment of 4.1%, or 901 thousand, to approximately 22.8 million as of December 31, 2021. The number of fixed voice RGUs for 2021 decreased by 1.7% over 2020, the number of broadband RGUs increased by 1.8% and the number of Pay TV RGUs increased by 1.1%, resulting in an increase in total fixed RGUs in our Europe segment of 0.5%, or 31 thousand, to approximately 6.1 million as of December 31, 2021.

Segment operating revenues for 2021 increased by 2.1% over 2020. Adjusted segment operating revenues for 2021 increased by 4.4% over 2020. This increase in segment operating revenues principally reflects an increase in mobile services.

Segment operating income for 2021 increased by 2.0% over 2020. Adjusted segment operating income for 2021 increased by 21.5% over 2020. Segment operating margin was 11.8% in 2021, the same as in 2020. Adjusted segment operating margin was 13.6% in 2021, as compared to 11.7% in 2020. This increase in adjusted segment operating margin for 2021 principally reflects our corporate cost savings program and improved performance in all the countries in our Europe segment.

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FUNDING REQUIREMENTS

We generate substantial cash flows from our operations. On a consolidated basis, our cash flows from operating activities were Ps.258.2 billion in 2021, compared to Ps.280.8 billion in 2020. Our cash and cash equivalents amounted to Ps.38.7 billion at December 31, 2021, compared to Ps.35.9 billion at December 31, 2020. We believe our working capital is sufficient for our present requirements, and we anticipate generating sufficient cash to satisfy our long-term liquidity needs.

We use the cash that we generate from our operations and from borrowings principally for the following purposes:

•	Capital expenditures -<br>We make substantial capital expenditures to continue expanding and improving our networks in each country in which we operate. Our capital expenditures on plant, property and equipment and acquisition or renewal of licenses were Ps.158.1 billion in 2021, Ps.129.6 billion in 2020 and Ps.151.8 billion in 2019. The amount of capital expenditures can vary significantly from year to year, depending on acquisition opportunities, concession renewal schedules and the need for more spectrum. We have budgeted capital expenditures for 2022 of approximately U.S.$8.7 billion (Ps.180.8 billion), which will be primarily funded by our operating activities. We reduced our capital expenditures in 2020 principally due to difficulties in obtaining certain supplies, services and equipment during the <br>COVID-19<br> outbreak. Our capital expenditures for 2021 and our budgeted capital expenditures for 2022 are in line with our historical capital expenditure levels.
•	Acquisitions -<br> In December 2021, we entered into an agreement to acquire approximately 32% of Oi Group’s Brazilian mobile subscribers for R$3.6 billion. This transaction closed on April 20, 2022.
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•	Short-term debt and contractual obligations -<br>We must pay interest on our indebtedness and repay principal when due. As of December 31, 2021, we had approximately Ps.180.6 billion in debt and contractual obligations due in 2022, including approximately Ps.145.2 billion of principal and amortization, Ps.27.6 billion in short-term lease debt, and Ps.7.8 billion in purchase obligations.
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•	Long-term debt and contractual obligations -<br> As of December 31, 2021, we had approximately Ps.165.3 billion in debt and contractual obligations due between 2023 and 2025, including approximately Ps.109.9 billion of principal and amortization, Ps.46.4 billion in long-term lease debt,
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and Ps.9.0 billion in purchase obligations. On the same date, we had approximately Ps.73.5 billion in debt and contractual obligations due between 2026 and 2027, including approximately Ps.54.9 billion of principal and amortization, Ps.13.0 billion in long-term lease debt, and Ps.5.5 billion in purchase obligations. On the same date, we had approximately Ps.277.2 billion in debt and contractual obligations due after 2027, including approximately Ps.254 billion of principal and amortization, Ps.11.6 billion in long-term lease debt, and Ps.11.7 billion in purchase obligations.
•	Dividends -<br> We pay regular dividends. We paid Ps.27.8 billion in dividends in 2021 and Ps.9.6 billion in 2020. Our shareholders approved on April 20, 2022 the payment of a Ps. 0.44 ordinary dividend per share in one installment in 2022. See “Share Ownership and Trading—Dividends” under Part IV in this annual report.
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•	Share repurchases -<br> We regularly repurchase our own shares. We spent Ps.36.8 billion repurchasing our own shares in the open market in 2021 and Ps.5.2 billion in 2020. Our shareholders have authorized additional amounts to repurchase, and as of March 31, 2022, we have spent Ps.9.2 billion repurchasing our shares in the open market in 2022, but whether we will continue to do so will depend on our operating cash flow and on various other considerations, including market prices and our other capital requirements.
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BORROWINGS

In addition to cash flows generated from operations, we rely on a combination of borrowings from a range of different sources, including the international capital markets, capital markets in Mexico and other countries where we operate, international and local banks, equipment suppliers and export credit agencies. We seek to maintain access to diverse sources of funding. In managing our funding, we generally seek to keep our leverage, as measured by the ratio of net debt to EBITDA, at a level that is consistent with maintaining the ratings given to our debt by the principal credit rating agencies. Our total consolidated indebtedness as of December 31, 2021 was Ps.564.0 billion, of which Ps.145.2 billion was short-term debt (including the current portion of long-term debt), compared to Ps.628.4 billion as of December 31, 2020.

Management defines net debt as total debt minus cash and cash equivalents, minus marketable securities (including Koninklijke KPN N.V. (“KPN”) shares and Verizon shares), other short term investments and fixed-income securities with a tenor of more than one year. Verizon shares are factored into calculations of net debt for information as of December 31, 2021, but are not factored into calculations of net debt for information as of December 31, 2020. As of December 31, 2021, we had net debt of Ps.400.8 billion, compared to Ps.537.8 billion as of December 31, 2020.

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Without taking into account the effects of derivative financial instruments that we use to manage our interest rate and currency risk, approximately 84.8% of our indebtedness at December 31, 2021 was denominated in currencies other than Mexican pesos (approximately 36.4% of such non-Mexican peso debt was in U.S. dollars and 63.6% in other currencies), and approximately 13.5% of our consolidated debt obligations bore interest at floating rates. After the effects of derivative transactions and excluding the debt of Telekom Austria, approximately 46.3% of our net debt as of December 31, 2021 was denominated in Mexican pesos.

The weighted average cost of all our third-party debt at December 31, 2021 (excluding commissions and reimbursement of certain lenders for Mexican taxes withheld) was approximately 3.78% per annum.

Our major categories of indebtedness at December 31, 2021 are summarized in the table below. See also Note 14 to our audited consolidated financial statements included in this annual report.

DEBT
(millions of Mexican pesos)
SENIOR NOTES
DENOMINATED IN U.S. DOLLARS
América Móvil 3.625% Senior Notes due 2029
América Móvil 2.875% Senior Notes due 2030
América Móvil 6.375% Senior Notes due 2035
América Móvil 6.125% Senior Notes due 2037
América Móvil 6.125% Senior Notes due 2040
América Móvil 4.375% Senior Notes due 2042
América Móvil 4.375% Senior Notes due 2049
Total
DENOMINATED IN MEXICAN PESOS
América Móvil 6.450% Senior Notes due 2022
América Móvil 7.125% Senior Notes due 2024
América Móvil 0.000% Domestic Senior Notes due 2025
América Móvil 8.460% Senior Notes due 2036
Telmex 8.360% Domestic Senior Notes due 2037
Total
DENOMINATED IN O
TKA 4.000% Senior Notes due 2022
TKA 3.500% Senior Notes due 2023
América Móvil 3.259% Senior Notes due 2023
América Móvil 1.500% Senior Notes due 2024
Exchangeable Bond 0.00% due 2024
TKA 1.500% Senior Notes due 2026
América Móvil 0.750% Senior Notes due 2027
América Móvil 2.125% Senior Notes due 2028
Total

All values are in Euros.

DEBT
(millions of Mexican pesos)
DENOMINATED IN POUND STERLING
América Móvil 5.000% Senior Notes due 2026
América Móvil 5.750% Senior Notes due 2030
América Móvil 4.948% Senior Notes due 2033
América Móvil 4.375% Senior Notes due 2041
Total
DENOMINATED IN JAPANESE YEN
América Móvil 2.950% Senior Notes due 2039
Total
DENOMINATED IN CHILEAN PESOS
América Móvil 3.961% Senior Notes due 2035
Total
DENOMINATED IN BRAZILIAN REAIS
Claro Brasil CDI + 0.960% Domestic Senior Notes due 2022
Claro Brasil 106.000% of CDI Domestic Senior Notes due 2022
Claro Brasil 106.500% of CDI Domestic Senior Notes due 2022
Total
HYBRID NOTES
DENOMINATED IN O
América Móvil NC10 (Series B) Capital Securities due 2073
Total
BANK DEBT AND OTHER
DENOMINATED IN US DOLLARS
DENOMINATED IN OS
DENOMINATED IN MEXICAN PESOS
DENOMINATED IN CHILEAN PESOS
DENOMINATED IN PERUVIAN SOLES
DENOMINATED IN OTHER CURRENCIES
Total
Total Debt
Less short-term debt and current portion of long-term debt
Total Long-term Debt
EQUITY
Capital stock
Total retained earnings
Other comprehensive income (loss) items
Non-controlling interest
Total Equity
Total Capitalization (total long-term debt plus equity)

All values are in Euros.

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

Mexican peso-denominated international notes.

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

Mexican peso-denominated domestic notes.

Our domestic senior notes ( certificados bursátiles ) sold in the Mexican capital markets have varying maturities, ranging from 2025 through 2037, and bear interest at fixed rates.

Global peso notes program.

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

International notes.

We have outstanding debt securities in the international markets denominated in U.S. dollars, pounds sterling and euros. We have also issued debt securities in the local market in Japan.

In April 2022, we issued a total of U.S.$1 billion aggregate principal amount of 5.375% senior notes. On the date on which Sitios is duly incorporated in accordance with Mexican law and the resolutions approved by our shareholders in the extraordinary shareholders’ meeting dated as of September 29, 2021 (the “Spin-off Effective Date”), Sitios will assume all of our obligations under the aforementioned notes and the associated indenture, and we will be released from all of our obligations under such notes and indenture.

Hybrid notes.

We have outstanding one series of Capital Securities maturing in 2073, denominated in euros totaling € 550 million. The Capital Securities are subject to redemption at our option at varying dates beginning in 2023. Our hybrid notes are deeply subordinated, and when they were issued, the principal rating agencies stated that they would treat half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50% equity credit). Standard & Poor’s now treats 100% of the principal amount under the hybrid notes as indebtedness.

Bank loans.

At December 31, 2021, we had approximately Ps.84.9 billion outstanding under a number of bank facilities bearing interest at fixed and variable rates. We also have two revolving syndicated credit facilities—one for U.S.$2.5 billion expiring in August 2024 and one for the Euro equivalent of U.S.$1.5 billion expiring in May 2026, which contains a

sustainability-linked framework. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2021, these credit facilities were not drawn. Both facilities include covenants that limit our ability to incur secured debt, to effect a merger in which the surviving entity would not be América Móvil or to sell substantially all of our assets. In addition, both facilities require us to maintain a consolidated ratio of debt to EBITDA not greater than 4.0 to 1.0 and a consolidated ratio of EBITDA to interest expense not less than 2.5 to 1.0. As of the date of this annual report, we are in compliance with these covenants.

Telekom Austria has an undrawn revolving syndicated credit facility for € 1.0 billion (the “TKA Facility”) expiring in July 2026. The TKA Facility includes covenants that limit Telekom Austria’s ability to incur secured debt, effect certain mergers or sell substantially all of its assets and our ability to transfer control over, or reduce our share ownership in, Telekom Austria. For more information, see Note 14 to our audited consolidated financial statements included in this annual report. In addition to the bank loans summarized in the table above, in March 2022, we entered into a credit agreement providing for borrowings in an amount up to Ps.20,558,500,000 (the “Sitios Credit Facility”) with a group of lenders that includes affiliates and BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México, as administrative agent for the lenders. The full principal amount available under this facility was disbursed on March 23, 2022. On the Spin-off Effective Date, we will be released from our obligations under the Sitios Credit Facility and all liabilities with respect thereto will be transferred to Sitios, and Sitios will assume all of our obligations thereunder. Additionally, on April 14, 2022, Claro Brasil entered into an uncommitted term loan facility agreement for borrowings in an amount up to R$1.7 billion with BNP Paribas S.A. as lender. This facility will mature in 2023.

Options involving TKA shares.

The Company has entered into the sale of a cash-settled put option related to TKA shares that will expire in August 2023. See Note 7 to our audited consolidated financial statements included in this annual report.

Bonds exchangeable for KPN shares.

On March 2, 2021, our wholly-owned Dutch subsidiary, América Móvil B.V., issued approximately EUR 2.1 billion principal amount of senior unsecured bonds. The bonds will mature in 3 years, will not bear interest and were issued at an issue price of 104.75% of their principal amount. The Bonds will be exchangeable into ordinary shares of KPN and the initial exchange price is EUR 3.1185.

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Euro-denominated commercial paper program.

From time to time we have issued commercial paper under our euro-denominated commercial paper program. At December 31, 2021, there were no amounts outstanding under such program.

As of December 31, 2021, we had, on an unconsolidated basis, unsecured and unsubordinated indebtedness of approximately Ps.391.3 billion (U.S.$19.0 billion), excluding guarantees of subsidiaries’ indebtedness. As of December 31, 2021, our subsidiaries had indebtedness (excluding guarantees of indebtedness of us and our other subsidiaries) of approximately Ps.172.7 billion (U.S.$8.3 billion), and a substantial portion of our subsidiaries’ indebtedness is owed by Telekom Austria.

GUARANTOR FINANCIAL INFORMATION

Some of the public securities issued by América Móvil in international and Mexican capital markets are guaranteed by Telcel, a wholly-owned subsidiary. As of December 31, 2021, the aggregate principal amount of debt guaranteed by Telcel was Ps.106,327 million. The guarantees provide that, in case of the failure of the Company to punctually make payment of any principal, premium, interest, additional amounts or any other amounts that may become payable by the Company in respect of the notes, Telcel agrees to immediately pay the amount that is due and required to be paid.

The following tables present summarized unconsolidated financial information for the Company and Telcel after eliminating transactions and balances between them.

	AS OF DECEMBER 31, 2021
	PARENT		GUARANTOR
Current assets	Ps.	25,288	Ps.	48,552
Total assets		56,794		221,510
Current liabilities		80,566		177,133
Total liabilities		420,630		190,518
Total revenues	Ps.	-	Ps.	169,203
Operating Income		(27,424)		99,246
Net profit for the year		(66,596)		100,072

RISK MANAGEMENT

We regularly assess our interest rate and currency exchange exposures in order to determine how to manage the risk associated with these exposures. We have indebtedness denominated in currencies other than the currency of our operating environments, and we have expenses for operations and for capital expenditures in a variety of currencies. We use derivatives to manage the resulting exchange rate and interest rate exposures. We do not use derivatives to hedge the exchange rate exposures that arise from having operations in different countries. For additional information on market risk, see Note 2 v(ii) to our audited consolidated financial statements included in this annual report.

Our practices vary from time to time depending on our judgment of the level of risk, expectations as to exchange rate or interest rate movements and the costs of using derivative financial instruments. We may stop using derivative financial instruments or modify our practices at any time.

As of December 31, 2021, the net fair value of our derivatives and other financial items was a net asset of Ps.0.1 billion, which are described in Note 7 to our audited consolidated financial statements. For additional information, see Note 2 v to our audited consolidated financial statements included in this annual report.

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RISKS RELATING TO OUR OPERATIONS

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

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

Among other things, our competitors could:

•	provide higher handset subsidies;
•	offer higher commissions to retailers;
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•	provide free airtime or other services (such as internet access);
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•	offer services at lower costs through double, triple and quadruple play packages or other pricing strategies;
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•	expand their networks faster; or
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•	develop and deploy improved technologies faster, such as 5G LTE technology.
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Competition can lead us to increase advertising and promotional spending and to reduce prices for services and handsets. These developments may lead to lower operating margins, greater choices for customers and increasing movement of customers among competitors, which may make it difficult for us to retain or add new customers. The cost of adding new customers may also continue to increase, reducing profitability even if customer growth continues.

Our ability to compete successfully will depend on our coverage, the quality of our network and service, our rates, customer service, effective marketing, our success in selling double, triple and quadruple play packages and our ability to anticipate and respond to various competitive factors affecting the telecommunications industry, including new services and technologies, changes in consumer preferences, demographic trends, economic conditions and discount pricing strategies by competitors.

If we are unable to respond to competition and compensate for declining prices by adding new customers, increasing usage and offering new services, our revenues and profitability could decline.

Governmental or regulatory actions could adversely affect our operations

Our operations are subject to extensive government regulation and can be adversely affected by changes in law, regulation or regulatory policy. The licensing, construction,

operation, sale, resale and interconnection arrangements of telecommunications systems in Latin America and elsewhere are regulated to varying degrees by government or regulatory authorities. Any of these authorities having jurisdiction over our businesses could adopt or change regulations or take other actions that could adversely affect our operations. In particular, the regulation of prices that operators may charge for their services and environmental matters, including renewable energy and climate change regulation, could have a material adverse effect by reducing our profit margins. See “Regulation” under Part VI for a discussion on the functional separation of Telmex and Telnor wholesale services, “Legal Proceedings” under Part VII and Note 17 to our audited consolidated financial statements included in this annual report.

In addition, changes in political administrations could lead to new regulation and the adoption of policies that could adversely affect our operations, including those concerning competition and taxation of communications services. For example, since 2013, Mexico has implemented reforms to the telecommunications sector that aim to promote more competition and investment by imposing asymmetric regulation upon economic agents deemed “preponderant or dominant.” The asymmetric regulations that are applicable to us, which have adversely affected the results of our Mexican operations, may be reviewed every two years. We are unable to anticipate the effect of an amendment on existing asymmetric regulations, or the imposition of new ones, on our results or operations in Mexico. In other countries, we could also face policies such as preferences for local over foreign ownership of communications licenses and assets or for government over private ownership, which could make it more cumbersome or impossible for us to continue to develop our businesses. Restrictions such as those described above could result in lower revenues and require capital investments, all of which could materially adversely affect our businesses and results of operations.

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

The terms of the concessions under which our subsidiaries operate require them to meet certain service quality goals, including, for example, minimum call completion rates, maximum busy circuits rates, operator availability and responsiveness to repair requests. Failure to meet service quality obligations in the past has resulted in the imposition of material fines by regulatory entities. We are also subject to and may be subject to additional claims by customers, including class actions, seeking remedies for service problems. Our ability to comply with these obligations in the future may be affected by factors beyond our control and,

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accordingly, we cannot assure that we will be able to comply with them.

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

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

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

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

Licensed radio spectrum is essential to our growth and the quality of our wireless services and for the operation and deployment of our networks, including new generation networks such as 5G LTE technology, to offer improved data and value-added services. We obtain most of our radio spectrum through auctions conducted by governments of the countries in which we operate. Participation in spectrum auctions in most of these countries requires prior government authorization, and we may be subject to caps on our ability to acquire additional spectrum. Our inability to acquire additional radio spectrum capacity could affect our ability to compete successfully because it could result in, among other things, a decrease in the quality of our network and service and in our ability to meet the demands of our customers.

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

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

Our concessions and licenses have specified terms, ranging typically from five to 20 years, and are generally subject to renewal upon payment of a fee, but renewal is not assured. The loss of, or failure to renew, any one concession could have a material adverse effect on our business and results of operations. Our ability to renew concessions and the terms of renewal are subject to a number of factors beyond our control, including the prevalent regulatory and political environment at the time of renewal. Fees are typically established at the time of renewal. As a condition for renewal, we may be required to agree to new and stricter terms and service requirements. In some of the jurisdictions where we operate and under certain circumstances, mainly in connection with fixed services, we may be required to transfer certain assets covered by some of our concessions to the government pursuant to valuation methodologies that vary in each jurisdiction. It is uncertain whether reversion would ever be applied in many of the jurisdictions where we operate and how reversion provisions would be interpreted in practice. For further information, see “Regulation” under Part VI of this annual report and Note 17 to our audited consolidated financial statements included in this annual report.

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

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

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

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integrate these companies in our systems, controls and networks.

We are subject to significant litigation

Some of our subsidiaries are subject to significant litigation that, if determined adversely to our interests, may have a material adverse effect on our business, results of operations, financial condition or prospects. Our significant litigation is described in “Regulation” under Part VI and in Note 17 to our audited consolidated financial statements included in this annual report.

We are contesting significant tax assessments

We and some of our subsidiaries have been notified of tax assessments for significant amounts by the tax authorities of the countries in which we operate, especially in Brazil, Mexico and Colombia. The tax assessments relate to, among other things, alleged improper deductions and underpayments. We are contesting these tax assessments in several administrative and legal proceedings, and our challenges are at various stages. The amounts claimed by the tax authorities in these matters are significant. In many cases, we have not established a provision in our audited financial statements for these matters, or the amount claimed may be significantly in excess of any reserve established. We evaluate income tax contingencies applying IAS 12 and IFRIC 23. For other tax contingencies we consider the applicable IFRS guidance. Our significant tax assessments are described in Note 17 to our audited consolidated financial statements included in this annual report. If determined adversely to us, these proceedings may have a material adverse effect on our business, results of operations, financial condition or prospects. In addition, in some jurisdictions, challenges to tax assessments require the posting of a bond or security for the contested amount, which may reduce our flexibility in operating our business.

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

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

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

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

•	physical damage to access lines and fixed networks;
•	power surges or outages;
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•	natural disasters;
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•	climate change;
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•	malicious actions, such as theft or misuse of customer data;
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•	limitations on the use of our radio bases;
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•	software defects;
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•	human error; and
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•	other disruptions beyond our control, including as a result of civil unrest in the regions where we operate.
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In Brazil, for example, our satellite operations may be affected if we experience a delay in launching new satellites to replace those currently in use when they reach the end of their operational lives.

Such delay may occur because of, among other reasons, construction delays, unavailability of launch vehicles and/ or launch failures. In addition, our operations have been disrupted by natural disturbances such as hurricanes and earthquakes.

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

Our financial condition and results of operations may be adversely affected by the occurrence of severe weather, natural or man-made disasters and other catastrophic events, including war, terrorism and other acts of violence, and disease

Our operations can be disrupted by unforeseen events, including war, terrorism, and other international, regional, or local instability or conflicts (including labor issues), embargos, public health issues (including tainted food, food-borne illnesses, food tampering, tampering with or failure of water supply or widespread or pandemic illness such as coronavirus (“COVID-19”), Ebola, the avian or H1N1 flu, MERS), and natural disasters such as earthquakes, tsunamis, hurricanes, or other adverse weather and climate conditions in the countries in which we operate. These events could

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disrupt or prevent our ability to perform functions and otherwise impede our ability to continue business operations in a continuous manner, which in turn may materially and adversely impact our business and operating results.

Effects of climate change may impose risk of damage to our infrastructure and our ability to provide services, all of which may result in potential adverse impact to our financial results

Extreme weather events precipitated by long-term climate change have the potential to directly damage network facilities or disrupt our ability to build and maintain portions of our network and could potentially disrupt suppliers’ ability to provide products and services required to provide reliable network coverage. Any such disruption could delay network deployment plans, interrupt service for our customers, increase our costs and have a negative effect on our operating results. The potential physical effects of climate change, such as increased frequency and severity of storms, floods, fires, freezing conditions, sea-level rise, and other climate-related events, could adversely affect our operations, infrastructure, and financial results. Operational impacts resulting from the potential physical effects of climate change, such as damage to our network infrastructure, could result in increased costs and loss of revenue. We could incur significant costs to improve the climate resiliency of our infrastructure and otherwise prepare for, respond to, and mitigate such physical effects of climate change. We are not able to accurately predict the materiality of any potential losses or costs associated with the physical effects of climate change.

Public health crises, including the COVID-19 pandemic, could materially adversely affect our business, financial condition and results of operations

We are subject to risks related to public health crises, such as the COVID-19 pandemic, which had an adverse effect on our operating results in 2020. Our business is based on our ability to provide products and services to customers throughout Mexico and around the world and the ability of those customers to use and pay for those products and services for their businesses and in their daily lives. As a result, our business, financial condition and results of operations could be materially adversely affected by a crisis, like the COVID-19 pandemic, that significantly impacts the way customers use and are able to pay for our products and services, the way our employees are able to provide services to our customers, and the ways that our partners and suppliers are able to provide products and services to us. For example, public and private sector policies and initiatives to reduce the transmission of COVID-19, including the initiatives we took in response to the health crisis to promote the health and safety

of our employees and provide critical infrastructure and connectivity to our customers, along with the related global slowdown in economic activity, contributed to decreased net profit for the year and lower earnings per share during 2020.

In addition, such a crisis could significantly increase the probability or consequences of the risks our business faces in ordinary circumstances, such as risks associated with our supplier and vendor relationships, risks of an economic slowdown, regulatory risks, and the costs and availability of financing. Because the severity, magnitude and duration of the COVID-19 pandemic and its economic consequences are uncertain and rapidly changing, the impact on our business, financial condition and results of operations in 2022 and beyond remains uncertain and difficult to predict. In addition, the ultimate impact of the COVID-19 pandemic on our business, financial condition and results of operations depends on many factors, including those discussed above, that are not within our control.

Many of our employees are unionized and increases in labor and employee benefit costs may reduce our profitability, increase our funding requirements and could have an adverse impact on our operations

Many of our employees are members of labor unions with which we conduct collective negotiations on wages, benefits and working conditions. We use actuarial methodologies and assumptions such as discount rate, salary increase and mortality, among others, for the determination and valuation of our employee benefits, including retirement benefits. We evaluate from time to time, with the support of specialists, our actuarial methodologies and assumptions, as well as the valuation of the assets related to these benefits.

Our labor costs and the costs of maintaining employee benefits are substantial, and could be affected by several factors, including legislative and regulatory changes, work stoppages, subsequent negotiations, increases in healthcare costs, minimum wages, decreases in investment returns on the assets held in funds to support the payment of certain employee benefits and changes in the discount rate and mortality assumptions. An increase in labor and employee benefit costs could reduce our profitability, increase our funding requirements and have an adverse impact on our operations.

Inflationary pressures on costs may impact our network construction, financial condition and results of operations

As a provider of telecommunications and technology services, we sell handsets, wireless data cards, wireless computing devices and customer premises equipment manufactured by various suppliers. We depend on suppliers to provide us,

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directly or through other suppliers, with items such as network equipment, customer premises equipment, and wireless-related equipment such as mobile hotspots, handsets, wirelessly enabled computers, wireless data cards and other connected devices for our customers. In 2021 and 2022 year to date, the costs of these inputs and the costs of labor necessary to develop and maintain our networks and our products and services have rapidly increased. In addition, many of these inputs are subject to price fluctuations from a number of factors, including, but not limited to, market conditions, demand and volatility in the prices for raw materials used in the production of these devices and network components, weather, climate change, energy costs (including as a result of the ongoing conflict in Ukraine, which has resulted in historically high energy market prices), currency fluctuations, supplier capacities, governmental actions, import and export requirements (including tariffs), and other factors beyond our control. Although we are unable to predict the impact on our ability to source materials in the future, we expect these supply pressures to continue into 2022. We also expect the pressures of input cost inflation to continue into 2022.

Our attempts to offset these cost pressures, such as through increases in the selling prices of some of our products and services, may not be successful. Higher product prices may result in reductions in sales volume. Consumers may be less willing to pay a price differential for our products and may increasingly purchase lower-priced offerings, or may forego some purchases altogether, during an economic downturn. To the extent that price increases are not sufficient to offset these increased costs adequately or in a timely manner, and/or if they result in significant decreases in sales volume, our business, financial condition or operating results may be adversely affected. Furthermore, we may not be able to offset any cost increases through productivity and cost-saving initiatives.

We rely on highly skilled personnel throughout all levels of our business. Our business could be harmed if we are unable to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture

The market for highly skilled workers and leaders in our industry is extremely competitive. We believe that our future success depends in substantial part on our ability to recruit, hire, motivate, develop, and retain talented personnel for all areas of our organization, including our CEO and the other members of our senior leadership team. Our inability to retain these employees or to replace them with qualified and capable successors could hinder our strategic planning and execution. If key employees depart, our business could be negatively impacted. We may incur significant costs in identifying, hiring and replacing departing employees and

may lose significant expertise and talent. As a result, we may not be able to meet our business plan and our revenue growth and profitability may be materially adversely affected.

Cybersecurity incidents and other breaches of network or information technology security could have an adverse effect on our business and our reputation

Cybersecurity incidents, and other tactics designed to gain access to and exploit sensitive information by breaching critical systems of large companies, are evolving and have been increasing in both sophistication and occurrence in recent years. While we employ a number of measures to prevent, detect and mitigate such incidents, there is no guarantee that we will be able to adequately anticipate or prevent one. Cybercrime, including attempts to overload our servers with denial-of-service attacks, theft, social engineering, phishing, ransomware or similar disruptions from unauthorized access or attempted unauthorized access to our systems could result in the destruction, misuse or release of personal information or other sensitive data. However, it is difficult to detect or prevent evolving forms of cybersecurity incidents, and our systems, and those of our third-party service providers and of our customers, are vulnerable to cybersecurity incidents.

In the event that our systems are breached or damaged for any reason, we may suffer loss or unavailability of data and interruptions to our business operations. If such an event occurs, the unauthorized disclosure, loss or unavailability of data and the disruption to our fixed-line or wireless networks may have a material adverse effect on our business and results of operations. The costs associated with a cybersecurity incident could include increased expenditures on information and cybersecurity measures, damage to our reputation, loss of existing customers and business partners and lead to financial losses from remedial actions and potential liability, including possible litigation and sanctions. Any of these occurrences may result in a material adverse effect on our results of operations and financial condition.

Failure to achieve proper data governance could lead to data mismanagement

We process large amounts of personally identifiable information of customers and employees and are subject to various compliance, security, privacy, data quality and regulatory requirements. Failure to achieve proper data governance could lead to data mismanagement which in turn could result in data loss, regulatory investigations or sanctions, and cybersecurity risk. We are subject to data privacy regulations in the countries where we operate. Complying with such regulations may expose us to increased costs and limit our ability to transfer data between certain jurisdictions, which may adversely affect our operations.

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

The cost of acquiring a new subscriber is much higher than the cost of maintaining an existing subscriber. Accordingly, subscriber deactivations, or “churn,” could have a material negative impact on our operating income, even if we are able to obtain one new subscriber for each lost subscriber. A substantial majority of our subscribers are prepaid, and we do not have long-term contracts with them. Our average churn rate on a consolidated basis was 3.3% for the year ended December 31, 2021 and 3.8% for the year ended December 31, 2020. If we experience an increase in our churn rate, our ability to achieve revenue growth could be materially impacted. In addition, a decline in general economic conditions could lead to an increase in churn, particularly among our prepaid subscribers.

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

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

Government or regulatory actions with respect to certain suppliers may impact us. For example, the government of the United States and Canada, among others, are currently conducting a regulatory review of certain international suppliers of network equipment and technologies to evaluate potential risks. We are currently unable to predict the outcome of such reviews, including any possible restrictions placed on our key suppliers, and as a result we cannot determine their potential impact on our business.

Our ability to pay dividends and repay debt depends on our subsidiaries’ ability to pay dividends and make other transfers to us

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

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

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

A downgrade of Mexico’s credit rating could affect us

Credit rating agencies regularly evaluate Mexico and its sovereign rating based on various factors including macroeconomic trends, tax and budgetary conditions and indebtedness metrics. If Mexico’s sovereign credit rating is downgraded by credit rating agencies, the rating of our securities may also be downgraded, which could negatively affect our financing costs and the market price of our securities.

Changing expectations from stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks

Influential investors and other stakeholders are increasingly focused on the environmental, social and governance (“ESG”) practices of companies across all industries. If we do not adapt to or comply with evolving expectations, or if we are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, we may suffer from reputational damage, and our business, financial condition or stock price could be materially and adversely affected. If we do not meet our stakeholders’ expectations or we are not effective in addressing ESG matters or achieve relevant sustainability goals, trust in our brand may suffer and our business or our ability to access capital could be harmed.

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RISKS RELATING TO THE TELECOMMUNICATIONS INDUSTRY GENERALLY

Changes in the telecommunications industry could affect our future financial performance

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

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

Some of our products and services use intellectual property that we own or license from others. We also provide content we receive from content producers and distributors, such as ringtones, text games, video games, video, including TV programs and movies, wallpapers or screensavers, and we outsource services to service providers, including billing and customer care functions, that incorporate or utilize intellectual property. We and some of our suppliers, content

distributors and service providers have received, and may receive in the future, assertions and claims from third parties that the content, products or software utilized by us or our suppliers, content producers and distributors and service providers infringe on the patents or other intellectual property rights of these third parties. These claims could require us or an infringing supplier, content distributor or service provider to cease engaging in certain activities, including selling, offering and providing the relevant products and services. Such claims and assertions also could subject us to costly litigation and significant liabilities for damages or royalty payments, or require us to cease certain activities or prevent us from selling certain products or services.

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

Portable communications devices have been alleged to pose health risks, including cancer, due to radio frequency emissions. Lawsuits have been filed in the United States against certain participants in the wireless industry alleging various adverse health consequences as a result of wireless phone usage, and our subsidiaries may be subject to similar litigation in the future.

Government authorities could increase regulation on electromagnetic emissions of mobile handsets and base stations, which could have an adverse effect on our business, financial condition and results of operations. Research and studies are ongoing, and there can be no assurance that further research and studies will not demonstrate a link between radio frequency emissions and health concerns. Any negative findings in these studies could adversely affect the use of wireless technology and, as a result, our future financial performance.

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

Where the circumstances require, we review the carrying value of each of our assets, subsidiaries and investments in associates to assess whether those carrying values can be supported by the future discounted cash flows expected to be derived from such assets.

Whenever we consider that due to changes in the economic, regulatory, business or political environment, our goodwill, investments in associates, intangible assets or fixed assets may be impaired, we consider the necessity of performing certain valuation tests, which may result in impairment charges. The recognition of impairments of tangible, intangible and financial assets could adversely affect our results of operations.

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

Members of one family may be deemed to control us and may exercise their control in a manner that may differ from the interest of other shareholders

Based on reports of beneficial ownership of our shares filed with the SEC, Carlos Slim Helú, together with his sons, daughters and grandchildren (together, the “Slim Family”) may be deemed to control us. The Slim Family may be able to elect a majority of the members of our Board of Directors and to determine the outcome of other actions requiring a vote of our shareholders. The interests of the Slim Family may diverge from the interests of our other investors.

We have significant transactions with affiliates

We engage in various transactions with Telesites, S.A.B. de C.V. (“Telesites”) and certain subsidiaries of Grupo Carso, S.A.B. de C.V. (“Grupo Carso”) and Grupo Financiero Inbursa, S.A.B. de C.V. (“Grupo Financiero Inbursa”), all which may be deemed for certain purposes to be under common control with América Móvil.

These transactions occur in the ordinary course of business. Transactions with affiliates may create the potential for conflicts of interest.

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

Our bylaws restrict transfers of shares in some circumstances

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

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

Under Mexican law, the protections afforded to minority shareholders are different from those in the United States. In particular, the law concerning fiduciary duties of directors is not as fully developed as in other jurisdictions, the procedure for class actions is different, and there are different procedural requirements for bringing shareholder lawsuits. As a result, in practice it may be more difficult for minority shareholders of América Móvil to seek remedies against us

or our directors or controlling shareholders than it would be for shareholders of a company incorporated in another jurisdiction, such as Delaware.

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

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

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

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

Our bylaws may only be enforced in Mexico

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

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

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

There is doubt as to the enforceability against such persons in Mexico, whether in original actions or in actions to judgments of U.S. courts, of liabilities based solely on U.S. federal securities laws.

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

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

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

RISKS RELATING TO DEVELOPMENTS IN MEXICO AND OTHER COUNTRIES

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

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

•	significant governmental influence over local economies;
•	substantial fluctuations in economic growth;
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•	high levels of inflation, including hyperinflation;
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•	changes in currency values;
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•	exchange controls or restrictions on expatriation of earnings;
•	high domestic interest rates;
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•	price controls;
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•	changes in governmental economic, tax, labor or other policies;
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•	imposition of trade barriers;
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•	changes in law or regulation; and
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•	overall political, social and economic instability and civil unrest.
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Adverse economic, political and social conditions in Latin America, the Caribbean or in Europe may inhibit demand for telecommunication services and create uncertainty regarding our operating environment or may affect our ability to renew our licenses and concessions, to maintain or increase our market share or profitability and may have an adverse impact on future acquisitions, which could have a material adverse effect on our company. In addition, the perception of risk in the countries in which we operate may have a negative effect on the trading price of our shares and ADSs and may restrict our access to international financial markets.

Our business may also be especially affected by conditions in Mexico and Brazil, two of our largest markets. For example, Mexican elections in July 2018 and July 2021 resulted in a new president and in a Congress in which the political party with more members in both houses is a different political party from the parties that have been in power in the past. We cannot predict what changes in policy the Mexican administration may adopt, or their impact on our operations. Additionally, in Mexico, economic conditions are strongly impacted by those of the United States. There is continuing uncertainty regarding U.S. policies with respect to matters of importance to Mexico and its economy, particularly with respect to trade and migration.

The phase out of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate, may adversely affect interest rates

In March 2021, the ICE Benchmark Administration (the Financial Conduct Authority-regulated and authorized administrator of LIBOR) announced that it would cease the publication of the one-week and two-month U.S. dollar LIBOR after December 31, 2021, and the publication of all remaining U.S. dollar LIBOR tenors after June 30, 2023.

The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee (the “ARRC”), a steering committee comprised of large U.S. financial institutions, has proposed a new index calculated by short term repurchase agreements, backed by U.S. Treasury securities, called the Secured Overnight Financing Rate (“SOFR”) as an alternative

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to LIBOR for use in contracts that are currently indexed to U.S. dollar LIBOR and has proposed a paced market transition plan to SOFR. On July 29, 2021, the ARRC formally recommended SOFR as its preferred alternative replacement rate for U.S. dollar LIBOR.

Although many of our LIBOR-based obligations provide for alternative methods of calculating the interest rate payable if LIBOR is not reported, the extent and manner of any future changes with respect to methods of calculating LIBOR or replacing LIBOR with another benchmark are unknown and impossible to predict at this time and, as such, may result in interest rates that are materially higher than current interest rates. This could materially and adversely affect our results of operations, cash flows and liquidity.

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

We are affected by fluctuations in the value of the currencies in which we conduct operations compared to the currencies in which our indebtedness is denominated. Such changes result in exchange losses or gains on our net indebtedness and accounts payable. In 2021, we reported net foreign exchange losses of Ps.17.0 billion.

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

Major depreciation of the currencies in which we conduct operations could cause governments to impose exchange controls that would limit our ability to transfer funds between us and our subsidiaries Major depreciation of the currencies in which we conduct operations may result in disruption of the international foreign exchange markets and may limit our ability to transfer or to convert such currencies into U.S. dollars and other currencies for the purpose of making timely payments of interest and principal on our indebtedness. The government of Argentina has adopted exchange controls and restrictions on the movement of capital and has taken other measures in response to capital flight and the significant depreciation of the Argentine peso. In addition, although the Mexican government does not currently restrict, and for many years has not restricted, the right or ability of Mexican or foreign persons or entities to convert Mexican pesos into U.S. dollars or to transfer other currencies out of Mexico, it could institute restrictive exchange rate policies in the future. Similarly, the Brazilian government may impose temporary restrictions on the conversion of Brazilian reais into foreign currencies and on the remittance to foreign investors of proceeds from investments in Brazil whenever there is a

serious imbalance in Brazil’s balance of payments or a reason to foresee a serious imbalance.

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

The market value of securities of Mexican companies is, to varying degrees, affected by economic and market conditions in other countries, including the United States, the European Union (the “EU”) and emerging market countries. Although economic conditions in such countries may differ significantly from economic conditions in Mexico, investors’ reactions to developments in any of these other countries may have an adverse effect on the market value of securities of Mexican issuers. Crises in the United States, the EU and emerging market countries may diminish investor interest in securities of Mexican issuers. For example, in response to the ongoing military conflict involving Russia and Ukraine, the United States, other North Atlantic Treaty Organization member states, as well as non-member states, have announced targeted economic sanctions on Russia, certain Russian citizens and enterprises. The continuation of the conflict may trigger a series of additional economic and other sanctions enacted by the United States, other North Atlantic Treaty Organization member states, and other countries. This could materially and adversely affect economic conditions, the market price of our securities and our operations in Belarus, and could also make it more difficult for us to access the capital markets and finance our operations in the future on acceptable terms or at all.

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The following table sets forth our capital structure as of March 31, 2022.

SERIES
L Shares	43,164	67.2	%	—
(no par value)
AA Shares	20,555	32.0	%	97.6	%
(no par value)
A Shares	498	0.8	%	2.4	%
(no par value)
Total <br>(2)	64,217	100	%	100	%
(1)<br> The AA Shares and A Shares of América Móvil, together, are entitled to elect a majority of our directors. Holders of L Shares are entitled to limited voting rights under our bylaws. See “Bylaws—Voting Rights” under this Part IV.<br> <br>(2)<br> Figures in the table may not recalculate exactly due to rounding.

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

The following table identifies owners of more than 5.0% of any series of our shares as of March 31, 2022. Except as described in the table below and the accompanying notes, we are not aware of any holder of more than 5.0% of any series of our shares. Figures below do not include L Shares that would be held by each shareholder upon conversion of AA Shares or A Shares, as provided for under our bylaws. See “Management—Share Ownership of Directors and Senior Management” under Part V of this annual report.

SHAREHOLDER
AA SHARES:
Family Trust<br>(2)	10,894	53.0%
Control Empresarial de
Capitales<br>(3)	4,381	21.3%
Carlos Slim Helú	1,879	9.1%
L SHARES:
Control Empresarial de Capitales<br>(3)	6,318	14.6%
Family Trust<br>(2)	6,849	15.9%
Carlos Slim Helú	3,322	7.7%
Blackrock<br>(4)	2,164	5.0%
(1)<br> Percentage figures are based on the number of shares outstanding as of March 31, 2022.<br> <br>(2)<br> The Family Trust is a Mexican trust that holds AA Shares and L Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim Helú, directly own an aggregate of 3,558 million AA Shares and 10,227 million L Shares representing 17.3% and 23.7%, respectively, of each series. According to beneficial reports filed with the SEC, none of these members of the Slim Family, other than Carlos Slim Helú, individually directly own more than 5.0% of any class of our shares.<br> <br>(3)<br> Includes shares owned by subsidiaries of Control Empresarial de Capitales, formerly known as Inversora Carso. Based on beneficial ownership reports filed with the SEC, Control Empresarial de Capitales is a Mexican sociedad anónima de capital variable and may be deemed to be controlled by the Slim Family.<br> <br>(4)<br> Based on beneficial ownership reports filed with the SEC.

As of March 31, 2022, 12.2% of the outstanding L Shares were represented by L Share ADSs, each representing the right to receive 20 L Shares, and 99.9% of the L Share ADSs were held by 6,246 registered holders with addresses in the United States. As of such date, 23.8% of the A Shares were held in the form of A Share ADSs, each representing the right to receive 20 A Shares, and 99.84% of the A Share ADSs were held by 3,113 registered holders with addresses in the United States. Each A Share may be exchanged at the option of the holder for one L Share.

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

•	AA Shares;
•	A Shares not represented by ADSs; or
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•	L Shares not represented by ADSs.
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Our subsidiaries purchase materials or services from a variety of companies that may be deemed for certain purposes to be under common control with us, including Telesites, Grupo Carso, Grupo Financiero Inbursa and their respective subsidiaries.

These services include insurance and banking services provided by Grupo Financiero Inbursa and its subsidiaries. In addition, we sell products in Mexico through the Sanborns and Sears Operadora México, S.A. de C.V. store chains. Some of our subsidiaries also purchase network construction services and materials from subsidiaries of Grupo Carso. Our subsidiaries purchase these materials and services on terms no less favorable than they could obtain from unaffiliated parties, and would have access to other sources if our related parties ceased to provide them on competitive terms.

We and Telesites have entered into an agreement providing for site usage fees, annual price escalations and fixed annual charges that permit us to install a pre-determined amount of equipment at the Telesite towers and provide for incremental

fee payments if capacity use is exceeded. The principal economic terms of the agreement conform to the reference terms published by Telesites and approved by the Federal Telecommunications Institute ( Instituto Federal de Telecomunicaciones , or “IFT”).

We enter into a number of transactions with related parties in the ordinary course of our business. We believe that these transactions are on terms comparable to those that could be obtained in arm’s length negotiations with unaffiliated third parties. Note 6 and Note 15 to our audited consolidated financial statements included in this annual report set forth information on related party transactions for the three year period set forth therein. We do not regard any of these transactions as material to us.

In accordance with Mexican law, an independent audit committee must provide an opinion to the Board of Directors regarding any transaction with a related party that requires approval by the Board of Directors. Pursuant to Mexican law, related party transactions that are non-material, are within the ordinary course of business, or are on an arm’s-length basis, do not require specific board approval, if consistent with the guidelines approved by the Board of Directors.

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

PAYMENT DATE
November 8, 2021	Ps.0.20	U.S.$ 0.0097
July 19, 2021	Ps.0.20	U.S.$ 0.0100
November 9, 2020	Ps.0.19	U.S.$ 0.0092
July 20, 2020	Ps.0.19	U.S.$ 0.0085
November 11, 2019	Ps.0.17	U.S.$ 0.0090
July 15, 2019	Ps.0.18	U.S.$ 0.0095
November 12, 2018	Ps.0.16	U.S.$ 0.0080
July 16, 2018	Ps.0.16	U.S.$ 0.0085
November 13, 2017	Ps.0.15	U.S.$ 0.0079
July 17, 2017	Ps.0.15	U.S.$ 0.0085

On April 20, 2022 our shareholders approved a cash dividend of Ps.0.44 per share, payable in one installment on August 29, 2022.

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

Our bylaws provide that holders of AA Shares, A Shares and L Shares participate equally on a per-share basis in dividend payments and other distributions, subject to certain non-material preferential dividend rights of holders of L Shares.

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Our shares and ADSs are listed on the following markets:

SECURITY	STOCK EXCHANGE	TICKER SYMBOL
L Shares	Mexican Stock Exchange—Mexico City	AMXL
L Share ADSs	New York Stock Exchange—New York	AMX
A Shares	Mexican Stock Exchange—Mexico City	AMXA
A Share ADSs	New York Stock Exchange—New York	AMOV

We are a Sociedad Anónima Bursátil de Capital Variable organized under Mexican law. For a description of our AA Shares, A Shares and L Shares, and a brief summary of certain significant provisions in our current bylaws and Mexican law, see “Description of Securities Registered Under Section 12 of the Exchange Act,” filed as Exhibit 2.1 with this annual report. For a description of our Board of Directors, Executive and Audit and Corporate Practices Committees and External Auditor, see “Management” under Part V of this annual report.

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We periodically repurchase at our discretion our L Shares and A Shares on the open market pursuant to guidelines approved by our Board of Directors, using funds up to an amount authorized by our shareholders specifically for the repurchase of L Shares and A Shares. Our shareholders authorized the allocation of up to Ps.6 billion in February 2021, Ps.25 billion in April 2021 and Ps.26 billion in November 2021, in each case to repurchase L Shares and A Shares. In our 2022 annual ordinary shareholders’ meeting, our shareholders authorized increase to the buyback program fund by an amount equal to Ps.26 billion, which after the increase amounts to Ps.36.539 billion to repurchase L Shares and A Shares from April 2022 to April 2023.

The following table sets out information concerning purchases of our L Shares by us and our affiliated purchasers in 2021. We did not repurchase our L Shares other than through the share repurchase program, and we did not repurchase any A Shares.

PERIOD		AVERAGE PRICE<br>PER SHARE			APPROXIMATE MEXICAN PESO<br>VALUE OF SHARES THAT MAY YET<br>BE PURCHASED UNDER THE PLANS<br>OR PROGRAMS<br><br>(2)
January 2021	58,300,000	Ps.	14.70	58,300,000	Ps.	137,547,600.71
February 2021	83,000,000		13.76	83,000,000		5,002,342,621.26
March 2021	180,000,000		14.11	180,000,000		2,476,906,037.20
April 2021	169,345,689		14.42	169,345,689		24,433,023,601.16
May 2021	132,896,900		14.86	132,896,900		22,469,536,093.00
June 2021	141,528,312		15.63	141,528,312		20,270,462,806.00
July 2021	184,489,748		15.81	184,489,748		17,370,881,547.05
August 2021	214,000,000		17.87	214,000,000		13,568,848,403.30
September 2021	249,000,000		18.64	249,000,000		8,954,740,926.13
October 2021	273,600,000		18.14	273,600,000		4,020,009,413.98
November 2021	285,400,000		18.70	285,400,000		24,714,680,611.87
December 2021	201,259,367		20.50	201,259,367		20,612,674,146.83
Total L Shares	2,172,820,016			2,172,820,016
(1)<br> This includes purchases by us and our affiliated purchasers in 2021.<br> <br>(2)<br> This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.

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

This discussion does not constitute, and should not be considered as, legal or tax advice to holders. The discussion is for general information purposes only and is based upon the federal tax laws of Mexico (including the Mexican Income Tax Law ( Ley del Impuesto sobre la Renta ) and the United States in effect on the date of this annual report, including the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion and the protocols thereto between the United States and Mexico currently in force (together, the "Tax Treaty") and the agreement between the United States and Mexico concerning the exchange of information with respect to tax matters. The Tax Treaty is subject to change, and such changes may have retroactive effects. Holders of shares or ADSs should consult their own tax advisors as to the Mexican, U.S. or other tax consequences of the purchase, ownership and disposition of shares or ADSs, including, in particular, the effect of any foreign, state or local tax laws.

MEXICAN TAX CONSIDERATIONS

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

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

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

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

•	whose shares were not acquired through the Mexican Stock Exchange or other markets authorized by the Ministry of Finance and Public Credit (<br>Secretaría de Hacienda y Crédito Público<br>) or the Mexican Federal Tax Code;
•	of shares or ADSs that control us;
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•	that holds 10.0% or more of our shares;
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•	that is part of a group of persons for purposes of Mexican law that controls us (or holds 10.0% or more of our shares); or
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•	that is a resident of Mexico or is a corporation resident in a tax haven (as defined by the Mexican Income Tax Law).
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Tax Treaties

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

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

Payment of Dividends

Dividends, either in cash or in kind, paid with respect to L Shares, A Shares, L Share ADSs or A Share ADSs will generally be subject to a 10.0% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2014).

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Taxation of Dispositions

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

The sale or other transfer or disposition of shares not carried out through the Mexican Stock Exchange and not held in the form of ADSs will be subject to a 25% tax rate in Mexico, which is applicable to the gross proceeds realized from the sale.

Alternatively, a nonresident holder may, subject to certain requirements, elect to pay taxes on the net gain realized from the sale of shares at a rate of 35%.

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

Pursuant to the Tax Treaty, gains realized by a U.S. resident that is eligible to receive benefits pursuant to the Tax Treaty from the sale or other disposition of shares or ADSs, even if the sale or disposition is not carried out under the circumstances described in the preceding paragraphs, will not be subject to Mexican income tax, provided that the gains are not attributable to a permanent establishment or a fixed base in Mexico, and further provided that such U.S. holder owned less than 25% of the shares representing our capital stock (including ADSs), directly or indirectly, during the 12-month period preceding such disposition. U.S. residents should consult their own tax advisors as to their possible eligibility under the Tax Treaty.

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

Other Mexican Taxes

A nonresident holder generally will not be liable for estate, inheritance or similar taxes with respect to its holdings of shares or ADSs; provided, however, that gratuitous transfers of shares or ADSs may, in certain circumstances, result in the imposition of a Mexican tax upon the recipient.

There are no Mexican stamp, issue registration or similar taxes payable by a nonresident holder with respect to shares or ADSs.

U.S. FEDERAL INCOME TAX CONSIDERATIONS

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

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

•	a citizen or resident of the United States of America,
•	a corporation (or other entity taxable as a corporation) organized under the laws of the United States of America or any state thereof or
---	---
•	otherwise subject to U.S. federal income taxation on a net income basis with respect to the shares or ADSs.
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Each U.S. holder should consult such holder’s own tax advisor concerning the overall tax consequences to it of the ownership or disposition of shares or ADSs that may arise under foreign, state and local laws.

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Treatment of ADSs

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

Taxation of Distributions

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

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

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

Subject to certain exceptions for short-term and hedged positions, the U.S. dollar amount of dividends received by an individual with respect to the shares or ADSs will be subject

to taxation at reduced rates if the dividends are "qualified dividends." Dividends paid on the shares or ADSs will be treated as qualified dividends if (i) (A) the shares or ADSs are readily tradable on an established securities market in the United States or (B) we are eligible for the benefits of a comprehensive tax treaty with the United States which the U.S. Treasury determines is satisfactory for purposes of this provision and which includes an exchange of information program, and (ii) we were not, in the year prior to the year in which the dividend was paid, and are not, in the year in which the dividend is paid, a passive foreign investment company ("PFIC"). The ADSs are listed on the NYSE, and will qualify as readily tradable on an established securities market in the United States so long as they are so listed. In addition, the U.S. Treasury has determined that the Tax Treaty meets the requirements for reduced rates of taxation, and we believe we are eligible for the benefits of the Tax Treaty. Based on our audited consolidated financial statements and relevant market data, we believe that we were not treated as a PFIC for U.S. federal income tax purposes with respect to the 2020 and 2021 taxable years. In addition, based on our audited consolidated financial statements and our current expectations regarding the value and nature of our assets, the sources and nature of our income and relevant market data, we do not anticipate becoming a PFIC for the 2022 taxable year. Holders of shares or ADSs should consult their own tax advisors regarding the availability of the reduced dividend tax rate in the light of their own particular circumstances.

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

Taxation of Dispositions

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

Gain, if any, realized by a U.S. holder on the sale or other disposition of the shares or ADSs generally will be treated as U.S. source income for U.S. foreign tax credit purposes. Consequently, if a Mexican withholding tax is imposed on the sale or disposition of the shares, a U.S. holder that does not

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receive significant foreign source income from other sources may not be able to derive effective U.S. foreign tax credit benefits in respect of such Mexican taxes. In addition, as a result of recent changes to the foreign tax credit rules, for taxable years beginning after December 28, 2021, any Mexican tax imposed on the sale or other disposition of the shares or ADSs is unlikely to be treated as creditable, unless the U.S. Holder is eligible for and elects the benefits of the Tax Treaty. U.S. holders should consult their own tax advisors regarding the application of the foreign tax credit rules to their investment in, and disposition of, the shares or ADSs.

Information Reporting and Backup Withholding

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

•	establishes that it is an exempt recipient, if required, or
•	provides an accurate taxpayer identification number on a properly completed Internal Revenue Service Form <br>W-9<br> and certifies that no loss of exemption from backup withholding has occurred.
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The amount of any backup withholding from a payment to a holder will be allowed as a credit against the U.S. holder’s U.S. federal income tax liability and may entitle such holder to a refund, provided that certain required information is timely furnished to the Internal Revenue Service.

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

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

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

•	gain is effectively connected with the conduct by the holder of a U.S. trade or business or
•	in the case of gain realized by an individual holder, the holder is present in the United States for 183 days or more in the taxable year of the sale and certain other conditions are met.
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INFORMATION REPORTING AND BACKUP WITHHOLDING. Although non-U.S. holders generally are exempt from backup withholding, a non-U.S. holder may be required to comply with certification and identification procedures in order to establish its exemption from information reporting and backup withholding.

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DIRECTORS

Our Board of Directors has broad authority to manage our company. Our bylaws provide for the Board of Directors to consist of between 5 and 21 directors and allow for the election of an equal number of alternate directors. Directors need not be shareholders. A majority of our directors and a majority of the alternate directors must be Mexican citizens and elected by Mexican shareholders.

A majority of the holders of the AA Shares and A Shares voting together elect a majority of the directors and alternate directors, provided that any holder or group of holders of at least 10.0% of the total AA Shares and A Shares is entitled to name one director and one alternate director. Two directors and two alternate directors, if any, are elected by a majority vote of the holders of L Shares. Each alternate director may attend meetings of the Board of Directors and vote in the absence of the corresponding director. Directors and alternate directors are elected or reelected at each annual general meeting of shareholders and each annual ordinary special meeting of holders of L Shares. In accordance with the Mexican Securities Market Law ( Ley del Mercado de Valores ), the determination as to the independence of our directors is made by our shareholders, though the CNBV may challenge this determination. Pursuant to our bylaws and the Mexican Securities Market Law, at least 25.0% of our directors must be independent. In order to have a quorum for a meeting of the Board of Directors, a majority of those present must be Mexican nationals.

At a shareholders’ meeting held on November 22, 2021, Claudia Jañez Sanchez and Gisselle Morán Jiménez were designated as independent members of our Board of Directors. At the annual ordinary shareholders’ meeting held on April 20, 2022, except for Mr. Elías Ayub, the current members of the Board of Directors, the Executive Committee and the Audit and Corporate Practices Committee were reelected, and the Corporate Secretary and the Corporate Pro Secretary were reappointed, with 12 directors elected by the AA Shares and A Shares voting together and 2 directors elected by the L Shares. 64% of the members of the Board of Directors are independent and 21% are women.

Our bylaws provide that the members of the Board of Directors are elected for a term of one year. Pursuant to Mexican law, members of the Board continue in their positions after the expiration of their terms for up to an additional 30-day period if new members are not elected. Furthermore, in certain circumstances provided under the Mexican Securities Market Law, the Board of Directors may elect temporary directors who then may be elected or replaced at the shareholders’ meetings.

The names and positions of the members of the Board reelected or elected for the first time at the 2022 annual general shareholders’ meeting, their year of birth, and information

concerning their committee membership and principal business activities outside América Móvil are set forth below:

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

CARLOS SLIM DOMIT
Chairman of the Board and the Executive Committee
Born:	1967
First elected:	2011
Term expires:	2023
Principal occupation:	Chairman of the Board of América Móvil
Other directorships:	Chairman of the Board of Grupo Carso and its affiliates
Business experience:	Business administration; Chief Executive Officer of Sanborn Hermanos
PATRICK SLIM DOMIT
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Vice Chairman and Member of the Executive Committee
Born:	1969
First elected:	2004
Term expires:	2023
Principal occupation:	Vice Chairman of our Board of Directors
Other directorships:	Director of Grupo Carso and its affiliates
Business experience:	Business administration; Chief Executive Officer of Grupo Carso and Vice President of Commercial Markets of Telmex
DANIEL HAJJ ABOUMRAD
---	---
Director and Member of the Executive Committee
Born:	1966
First elected:	2000
Term expires:	2023
Principal occupation:	Chief Executive Officer of América Móvil
Other directorships:	Director of Grupo Carso and Telmex
Business experience:	Business administration; Chief Executive Officer of Compañía Hulera Euzkadi
LUIS ALEJANDRO SOBERÓN KURI
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Director
Born:	1960
First elected:	2000
Term expires:	2023
Principal occupation:	Chief Executive Officer and Chairman of the Board of Serinem México (a subsidiary of Corporación Interamericana de Entretenimiento)
Other directorships:	Director of CIE; Director of Grupo Financiero Citibanamex
Business experience:	Business administration; Various positions at CIE

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FRANCISCO JOSÉ MEDINA CHÁVEZ
Director
Born:	1956
First elected:	2018
Term expires:	2023
Principal occupation:	Chief Executive Officer and Chairman of Grupo Fame, and Chairman of Grupo Altozano
Other directorships:	Director of Banco Nacional de México and Grupo Chedraui
Business experience:	Real estate; Director of Aeroméxico and Mitsui Mexico
ERNESTO VEGA VELASCO
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Director, Chairman of the Audit and Corporate Practices Committee
Born:	1937
First elected:	2007
Term expires:	2023
Principal occupation:	Retired. Member of the Board of Directors and audit and corporate practices, planning and finance and evaluation and compensation committees of certain companies.
Other directorships:	Director of Kuo and its affiliates, Inmuebles Carso and its affiliates, and Industrias Peñoles
Business experience:	Accounting and business administration; Various positions in Desc Group, including Corporate Vice- President
RAFAEL MOISÉS KALACH MIZRAHI
---	---
Director and Member of the Audit and Corporate Practices Committee
Born:	1946
First elected:	2012
Term expires:	2023
Principal occupation:	Chairman and Chief Executive Officer of Grupo Kaltex
Other directorships:	Director of Grupo Carso and its affiliates
Business experience:	Accounting and business administration; various positions in Grupo Kaltex
ANTONIO COSÍO PANDO
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Director
Born:	1968
First elected:	2015
Term expires:	2023
Principal occupation:	Vice President of Grupo Hotelero las Brisas, Compañía Industrial Tepeji del Río, and Bodegas de Santo Tomás
Other directorships:	Director of Grupo Carso and its affiliates, Corporación Actinver, and Grupo Aeromexico
Business experience:	Engineer; various positions in Grupo Brisas and Compañía Industrial Tepeji del Río

OSCAR VON HAUSKE SOLÍS
Director
Born:	1957
First elected:	2011
Term expires:	2023
Principal occupation:	Chief Fixed-line Operations Officer of América Móvil
Other directorships:	Member of Telekom Austria’s Supervisory Board
Business experience:	Accounting and business administration; Chief Executive Officer of Telmex Internacional, Chief Systems and Telecommunications Operators Officer of Telmex and member of KPN’s
VANESSA HAJJ SLIM
---	---
Director
Born:	1997
First elected:	2018
Term expires:	2023
DAVID IBARRA MUÑOZ
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Director
Born:	1930
First elected:	2000
Term expires:	2023
Principal occupation:	Retired
Other directorships:	Director of Grupo Carso and its affiliates, and Grupo Mexicano de Desarrollo
Business experience:	Economist; Chief Executive Officer of Nacional Financiera and Secretary of Finance and Public Credit of Mexico
GISSELLE MORÁN JIMÉNEZ
---	---
Director
Born:	1974
First elected:	2021
Term expires:	2023
Principal occupation:	Chief Executive Officer of Real Estate, Market and Lifestyle
Other directorships:	Director of Alignmex Real Estate Capital
Business experience:	Commercial Manager of Grupo Mundo Ejecutivo

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Directors elected by holders of Series L Shares:

PABLO ROBERTO GONZÁLEZ GUAJARDO
Director and Member of the Audit and Corporate Practices Committee
Born:	1967
First elected:	2007
Term expires:	2023
Principal occupation:	Chief Executive Officer of Kimberly Clark de México
Other directorships:	Director of Kimberly Clark de México, Grupo Sanborns and Grupo Lala
Business experience:	Various positions in the Kimberly Clark Corporation and Kimberly Clark de México
CLAUDIA JAÑEZ SÁNCHEZ
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Director
Born:	1971
First elected:	2021
Term expires:	2023
Principal occupation:	Independent Director
Other directorships:	Director of Bolsa Mexicana de Valores and Board Member of Grupo Industrial Saltillo, HSBC Mexico and Impulsora de Desarollo y de Empleo en América Latina
Business experience:	Chairman of DuPont Latin America and Chairman of the Executive Council of Global Companies

Our 2022 annual ordinary general shareholders’ meeting determined that the following directors are independent: Claudia Jañez Sanchez, Gisselle Morán Jiménez, Ernesto Vega Velasco, Pablo Roberto González Guajardo, David Ibarra Muñoz, Antonio Cosío Pando, Rafael Moisés Kalach Mizrahi, Luis Alejandro Soberón Kuri and Francisco José Medina Chávez.

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

Patrick Slim Domit and Carlos Slim Domit are brothers. Daniel Hajj Aboumrad is brother-in-law of Patrick Slim Domit and Carlos Slim Domit. Vanessa Hajj Slim is the daughter of Daniel Hajj Aboumrad.

EXECUTIVE COMMITTEE

Our bylaws provide that the Executive Committee may generally exercise the powers of the Board of Directors, with certain exceptions. In addition, the Board of Directors is required to consult the Executive Committee before deciding on certain matters set forth in the bylaws, and the Executive Committee must provide its views following a request from

the Board of Directors, the Chief Executive Officer or the Chairman of the Board of Directors. If the Executive Committee is unable to make a recommendation within ten calendar days, or if a majority of the Board of Directors or any other corporate body duly acting within its mandate determines in good faith that action cannot be deferred until the Executive Committee makes a recommendation, the Board of Directors is authorized to act without such recommendation. The Executive Committee may not delegate its powers to special delegates or attorneys-in-fact.

The Executive Committee is elected from among the directors and alternate directors by a majority vote of the holders of common shares (AA Shares and A Shares). The majority of its members must be Mexican citizens and elected by Mexican shareholders. The current members of the Executive Committee are Carlos Slim Domit, Patrick Slim Domit and Daniel Hajj Aboumrad. See “Major Shareholders” under Part IV of this annual report.

AUDIT AND CORPORATE PRACTICES COMMITTEE

Our Audit and Corporate Practices Committee is comprised of independent members of the Board of Directors, as determined by our shareholders pursuant to the Mexican Securities Market Law and as defined under Rule 10A-3 under the Exchange. The Audit and Corporate Practices Committee consists of Ernesto Vega Velasco (Chairman), Rafael Moisés Kalach Mizrahi and Pablo Roberto González Guajardo. The mandate of the Audit and Corporate Practices Committee is to assist our Board of Directors in overseeing our operations and establish and monitor procedures and controls in order to ensure that the financial information we distribute is useful, appropriate and reliable and accurately reflects our financial position. In particular, the Audit and Corporate Practices Committee is required to, among other things, (i) call shareholders’ meetings and recommend items to be included on the agenda, (ii) advise the Board of Directors on internal control procedures, related party transactions that are outside the ordinary course of our business, succession plans and compensation structures of our key executives, (iii) select and monitor our auditors, (iv) discuss with our auditors the procedures for the preparation of the annual financial statements and the accounting principles to the annual and the interim financial statements and (v) obtain from our auditors a report that includes a discussion of the critical accounting policies used by us, any alternative accounting treatments for material items that have been discussed by management with our auditors and any other written communications between our auditors and management.

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The Company is required to make public disclosure of any Board action that is inconsistent with the opinion of the Audit and Corporate Practices Committee. In addition, pursuant to our bylaws, the Audit and Corporate Practices Committee is in charge of our corporate governance functions under the Mexican securities laws and regulations and is required to submit an annual report to the Board of Directors with respect to our corporate and audit practices. The Audit and Corporate Practices Committee must request the opinions of our executive officers for purposes of preparing this annual report.

SENIOR MANAGEMENT

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

DANIEL HAJJ ABOUMRAD
Chief Executive Officer
Appointed:	2000
Business experience:	Director of Telmex; Chief Executive Officer of Compañía Hulera Euzkadi
CARLOS JOSÉ GARCÍA MORENO ELIZONDO
---	---
Chief Financial Officer
Appointed:	2001
Business experience:	General Director of Public Credit at the Ministry of Finance and Public Credit; Managing Director of UBS Warburg; Associate Director of Financing at Petróleos Mexicanos (Pemex); Member of Telekom Austria’s Supervisory Board; Member of KPN Supervisory Board
ALEJANDRO CANTÚ JIMÉNEZ
---	---
General Counsel
Appointed:	2001
Business experience:	Member of Telekom Austria’s Supervisory Board
OSCAR VON HAUSKE SOLÍS
---	---
Chief Fixed-line Operations Officer
Appointed:	2010
Business experience:	Chief Executive Officer of Telmex Internacional; Chief Systems and Telecommunications Officer of Telmex; Head of Finance at Grupo Condumex; Director of Telmex, Telmex Internacional, Empresa Brasileira de Telecomunicaçőes S.A. (“Embratel”), and Net Serviços de Comunicaçăo S.A. (“Net Serviços”); Member of Telekom Austria’s Supervisory Board

RAFAEL COUTTOLENC URREA
Chief Wireless Operations Officer
Appointed:	2021
Business experience:	Various positions in América Móvil

AUDIT COMMITTEE FINANCIAL EXPERT

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

COMPENSATION OF DIRECTORS AND SENIOR MANAGEMENT

The aggregate compensation paid to our directors (including compensation paid to members of our Audit and Corporate Practices Committee) and senior management in 2021 was approximately Ps.5.8 million and Ps.85 million, respectively. None of our directors is a party to any contract with us or any of our subsidiaries that provides for benefits upon termination of employment. We do not provide pension, retirement or similar benefits to our directors in their capacity as directors. Our executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees, and we do not separately set aside, accrue or determine the amount of our costs that is attributable to executive officers because they are included in the overall accrual for all employees subject to such benefits.

SHARE OWNERSHIP OF DIRECTORS AND SENIOR MANAGEMENT

Carlos Slim Domit, Chairman of our Board of Directors, holds 647 million (or as of March 31, 2022, 3.1%) of our AA Shares and 1,679 million (or as of March 31, 2022, 3.9%) of our L Shares directly. Patrick Slim Domit, Vice Chairman of our Board of Directors, holds 323 million (or as of March 31, 2022, 1.6%) of our AA Shares and 919 million (or as of March 31, 2022, 2.1%) of our L Shares directly. In addition, according to beneficial ownership reports filed with the SEC, Patrick Slim Domit and Carlos Slim Domit are beneficiaries of a trust that owns shares of the Company. See “Major Shareholders” under Part IV of this annual report. Except as described above, according to the information provided to us by our directors and members of senior management, none of our directors or executive officers is the beneficial owner of more than 1.0% of any class of our capital stock.

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Our corporate governance practices are governed by our bylaws, the Mexican Securities Market Law and the regulations issued by the CNBV. We also comply with the Mexican Code of Best Corporate Practices ( Código de Mejores Prácticas Corporativas ). On an annual basis, we file a report with the Mexican Stock Exchange regarding our compliance with the Mexican Code of Best Corporate Practices.

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

NYSE STANDARDS	OUR CORPORATE GOVERNANCE PRACTICES
DIRECTOR INDEPENDENCE
Majority of Board of Directors must be independent. §303A.01. “Controlled companies” are exempt from this requirement. A controlled company is one in which more than 50.0% of the voting power is held by an individual, group or another company, rather than the public. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.	Pursuant to the Mexican Securities Market Law, our shareholders are required to elect a Board of Directors of no more than 21 members, 25% of whom must be independent. Certain persons are per se <br>non-independent,<br> including insiders, control persons, major suppliers and any relatives of such persons. Under 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.<br> <br><br> <br>Currently, a majority of our Board of Directors is independent.
EXECUTIVE SESSIONS
Non-management<br> directors must meet at regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. §303A.03.	Our <br>non-management<br> directors have not held executive sessions without management in the past, and they are not required to do so.
NOMINATING/CORPORATE GOVERNANCE COMMITTEE
Nominating/corporate governance committee composed entirely of independent directors is required. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.04.	Mexican law requires us to have one or more committees that oversee certain corporate practices, including the appointment of directors and executives. Under the Mexican Securities Market Law, committees overseeing certain corporate practices must be composed of independent directors. However, in the case of controlled companies, such as ours, only a majority of the committee members must be independent.
“Controlled companies” are exempt from these requirements. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.	Currently, we do not have a nominating committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is composed of independent directors, oversees our corporate practices, including the compensation and appointment of directors and executives.
COMPENSATION COMMITTEE
Compensation committee composed entirely of independent directors is required, which must evaluate and approve executive officer compensation. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.02(a)(ii) and §303A.05. “Controlled companies” are exempt from this requirement. §303A.00.	We currently do not have a compensation committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is comprised solely of independent directors, evaluates and approves the compensation of management (including our CEO) and directors.
AUDIT COMMITTEE
Audit committee satisfying the independence and other requirements of Rule <br>10A-3<br> under the Exchange Act and the additional requirements under the NYSE standards is required. §§303A.06 and 303A.07.	We have an Audit and Corporate Practices Committee of three members. Each member of the Audit and Corporate Practices Committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Rule <br>10A-3<br> under the U.S. Securities Exchange Act of 1934, as amended. Our Audit and Corporate Practices Committee operates primarily pursuant to (1) a written charter adopted by our Board of Directors, which assigns to the Committee responsibility over those matters required by Rule <br>10A-3(2)<br> our bylaws and (3) Mexican law. For a more detailed description of the duties of our Audit and Corporate Practices Committee, see “Management” under Part V of this annual report.

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NYSE STANDARDS	OUR CORPORATE GOVERNANCE PRACTICES
EQUITY COMPENSATION PLANS
Equity compensation plans and all material revisions thereto require shareholder approval, subject to limited exemptions. §§303A.08 and 312.03.	Shareholder approval is required under Mexican law for the adoption or amendment of an equity compensation plan. Such plans must provide for similar treatment of executives in comparable positions.
SHAREHOLDER APPROVAL FOR ISSUANCE OF SECURITIES
Issuances of securities (1) that will result in a change of control of the issuer, (2) that are to a related party or someone closely related to a related party, (3) that have voting power equal to at least 20.0% of the outstanding common stock voting power before such issuance or (4) that will increase the number of shares of common stock by at least 20.0% of the number of outstanding shares before such issuance requires shareholder approval. §§312.03(b)-(d).	Mexican law requires us to obtain shareholder approval for any issuance of equity securities. Under certain circumstances, however, we may sell treasury stock subject to the approval of our Board of Directors.
CODE OF BUSINESS CONDUCT AND ETHICS
Corporate governance guidelines and a code of business conduct and ethics are required, with disclosure of any waiver for directors or executive officers. The code must contain compliance standards and procedures that will facilitate the effective operation of the code. §303A.10.	We have adopted a code of ethics, which applies to all of our directors and executive officers and other personnel. For more information, see “Corporate Governance—Code of Ethics” under Part V of this annual report.
CONFLICTS OF INTEREST
A company’s audit committee or another independent body of the board of directors shall conduct a reasonable prior review and oversight of related party transactions required by Item 7.B of Form <br>20-F<br> for potential conflicts of interest and will prohibit such transaction if it determines it to be inconsistent with the interests of the company and its shareholders. §314.00. Certain issuances of common stock to a related party require shareholder approval. §312.03(b).	In accordance with Mexican law, an independent audit committee must provide an opinion to the board of directors regarding any transaction with a related party, which must be approved by the board of directors. Pursuant to Mexican Law, non-material related party transactions, or transactions with certain related parties within the ordinary course of business or on arms-length basis, do not require specific board approval, if consistent with guidelines approved by the Board of Directors.
SOLICITATION OF PROXIES
Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NYSE. §§402.01 and 402.04.	We are not required to solicit proxies from our shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting and we make materials available to be discussed at each shareholders’ meeting. Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders’ meetings and, where applicable, instructions on how to instruct the depositary to vote at the meeting. Under the deposit agreement relating to our ADS, we may direct the voting of any ADS as to which no voting instructions are received by the depositary, except with respect to any matter where substantial opposition exists or that materially and adversely affects the rights of holders.

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A) DISCLOSURE CONTROLS AND PROCEDURES

We carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of December 31, 2021. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

B) MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

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

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

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

Based on our evaluation under the framework in Internal Control—Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2021.

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

April 29

, 2022.

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C) ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

Opinion on Internal Control over Financial Reporting

We have audited América Móvil, S.A.B. de C.V. and subsidiaries’ internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, América Móvil, S.A.B. de C.V. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2021 and 2020, the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of three years in the period ended December 31, 2021, and the related notes, and our report dated April 29, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

The Company´s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company´s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a

material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definitions and Limitations of Internal Control over Financial Reporting

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

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

/s/ MANCERA, S.C.

Mexico City, Mexico

April 29, 2022

D) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There has been no change in our internal control over financial reporting during 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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Chaired by our CEO, the Corporate Sustainability Executive Committee defines and oversees the implementation of our overall strategy to improve our performance on sustainability matters.

By incorporating sustainability in our daily decision-making, we seek to foster greater efficiencies and operate with the highest sense of social responsibility and environmental care, strengthening our market leadership while contributing to economic, social, and cultural development in the communities where we operate.

Our corporate sustainability reports are available on our website at www.americamovil.com. This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL, is not incorporated into this annual report.

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We have developed an Integrity and Compliance Program (ICP), which has as its foundation our Code of Ethics. The ICP codifies the ethical principles that govern our business and promotes, among other things:

•	honest and ethical conduct;
•	full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submit to, the SEC and other authorities;
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•	compliance with applicable governmental laws, rules and regulations; the prompt internal reporting of violations of the Code of Ethics and the ICP;
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•	accountability for adherence to the Code of Ethics.
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Both the ICP and our Code of Ethics apply to all of our officers, senior management, directors, employees, the Company’s supply chain and/or other business relationships.

In 2021, we updated our Code of Ethics to include references to various ICP policies as well as to the whistleblower portal, which permits reporting of any conduct that infringes our Code of Ethics, any applicable law or regulation or any of our policies or procedures. The full text of our Code of Ethics and associated ICP policies may be found on our website at América Móvil—Corporate Governance (americamovil.com). This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL, is not incorporated into this annual report.

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MEXICO

Legal Framework

The legal framework for the regulation of telecommunications and broadcasting services is based on constitutional amendments passed in June 2013, the Federal Law on Telecommunications and Broadcasting ( Ley Federal de Telecomunicaciones y Radiodifusión ) as amended and the Federal Law on Economic Competition ( Ley Federal de Competencia Económica ) as amended.

Under the framework, the IFT may determine whether there is a “preponderant economic agent” in the telecommunications sector, based on number of customers, traffic or network capacity. In 2014, the IFT determined that an “economic interest group” consisting of us and our Mexican operating subsidiaries (Telcel, Telmex and Telnor) as well as Grupo Carso and Grupo Financiero Inbursa, constitutes the “preponderant economic agent” in the telecommunications sector, based on a finding that we serve more than half of the customers in Mexico, as measured by the IFT on a national basis.

The IFT has authority to impose on any preponderant economic agent a special regulatory regime. The special regime is referred to as “asymmetric” regulation because it applies to one sector participant and not to the others. Pursuant to the IFT’s determination that we are part of a group constituting a preponderant economic agent, we are subject to extensive asymmetric regulations in the telecom sector, which impacts our Mexican fixed-line and wireless businesses. See “ — Asymmetric Regulation of the Preponderant Economic Agent” and “ — Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste” under this Part VI. This legal framework has had a substantial impact on our business and operations in Mexico.

Principal Regulatory Authorities

The IFT is an autonomous authority that regulates telecommunications and broadcasting. It is headed by seven commissioners appointed by the President, and ratified by the Senate, from among candidates nominated by an evaluation committee. The IFT has authority over the application of legislation specific to the telecommunications and broadcasting sectors, and also over competition legislation as it applies to those sectors. The Mexican Ministry of Communications and Transportation ( Secretaría de Comunicaciones y Transportes ) retains regulatory authority over a few specific public policy matters.

The Mexican government has certain powers in its relations with concessionaires, including the right to take over the management of an operator’s networks, facilities and

personnel in cases of imminent danger to national security, public order or the national economy, natural disasters and public unrest, as well as to ensure continuity of public services.

Telecommunications operators are also subject to regulation by the Federal Consumer Bureau ( Procuraduría Federal del

Consumido r) under the Federal Consumer Protection Law ( Ley Federal de Protección al Consumidor ), which regulates publicity, quality of services and information required to be provided to consumers.

Asymmetric Regulation of the Preponderant Economic Agent

We are currently subject to extensive specific asymmetric measures based on the IFT’s determination that we and certain affiliates constitute the preponderant economic agent in the telecommunications sector. Below is a summary of the most important measures applicable to us.

Interconnection Rates.

The Federal Law on Telecommunications and Broadcasting provides that we are not permitted to charge other carriers for the termination services we provide in our networks. These provisions were declared unconstitutional by the Mexican Supreme Court ( Suprema Corte de Justicia de la Nación ) in August 2017 with respect to wireless services and in April 2018 with respect to fixed services. As a result, the IFT ruled that, as of January 1, 2018, in the case of Telcel, and as of January 1, 2019, in the case of Telmex, we are able to charge other carriers for terminating calls to our networks at asymmetric rates established by the IFT. We continue to pay such carriers for their interconnection services in accordance with the fixed and mobile rates set by the IFT.

Sharing Of Wireless Infrastructure and Services.

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

For mobile services,

the IFT has the right to verify, through a replicability test, that carriers using our regulated wholesale services can match our end user rates.

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Sharing of Fixed Infrastructure and Services.

We must provide other carriers access to (i) passive infrastructure, including towers, sites, telephone poles, ducts, manholes and rights of way, (ii) elements of our network that allow other carriers to use our network or resell those services we provide to our customers and (iii) our dedicated links (either local or long distance). Rates for this access are determined by the IFT using a long-run average incremental cost methodology.

For fixed services, the IFT has the right to verify, through a replicability test, that carriers using our regulated wholesale services can match our end user rates.

Local Loop Unbundling.

We must offer other carriers access to elements of our local loop network separately on terms and conditions (including rates) pre-approved by the IFT. The IFT has also ordered the legal and functional separation of the provision of wholesale regulated fixed services related to local loop unbundling, local dedicated links and shared access/use of passive infrastructure related with the local loop network. See “ — Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste” under this Part VI.

Certain Obligations Relating to Retail Services.

Rates for the provision of telecommunications services to our customers are subject to the IFT’s prior authorization.

We are also subject to certain obligations and restrictions relating to the sale of our services and products; one such obligation includes unlocking mobile devices for our customers and regulations on the sale end financing at mobile devices.

Content.

We are subject to specific limitations on acquisitions of exclusive transmission rights to “relevant” content ( contenidos audiovisuales relevantes ), as determined from time to time by the IFT, including the Mexican national team soccer matches, the opening and closing ceremonies and certain matches of the FIFA World Cup, the semifinal and final matches of the Liga MX soccer tournament and the Super Bowl.

Reference Terms.

Every year we must submit, for IFT’s approval, a proposal of the reference terms for all wholesale services that are subject to asymmetric regulation for the following year. Once approved, we must publish and offer the regulated wholesale services, in the terms approved by IFT.

IFT’s Biannual Review of Asymmetric Regulation

The next IFT biannual review is scheduled to begin in 2022. The measures are transitory and may be amended by the IFT, or terminated if the IFT determines effective competition conditions exist in the telecommunications sector or if we cease to be considered a preponderant economic agent. The IFT reviews the impact of the asymmetrical measures every

two years and may modify or eliminate measures or set forth new measures. The IFT reviewed the measures in 2020 and determined, among other things, to modify and add new asymmetrical regulations for mobile and fixed services. See “ — Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste” under this Part VI.

Creation of Red Nacional Última Milla and Red Última Milla Del Noroeste

In 2018, in response to an IFT resolution, we began to separate out the provision of wholesale regulated fixed services by Telmex and Telnor (the “Separation Plan”). Pursuant to the Separation Plan, Telmex and Telnor established new subsidiaries, Red Nacional Última Milla, S.A.P.I. de C.V. and Red Última Milla Del Noroeste, S.A.P.I. de C.V. (the “New Companies”), to provide local wholesale services related to the elements of the access network, including local access dedicated links, as well as those services related to passive infrastructure associated with the access network, such as ducts, poles and rights of way.

The prices and terms of the services provided by the New Companies are subject to IFT regulation, which could affect the viability and financial requirements of the New Companies. The practices of the New Companies may be subject to regulatory challenges by other market participants. In August 2021, the New Companies received a resolution issued by IFT lifting price regulation on access to certain local loop access services ( servicios de desagregación indirecta del bucle local ) in 52 municipalities.

The implementation of the Separation Plan has been complex, and some features remain uncertain and may require further development. As a result, we are not yet able to identify all the possible consequences, but some of the consequences could have a material adverse impact on us.

We have challenged the resolution in the Mexican courts. However, legal challenges will not suspend the implementation of the Separation Plan and final determinations are pending.

Substantial Market Power Investigations

When IFT was established, it succeeded to several major proceedings begun by predecessor agencies. These legacy proceedings have never been finally resolved, but the substance of the investigations and the potential relief have been largely superseded by the asymmetric regulation and other subsequent actions of IFT.

Our competitors have submitted multiple requests to IFT alleging anti-competitive practices or non-compliance with regulations on the part of the separate subsidiaries we established to provide wholesale services under the

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Separation Plan. We expect IFT to investigate these allegations, and it is possible that some of them could lead IFT to make findings adverse to us or to impose fines or other penalties.

Concessions

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

Network Concessions.

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

Spectrum Concessions.

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

Unified Concession.

Each of the New Companies holds a unified concession granted to provide only wholesale telecommunications services. These concessions were issued in March 2020 and have a term of 30 years and may be extended for an additional term of equal length.

Termination of Concessions

Mexican legislation provides that under certain circumstances, some assets of a concessionaire may be acquired by the federal government upon termination of these concessions.

There is no specific guidance or precedent for applying these provisions, so the scope of assets covered, the compensation to the concessionaire and the procedures to be followed would depend on the type of concession, the type of assets and the interpretation of applicable legislation by the competent authorities at the time.

Migration of Concessions and Additional Services

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

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

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

Telcel’s Concessions

Telcel operates under several different network and spectrum concessions covering particular frequencies and regions, holding an average of 289.26 MHz of capacity in Mexico’s nine regions in the 850 MHz, 1900 MHz,1.7/2.1 GHz, 2.5 GHz and 3.5 GHz bands. The following table summarizes Telcel’s concessions.

FREQUENCY	COVERAGE<br> <br>AREA	INITIAL<br> <br>DATE	TERMINATION<br> <br>DATE
Band A (1900 MHz)	Nationwide	Sep. 1999	Oct. 2039
Band D (1900 MHz)	Nationwide	Oct. 1998	Oct. 2038
Band B (850 MHz)	Regions 1, 2, 3	Aug. 2011	Aug. 2026
Band B (850 MHz)	Regions 4, 5	Aug. 2010	Aug. 2025<br>(1)
Band B (850 MHz)	Regions 6, 7, 8	Oct. 2011	Oct. 2026
Band B (850 MHz)	Region 9	Oct. 2015	Oct. 2030
Band F (1900 MHz)	Nationwide	Apr. 2005	Apr. 2025<br>(1)
Bands A and B (1.7/2.1 GHz)	Nationwide	Oct. 2010	Oct. 2030
Bands H, I and J (1.7/2.1 GHz)	Nationwide	May 2016	Oct. 2030
Band 7 (2.5 GHz)	98.94% of the population<br>(2)	Jul. 2017	Sep. 2020<br>(1)<br> – Nov. 2028 – Oct. 2040 – May 2041, Nov. 2041
Band 3.5 GHz<br>(3)	Nationwide	Oct. 2020(4)	Oct. 2038 and 2040
(1)<br> A request for extension has already been filed with the IFT.<br> <br>(2)<br> Except 7 municipalities in the state of Jalisco and 34 municipalities in the state of Zacatecas.<br> <br>(3)<br> On December 18, 2020, Telcel filed a formal request with the IFT to include mobile service in these concessions.<br> <br>(4)<br> The term of this concession is currently in force and was extended by IFT in favor of Telmex until 2040 and afterwards it was assigned by Telmex to Telcel as of March 11, 2020. Concessions acquired from Axtel were extended by the IFT until 2038.

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Concession Fees

All of Telcel’s concessions granted or renewed on or after January 1, 2003 are required to pay annual fees for the use and exploitation of radio spectrum bands. The amounts payable are set forth by the annual Federal Fees Law ( Ley Federal de Derechos ) and vary depending on the relevant region and radio spectrum band.

Telmex’s Concessions

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

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

In addition, Telmex currently holds concessions for the use of frequencies to provide point-to-point and point-to-multipoint transmission in 10.5, 15 and 23 GHz bands.

In 2018, Telmex was notified of a resolution issued by the IFT, through which the IFT imposed a fine of Ps.2.5 billion derived from an alleged breach in 2013 and 2014 of certain minimum quality of service goals for dedicated link services. Telmex has exercised all legal remedies challenging such resolution and a final resolution is pending.

Rates for Wireless Service

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

As a result of the preponderance determination, Telcel’s retail prices are subject to pre-approval by the IFT before they can take effect.

The IFT is also authorized to impose specific rate requirements on any carrier that is determined by the IFT to have substantial market power under the Federal Antitrust

Law ( Ley Federal de Competencia Económica ) and the 2014 legislation. For more information on litigation related to the Federal Antitrust Law and the 2014 legislation, see “–Substantial Market Power Investigations” under this Part VI.

Rates for Fixed Service

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

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

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

Prices for Telmex’s wholesale services are established by the IFT based on the long-run average incremental cost model methodology.

BRAZIL

Legal Framework and Principal Regulatory Authorities

The Brazilian Telecommunications Law ( Lei Geral

das Telecomunicações Brasileiras ) provides the framework for

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telecommunications regulation. The primary telecommunications regulator in Brazil is the Telecommunications Agency ( Agência Nacional de Telecomunicações , or “Anatel”), which has the authority to grant concessions and licenses in connection with telecommunications services and the use of orbits, except broadcasting, and to adopt regulations that are legally binding on telecommunications services providers.

The Brazilian Congress has approved an updated legislation to modernize the current concession-based model to an authorization- based model. The updated law brings the possibility of allowing fixed-line concessionaires, such as Claro Brasil, to provide services under an authorization rather than a concession, as long as certain investment-related obligations are met. Under the new legislation, it is possible to extend the current concessions, as well as radio frequency licenses and orbital positions, for more than one period. The legislation also permits the possibility of a secondary market for trading cellphone frequencies. The legislation will be implemented by regulations promulgated by Anatel. We are currently evaluating the potential impact of this legislation on our operations.

Licenses

In 2014, we simplified our corporate structure, and our subsidiaries Embratel, Embratel Participações S.A. (“Embrapar”) and Net Serviços were merged into Claro Brasil, with all licenses previously granted to our subsidiaries transferred to Claro Brasil.

In 2018, subsidiary Star One merged into Claro Brasil. As a result, all Brazilian satellite operation rights previously granted to Star One were transferred under the same terms and conditions to Claro Brasil. The satellite operation rights (AMC-12) covering regions outside of Brazil were relinquished by Star One before the merger. In 2020, the satellite operation rights were transferred to Embratel Tysat Telecomunicações S.A. (“Claro TV”), after approval by Anatel.

On December 18, 2019, we announced the acquisition of 100% of the shares of Nextel Brazil (currently known as Claro NXT Telecomunicações S.A.) and Sunbird Telecomunicações Ltda. (“Sundbird”), as well as its correspondent subsidiaries and parent companies in Brazil. Nextel Brazil had authorizations to provide personal mobile services, specialized mobile services, multimedia communication services, paid fixed telephony services (national and international long-distance) and radiofrequency services in Brazil that were granted by Anatel. Sunbird had authorizations to provide specialized mobile services and radiofrequency services. Derived from our acquisition of Nextel Brazil and Sunbird, Anatel provided us with: (i) a term of 18 months to consolidate and cancel the overlapped

authorizations granted in favor of Nextel Brazil and Sunbird; and (ii) a term of 2 months to adjust the radiofrequency thresholds. In 2020, the authorizations and radiofrequencies granted in favor of Nextel Brazil and Sunbird for specialized mobile services were waived. Also in 2020, Nextel’s PS licenses were transferred to Claro Brasil. Moreover, to comply with the obligation mentioned on item “(i)” above, on February 5, 2021, all of Nextel Brazil’s mobile services assets and licenses were transferred to Claro Brasil by means of a corporate restructuring.

In 2019, the subsidiary Primesys was merged into Claro Brasil. As a result, service authorizations granted to Primesys were transferred under the same terms and conditions to Claro Brasil.

Our Brazilian subsidiaries hold licenses for the telecommunications services listed below and expect to continue acquiring spectrum if Anatel conducts additional public auctions, although Claro Brasil, like all of its peer competitors, is subject to a cap on the additional spectrum it may acquire per frequency band.

SUBSIDIARY	LICENSE	TERMINATION<br>DATE
Claro Brasil	Fixed Local Voice Services	Indefinite
	Domestic and International<br>Long-Distance	2025
	Voice Services	Indefinite
	Personal Communication Services	Indefinite
	Data Services	Indefinite
	Mobile Maritime Services	Indefinite
	Global Mobile Satellite Services	Indefinite
Claro TV	DTH TV Services	Indefinite
	Data Services	Indefinite
	Data Services	Indefinite
Americel S.A.	Data Services	Indefinite
Telmex do Brasil	Data Services	Indefinite
Nextel Brazil	Cable TV Services	Indefinite
	Domestic and International<br>Long-Distance	Indefinite
	Data Services	Indefinite

In addition, Claro TV has various orbital position authorizations for our satellite operations, which are set to expire between 2022 and 2033. Requests for extensions for 15 more years have been requested from Anatel. Claro TV also has radio frequency licenses to provide PCS, which are set to expire between 2022 and 2032. These grants were transferred from Claro Brasil to Claro TV in 2020, subsequent to Anatel’s approval.

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Nextel Brazil has radio frequency licenses to provide PCS, which were transferred to Claro Brasil on February 2021 and will expire between 2026 and 2031.

On June 30, 2021, all of Claro Brasil’s cable TV (SeAC) assets and its license were transferred to Nextel Brazil by means of a corporate restructuring.

On November 4 and 5 of 2021, during a 5G auction, Claro Brasil won 100 MHz of the 3.5 GHz frequency band. This band has national reach and is committed to taking 5G to municipalities with more than 30,000 inhabitants. In the same auction, the company also won the 2.3 GHz frequencies in the North, South, Midwest, São Paulo and Triângulo Mineiro regions and two blocks of 200 MHz National frequencies of 26 GHz. These licenses are valid until 2041 and are renewable.

Concessions

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

Concession Fees

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

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

Termination of Concessions

Our domestic and international long-distance fixed-line concessions provide that certain of our assets deemed “indispensable” for the provision of these services will revert to the Brazilian state upon termination of these concessions. Compensation for those assets would be their depreciated cost. See Note 17 to our audited consolidated financial statements included in this annual report.

Regulation of Rates

Anatel regulates rates (tariffs and prices) for all telecommunications services, except for fixed-line broadband services, Pay TV and satellite capacity rates, which are not regulated. In general, PCS license holders and fixed local voice services license-holders are authorized to increase basic plan rates annually. Claro Brasil may set domestic long-distance and international long-distance and mobile rates freely, provided that it gives Anatel and the public advance notice.

Regulation of Wholesale Market Competition

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

In 2012, Claro Brasil and three of its primary competitors were determined to have significant market power in the mobile wireless termination and national roaming markets. As a result, Claro Brasil was required to reduce mobile termination rates to 75.0% of the 2013 rates by February 2014, and to 50.0% of the 2013 rates by February 2015. In July 2014, Anatel established termination rates for mobile services applicable to operators with significant market power through 2019, based on a cost model, and in December 2018, Anatel established termination rates for mobile services applicable to operators with significant market power from 2020 to 2023. These termination rates were revised by Anatel in February 2020. Claro Brasil is also required to publish its reference roaming prices for voice, data and SMS on an annual basis, among other measures. These prices must be related to the Anatel reference values and need to be approved by Anatel before they can take effect. The approval of new prices by Anatel took place in January 2021.

In 2018, Anatel approved Claro Brasil’s most recent wholesale reference offers with respect to national roaming, telecommunications duct infrastructure, long-distance leased lines, high capacity transport above 34 Mbps, wireless networks interconnection, fixed network interconnection, internet network interconnection and internet links, which are reviewed and approved by Anatel on an annual basis. Anatel also reviews its determination of which operators have significant market power on a quadrennial basis. Anatel began its first review of all telecom operators in 2014 and published the most recent list of operators with significant market power for each of the relevant markets in 2018. In addition to the review, in 2018 Anatel changed some of the asymmetric measures applicable under the PGMC and added two new wholesale markets covering high capacity transport and fixed network interconnection. Anatel has determined that Claro Brasil has significant market power in eight wholesale markets.

Network Usage Fees and Fixed-Line Interconnection Rates

In July 2014, Anatel approved a resolution establishing the reference terms for fees charged by operators in connection with the use of their mobile network and leased lines and set

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a price cap on fees charged for fixed network usage by operators deemed to have significant market power. Such fees, based on costs of allocation services ( coubicación ), have been applicable since February 2016.

In December 2018, Anatel published reference values for fees network that are applicable from 2020 to 2023.

Fixed-line operators determined by Anatel to have significant market power in the local fixed-line market may freely negotiate interconnection rates, subject to a price cap established by Anatel.

Other Obligations

Under applicable law and our concessions, Claro Brasil has an obligation to (i) comply with certain coverage obligations to ensure universal access to its fixed-line voice services, (ii) contribute to the funding of the country’s transition from analogue to digital TV (due to the acquisition of the 700 MHz frequency), (iii) meet quality-of-service targets and (iv) comply with applicable telecommunications services consumer rights.

In addition to the associated coverage obligations for the 3.5 GHz band, the winners will have to create an entity (EAF) to clear the spectrum (migration of the parabolic TV signal), build a private communication network for the federal government of Brazil and install an optic fiber network in the North of Brazil. There are no coverage obligations for the 26 GHz band, but the winners will have to create an entity (EACE) which will be responsible for meeting public schools’ connection needs as defined by Anatel, the Ministry of Communications and the Ministry of Education.

CADE Anti-Competition Proceeding

On March 9 2021, the General Superintendence at the Administrative Council for Economic Defense (“CADE”) issued a non-binding opinion recommending fines against Claro Brasil, Oi Móvel S.A. (“Oi”) and Telefônica Brasil S.A. (“Telefônica”, together Claro Brasil and Oi, the “Defendants”). The potential fines relate to a complaint filed by British Telecom do Brasil (“BT”) against the Defendants alleging, among other things, that, in connection with a public bid, the Defendants (i) colluded to prevent competition between the leading players in the broadband internet services market in Brazil, which caused anti-competitive effects in the telecommunications sector and (ii) made it difficult for BT to participate in the bid through price discrimination tactics and by refusing to supply communication circuits (specifically, MPLS links) that were required for BT to participate in the bid. The case will be reviewed by CADE’s tribunal for a final ruling and CADE’s final decision may be challenged in judicial courts. We intend to challenge the final decision if it is not in our favor. The amount of monetary penalty recommended by

the General Superintendence at CADE could be substantial, but we cannot reasonably estimate the range of possible loss related to the proceeding.

COLOMBIA

Legal Framework and Principal Regulatory Authorities

The Information and Communications Ministry ( Ministerio de Tecnologías de la Información y las Comunicaciones , or “ICT Ministry”) and the Communications Regulatory Commission ( Comisión de Regulación de Comunicaciones , or “CRC”) are responsible for overseeing and regulating the telecommunications sector. The main audiovisual regulatory authorities in Colombia with respect to Pay TV services are the CRC, the ICT Ministry and the Industry and Commerce Superintendence (Superintendencia de Industria y Comercio, or “SIC”). Claro is also subject to supervision by other government entities responsible for enforcing other regulations, such as antitrust rules or those protecting consumer rights.

Concessions

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

As a result of the termination of Comcel’s former concessions, the ICT Ministry and Comcel began discussions with respect to the liquidation of the agreements governing those concessions. In light of the decision of the Colombian Constitutional Court ( Corte Constitucional de Colombia ) holding that certain laws limiting the reversion of assets of telecommunications providers did not apply to concessions granted prior to 1998 and, consequently, that reversion of assets under those earlier concessions would be governed by their contractual terms, the ICT Ministry obtained a domestic award ordering Comcel to revert assets under its earlier concessions to the Colombian government. Comcel challenged such award and the Company filed an international arbitration claim against Colombia arising from Colombia’s measures. The international arbitration court overseeing this claim upheld the decision to grant the aforementioned domestic award.

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Licenses and Permits

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

FREQUENCY	BANDWIDTH	TERMINATION DATE
850 MHz	25 MHz	Mar. 2024
1900 MHz	10 MHz	Dec. 2039
	5 MHz	Oct. 2041
	15 MHz	Mar. 2024
2.5 GHz	30 MHz	Aug. 2023
	10 MHz	Mar. 2040
	10 MHz	Mar. 2040
	10 MHz	Mar. 2040
700 MHz	20 MHz	May 2040

In 2013, Telmex Colombia S.A. obtained permission to provide Pay TV services under any available technology, pursuant to the ICT Ministry’s unified licensing system. On May 31, 2019, Telmex Colombia, S.A. merged into Comcel. The permission to provide Pay TV services granted in favor of Telmex Colombia, S.A. was simultaneously transferred to Comcel without modifications in connection with the merger. On July 30, 2019, Comcel’s permission to provide Pay TV was incorporated under Comcel’s general power to provide Pay TV granted to it under Law 1978 of 2019.

In 2017, the ICT Ministry issued a decree approving a higher cap on spectrum acquisitions by operators in low and high frequency bands. This new cap allows Comcel to participate in future spectrum auctions. The ICT Ministry has released its plan to conduct spectrum auctions in the 700 MHz, 1900 MHz and 2.5 GHz bands. The final resolution containing the auctions’ terms and conditions was published by the ICT Ministry during the fourth quarter of 2019. The auction took place on December 20, 2019. A subsidiary of Novator Partners LLP, a London-based private equity firm (the “Novator Subsidiary”), participated in the auction as a new competitor in the market. The Novator Subsidiary was granted a 20MHz license to operate in the 700MHz frequency band and three blocks of 10MHz for the 2,500MHz frequency band. Colombia Telecomunicaciones (Movistar) and Colombia Movil (Tigo) also participated in the auction. Tigo was granted a 40MHz license to operate in the 700MHz frequency band. Colombia Telecomunicaciones was not granted any licenses in the auction.

Subsequently, the Novator Subsidiary resigned and refused to exercise its rights under the license to operate one block of 10MHz for the 2,500MHz frequency band. As a consequence, on February 11, 2020, the ICT Ministry initiated an administrative proceeding to evaluate and decide on the effects caused by such resignation. Comcel was notified by the ICT Ministry and was considered an interested third party

in the administrative proceeding. The ICT Ministry imposed a sanction of 42 billion Colombian Pesos, approximately U.S. $12.3 million against Partners as a result of the aforementioned administrative proceeding.

Asymmetric Charges

In January 2017, the Colombian government approved symmetrical access charges among established operators like Comcel, Movistar and Tigo. However, under current regulation, new market entrants continue to receive a higher interconnection rate than incumbent operators and pay lower national roaming fees, in both cases, for a limited period.

In 2017, the CRC issued a resolution updating the list of relevant telecommunication markets by adding the mobile services market (including bundled mobile voice and data services) and by also including the mobile service market in the list of relevant markets subject to ex-ante regulation. In connection with the mobile services market, on January 28, 2021, the CRC determined that COMCEL has a dominant position in the relevant mobile services market, but did not impose particular measures. COMCEL considers that the CRC did not take into account important elements in its determination, which COMCEL has challenged before the administrative courts of competent jurisdiction. The proceeding is currently at a mandatory conciliation stage.

SOUTHERN CONE

ARGENTINA

The National Communications Agency ( Ente Nacional de Comunicaciones , or “Enacom”) is the main telecommunications regulatory authority in Argentina and became operational in 2016.

Fixed and mobile services providers are prohibited from providing DTH technology, which is currently the fastest way to provide Pay TV services. In 2017, the Argentine government issued a decree allowing telecommunications providers, including AMX Argentina S.A. (“AMX Argentina”), to provide Pay TV services via cable within a limited number of territories as of January 2018 and to the rest of the country as of January 2019. AMX Argentina has obtained the permissions necessary to provide Pay TV services via cable in accordance with the decree.

AMX Argentina holds licenses in the 700 MHz, 900 MHz, 1700/2100 MHz (AWS), 1900 MHz and 2600 MHz frequency bands, some of which expire in 15 years and some of which have no expiration date. Each license also contains certain coverage parameters, reporting and service requirements and provides Enacom a revocation right upon a material breach of the license terms.

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

In 2020, the government of Argentina issued decree 690/20 by which it declared information and communications technology (“ICT”) services and access to telecommunications networks, for and between licensees of ICT services, as essential and strategic public services in competition. It also established that Enacom is the competent authority to approve prices for ICT services and to establish regulations to that effect.

In 2021, in accordance with the provisions of decree 690/20, Enacom established the conditions of a “compulsory universal basic benefit” (“PBU”), which must be provided under conditions of equality. This PBU covers pay TV, internet, fixed and mobile telephony services, and consists of basic plans for each of these services at affordable prices. It is aimed at a special segment of beneficiaries.”

CHILE

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

Claro Chile S.A. (“Claro Chile”) holds concessions to provide mobile and fixed-line services in the 700MHz, 850 MHz, 1900 MHz, 2.6 GHz, 3.4 GHz and 5.8 GHz frequency bands. Except for the concession to provide services in the 850 MHz frequency, which has an indefinite termination date, the concessions to provide services in the 700 MHz, 1900 MHz, 2.6 GHz, 3.4 GHz and 5.8 GHz frequencies have termination dates that vary from 2027 to 2045. In 2020, Claro Chile received a 10 MHz license from Movistar to operate in the 1900 MHz frequency band. In February 2021, as part of a public tender, Claro Chile S.A. was granted a concession of 400 MHz block, in the 26 GHz Band. Later, in May 2021, Claro Chile acquired a concession of 30 MHz spectrum block in the 3.5 GHz Band (3.425-3.440MHz y 3.525-3-525-3.540 MHz) from ENTEL.

Claro Chile also holds a license to provide DTH technology services until 2024 and a license with an indefinite term to provide Pay TV services. Some of Claro Chile’s concessions impose additional requirements, such as coverage, reporting

and service quality requirements. The Chilean Transportation and Communications Ministry is authorized to terminate any concession in the event of specified breaches under the terms of such concessions. Additionally, Claro Chile’s concession in the 700 MHz band imposes certain obligations to expand mobile and data services in rural areas. In 2017, the Undersecretary of Telecommunication approved Claro Chile’s expansion project in connection with its obligations under its concession in the 700 MHz band.

In September 2021, Claro Chile S.A. and VTR, a subsidiary of Liberty Latin America Ltd., announced the beginning of a process to form an independent and permanent economic agent (Joint Venture) with the purpose of merging their telecommunications industry operations in Chile. In November 2021, the parties notified The National Economic Prosecutor’s Office (“FNE”) about this merger, which requires prior authorization of the FNE. The merger is currently in the first phase of investigation and analysis by the FNE.

PARAGUAY

The National Telecommunications Commission of Paraguay ( Comisión Nacional de Telecomunicaciones de Paraguay ) is in charge of supervising the telecommunications industry in Paraguay. It is authorized to cancel licenses in the event of specified breaches of the terms of a license. AMX Paraguay, S.A. (“AMX Paraguay”) holds licenses to operate in the 1900 MHz and the 1700/2100 MHz bands.

The 1700/2100 MHz band was renewed in August 2021. AMX Paraguay also holds a nationwide internet access and data transmission license. In addition, AMX Paraguay holds licenses to provide DTH services and cable TV services. The DTH License was renewed for another 5 years (until 2025). Additionally, in January 2018, AMX Paraguay participated in a spectrum auction and was awarded a license to provide telecommunications services in the 700 MHz band. In November 2018, the Telecommunications Commission of Paraguay granted the renewal of spectrum license in the 1900 MHz band. These licenses are renewable, subject to regulatory approval, and contain coverage, reporting and service requirements.

In November 2019, the Telecommunications Commission of Paraguay granted AMX Paraguay a license to provide internet access and data transmission services in the 3,500 MHz frequency band, effective until January 12, 2024.

URUGUAY

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

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AM Wireless Uruguay, S.A. (“AM Wireless Uruguay”) holds licenses to operate in the 1900 MHz, 1700/2100 MHz and 700 MHz frequency bands that expire in 2024, 2033, 2037, 2039 and 2045. Additionally, AM Wireless Uruguay holds an authorization to do a trial for 5G in the 26, 50 GHz – 26, 85 GHz frequency band that expires on July 2021. In 2021, AM Wireless Uruguay obtained a “Class C” license, which enables it to provide internet services using fixed or wireless connections to authorized telecommunications companies. Telstar S.A. holds licenses to provide international long-distance communications and international and national data services that have no expiration date.

The license initially granted to Flimay S.A. (“Flimay”) to provide DTH technology services in Uruguay has been contested by the government since 2012. In 2017, the executive branch of Uruguay held under a new ruling that Flimay does not have a valid license to provide DTH services in the country. Flimay requested this ruling be voided, but in February 2018, the executive branch of Uruguay, with support from the Administrative Court (“TCA”), requested the process be closed. As of the date of this annual report, a decision on Flimay’s appeal is pending.

In July 2020, the Consideration Law ( Ley de Urgente Consideración ) No. 19,889 was enacted, and pursuant to articles 471 through 476, established a number portability regime for mobile services. In January 2021 Decree No. 26 approved the regulation of the portability system.

In November 2021, the Accountability Law ( Ley de Rendición de Cuentas ) was enacted, whereby URSEC´s antitrust practices competencies were transferred to the Antitrust Commission ( Comisión de Promoción y Defensa de la Competencia ).

Notwithstanding the foregoing, URSEC remains competent to hold hearings on and authorize mergers and acquisitions of telecommunications licenses.

ANDEAN REGION

ECUADOR

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

The Telecommunications Law ( Ley Orgánica de Telecomunicaciones ), adopted in 2015, serves as the legal framework for telecommunications services. It established regulations for operators with significant market power based on their gross incomes as well as additional fees also based on an operator’s gross income, but that can vary depending on the size of their market share. Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) has a significant percentage of users in the advanced wireless services market, and therefore is obliged to make fee payments on its income pursuant to the Telecommunications Law.

Conecel paid to the Ecuadorian government U.S. $17.6 million, which corresponds to 3.0% of its wireless service revenues generated in the 2021. An arbitration proceeding to partially void the payment by Conecel of such fees was conducted and a decision in favor of the government was reached. Conecel has appealed this decision and, as of the date of this annual report, a decision of the Constitutional Court is pending. However, the Law for Economic Development and Sustainability after the COVID-19 Pandemic ( Ley Orgánica para el Desarrollo Económico y Sostenibilidad Fiscal tras la Pandemia COVID-19 ) issued on November 29, 2021 eliminates the regulation (Article 34) of the Telecommunications Law that required Conecel to make quarterly payments on its income. This elimination will become effective as of January 1, 2023.

Conecel holds concessions to operate in the 850MHz, 1900 MHz and AWS bands, which include concessions for PCS that expire in 2023. The PCS concession contains quality-of-service requirements for successful call completions, SMS delivery times, customer service, geographic coverage and other service conditions. The renewal of the PCS concession is in the process of negotiation with the Ecuadorian government.

Conecel also holds licenses to provide Pay TV Services (through DTH technology), bearer services, and internet services, expiring in 2023, 2032 and 2036, respectively.

Conecel also holds a concession to offer fixed-line voice as well as a license to provide Pay TV (through HFC technology) that expires in 2032 and 2031, respectively.

On March 15, 2021, the Superintendence of Companies ( Superintendencia de Compañías ), approved the division of CONECEL, which was duly registered on April 8, 2021. This division resulted in the creation of a new company named Sites Ecuador (Ecu-Sites) S.A.S. The new company is now the owner of most of the towers which used to belong to CONECEL, and its core business is to provide tower services to other companies. Most of these towers services are provided to CONECEL.

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On May 18, 2021 the Telecommunications Authority dictated a resolution that grants CONECEL a concession to provide submarine cable services for a period of 20 years.

Recalculation of Concession Fees

Arcotel initiated several proceedings to recalculate the variable portion of the concession fees payable under Conecel’s concessions, which, as of the date of this annual report, is equivalent to 2.93% of Conecel’s annual subscriber base revenues, in addition to its contribution for Universal Service ( Servicio Universal 1% ), both for the periods from 2017 to 2019. These recalculation proceedings with Arcotel remain ongoing.

In 2018, in addition to the variable portion of the concession, Conecel paid to Arcotel U.S.$11.9 million based on its annual revenues for the 2015 period and was required to pay U.S.$13 million based on its annual revenues for the 2016 period.

The recalculation proceedings mentioned in this section were disputed with Arcotel in arbitration. On April 17, 2020, the arbitration court issued its resolution which was favorable for Conecel. Arcotel was ordered to pay Conecel U.S.$32.4 million plus interest for the periods between 2009 and 2015.

On January 15, 2021, the Provincial Court of Justice accepted Arcotel´s request to nullify the resolution issued by the arbitration court, thereby declaring it null. However, the annulment of the resolution has not ended the dispute with Arcotel. A new arbitration court must issue a new resolution. At the same time Conecel enforced its rights by presenting an Extraordinary Action for Protection before the Constitutional Court for the violation of its rights.

For its Universal Service contribution, Conecel was required to pay U.S.$5 million for the 2015 period and U.S.$6 million for the 2016 period. On December 17, 2021, Conocel obtained a final judicial order that suspended definitely the collection process for the 2015 and 2016 periods. This is a final and non-appealable decision.

PERU

The Supervisory Agency for Private Investment in Telecommunication ( Organismo Supervisor de la Inversión Privada en Telecomunicaciones , or “OSIPTEL”) is in charge of the regulation of the telecommunications industry in Peru. The Ministry of Transport and Communications ( Ministerio de Transportes y Comunicaciones , or “MTC”) grants concessions, permits and licenses. The Telecommunications Law ( Decreto Supremo N

013-93-TCC Ley de Telecomunicaciones ), adopted in 1993, serves as the legal framework for telecommunications services.

América Móvil Perú, S.A.C. (“Claro Perú”) holds nationwide concessions to provide wireless, PCS, fixed-line, local wholesale, domestic and international long-distance, Pay TV services (through DTH and HFC technologies), public telephone and value-added services (including internet access). The concessions allow Claro Perú to operate on the 450 MHz, 700 MHz, 850 MHz, 1900 MHz, 3.5 GHz and 10.5 GHz bands. As part of Claro Perú’s acquisition of Olo del Perú S.A.C., TVS Wireless S.A.C. and their respective subsidiaries in 2016, Claro Perú has a resale agreement with such companies to operate in certain regions on the 2.5 GHz band.

Spectrum reframing is the process conducted by the MTC to properly order the assignment of a frequency band in order to have continuous coverage nationwide and adequate bandwidth. The MTC issued the final decision on the spectrum reframing for the 2.5 Ghz band, granting 80 Mhz to TVS Wireless, S.A.C. (Lima and Callao) and Olo del Peru, S.A.C. (rest of the country).

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

EUROPE AND OTHER JURISDICTIONS

European Legal Framework and Principal Regulatory Authorities

The telecommunications regulatory framework in the EU is based on the European Electronic Communications Code (“EECC”) that is currently in the process of being transposed into national laws for all EU member states. Austria, Bulgaria, Croatia and Slovenia are EU member states. Macedonia and Serbia, candidates for accession to the EU, are expected to gradually harmonize their regulatory frameworks with the EU’s framework.

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

Licenses

COUNTRY	FREQUENCY	TERMINATION DATE
AUSTRIA	800 MHz	2029
	900 MHz	2034
	1500 MHz	2044
	1800 MHz	2034
	2100 MHz	2044
	2600 MHz	2026
	3500 MHz	2039

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COUNTRY	FREQUENCY	TERMINATION DATE
BELARUS	900 MHz	Not applicable
	1800 MHz	Not applicable
	2100 MHz	Not applicable
BULGARIA	900 MHz	2024
	1800 MHz	2024
	2100 MHz	2025
	3500 MHz	2041
CROATIA	700 MHz	2036
	800 MHz	2024
	900 MHz	2024
	1800 MHz	2024
	2100 MHz	2024
	3500 MHz	2036
	26000 MHz	2036
NORTH MACEDONIA	800 MHz	2033
	900 MHz	2023
	1800 MHz	2033
	2100 MHz	2028

COUNTRY	FREQUENCY	TERMINATION DATE
SERBIA	800 MHz	2026
	900 MHz	2026
	1800 MHz	2026
	2100 MHz	2026
SLOVENIA	700 MHz	2036
	800 MHz	2029
	900 MHz	2031
	1500 MHz	2036
	1800 MHz	2031
	2100 MHz	2021
	2600 MHz	2029
	3500 MHz	2036
	26000 MHz	2029

OTHER JURISDICTIONS

COUNTRY	PRINCIPAL REGULATORY AUTHORITIES	CONCESSION AND LICENSES
COSTA RICA	Superintendency of Telecommunications <br>(Superintendencia de Telecomunicaciones)<br> Ministry of Science, Innovation, Technology and Telecommunications (<br>Ministerio de Ciencia,<br><br>Innovación, Tecnología y Telecomunicaciones<br>)	• Concessions in the AWS and 1800 MHz bands that expire in 2032<br> <br>• Concessions in the 2100 MHz band that expire in 2026<br> <br>• License to operate Pay TV services using DTH technology that will expire in 2026
EL SALVADOR	Electricity and Telecommunications Superintendency (<br>Superintendencia General de<br><br>Electricidad y Telecomunicaciones<br>)	• Concession of 50 MHz in the 1900 MHz band of which 30 MHz that expire in 2038, 10 MHz that expire in 2041 and 10 MHz that expire in 2028<br> <br>• Concession to provide public telephone service that expires in 2027<br> <br>• Licenses to provide Pay TV Services through HFC and DTH technologies have an indefinite term<br> <br>• Concession of 40 MHz in 1700/2100 MHz bands (AWS) that will expire in 2040.
GUATEMALA	Guatemalan Telecommunications Agency (<br>Superintendencia de Telecomunicaciones<br>)	• Licenses (Frequencies Usufruct Rights) to use 12 MHz in the 900 MHz band, 120 MHz in the 1900 MHz band and 175 MHz in the 3.5 GHz band that all expire in 2033 and were granted for the provision of any type of telecommunications service.
NICARAGUA	Nicaraguan Telecommunications and Mailing Institute (<br>Instituto Nicaragüense de<br><br>Telecomunicaciones y Correos<br>)	• Concessions in the 700 MHz, 850 MHz, 1900 MHz and 1700/2100 MHz bands that all expire in 2042<br> <br>• Concession of 50 MHz in the 3.5 GHz band that will expire in 2042<br> <br>• Licenses to provide DTH technology that will expire in January 2028 and Pay TV services that has an indefinite term
HONDURAS	Honduran National Telecommunications Commission (<br>Comisión Nacional de<br><br>Telecomunicaciones<br>)	• Concessions to use 80 MHz in the 1900 MHz PCS band and 40 MHz in the <br>LTE-4G<br> 1700/2100 MHz band that all expire in 2033<br> <br>• Licenses to operate Pay TV services through (i) HFC technology that will expire in 2027 and (ii) DTH technology that will expire in 2030
PANAMA	National Authority of Public Services (<br>Autoridad<br><br>Nacional de los Servicios Públicos<br>)	• License to use 40 MHz in the 1900 MHz and 20 MHz in the 700 MHz bands that all expire in 2028<br> <br>• Licenses to provide fixed local and long-distance services that expire in 2030

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COUNTRY	PRINCIPAL REGULATORY AUTHORITIES	CONCESSION AND LICENSES
		• License to provide internet service that expires in 2033<br> <br>• Licenses to provide international long-distance, value-added services, interactive television, and Pay TV service through DTH and IPTV technologies, which expire in 2028, 2030, 2037 and 2034, respectively<br> <br>• License to provide Pay TV service through optical fiber that expires in 2037.<br> <br>• License for data transportation, Service No. 200, which expires in 2023
DOMINICAN REPUBLIC	Dominican Institute of Telecommunications (<br>Instituto Dominicano de las Telecomunicaciones<br>)	• Concession to provide fixed and wireless services, internet and pay TV services through DTH and IPTV technologies that expire in 2030<br> <br>• Licenses to use 25 MHz in the 800 MHz band, 30 MHz in the 1900 MHz band, 80 MHz in the 2.5/2.7 GHz band, 30 MHz in the 3.5 GHz band and 40 MHz in the 1.7/2.1 GHz (AWS) band that expire in 2030
PUERTO RICO	Federal Communications Commission (FCC) and the Telecommunications Bureau of Puerto Rico	• Concessions to use the 700 MHz, 1900 MHz and the 28 GHz bands that expire in 2021 (currently pending renewal application extending to 2031), 2027 and 2029, respectively<br> <br>• Concessions to use the 800 MHz bands that expire in 2026, 2028, 2030 and 2031.<br> <br>• Concessions to use the <br>AWS-1<br> and <br>AWS-3<br> bands (1.7/2.1 GHz) that expire in 2026 and 2028, respectively.<br> <br>• Concessions to use the 3.5 GHz band that expires in 2030.<br> <br>• Long-term transfer lease concessions to use 35.6 MHz of the 2.5 GHz band that expire in 2022, 2023, 2025, 2026 and 2030.<br> <br>• Franchise to operate Pay TV services using IPTV technology that expires in 2030.

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

The following table sets forth the total number of employees and a breakdown of employees by main category of activity and geographic location, as of the dates indicated.

			DECEMBER 31,
	2019		2020		2021
NUMBER OF EMPLOYEES		190,664		185,948		181,205
CATEGORY OF ACTIVITY:
Wireless		82,232		72,501		72,098
Fixed		87,034		91,460		86,788
Other businesses		21,398		21,987		22,319
GEOGRAPHIC LOCATION:
Mexico		89,539		88,172		87,233
South America		61,058		59,244		56,147
Central America		10,372		9,936		9,713
Caribbean		11,351		10,647		10,256
Europe		18,344		17,949		17,856

In each of the countries in which we operate, we are party to various legal proceedings in the ordinary course of business. These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters such as interconnection and tariffs. We are party to a number of proceedings regarding our compliance with administrative rules and regulations and concession standards. Our material legal proceedings are described in Note 17 to our audited consolidated financial statements included in this annual report and in “Regulation” under Part VI of this annual report.

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AUDIT AND NON-AUDIT FEES

The following table sets forth the fees billed to us and our subsidiaries by our independent registered public accounting firm, Mancera, during the fiscal years ended December 31, 2020 and 2021:

	YEAR ENDED DECEMBER 31,
	2020		2021
	(in millions of Mexican pesos)
Audit fees<br>(1)		Ps. 250		Ps. 267
Audit-related fees<br>(2)		10		23
Tax fees<br>(3)		19		13
Total fees		Ps. 279		Ps. 303
(1)<br>Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.<br> <br>(2)<br> Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.<br> <br>(3)<br> Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services, tax planning services and tax advice services.

AUDIT AND CORPORATE PRACTICES COMMITTEE APPROVAL POLICIES AND PROCEDURES

Our audit and corporate practices committee has established policies and procedures for the engagement of our independent auditors for services.

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

We file reports, including annual reports on Form 20-F, and other information with the SEC pursuant to the rules and regulations of the SEC that apply to foreign private issuers.

Any fillings we make electronically will be available to the public over the internet at the SEC’s web site at www.sec.gov and at our website at www.americamovil.com. This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL, is not incorporated into this annual report.

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

1.1	Amended and Restated Bylaws (estatutos sociales) of América Móvil, S.A.B. de C.V., dated as of April 26, 2021 (together with an English translation).
2.1	Description of Securities Registered Under Section 12 of the Exchange Act.
4.1	Stock Purchase Agreement by and among Verizon, América Móvil, S.A.B. de C.V., AMX USA Holding, S.A. de C.V. and TracFone Wireless, Inc. dated as of September 13, 2020 (incorporated by reference to Exhibit 4.1 of our annual report on Form 20-F File No. 001-16269, filed on April 29, 2021)

8.1	List of certain subsidiaries of América Móvil, S.A.B. de C.V.
12.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
12.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
13.1	Certification pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
15.1	Code of Ethics.
15.2	Consent of independent registered public accounting firm.
17.1	Subsidiary Guarantors
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Document.
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).

Omitted from the exhibits filed with this annual report are certain instruments and agreements with respect to long-term debt of América Móvil, none of which, individually, authorizes securities in a total amount that exceeds 10% of the total assets of América Móvil. We hereby agree to furnish to the SEC copies of any such omitted instruments or agreements as the Commission requests.

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Some of the information contained or incorporated by reference in this annual report constitutes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Although we have based these forward-looking statements on our expectations and projections about future events, it is possible that actual events may differ materially from our expectations. In many cases, we include, together with the forward-looking statements themselves, a discussion of factors that may cause actual events to differ from our forward-looking statements.

Examples of forward-looking statements include the following:

•	projections of our commercial, operating or financial performance, our financing, our capital structure or our other financial items or ratios;
•	statements of our plans, objectives or goals, including those relating to acquisitions, competition and rates;
---	---
•	statements concerning regulation or regulatory developments;
---	---
•	the impact of COVID-19;
---	---
•	statements about our future economic performance or that of Mexico or other countries in which we operate;
---	---
•	competitive developments in the telecommunications sector;
---	---
•	other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and
---	---

•	statements of assumptions underlying the foregoing statements.

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

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward- looking statements. These factors, some of which are discussed under “Risk Factors,” include the impact of the COVID-19 pandemic, economic and political conditions and government policies in Mexico, Brazil, Colombia, Europe and elsewhere, inflation rates, exchange rates, regulatory developments, technological improvements, customer demand and competition. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those in forward-looking statements. You should evaluate any statements made by us in light of these important factors.

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

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ITEM	FORM <br>20-F<br> CAPTION	LOCATION IN THIS REPORT	PAGE
1	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS	Not applicable	—
2	OFFER STATISTICS AND EXPECTED TIMETABLE	Not applicable	—
3	KEY INFORMATION
	3A Selected financial data	Selected financial data	6
	3B Capitalization and indebtedness	Not applicable	—
	3C Reasons for the offer and use of proceeds	Not applicable	—
	3D Risk factors	Risk factors	36
4	INFORMATION ON THE COMPANY
	4A History and development of the Company	Information on the Company	9
		Note 10—Property, Plant and Equipment, net	F-44
		Liquidity and capital resources	31
		Additional Information	85
	4B Business overview	Information on the Company	9
		Regulation	70
	4C Organizational structure	Exhibit 8.1	—
	4D Property, plant and equipment	Information on the Company	9
		Note 10—Property Plant and Equipment, net	F-44
		Liquidity and capital resources	31
		Regulation	70
	4A Unresolved staff comments	None	—
5	OPERATING AND FINANCIAL REVIEW AND PROSPECTS
	5A Operating results	Overview	23
		Results of operations	25
		Regulation	70
		Liquidity and capital resources	31
	5B Liquidity and capital resources	Note 14—Debt	F-56
	5C Research and development, patents and licenses, etc.	Not applicable	—
	5D Trend information	Overview	23
		Results of operations	25
	5E Critical Accounting Estimates	Not applicable	—
6	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
	6A Directors and senior management	Management	59
	6B Compensation	Management	59
	6C Board practices	Management	59
		Management	59
	6D Employees	Employees	86
	6E Share ownership	Major shareholders	49
		Management	59
7	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
	7A Major shareholders	Major shareholders	49
	7B Related party transactions	Related party transactions	50
	7C Interests of experts and counsel	Not applicable	—
8	FINANCIAL INFORMATION
	8A Consolidated statements and other financial information	Consolidated Financial Statements	93
		Dividends	50
		Note 17—Commitments and Contingencies	F-64
	8B Significant changes	Not applicable	—

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ITEM	FORM <br>20-F<br> CAPTION	LOCATION IN THIS REPORT	PAGE
9	THE OFFER AND LISTING
	9A Offer and listing details	Trading markets	51
	9B Plan of distribution	Not applicable	—
	9C Markets	Trading markets	51
	9D Selling shareholders	Not applicable	—
	9E Dilution	Not applicable	—
	9F Expenses of the issue	Not applicable	—
10	ADDITIONAL INFORMATION
	10A Share Capital	Not applicable	—
	10B Memorandum and articles of association	Bylaws	51
	10C Material contracts	Information on the Company	9
		Results of operations	25
		Related party transactions	50
		Regulation	70
	10D Exchange controls	Additional information	85
	10E Taxation	Taxation of shares and ADSs	53
	10F Dividends and paying agents	Not applicable	—
	10G Statement by experts	Not applicable	—
	10H Documents on display	Additional information	85
	10I Subsidiary information	Not applicable	—
11	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	Risk management	34
		Note 2 a)—Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices	F-11
12	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
	12A Debt securities	Not applicable	—
	12B Warrants and rights	Not applicable	—
	12C Other securities	Not applicable	—
	12D American Depositary Shares	Bylaws	51
13	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES	Not applicable	—
14	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	Not applicable	—
15	CONTROLS AND PROCEDURES	Controls and procedures	65
16A	AUDIT COMMITTEE FINANCIAL EXPERT	Management	59
16B	CODE OF ETHICS	Code of ethics	68
16C	PRINCIPAL ACCOUNTANT FEES AND SERVICES	Principal accountant fees and services	87
16D	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES	Not applicable	—
16E	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PUR- CHASERS	Purchases of equity securities by the issuer and affiliated purchasers	52
16F	CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT	Not applicable	—
16G	CORPORATE GOVERNANCE	Corporate governance	63
16H	MINE SAFETY DISCLOSURE	Not applicable	—
16I	DISCLOSURE REGARDING FOREIGN JURISDICATIONS THAT PREVENT IN- SPECTIONS	Not applicable	—
17	FINANCIAL STATEMENTS	Not applicable	—
18	FINANCIAL STATEMENTS	Consolidated Financial statements	93
19	EXHIBITS	Additional Information	85
19	EXHIBITS	Additional Information

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

Dated: April 29, 2022

AMÉRICA MÓVIL, S.A.B. DE C.V.

By:	/s/ Carlos José García Moreno Elizondo
Name:	Carlos José García Moreno Elizondo
Title:	Chief Financial Officer
By:	/s/ Alejandro Cantú Jiménez
Name:	Alejandro Cantú Jiménez
Title:	General Counsel

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

Consolidated Financial Statements

Years Ended December 31, 2019, 2020 and 2021

with Report of Independent Registered Public Accounting Firm

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

Consolidated Financial Statements

Years Ended December 31, 2019 , 2020 and 2021

Contents:

Report of Independent Registered Public Accounting Firm (PCAOB ID: 1284)	F-2
Audited Consolidated Financial Statements:
Consolidated Statements of Financial Position	F-6
Consolidated Statements of Comprehensive Income	F-7
Consolidated Statements of Changes in Shareholders’ Equity	F-8
Consolidated Statements of Cash Flows	F-9
Notes to Consolidated Financial Statements	F-10

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

América Móvil, S.A.B. de C.V.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of América Móvil, S.A.B. de C.V. and its subsidiaries (the Company) as of December 31, 2021 and 2020, the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and 2020, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April 2 9 , 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

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	Deferred tax assets, realizability of Net Operating Loss Carryforwards
Description of the Matter	As discussed in Note 13 to the consolidated financial statements, as of December 31, 2021, the net balance of deferred tax assets was Ps.77,822,839 thousand. The Company has recognized deferred tax assets arising from net operating loss carryforwards (NOLs) of approximately Ps.24,449,622 thousand. The NOLs were generated primarily by its subsidiary in Brazil.<br> <br><br> <br>Auditing management’s assessment of the realizability of the deferred tax assets arising from Brazilian NOLs involved complex auditor judgement because management´s estimate of realizability was based on assessing the probability, timing and sufficiency of expected reversals of taxable temporary differences, future taxable profits and available tax planning opportunities. These projections are sensitive because they can be affected by future operating results and future market and economic conditions.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the realizability of the deferred tax assets. We tested controls over management’s analyses of future reversal of existing taxable temporary differences, their projections of future taxable income and related assumptions used in developing the projected financial information and their identification of available tax planning opportunities. Our audit also included the testing of controls that address the completeness and accuracy of the data utilized in the analysis.<br> <br><br> <br>To test the realizability of the deferred tax assets arising from NOLs our audit procedures included, among other things, the review of management´s estimates of future taxable income in Brazil, the methodology used, the significant assumptions and the underlying data used by the Company in developing the projected financial information, such as the weighted average cost of capital, customer attrition rates, growth rates, and other key assumptions by comparing them with historical, economic and industry trends and evaluating whether changes to the Company´s business model and other factors would significantly affect the projected financial information. We also involved our valuation specialists to evaluate the analysis and assumptions used, and to test the calculations used by the Company.<br> <br><br> <br>In addition, with the assistance of our tax professionals, we assessed the application of relevant tax laws, including assessing the Company’s future tax planning opportunities and tested the Company´s scheduling of the timing and amounts of expected reversals of taxable temporary differences.<br> <br><br> <br>We also assessed the adequacy of the related financial statement disclosures.
	Impairment of goodwill
Description of the Matter	As discussed in Note 2 and Note 11 to the consolidated financial statements, as of December 31, 2021, the Company’s goodwill balance was Ps.136,578,194 thousand. The Company tests goodwill at least annually at the Cash Generating Unit (CGU) level. Impairment exists when the carrying value of a CGU exceeds its recoverable amount, which is the higher of its fair value less cost to sell and its <br>value-in-use.<br> The company has estimated the recoverable amount of the CGU by calculating the CGU value in use to test for impairment.<br> <br><br> <br>Auditing management´s annual assessment of impairment of goodwill involved complex auditor judgement because the estimations required to determine the <br>value-in-use<br> of the CGUs, including revenue growth rates, operating margins and weighted average cost of capital, are sensitive to, and affected by, expected economic factors, technological changes and market conditions, among other factors.

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How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the determination of the impairment of goodwill, including controls over management’s review of the significant assumptions described above, projected financial information and the valuation model used to develop such estimates.<br> <br><br> <br>To test the impairment of goodwill our audit procedures included, among others, evaluating the methodology used, testing the significant assumptions mentioned above and the underlying data used by the Company. We assessed the historical accuracy of management’s estimates and projections by comparing them to actual results and obtaining appropriate explanations for the variances; examined management’s support for the current estimates and projections by comparing them to industry and economic trends, including market participant data; evaluated management’s methodology on the estimation of the weighted average cost of capital reflecting the economic conditions for each CGU; tested the completeness and accuracy of the underlying data, and evaluated other factors that would significantly affect the projected financial information and thus the <br>value-in-use<br> of the CGUs.<br> <br><br> <br>In addition, we involved our valuation specialist to evaluate the methodologies and assumptions used and to test the calculations made by the Company.<br> <br><br> <br>We also assessed the adequacy of the related financial statement disclosures.
	Discount rate used in determining defined benefit pension obligations in Mexico
Description of the Matter	As discussed in Note 2, item iii), q) and in Note 18 to the consolidated financial statements, as of December 31, 2021, the defined benefit pension obligation balance was Ps.142,850,465 thousand. The Company assessed and updated its estimates and assumptions used to actuarially measure and value the defined benefit pension obligation as of December 31, 2021, using the assistance of independent actuarial specialists.<br> <br><br> <br>Auditing the defined benefit pension obligation which the majority of it arises from one of its subsidiaries in Mexico and for which this matter is related, involved complex auditor judgement and required the involvement of our actuarial and valuation specialists because of the highly judgmental nature of the actuarial assumptions, primarily the discount rate used in the Company’s measurement process. This assumption was complex because it required a valuation of the credit quality of the corporate bonds used to develop the discount rate and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement relating to the determination of the discount rate used in the defined benefit pension obligations calculations. We tested controls over management’s determination and review of the discount rate provided to the independent actuaries.<br> <br><br> <br>To test the determination of the discount rate of the defined benefit pension obligation we involved our valuation and actuarial specialists to assist us in evaluating the methodology used to select the yield curve applied on the calculation, assessing the credit quality of the corporate bonds that comprise the yield curve, the timing and amount of cash flows at maturity with the expected amounts and duration of the related benefit payments.

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We also evaluated the objectivity and competence management´s qualified persons responsible for overseeing the preparation of the discount rate through the consideration of their professional qualifications, experience and their use of accepted methodology.<br> <br><br> <br>We also assessed the adequacy of the related financial statement disclosures.

/s/ Mancera, S.C.

We have served as the Company’s auditor since 1993.

Mexico City, Mexico

April 2 9

, 2022

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

Consolidated Statements of Financial Position

(In thousands of Mexican pesos)

	Note	At December 31,
		2020			2021			2021<br>Millions<br><br><br>of U.S. dollars
Assets
Current assets:
Cash and cash equivalents	3	Ps.	35,917,907		Ps.	38,679,891		US$	1,879
Equity investments at fair value through other comprehensive income (OCI) and other short-term investments	4		50,096,051			117,703,202			5,718
Accounts receivable:
Subscribers, distributors, recoverable taxes, contract assets and other, net	5		207,977,954			202,846,597			9,855
Related parties	6		1,391,300			1,158,611			56
Derivative financial instruments	7		20,928,335			10,130,806			492
Inventories, net	8		30,377,439			24,185,310			1,175
Other current assets, net	9		8,993,907			9,452,252			459
Total current assets		Ps.	355,682,893		Ps.	404,156,669		US$	19,634
Non-current assets:
Property, plant and equipment, net	10	Ps.	722,929,631		Ps.	731,196,679		US$	35,523
Intangibles, net	11		133,456,967			143,225,764			6,958
Goodwill	11		143,052,859			136,578,194			6,635
Investments in associated companies			1,829,760			3,052,481			148
Deferred income taxes	13		115,370,240			127,287,934			6,184
Accounts receivable, subscriber, distributors and contract assets, net	5		7,792,863			6,928,888			337
Other assets, net	9		38,415,826			39,956,090			1,941
Debt instruments<br><br>at fair value through other comprehensive income (OCI)	4		4,540,344			6,894,757			335
Right-of-use assets	15		101,976,844			90,372,393			4,391
Total assets		Ps.	1,625,048,227		Ps.	1,689,649,849		US$	82,086
Liabilities and equity
Current liabilities:
Short-term debt and current portion of long-term debt	14	Ps.	148,083,184		Ps.	145,222,672		US$	7,055
Short-term liability related to right-of-use of assets	15		25,067,905			27,632,357			1,342
Accounts payable	16a		186,995,472			206,487,681			10,032
Accrued liabilities	16b		50,291,851			54,391,464			2,642
Income tax	13		14,644,979			33,247,318			1,615
Other taxes payable			27,969,739			26,278,007			1,277
Derivative financial instruments	7		14,230,249			10,034,508			488
Related parties	6		3,999,916			4,216,882			205
Deferred revenues			36,027,383			26,501,877			1,288
Total current liabilities		Ps.	507,310,678		Ps.	534,012,766		US$	25,944
Non-current liabilities:
Long-term debt	14	Ps.	480,299,772		Ps.	418,807,430		US$	20,347
Long-term liability related to right-of-use of assets	15		84,259,336			71,021,868			3,450
Deferred income taxes	13		49,067,163			49,465,095			2,403
Deferred revenues			2,875,467			2,698,276			131
Asset retirement obligations	16c		17,887,991			16,752,223			814
Employee benefits	18		168,230,202			142,850,465			6,940
Total non-current liabilities		Ps.	802,619,931		Ps.	701,595,357		US$	34,085
Total liabilities		Ps.	1,309,930,609		Ps.	1,235,608,123		US$	60,029
Equity:
Capital stock	20	Ps.	96,341,695		Ps.	96,333,432		US$	4,680
Retained earnings:
Prior years			267,865,420			255,267,259			12,402
Profit for the year			46,852,605			192,423,167			9,348
Total retained earnings			314,718,025			447,690,426			21,750
Other comprehensive loss items			(160,580,917	)		(154,388,931	)		(7,502	)
Equity attributable to equity holders of the parent			250,478,803			389,634,927			18,928
Non-controlling interests			64,638,815			64,406,799			3,129
Total equity			315,117,618			454,041,726			22,057
Total liabilities and equity		Ps.	1,625,048,227		Ps.	1,689,649,849		US$	82,086

The accompanying notes are an integral part of these consolidated financial statements.

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

Consolidated Statements of Comprehensive Income

(In thousands of Mexican pesos, except for earnings per share)

	Note	For the years ended December 31
		2019 <br>(1)			2020<br>(1)			2021			2021<br>Millions of U.S.<br>dollars, except<br>for earnings<br>per share
Operating revenues:
Service revenues		Ps<br>.	702,961,964		Ps<br>.	708,483,701		Ps<br>.	714,244,392		US$	34,700
Sales of equipment			148,521,512			131,223,459			141,290,479			6,864
		Ps<br>.	851,483,476		Ps.	839,707,160		Ps<br>.	855,534,871		US$	41,564
Operating costs and expenses:
Cost of sales and services			348,776,249			334,881,859			341,059,662			16,570
Commercial, administrative and general expenses			195,507,880			191,901,898			180,838,412			8,786
Other expenses			5,882,276			4,737,626			4,877,290			237
Depreciation and amortization	9,10,11 and<br> 15		157,518,787			162,682,398			162,626,866			7,901
		Ps<br>.	707,685,192		Ps<br>.	694,203,781		Ps<br>.	689,402,230		US$	33,494
Operating income		Ps<br>.	143,798,284		Ps<br>.	145,503,379		Ps.	166,132,641		US$	8,070
Interest income			6,284,672			5,062,036			3,834,827			186
Interest expense			(37,910,954	)		(38,661,485	)		(36,025,312	)		(1,750	)
Foreign currency exchange gain (loss), net			5,226,071			(65,366,200	)		(17,045,843	)		(828	)
Valuation of derivatives, interest cost from labor obligations and other financial items, net	22		(6,997,844	)		1,292,878			(14,250,066	)		(692	)
Equity interest in net result of associated companies			(17,609	)		(287,006	)		113,918			6
Profit before income tax			110,382,620			47,543,602			102,760,165			4,992
Income tax	13		49,914,055			13,509,270			28,144,769			1,367
Net profit for the year from continuing operations		Ps.	60,468,565		Ps.	34,034,332		Ps.	74,615,396		US$	3,625
Profit after tax for the year from discontinued operations			9,844,889			16,992,625			121,710,718			5,913
Net profit for the year		Ps.	70,313,454		Ps.	51,026,957		Ps.	196,326,114		US$	9,538
Net profit for the year attributable to:
Equity holders of the parent from continuing operations		Ps.	57,886,001		Ps.	29,859,980		Ps.	70,712,449		US$	3,435
Equity holders of the parent from discontinued operations	2, Ac		9,844,889			16,992,625			121,710,718			5,913
Non-controlling interests			2,582,564			4,174,352			3,902,947			190
		Ps.	70,313,454		Ps.	51,026,957		Ps.	196,326,114		US$	9,538
Basic and diluted earnings per share attributable to equity holders of the parent from continuing operations	20	Ps.	0.88		Ps.	0.45		Ps.	1.07		US$	0.05
Basic and diluted earnings per share attributable to equity holders of the parent from discontinued operations	20	Ps.	0.15		Ps.	0.26		Ps.	1.85		US$	0.09
Other comprehensive income (loss) items:
Net other comprehensive loss that may be reclassified to profit or loss in subsequent years:
Effect of translation of foreign entities from continuing operations		Ps.	(35,536,252	)	Ps.	(11,515,297	)	Ps.	(7,134,153	)	US$	(347	)
Effect of translation of foreign entities from discontinued operations			—			—			(829,163	)		(40	)
Items that will not be reclassified to (loss) or profit in subsequent years:
Re-measurement of defined benefit plan, net of deferred taxes			(29,535,672	)		(10,299,558	)		11,261,896			547
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes			883,409			(1,952,414	)		4,560,869			222
Revaluation surplus, net of deferred taxes			—			77,230,031			—			—
Total other comprehensive (loss) income items for the year, net of deferred taxes	21		(64,188,515	)		53,462,762			7,859,449			382
Total comprehensive income for the year		Ps.	6,124,939		Ps.	104,489,719		Ps.	204,185,563		US$	9,920
Comprehensive income for the year attributable to:
Equity holders of the parent from continuing operations		Ps.	5,450,679		Ps.	86,150,118		Ps.	202,418,502		US$	9,834
Non-controlling interests			674,260			18,339,601			1,767,061			86
		Ps.	6,124,939		Ps.	104,489,719		Ps.	204,185,563		US$	9,920
Comprehensive income for the period:
Net comprehensive (loss) income from continuing operations		Ps.	(3,719,950	)	Ps.	87,497,094		Ps.	82,474,845		US$	4,007
Net comprehensive income from discontinued operations	2, Ac		9,844,889			16,992,625			121,710,718			5,913
		Ps.	6,124,939		Ps.	104,489,719		Ps.	204,185,563		US$	9,920
(1)	Restated for discontinued operations.
---	---

The accompanying notes are an integral part of these consolidated financial statements.

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

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2019, 2020 and 2021

(In thousands of Mexican pesos)

	Capital<br>stock			Legal<br>reserve		Retained<br>earnings			Unrealized<br>(loss) gain on<br>equity<br>investment at<br>fair value			Re-measurement<br>of defined<br>benefit plans			Cumulative<br>translation<br>adjustment			Revaluation<br>surplus			Total equity<br>attributable to<br>equity holders<br>of the parent			Non-<br>controlling<br>interests			Total<br>equity
As of January 31, 2019	Ps.	96,338,378		Ps.	358,440	Ps.	236,897,045		Ps.	(9,812,984	)	Ps.	(74,427,934	)	Ps.	(53,357,300	)	Ps.	—		Ps.	195,995,645		Ps.	49,876,777		Ps.	245,872,422
Net profit for the year		—			—		67,730,890			—			—			—			—			67,730,890			2,582,564			70,313,454
Unrealized gain on equity<br> investments at fair value, net of<br> deferred taxes		—			—		—			883,409			—			—			—			883,409			—			883,409
Remeasurement of defined benefit<br> plan, net of deferred taxes		—			—		—			—			(29,153,554	)		—			—			(29,153,554	)		(382,118	)		(29,535,672	)
Effect of translation of foreign entities		—			—		—			—			—			(34,010,066	)		—			(34,010,066	)		(1,526,186	)		(35,536,252	)
Comprehensive income (loss) for the<br> year		—			—		67,730,890			883,409			(29,153,554	)		(34,010,066	)		—			5,450,679			674,260			6,124,939
Dividends declared		—			—		(23,106,823	)		—			—			—			—			(23,106,823	)		(1,473,290	)		(24,580,113	)
Repurchase of shares		(116	)		—		(427,212	)		—			—			—			—			(427,328	)		—			(427,328	)
Other acquisitions of non-controlling<br> interests		—			—		(2,214	)		—			—			—			—			(2,214	)		(80,841	)		(83,055	)
Balance at December 31, 2019	Ps.	96,338,262		Ps.	358,440	Ps.	281,091,686		Ps.	(8,929,575	)	Ps.	(103,581,488	)	Ps.	(87,367,366	)	Ps.	—		Ps.	177,909,959		Ps.	48,996,906		Ps.	226,906,865
Net profit for the year		—			—		46,852,605			—			—			—			—			46,852,605			4,174,352			51,026,957
Unrealized loss on equity investments<br> at fair value, net of deferred taxes		—			—		—			(1,952,414	)		—			—						(1,952,414	)		—			(1,952,414	)
Remeasurement of defined benefit plan, net of deferred taxes		—			—		—			—			(10,026,454	)		—			—			(10,026,454	)		(273,104	)		(10,299,558	)
Effect of translation of foreign entities		—			—		—			—			—			(13,558,774	)		—			(13,558,774	)		2,043,477			(11,515,297	)
Revaluation surplus, net of deferred<br> taxes		—			—		—			—			—			—			64,835,155			64,835,155			12,394,876			77,230,031
Comprehensive income (loss) for the<br> year		—			—		46,852,605			(1,952,414	)		(10,026,454	)		(13,558,774	)		64,835,155			86,150,118			18,339,601			104,489,719
Dividends declared		—			—		(25,161,564	)		—			—			—			—			(25,161,564	)		(1,860,300	)		(27,021,864	)
Stock dividend		4,650			—		17,054,007			—			—			—			—			17,058,657			—			17,058,657
Repurchase of shares		(1,217	)		—		(5,209,880	)		—			—			—			—			(5,211,097	)		—			(5,211,097	)
Other acquisitions of non-controlling interests		—			—		(267,270	)		—			—			—			—			(267,270	)		(837,392	)		(1,104,662	)
Balance at December 31, 2020	Ps.	96,341,695		Ps.	358,440	Ps.	314,359,584		Ps.	(10,881,989	)	Ps.	(113,607,942	)	Ps.	(100,926,140	)	Ps.	64,835,155		Ps.	250,478,803		Ps.	64,638,815		Ps.	315,117,618
Net profit for the year		—			—		192,423,167			—			—			—			—			192,423,167			3,902,947			196,326,114
Unrealized gain on equity and debt investments at fair value, net of deferred taxes		—			—		—			4,560,869			—			—			—			4,560,869			—			4,560,869
Remeasurement of defined benefit plan, net of deferred taxes		—			—		—			—			11,100,835			—			—			11,100,835			161,061			11,261,896
Effect of translation of foreign entities		—			—		—			—			—			(2,514,992	)		(2,322,214	)		(4,837,206	)		(2,296,947	)		(7,134,153	)
Discontinued operations		—			—		—			—			—			(829,163	)		—			(829,163	)		—			(829,163	)
Transfer of revaluation surplus		—			—		3,803,349			—			—			—			(3,803,349	)		—			—			—
Comprehensive income (loss) for the year		—			—		196,226,516			4,560,869			11,100,835			(3,344,155	)		(6,125,563	)		202,418,502			1,767,061			204,185,563
Dividends declared		—			—		(26,640,797	)		—			—			—			—			(26,640,797	)		(1,919,674	)		(28,560,471	)
Repurchase of shares		(8,263	)		—		(36,752,766	)		—			—			—			—			(36,761,029	)		—			(36,761,029	)
Other acquisitions of non-controlling interests		—			—		139,448			—			—			—			—			139,448			(79,403	)		60,045
Balance at December 31, 2021	Ps.	96,333,432		Ps.	358,440	Ps.	447,331,985		Ps.	(6,321,120	)	Ps.	(102,507,107	)	Ps.	(104,270,295	)	Ps.	58,709,592		Ps.	389,634,927		Ps.	64,406,799		Ps.	454,041,726

The accompanying notes are an integral part of these consolidated financial statements.

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

Consolidated Statements of Cash Flows

(In thousands of Mexican pesos)

		For the years ended December 31
	Note	2019<br>(1)			2020<br>(1)			2021			2021<br>Millions of<br>U.S. dollars
Operating activities
Profit before income tax from continuing operations		Ps.	110,382,620		Ps.	47,543,602		Ps.	102,760,165		US$	4,992
Profit before income tax from discontinued operations	2, Ac		10,964,368			19,849,507			150,576,681			7,316
Profit before income tax			121,346,988			67,393,109			253,336,846			12,308
Items not requiring the use of cash:
Depreciation property, plant and equipment and right-of-use assets	10 and 15		137,867,698			143,108,182			139,211,403			6,763
Amortization of intangible and other assets	9 and 11		19,651,089			19,574,216			23,415,463			1,138
Equity interest in net (loss) income of associated companies			17,609			287,006			(113,918	)		(6	)
(Gain) Loss on sale of property, plant and equipment			119,272			257,330			(6,849,699	)		(333	)
Net period cost of labor obligations	18		16,609,565			18,085,954			18,688,374			908
Foreign currency exchange loss (income), net			(7,250,635	)		59,923,928			14,523,412			706
Interest income			(6,284,672	)		(5,062,036	)		(3,834,827	)		(186	)
Interest expense			37,910,954			38,661,485			36,025,312			1,750
Employee profit sharing			1,618,695			2,066,066			3,130,722			152
Gain<br><br>(Loss)<br><br>in<br><br>valuation<br><br>of<br><br>derivative<br><br>financial<br><br>instruments,<br><br>capitalized<br><br>interest<br> expense and other, net			(9,202,167	)		(13,678,083	)		5,246,476			255
Gain on net monetary positions	22		(4,267,194	)		(3,262,512	)		(4,876,842	)		(237	)
Gain on sale of subsidiary	2, Ac		—			—			(132,821,709	)		(6,453	)
Working capital changes:
Subscribers, distributors, recoverable taxes, contract assets and other, net			7,422,351			3,189,136			6,883,270			334
Prepaid expenses			8,860,172			(160,082	)		(890,729	)		(43	)
Related parties			476,671			421,337			449,655			22
Inventories			(463,461	)		10,402,117			5,756,325			280
Other assets			(6,560,640	)		(2,650,867	)		(9,802,727	)		(476	)
Employee benefits			(20,224,276	)		(18,795,532	)		(27,223,091	)		(1,323	)
Accounts payable and accrued liabilities			(15,730,804	)		11,247,681			9,946,257			483
Employee profit sharing paid			(2,187,316	)		(2,436,223	)		(1,922,029	)		(93	)
Financial instruments and other			(1,774,932	)		2,606,938			(1,664,465	)		(81	)
Deferred revenues			1,237,894			1,958,553			(9,257,456	)		(450	)
Interest received			1,008,076			3,946,110			2,665,854			130
In<br>come<br> taxes paid			(41,418,114	)		(61,366,231	)		(60,535,903	)		(2,942	)
Cash flows from discontinued operating			(4,504,355	)		5,109,961			(1,304,336	)		(63	)
Net cash flows provided by continuing operating activities		Ps.	234,278,468		Ps.	280,827,543		Ps.	258,181,638		US$	12,543
Investing activities
Purchase of property, plant and equipment			(132,834,246	)		(108,866,816	)		(145,279,359	)		(7,058	)
Acquisition of intangibles			(18,962,856	)		(20,647,571	)		(12,791,580	)		(621	)
Dividends received	22		1,773,336			2,122,826			2,628,600			128
Proceeds from sale of plant, property and equipment			344,924			162,060			7,215,177			351
Acquisition of businesses, net of cash acquired	12		(13,330,651	)		(152,896	)		—			—
Partial sale of shares of associated company			36,478			601,509			199,158			10
Investments in associate companies			(56,985	)		(64,341	)		—			—
Sale of shares			—			—			75,518,886			3,669
Short-term investments			—			(8,671,662	)		(3,361,507	)		(163	)
Cash flows from discontinued investing	2, Ac		(50,089	)		(40,602	)		(650,319	)		(32	)
Net cash flows used in investing continuing activities		Ps.	(163,080,089	)	Ps.	(135,557,493	)	Ps.	(76,520,944	)	US$	(3,716	)
Financing activities
Loans obtained			118,082,256			277,515,598			93,675,127			4,551
Repayment of loans			(109,808,816	)		(330,607,399	)		(152,029,408	)		(7,388	)
Payment of liability related to right-of-use of assets	15		(26,765,075	)		(29,623,565	)		(30,544,750	)		(1,484	)
Interest paid			(28,046,695	)		(28,421,734	)		(23,884,410	)		(1,160	)
Repurchase of shares			(435,713	)		(5,076,119	)		(36,745,743	)		(1,785	)
Dividends paid			(24,248,145	)		(9,592,253	)		(27,829,345	)		(1,352	)
Acquisition of non-controlling interests	12		(83,055	)		(1,104,662	)		(7,720	)		—
Net cash flows used in financing activities		Ps.	(71,305,243	)	Ps.	(126,910,134	)	Ps.	(177,366,249	)	US$	(8,618	)
Net (decrease) gain in cash and cash equivalents		Ps.	(106,864	)	Ps.	18,359,916		Ps.	4,294,445		US$	209
Adjustment to cash flows due to exchange rate fluctuations, net			(1,807,442	)		(2,187,665	)		(1,532,461	)		(74	)
Cash and cash equivalents at beginning of the year			21,659,962			19,745,656			35,917,907			1,744
Cash and cash equivalents at end of the year		Ps.	19,745,656		Ps.	35,917,907		Ps.	38,679,891		US$	1,879
Non-cash transactions related to:
Acquisitions of property, plant and equipment in accounts payable at end year		Ps.	19,673,706		Ps.	3,063,081		Ps.	18,385,498		US$	893
Revaluation surplus			—			107,152,628			—			—
Non-cash transactions		Ps.	19,673,706		Ps.	110,215,709		Ps.	18,385,498		US$	893
(1)	Restated for discontinued operations.
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The accompanying notes are an integral part of these consolidated financial statements.

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

Notes to Consolidated Financial Statements

Years ended December 31, 2019, 2020 and 2021

(In thousands of Mexican pesos Ps. and thousands of

U.S. dollars US$, unless otherwise indicated)

Description of the Business and Relevant Events

I. Corporate Information

América Móvil, S.A.B. de C.V. and subsidiaries (hereinafter, the “Company”, “América Móvil” or “AMX”) was incorporated under laws of Mexico on September 25, 2000. The Company provides telecommunications services in 24 countries throughout Latin America, the United States, the Caribbean and Europe. These telecommunications services include mobile and fixed-line voice services, wireless and fixed data services, internet access and Pay TV, over the top and other related services. The Company also sells equipment, accessories and computers.

•	Voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services.
•	Data services include value added, corporate networks, data and Internet services.
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•	Pay TV represents basic services, as well as pay per view and additional programming and advertising services.
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•	AMX provides other related services to advertising in telephone directories, publishing and call center services.
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•	The Company also provides video, audio and other media content that is delivered through the internet directly from the content provider to the end user.
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In order to provide these services, América Móvil has licenses, permits and concessions (collectively referred to herein as “licenses”) to build, install, operate and exploit public and/or private telecommunications networks and provide miscellaneous telecommunications services (mostly mobile and fixed voice and data services) and to operate frequency bands in the radio-electric spectrum for point-to-point and point-to-multipoint microwave links. The Company holds licenses in the 24 countries where it has networks, and such licenses have different dates of expiration through 2056.

Certain licenses require the payment to the respective governments of a share in sales determined as a percentage of revenues from services under concession. The percentage is set as either a fixed rate or in some cases based on certain size of the infrastructure in operation.

The corporate offices of América Móvil are located in Mexico City, Mexico, at Lago Zurich 245, Colonia Ampliación Granada, Delegación Miguel Hidalgo, 11529, Mexico City, Mexico.

The accompanying consolidated financial statements were approved for their issuance by the Company’s Chief Financial Officer on April 20, 2022, and subsequent events have been considered through that date.

II. Relevant events in 2021

a) In September 2021, the Company entered into an agreement with Cable & Wireless Panama, S.A. an affiliate of Liberty Latin America LTD., to sell our 100% interest in Claro Panama, S.A. The agreed purchase price is Us$200 million on a cash/debt free basis. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals.

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b) In September 2021, the Company announced that shareholders representing approximately 98% of our capital stock approved the spin-off of approximately 36,000

telecommunications towers and other associated passive infrastructure deployed in 14 countries in Latin America. The spin-off is subject to customary conditions and adjustments for corporate reorganizations and shall comply with applicable requirements under the laws of Mexico and the jurisdictions where the telecommunications towers are located.

c) In September 2021, Liberty Latin America and América Móvil announced an agreement to combine their respective Chilean operations, VTR and Claro Chile, to form a 50:50 joint venture. The proposed transaction combines the complementary operations of VTR, a leading provider of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers nationwide, and Claro Chile, one of Chile’s leading telecommunications service providers with over 6.5 million mobile customers, to create a business with greater scale, product diversification, and a capital structure that will enable significant investment for fixed fiber footprint expansion and to be at the forefront of 5G mobile delivery. Completion of the transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2022.

d) On November 23, 2021, the Company completed the sale of TracFone Wireless to Verizon Communications. The Company received US$3,625.7 million in cash and 57,596,544 shares of Verizon stock which had a closing price on that date of 51.54 dollars per share.

Verizon has asserted post-closing claims under the adjustments and other provisions of this agreement, which may result in additional payments by us

Subject to TracFone continuing to achieve certain operating metrics (earn-out), Verizon shall pay up to an additional US$650

million in future cash consideration within two years from that date. See Note 2Ac.

Effects of the COVID-19 Pandemic :

The unprecedented health crisis arising from the COVID-19 pandemic has resulted in a severe global economic downturn and has caused significant volatility, uncertainty, and disruption.

The Company continues to closely

monitor

the evolution of the COVID-19 pandemic in the countries where

it operates

to take preventive measures to ensure the continuity of operations and safeguard the health and safety of personnel and customers.

During 2021, there were lockdowns and other measures implemented to control the spread of COVID-19 in the region of operations, resulting in the closure of shops and customer-care centers, the imposition of constraints on the mobility of the clients and the disruption of the supply chain for handsets and other equipment. In order to mitigate the effects of supply-chain disruption and handset scarcity, the Company began ordering excess quantities of handsets in each country in which operate in October, November and December of 2021. Most major smartphone

manufacturers

were able to respond to increased handset orders.

The investments in capital expenditures are expected to increase

to pre-pandemic levels in 2022.

Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices

a) Basis of preparation

The accompanying consolidated financial statements have been prepared in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IASB”) (hereafter referred to as IFRS).

The consolidated financial statements have been prepared on the historical cost basis, except for the derivative financial instruments, the mobile telecommunications towers, the trust assets of post-employment and other employee benefit plans and the investments in equity at fair value through other comprehensive income (OCI), which are presented at their market value.

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Effective July 1, 2018, the Argentinian economy has been considered to be hyperinflationary in accordance with the criteria in IAS 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”). Accordingly, for the Argentinian subsidiaries, we have included adjustments for hyperinflation and reclassifications as is required by the standard for purposes of presentation of IFRS in the consolidated financial statements.

The preparation of these consolidated financial statements under IFRS requires the use of critical estimates and assumptions that affect the amounts reported for certain assets, liabilities, income and expenses, including the main impact generated by the COVID-19 pandemic and the potential effect on the amounts disclosed in the consolidated financial statements.

It also requires that management exercise judgment in the application of the Company’s accounting policies. Actual results could differ from these estimates and assumptions.

The Mexican peso is the functional currency of the Company’s Mexican operations and the consolidated reporting currency of the Company.

i) Changes in Accounting Policies and Disclosures

As of December 31, 2020, the company changed its accounting policy to record the value of the passive infrastructure (towers) of its subsidiaries. With the change, this passive infrastructure was no longer recognized at historical cost and it began to be recognized under the revaluation model (market value). The company considers that the revaluation model represents the actual conditions of the industry of this class of assets and improves its financial position, this allows its shareholders and stakeholders to have the necessary financial information associated with market expectations about this class of assets.

ii) Basis of consolidation

The consolidated financial statements include the accounts of América Móvil, S.A.B. de C.V. and those subsidiaries over which the Company exercises control. The consolidated financial statements for the subsidiaries were prepared for the same period as the Company´s and applying consistent accounting policies. All of the subsidiary companies operate in the telecommunications sector or related.

Subsidiaries are entities over which the Company has control. Control is achieved when the Company has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a line-by-line basis from the date which control is achieved by the Company. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the elements of control.

On March 6, 2020, in accordance with a resolution of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones or IFT), the subsidiaries Teléfonos de México, S.A.B. de C.V. and Teléfonos del Noroeste, S.A. de C.V. created separate companies related to the wholesale services named Red Nacional Última Milla S.A.P.I. de C.V., Servicios de Telecomunicaciones Ultima Milla, S.A. de C.V. and Red Última Milla del Noroeste S.A.P.I. de C.V. The restructuring of Telmex has no impact o n the consolidated financial information of the Company.

Changes in the Company’s ownership interests in a subsidiary that do not result in the Company losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the equity attributable to owners of the parent and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the carrying amount of the non-controlling interests and the fair value of the consideration paid or received in the transaction is recognized directly in the equity attributable to the owners.

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Subsidiaries are deconsolidated from the date which control ceases. When the Company ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of non-controlling interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value.

All intra-Company balances and transactions, and any unrealized gains and losses arising from intra-Company transactions, are eliminated in preparing the consolidated financial statements.

Non-controlling interests represent the portion of profits or losses and net assets not held by the Company. Non-controlling interests are presented separately in the consolidated statements of comprehensive income and in equity in the consolidated statements of financial position separately from Company’s own equity.

Associates:

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those decisions.

The Company’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses.

The investments in associated companies in which the Company exercises significant influence are accounted for using the equity method, whereby Company recognizes its share in the net profit (losses) and equity of the associate.

The results of operations of the subsidiaries and associates are included in the Company’s consolidated financial statements beginning as of the month following their acquisition and its share of other comprehensive income after acquisition is recognized directly in other comprehensive income.

The Company assesses at each reporting date whether there is objective evidence that investment in associates is impaired. If so, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value.

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The equity interest in the most significant subsidiaries at December 31, 2020 and 2021 is as follows:

Company name	Country
			2020			2021
Subsidiaries:
América Móvil B.V. <br>a)		Netherlands		100.0	%		100.0	%
Compañía Dominicana de Teléfonos, S.A. (“Codetel”) <br>b)		Dominican Republic		100.0	%		100.0	%
Sercotel, S.A. de C.V. <br>a)		Mexico		100.0	%		100.0	%
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”) <br>b)		Mexico		100.0	%		100.0	%
Puerto Rico Telephone Company, Inc. <br>b)		Puerto Rico		100.0	%		100.0	%
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”) <br>b)		Honduras		100.0	%		100.0	%
TracFone Wireless, Inc. (“TracFone”) <br>b) c)		USA		100.0	%		—
Claro S.A. (Claro Brasil) <br>b)		Brazil		98.2	%		98.2	%
NII Brazil Holding S.A.R.L<br>a)		Luxembourg		100.0	%		100.0	%
Nextel Telecomunicações Ltda<br>b)		Brazil		100.0	%		100.0	%
Telecomunicaciones de Guatemala, S.A. (“Telgua”) <br>b)		Guatemala		99.3	%		99.3	%
Claro Guatemala, S.A. <br>b)		Guatemala		100.0	%		100.0	%
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”) <br>b)		Nicaragua		99.6	%		99.6	%
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”) <br>b)		El Salvador		95.8	%		95.8	%
Comunicación Celular, S.A. (“Comcel”) <br>b)		Colombia		99.4	%		99.4	%
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) <br>b)		Ecuador		100.0	%		100.0	%
AMX Argentina, S.A. <br>b)		Argentina		100.0	%		100.0	%
AMX Paraguay, S.A. <br>b)		Paraguay		100.0	%		100.0	%
AM Wireless Uruguay, S.A. <br>b)		Uruguay		100.0	%		100.0	%
Claro Chile, S.A. <br>b)		Chile		100.0	%		100.0	%
América Móvil Perú, S.A.C <br>b)		Peru		100.0	%		100.0	%
Claro Panamá, S.A. <br>b)		Panamá		100.0	%		100.0	%
Teléfonos de México, S.A.B. de C.V. <br>b)		Mexico		98.8	%		98.8	%
Telekom Austria AG <br>b)		Austria		51.0	%		51.0	%
a)	Holding companies
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b)	Operating companies of mobile and fixed services
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c)	On November 23, 2021, this entity was discontinued operations. See Note 2Ac.
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iii) Basis of translation of financial statements of foreign subsidiaries and associated companies

The operating revenues of foreign subsidiaries jointly represent approximately 65%, 66% and 64% of consolidated operating revenues for the years ended December 31, 2019, 2020 and 2021, respectively, and their total assets jointly represent approximately 75% and 70% of consolidated total assets at December 31, 2020 and 2021, respectively.

The financial statements of foreign subsidiaries have been prepared under or converted to IFRS in the respective local currency (which is their functional currency) and then translated into the Company´s reporting currency as follows:

•	all monetary assets and liabilities were translated at the closing exchange rate of the period;
•	all non-monetary assets and liabilities at the closing exchange rate of the period;
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•	equity accounts are translated at the exchange rate at the time the capital contributions were made and the profits were generated;
•	revenues, costs and expenses are translated at the average exchange rate of the period, except for the operations of the subsidiaries in Argentina, whose economy is considered hyperinflationary since 2018;
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•	the consolidated statements of cash flows presented using the indirect method were translated using the weighted-average exchange rate for the applicable period (except for Argentina), and the resulting difference is shown in the consolidated statements of cash flows under the heading “Adjustment to cash flows due to exchange rate fluctuations, net”.
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The basis of translation for the operations of the subsidiaries in Argentina are described:

In recent years, the Argentina economy has shown high rates of inflation. Although inflation data has not been consistent in recent years and several indexes have coexisted, inflation in Argentina indicates that the three-year cumulative inflation rate exceeded 100% in 2018, which is one of the quantitative references established by IAS 29. As a result, Argentina was considered a hyperinflationary economy in 2018 and the Company applies hyperinflation accounting to its subsidiary whose functional currency is the Argentine peso for financial information for periods ending on or after July 1, 2018, however the calculation of the cumulative impact was measured as of January 1, 2018.

In order to restate for hyperinflation its financial statements, the subsidiary used the series of indices defined by resolution JG No. 539/18 issued by the “Federación Argentina de Consejos Profesionales de Ciencias Económicas” (“FACPCE”), based on the National Consumer Price Index (IPC) published by the Instituto Nacional de Estadística y Censos (INDEC) of the Argentine Republic and the Wholesale Internal Price Index (IPIM) published by FACPCE. The cumulative index at December 31, 2021 is 582.4575, while on an annual inflation for 2021 is 50.9%.

The main implications are as follows:

•	Adjustment of the historical cost of non-monetary assets and liabilities and equity items from their date of acquisition, or the date of inclusion in the consolidated statements of financial position, to the end of the year, in order to reflect changes in the currency’s purchasing power caused by inflation.
•	The gain on the net monetary position caused by the impact of inflation in the year is included in the consolidated statements of comprehensive income as part of the caption “<br>Valuation of derivatives, interest cost from labor obligations and other financial items, net<br><br>”<br>. Items in the statement of comprehensive income and in the statements of cash flows are adjusted by the inflation index since their origination, with a balancing entry, and a reconciling item in the statements of cash flows, respectively.
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•	All items in the financial statements of the Argentine company are translated at the closing exchange rate, which at December 31, 2020 and 2021 were 0.2371 and 0.2004, respectively, per argentine peso per Mexican peso.
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The difference resulting from the translation process is recognized in equity in the caption “Effect of translation of foreign entities”. At December 31, 2020 and 2021, the cumulative translation adjustment was Ps. (100,926,140) and Ps. (104,270,295), respectively.

b) Revenue recognition

The Company revenues are derived principally from providing the following telecommunications services and products: wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and IT services, Pay TV and over-the-top (“OTT”) services.

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The Company provides fixed and mobile services. These services are offered independently in contracts with customers or together with the sale of handsets (mobile) under the postpaid model. In accordance with IFRS 15 “Revenues from contracts with customers” , the transaction price should be assigned to the different performance obligations based on their relative standalone selling price.

The Company with respect to the provided services, it has market observable information, to determine the standalone selling price of the services. On the other hand, in the case of the sale of bundled mobile phones sold (including service and handset) by the Company, the allocation of the sales is done based on their relative standalone selling price of each individual component related to the total bundled price. The result is that more equipment revenue is recognized at the moment of a sale and, therefore, less service revenue from the monthly fee is being recognized under IFRS 15.

The services provided by the Company are satisfied over the time of the contract period, given that the customer simultaneously receives and consumes the benefits provided by the Company.

Such service bundles, voice and data, accomplish the criteria mentioned in IFRS 15 of being substantially similar and of having the same transfer pattern which is why the Company concluded that the revenue from these different services offered to its customers are considered as a single performance obligation with revenue being recognized over time, except for sales of equipment.

Under IFRS 15, for those contracts with customers in which generally the sale of equipment and other electronic equipment is a single performance obligation, the Company recognizes the revenue at the moment when it transfers control to the customer which generally occurs when such goods are delivered.

The commissions are considered incremental contract acquisition costs that are capitalized and are amortized over the expected period of benefit, during the average duration of customer contracts.

Some subsidiaries have loyalty programs where the Company awards credits customer credit awards referred as “points”. The customer can redeem accrued “points” for awards such as devices, accessories or airtime. The Company provides all awards. The consideration allocated to the award credits is identified as a separate performance obligation; the corresponding liability of the award credits is measured at its fair value. The consideration allocated to award credits amount is recognized as a contract liability until the points are redeemed. Revenue is recognized upon redemption of products by the customer.

c) Cost of sales

The cost of mobile equipment and computers is recognized at the time the client and distributor receive the device which is when the control is are transferred to the customer.

d) Cost of services

The cost of services represents the costs incurred to properly deliver the services to the customers, it includes the network operating costs and licenses related costs and is accounted at the moment in which such services are provided.

e) Commissions to distributors

The Company pays commissions to its distributors different than those that acquire customers. Such commissions are recognized in “commercial, administrative and general expenses” in the consolidated statements of comprehensive income at the time in which the distributor either reports an activation or reaches certain number of lines activated or obtained at a certain point of time.

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f) Cash and cash equivalents

Cash and cash equivalents represent bank deposits and liquid investments with maturities of less than three months. These amounts are stated at cost plus accrued interest, which is similar to their market value.

The Company also maintains restricted cash held as collateral to meet certain contractual obligations. Restricted cash is presented as part of “Other assets” within other non-current financial assets given that the restrictions are long-term in nature. See Note 9.

g) Equity investments at fair value through OCI and other short/long-term investments

Equity investments at fair value through OCI and other short-term investments are primarily composed of equity investments and other short-term financial investments. Amounts are initially recorded at their estimated fair value. Fair value adjustments for equity investments are recorded through other comprehensive income, and other short-term investment.

h) Inventories

Inventories are initially recognized at historical cost and are valued using the average cost method without exceeding their net realizable value.

The estimate of the realizable value of inventories on-hand is based on their age and turnover.

i) Business combinations and goodwill

Business combinations are accounted for using the acquisition method, which in accordance with IFRS 3, “ Business acquisitions ”, consists in general terms as follows:

(i)	Identify the acquirer
(ii)	Determine the acquisition date
---	---
(iii)	Value the acquired identifiable assets and assumed liabilities
---	---
(iv)	Recognize the goodwill or a bargain purchase gain
---	---

For acquired subsidiaries, goodwill represents the difference between the purchase price and the fair value of the net assets acquired at the acquisition date. The investment in acquired associates includes goodwill identified on acquisition, net of any impairment loss.

Goodwill is reviewed annually to determine its recoverability or more often if circumstances indicate that the carrying value of the goodwill might not be fully recoverable.

The possible loss of value in goodwill is determined by analyzing the recovery value of the cash generating unit (or the group thereof) to which the goodwill is associated at the time it was originated. If this recoverable amount is lower than the carrying value, an impairment loss is charged to the results of operations. The recoverable amount is determined based on the higher of fair value less cost of disposal or value in use.

For the years ended December 31, 2019, 2020 and 2021, no impairment losses were recognized for goodwill.

j) Property, plant and equipment

i) Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation; except for the passive infrastructure of telecommunications towers, which are recognized under the revaluation model as of December 31, 2020. Depreciation is computed on the cost of assets using the straight line method, based on the estimated useful lives of the related assets, beginning the month after they become available for use.

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Borrowing costs that are incurred for general financing for construction in progress for periods exceeding six months are capitalized as part of the cost of the asset. During the years ended December 31, 2019, 2020 and 2021, borrowing costs that were capitalized amounted to Ps. 2,233,358, Ps. 1,771,613 and Ps.1,527,259 respectively.

In addition to the purchase price and costs directly attributable to preparing an asset in terms of its physical location and condition for operating as intended by management, when required, the cost also includes the estimated costs of dismantling and removal of the asset and for restoration of the site where it is located. See Note 16c.

The passive infrastructure of telecommunications towers will be recorded at revalued value, which is its fair value at the time of revaluation less accumulated depreciation; if there is any loss or impairment, it must also be considered within its value. The revaluations will be calculated with sufficient regularity to ensure that the book value, every time, does not differ significantly from that which could be determined using the fair value at the end of the reporting period.

The increase resulting from a revaluation is recorded in other comprehensive income (OCI) and is accumulated in equity as a revaluation surplus. To the extent that there is a decrease in revaluation, it will be recognized in profit or loss, except to the extent that it compensates for an existing surplus on the same asset.

An annual transfer of the asset revaluation surplus and accumulated earnings is made to the extent that the asset is used, therefore, the surplus is equal to the difference between the depreciation calculated on the revalued value and the one calculated according to its original cost. These transfers do not record in the results for the period. A total transfer of the surplus may be made when the entity disposes of the asset.

ii) The net book value of property, plant and equipment is removed from the consolidated statements of financial position at the time the asset is sold or when no future economic benefits are expected from its use or sale. Any gains or losses on the sale of property, plant and equipment represent the difference between net proceeds of the sale and the net book value of the item at the time of sale. These gains or losses are recognized as either other operating income or other operating expenses upon sale.

iii) The Company periodically assesses the residual values, useful lives and depreciation methods associated with its property, plant and equipment. If necessary, the effects of any changes in accounting estimates is recognized prospectively, at the closing of each period, in accordance with IAS 8, “ Accounting Policies, Changes in Accounting Estimates and Errors ”.

For property, plant and equipment made up of several components with different useful lives, the major individual components are depreciated over their individual useful lives. Maintenance costs and repairs are expensed as incurred.

Annual depreciation rates are as follows:

Network infrastructure	5%-33%
Buildings and leasehold improvement	2%-33%
Other assets	10%-50%

iv) The carrying value of property, plant and equipment is reviewed if there are indicators of impairment in such assets. If an asset’s recovery value is less than the asset’s net carrying value, the difference is recognized as an impairment loss.

During the years ended December 31, 2019, 2020 and 2021, no impairment losses were recognized.

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v) Spare parts for network operation are recognized at cost.

The valuation of inventory for network considered obsolete, defective or slow-moving, is reduced to their estimated net realizable value. The estimate of the recovery value of inventories is based on their age and turnover.

k) Intangibles

i) Licenses

Licenses to operate wireless telecommunications networks granted by the governments of the countries in which the Company operates are recorded at acquisition cost or at fair value at their acquisition date, net of accumulated amortization. Certain licenses require payments to the governments, such payments are recognized in the cost of service and equipment.

The licenses that in accordance with government requirements are categorized as automatically renewable, for a nominal cost and with substantially consistent terms, are considered by the Company as intangible assets with an indefinite useful life. Accordingly, they are not amortized. Licenses are amortized when the Company does not have a basis to conclude that they are indefinite lived. Licenses are amortized using the straight-line method over a period ranging from 3 to 30 years, which represents the usage period of the assets.

The Company has conducted an internal analysis on the applicability of the International Financial Reporting Interpretation Committee (“IFRIC”) No. 12 (Service Concession Agreements) and has concluded that its concessions are outside the scope of IFRIC 12. To determine the applicability of IFRIC 12, the Company analyzes each concession or group of similar concessions in a given jurisdiction. As a threshold matter, the Company identifies those government concessions that provide for the development, financing, operation or maintenance of infrastructure used to render a public service, and that set out performance standards, mechanisms for adjusting prices and arrangements for arbitrating disputes.

With respect to those services, the Company evaluates whether the grantor controls or regulates (i) what services the operator must provide, (ii) to whom it must provide them and (iii) the applicable price (the “Services Criterion”). In evaluating whether the applicable government, as grantor, controls the price at which the Company provides its services, the Company looks at the terms of the concession agreement according to all applicable regulations. If the Company determines that the concession under analysis meets the Services Criterion, then the Company evaluates whether the grantor would hold a significant residual interest in the concession’s infrastructure at the end of the term of the arrangement.

ii) Trademarks

Trademarks acquired are measured on initial recognition at cost. The cost of trademarks acquired in a business combination is their fair value at the date of acquisition. The useful lives of trademarks are assessed as either definite or indefinite. Trademarks with finite useful lives are amortized using the straight-line method over a period ranging from 1 to 10 years. Trademarks with indefinite useful lives are not amortized but are tested for impairment annually at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable, if not, the change in useful life from indefinite to definite is made on a prospective basis.

iii) Irrevocable rights of use

Irrevocable rights of use are recognized according to the amount paid for the right and are amortized over the period in which they are granted.

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The carrying values of the Company’s licenses and trademarks are reviewed annually and whenever there are indicators of impairment in the value of such assets. When an asset’s recoverable amount, which is the higher of the asset’s fair value, less disposal costs and its value in use (the present value of future cash flows), is less than the asset’s carrying value, the difference is recognized as an impairment loss.

iv) Customer relationships

The value of customer relations is determined and valued at the time that a new subsidiary is acquired, as determined by the Company with the assistance of independent appraisers and is amortized over a 5-year period.

During the years ended December 31, 2019, 2020 and 2021, no significant impairment losses were recognized for licenses, trademarks, irrevocable rights of use or customer relationships.

l) Impairment in the value of long-lived assets

The Company assesses the existence of indicators of impairment in the carrying value of long-lived assets, investments in associates, goodwill and intangible assets according to IAS 36 “ Impairment of assets ”. When there are such indicators, or in the case of assets whose nature requires an annual impairment analysis (goodwill and intangible assets with indefinite useful lives), the Company estimates the recoverable amount of the asset, which is the higher of its fair value, less disposal costs, and its value in use. Value in use is determined by discounting estimated future cash flows, applying a pre-tax discount rate that reflects the time value of money and taking into consideration the specific risks associated with the asset. When the recoverable amount of an asset is below its carrying value, impairment is considered to exist. In this case, the carrying value of the asset is reduced to the asset’s recoverable amount, recognizing the loss in results of operations for the respective period. Depreciation and/or amortization expense of future periods is adjusted based on the new carrying value determined for the asset over the asset’s remaining useful life. Impairment is computed individually for each asset. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

In the estimation of impairments, the Company uses the strategic plans established for the separate cash-generating units to which the assets are assigned. Such strategic plans generally cover a period from 3 to 5 years. For longer periods, beginning in the fifth year, projections are based on such strategic plans while applying a constant or declining expected perpetual growth rate.

Key assumptions used in value in use calculations

The forecasts are made in real terms (net of inflation) and in the functional currency of the subsidiary as of December 31, 2021. Financial forecasts, premises and assumptions are similar to what any other market participant in similar conditions would consider

, including the impact of the COVID-19 pandemic.

Local synergies, that any other market participant would not have taken into consideration to prepare similar forecasted financial information, have not been included.

The assumptions used to develop the financial forecasts were validated for each of the cash generating units (“CGUs”), typically identified by country and by service (in the case of Mexico) taking into consideration the following:

•	Current subscribers and expected growth.
•	Type of subscribers (prepaid, postpaid, fixed line, multiple services)
---	---
•	Market environment and penetration expectations
---	---
•	New products and services
---	---

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•	Economic environment of each country
•	Expenses for maintaining the current assets
---	---
•	Investments in technology for expanding the current assets
---	---
•	Market consolidation and synergies
---	---

The foregoing forecasts could differ from the results obtained through time; however, the Company prepares its estimates based on the current situation of each of the CGUs.

The recoverable amounts are based on value in use. The value in use is determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are:

•	Margin on EBITDA is determined by dividing EBITDA (operating income plus depreciation and amortization) by total revenues.
•	Margin on CAPEX is determined by dividing capital expenditures (“CAPEX”) by total revenues.
---	---
•	Pre-tax weighted average cost of capital (“WACC”) is used to discount the projected cash flows.
---	---

As discount rate, the Company uses the WACC which was determined for each of the cash generating units and is described in the following paragraphs.

The estimated discount rates to perform the IAS 36 “ Impairment of assets ”, impairment test for each CGU consider market participants assumptions. Market participants were selected taking into consideration size, operations and characteristics of the business that were similar to those of Company.

These discount rates do not include inflation.

The discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segments. The WACC takes into account both debt and equity costs. The cost of equity is derived from the expected return on investment for each GCU. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Segment-specific risk is incorporated by applying individual beta factors.

The beta factors are evaluated annually based on publicly available market data.

Market participant assumptions are important because, not only do they include industry data for growth rates, but also management assesses how the CGU’s position, relative to its competitors, might change over the forecasted period.

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The most significant forward-looking estimates used for the 2020 and 2021 impairment evaluations are shown below:


2020:
Europe (7 countries)	32.20% - 40.76%	7.04% - 19.39%	3.88% - 12.02%
Brazil (fixed line, wireless and TV)	40.67%	25.36%	9.50%
Puerto Rico	23.06%	14.57%	3.53%
Dominican Republic	47.57%	13.71%	8.27%
Mexico (fixed line and wireless)	32.69%	11.01%	6.03%
Ecuador	49.23%	11.14%	17.50%
Peru	38.72%	15.43%	4.76%
El Salvador	45.92%	21.19%	14.63%
Chile	26.34%	13.18%	3.37%
Colombia	43.45%	18.19%	6.44%
Other countries	10.07% - 47.23%	0.48% - 31.67%	3.42% - 21.85%
2021:
Europe (7 countries)	31.60% - 45.32%	7.48% - 24.37%	2.91% - 9.83%
Brazil (fixed line, wireless and TV)	41.37%	22.98%	4.62%
Puerto Rico	21.54%	14.36%	3.00%
Dominican Republic	52.02%	13.86%	5.84%
Mexico (fixed line and wireless)	36.21%	15.89%	6.24%
Ecuador	44.76%	12.48%	14.48%
Peru	36.63%	17.19%	3.99%
El Salvador	44.82%	24.25%	10.78%
Chile	27.36%	17.98%	2.81%
Colombia	43.36%	23.18%	7.18%
Other countries	30.55% - 48.52%	4.91% - 30.03%	4.64% - 14.39%

Sensitivity to changes in assumptions:

The implications of the key assumptions for the recoverable amount are discussed below:

Margin on CAPEX- The Company performed a sensitivity analysis by increasing its CAPEX by 5% and maintaining all other assumptions the same , results without impairment.

WACC- Additionally, should the Company increase by 50 base points in WACC per CGU and maintain all other assumptions the same, results without impairment.

m ) Right-of-use assets

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i)	Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or

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before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Assets	Useful life
Towers and sites	5 to 12 years
Property	10 to 25 years
Other equipment	5 to 15 years

The right-of-use assets are also subject to impairment test.

ii)	Lease liabilities.

At the commencement date of the lease, the Company recognizes the lease liabilities measured at the present value of the lease payments to be made over the lease term. Lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include payments of penalties for early termination of the lease, if the term of the lease reflects that the Company exercises the option to terminate early. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of the lease payments, the Company uses an incremental borrowing rate at the lease commencement date, if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of the lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed payments or change in the assessment to purchase the underlying asset.

iii)	Short-term leases and leases of low value assets.

The Company applies the short-term lease recognition exemption for its leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the recognition exemption lease of low-value assets (that is, below US$ 5,000). Short-term lease payments and leases of low-value assets are recognized as expenses on straight-line basis over the lease term.

n) Financial assets and liabilities

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them, with the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

•	Financial assets at amortized cost (debt instruments)

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•	Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
•	Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
---	---
•	Financial assets at fair value through profit or loss
---	---

Financial assets at amortized cost (debt instruments)

The Company measures financial assets at amortized cost if both of the following conditions are met:

•	The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and
•	The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding
---	---

Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.

The Company’s financial assets at amortized cost includes cash equivalents, loans and receivables.

Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

The Company measures debt instruments at fair value through OCI if both of the following conditions are met:

•	The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling, and
•	The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding
---	---

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statements of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss.

Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument by instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statements of profit or loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to

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be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statements of financial position at fair value with net changes in fair value recognized in the consolidated statements of comprehensive income within “Valuation of derivatives, interest cost from labor obligations and other financial items”.

Derecognition of financial assets

A financial asset is primarily derecognized when:

•

The rights to receive cash flows from the asset have expired, or

•

The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

---

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continued involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Impairment of financial assets

The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For some trade receivables and contract assets based on available information , the Company applies the simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a loss rate approach that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment, including the impact by the COVID-19 pandemic.

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Financial liabilities

Initial recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statements of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statements of profit or loss.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of comprehensive income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statements of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

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o) Transactions in foreign currency

Transactions in foreign currency are initially recorded at the prevailing exchange rate at the time of the related transactions. Foreign currency denominated assets and liabilities are subsequently translated at the prevailing exchange rate at the financial statements reporting date. Exchange differences determined from the transaction date to the time foreign currency denominated assets and liabilities are settled or translated at the financial statements reporting date are charged or credited to the results of operations.

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration.

The exchange rates used for the translation of foreign currencies against the Mexican peso are as follows:

							Closing exchange rate<br> at December 31,
Country or Zone	Currency		2020		2021		2020		2021
Argentina<br>(1)	Argentine Peso (AR)	0.4110		0.3070		0.2137		0.2371		0.2004
Brazil	Real (R)	4.8907		4.1850		3.7625		3.8387		3.6885
Colombia	Colombian Peso (COP)	0.0059		0.0058		0.0054		0.0058		0.0052
Guatemala	Quetzal	2.5023		2.7826		2.6212		2.5596		2.6666
U.S.A. <br>(2)	US Dollar	19.2641		21.4860		20.2769		19.9487		20.5835
Uruguay	Uruguay Peso	0.5479		0.5110		0.4655		0.4712		0.4605
Nicaragua	Cordoba	0.5817		0.6257		0.5765		0.5728		0.5795
Honduras	Lempira	0.7806		0.8678		0.8384		0.8215		0.8396
Chile	Chilean Peso	0.0275		0.0271		0.0268		0.0281		0.0244
Paraguay	Guaraní	0.0031		0.0032		0.0030		0.0029		0.0030
Peru	Sol (PEN)	5.7708		6.1483		5.2297		5.5046		5.1484
Dominican Republic	Dominican Peso	0.3737		0.3766		0.3540		0.3416		0.3570
Costa Rica	Colon	0.0326		0.0366		0.0325		0.0323		0.0319
European Union	Euro	21.5642		24.5080		23.9835		24.3693		23.4220
Bulgaria	Lev	11.0257		12.5284		12.2617		12.4594		11.9762
Belarus	New Belarusian Ruble	9.2159		8.8172		7.9932		7.5721		8.0279
Croatia	Croatian Kuna	2.9069		3.2498		3.1852		3.2279		3.1161
Macedonia	Macedonian Denar	0.3504		0.3975		0.3893		0.3950		0.3800
Serbia	Serbian Denar	0.1830		0.2083		0.2040		0.2071		0.1992

All values are in US Dollars.

(1)	Year-end rates are used for the translation of revenues and expenses if IAS 29 <br>“Financial Reporting in Hyperinflationary Economies”<br> is applied.

Financial reporting in hyperinflationary economies

Financial statements of Argentina subsidiaries are restated before translation to the reporting currency of the Company and before consolidation in order to reflect the same value of money for all items. Items recognized in the statements of financial position which are not measured at the applicable year-end measuring unit are restated based on the general price index. All non-monetary items measured at cost or amortized cost is restated for the changes in the general price index from the date of transaction or the last hyperinflationary calculation to the reporting date. Monetary items are not restated. All items of shareholders’ equity are restated for the changes in the general price index since their addition or the last hyperinflationary calculation until the end of the reporting period. All items of comprehensive income are restated for the change in a general price index from the date of initial recognition to the reporting date. Gains and losses resulting from the net-position of monetary items are reported in the consolidated

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statements of operations in financial result in exchange differences. In accordance with IFRS, prior year financial statements were not restated.

(2)	Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama.

The exchange rate between the US dollar and Mexican Peso for April 28, 2022 was 20.3560 per US dollar, which represents an appreciation of 1.11% as compared to December 31, 2021.

p) Accounts payable, accrued liabilities and provisions

Liabilities are recognized whenever (i) the Company has current obligations (legal or assumed) resulting from a past event, (ii) when it is probable the obligation will give rise to a future cash disbursement for its settlement, and (iii) the amount of the obligation can be reasonably estimated.

When the effect of the time value of money is significant, the amount of the liability is determined as the present value of the expected disbursements to settle the obligation. The discount rate is determined on a pre-tax basis and reflects current market conditions at the financial statements reporting date and, where appropriate, the risks specific to the liability. Where discounting is used, an increase in the liability is recognized as finance expense.

Contingent liabilities are recognized only when it is probable, they will give rise to a future cash disbursement for their settlement.

q) Employee benefits

The Company has defined benefit pension plans for its subsidiaries Puerto Rico Telephone Company, Teléfonos de Mexico, Claro Brasil, and Telekom Austria. Claro Brasil also has medical plans and defined contribution plans and Telekom Austria provides retirement benefits to its employees under a defined contribution plan. The Company recognizes the costs of these plans based upon independent actuarial computations and are determined using the projected unit credit method. The latest actuarial computations were prepared as of December 31, 2021.

Mexico

Mexican subsidiaries have the obligation to pay seniority premiums to personnel based on the Mexican Federal Labor Law which also establishes the obligation to make certain payments to personnel who cease to provide services under certain circumstances. Pensions (for Telmex) and seniority premiums are determined based on the salary of employees in their final year of service, the number of years worked at and their age at the moment of retirement.

The costs of pensions, seniority premiums and severance benefits, are recognized based on calculations by independent actuaries using the projected unit credit method using financial hypotheses, net of inflation.

Telmex has established an irrevocable trust fund and makes annual contributions to that fund.

Puerto Rico

In Puerto Rico, the Company has noncontributing pension plans for full-time employees, which are tax qualified as they meet Employee Retirement Income Security Act of 1974 requirements.

The pension benefit is composed of two elements:

(i) An employee receives an annuity at retirement if they meet the rule of 85 (age at retirement plus accumulated years of service). The annuity is calculated by applying a percentage times year of services to the last three years of salary.

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(ii) The second element is a lump-sum benefit based on years of service ranging from 9 to 12 months of salary. Health care and life insurance benefits are also provided to retirees under a separate plan (post-retirement benefits).

Brazil

Claro Brasil provides a defined benefit plan and post-retirement medical assistance plan, and a defined contribution plan, through a pension fund that supplements the government retirement benefit for certain employees.

Under the defined benefit plan, the Company makes monthly contributions to the pension fund equal to 17.5% of the employee’s aggregate salary. In addition, the Company contributes a percentage of the aggregate salary base for funding the post-retirement medical assistance plan for the employees who remain in the defined benefit plan. Each employee makes contributions to the pension fund based on age and salary. All newly hired employees automatically adhere to the defined contribution plan and no further admittance to the defined benefit plan is allowed. For the defined contribution plan. See Note 18.

Austria

Telekom Austria provides retirement benefits to its employees under defined contribution and defined benefit plans.

The Company pays contributions to publicly or privately administered pension or severance insurance plans on mandatory or contractual basis. Once the contributions have been paid, the Company has no further payment obligations. The regular contributions are recognized as employee expenses in the year in which they are due.

All other employee benefit obligations provided in Austria are unfunded defined benefit plans for which the Company records provisions which are calculated using the projected unit credit method. The future benefit obligations are measured using actuarial methods on the basis of an appropriate assessment of the discount rate, rate of employee turnover, rate of compensation increase and rate of increase in pensions.

For severance and pensions, the subsidiary recognizes actuarial gains and losses in other comprehensive income. The re-measurement of defined benefit plans relates to actuarial gains and losses only as Telekom Austria holds no plan assets. Interest expense related to employee benefit obligations is reported in “Valuation of derivatives, interests cost from labor obligation and other financial items, net” in the statements of comprehensive income.

Other subsidiaries

For the rest of the Company’s subsidiaries, there are no defined benefit plans or compulsory defined contribution structures. However, certain subsidiaries make contributions to national pension, social security and severance plans in accordance with the percentages and rates established by the applicable social security and labor laws of each country. Such contributions are made to the entities designated by the countries legislation and are recorded as direct labor expenses in the consolidated statements of comprehensive income as they are incurred.

Remeasurements of defined benefit plans, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net interest and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

(i)	The date of the plan amendment or curtailment, and

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(ii)	The date that the Company recognizes restructuring-related costs

Net interest on liability for defined benefits is calculated by applying the discount rate to the net defined benefit liability or asset and it is recognized in the “valuation of derivatives, interest cost from labor obligations and other financial items” in the consolidated statements of comprehensive income. The Company recognizes the changes in the net defined benefit obligation under “Cost of sales and services” and “Commercial, administrative and general expenses” in the consolidated statements of comprehensive income.

Paid absences

The Company recognizes a provision for the cost of paid absences, such as vacation time, based on the accrual method.

r) Employee profit sharing

Employee profit sharing is paid by certain subsidiaries of the Company to its eligible employees. The Company has employee profit sharing in Mexico, Ecuador and Peru. In Mexico, employee profit sharing is computed at the rate of 10% on the individual subsidiaries taxable base adjusted for employee profit sharing purposes as provided by law.

Employee profit sharing is presented as an operating expense in the consolidated statements of comprehensive income.

s) Taxes

Income taxes

Current income tax payable is presented as a short-term liability, net of prepayments made during the year.

Deferred income tax is determined using the liability method based on the temporary differences between the tax values of the assets and liabilities and their book values at the consolidated financial statements reporting date.

Deferred tax assets and liabilities are measured using the tax rates that are expected to be in effect in the period when the asset will materialize or the liability will be settled, based on the enacted tax rates (and tax legislation) that have been enacted or substantially enacted at the financial statements reporting date. The value of deferred tax assets is reviewed by the Company at each financial statement reporting date and is reduced to the extent that it is more likely that the Company will not have sufficient future tax profits to allow for the realization of all or a part of its deferred tax assets. Unrecognized deferred tax assets are revalued at each financial statement reporting date and are recognized when it is more likely that there will be sufficient future tax profits to allow for the realization of these assets.

Deferred taxes relating to items recognized in Other Comprehensive Income are recognized together with the concept that generated such deferred taxes. Deferred taxes consequence on unremitted earnings from subsidiaries and associates are considered as temporary differences, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Taxes withheld on remitted foreign earnings are creditable against Mexican taxes, thus to the extent that a remittance is to be made, the deferred tax would be limited to the incremental difference between the Mexican tax rate and the rate of the remitting country. As of December 31, 2020 and 2021, the Company has not provided for any deferred taxes related to unremitted foreign earnings.

The Company offsets tax assets and liabilities if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

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Sales tax

Revenues, expenses and assets are recognized net of the amount of sales tax, except:

•	When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable.
•	Receivables and payables that are stated with the amount of sales tax included.
---	---

The net amount of sales tax recoverable from, or payable to, the tax authorities is included as part of the current receivables or payables in the consolidated statements of financial position unless they are due in more than a year in which case they are classified as non-current.

t) Advertising

Advertising expenses are recognized as incurred. For the years ended December 31, 2019, 2020 and 2021, advertising expenses were Ps. 13,100,877, Ps. 11,157,495 and Ps. 12,018,536 respectively, and are presented in the consolidated statements of comprehensive income in the caption “Commercial, administrative and general expenses”.

u) Earnings per share

Basic and diluted earnings per share are determined by dividing net profit of the year by the weighted-average number of shares outstanding during the year. In determining the weighted average number of outstanding shares, shares repurchased by the Company have been excluded.

v) Financial risks

The main risks associated with the Company’s financial instruments are: (i) liquidity risk, (ii) market risk (foreign currency exchange risk and interest rate risk) and (iii) credit risk and counterparty risk. The Board of Directors approves the policies submitted by management to mitigate these risks.

i) Liquidity risk

Liquidity risk is the risk that the Company may not meet its financial obligations associated with financial instruments when they are due. The Company’s financial obligations and commitments are included in Notes 14 and 17.

ii) Market risk

The Company is exposed to certain market risks derived from changes in interest rates and fluctuations in exchange rates of foreign currencies. The Company’s debt is denominated in foreign currencies, mainly in US dollars and euros, other than its functional currency. In order to reduce the risks related to fluctuations in the exchange rate of foreign currency, the Company uses derivative financial instruments such as cross-currency swaps and forwards to adjust exposures resulting from foreign exchange currency. The Company does not use derivatives to hedge the exchange risk arising from having operations in different countries.

Additionally, the Company occasionally uses interest rate swaps to adjust its exposure to the variability of the interest rates or to reduce their financing costs. The Company’s practices vary from time to time depending on judgments about the level of risk, expectations of change in the movements of interest rates and the costs of using derivatives. The Company may terminate or modify a derivative financial instrument at any time. See Note 7 for disclosure of the fair value of derivatives as of December 31, 2020 and 2021.

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iii) Credit risk

Credit risk represents the loss that could be recognized in case the counterparties fail to comply with their contractual obligations.

The financial instruments that potentially represent concentrations of credit risk are cash and short-term deposits, trade accounts receivable and financial instruments related to debt and derivatives. The Company’s policy is designed in order to limit its exposure to any one financial institution; therefore, the Company’s financial instruments are contracted with several different financial institutions located in different geographic regions.

The credit risk in accounts receivable is diversified because the Company has a broad customer base that is geographically dispersed. The Company continuously evaluates the credit conditions of its customers and generally does not require collateral to guarantee collection of its accounts receivable. The Company monitors on a monthly basis its collection cycle to avoid deterioration of its results of operations.

A portion of the Company’s cash surplus is invested in short- term deposits with financial institutions with high credit ratings.

iv) Sensitivity analysis for market risks

The Company uses sensitivity analysis to measure the potential losses based on a theoretical increase of 100 basis points in interest rates and a 5% fluctuation in exchange rates:

Interest rate

In the event that the Company’s agreed-upon interest rates at December 31, 2021 decrease by 100 basis points and a 5.23% fluctuation in exchange rates, the net interest expense would (decrease) by Ps. (1,188,821) and Ps. (14,606,005), respectively.

Exchange rate fluctuations

Should the Company’s debt at December 31, 2021 of Ps.564,030,102, if suffer a 5% increase/(decrease) in exchange rates, the debt would increase/(decrease) by Ps. 28,394,119 and Ps. (28,019,972), respectively.

w) Derivative financial instruments

Derivative financial instruments are recognized in the consolidated statements of financial position at fair value. Valuations obtained by the Company are compared against those of the financial institutions with which the agreements are entered into, and it is the Company’s policy to compare such fair value to a valuation provided by an independent pricing provider in case of discrepancies. Changes in the fair value of derivatives that do not qualify as hedging instruments are recognized immediately in the line “Valuation of derivatives, interest cost from labor obligations and other financial items, net”.

The Company is exposed to interest rate and foreign currency risks, which tries to mitigate through a controlled risk management program that includes the use of derivative financial instruments. The Company principally uses to offset the risk of exchange rate and interest rate fluctuations. Additionally, for the years ended December 31, 2019, 2020 and 2021 certain of the Company’s derivative financial instruments had been designated, and had qualified, as cash flow hedges. The effective portion of gains or losses on the cash flow derivatives is recognized in equity under the heading “Effect for fair value of derivatives”, and the ineffective portion is charged to results of operations of the period.

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x) Current versus non-current classification

The Company presents assets and liabilities in its consolidated statements of financial position based on current/non-current classification.

An asset is current when it is either:

(i)	Expected to be realized or intended to be sold or consumed in the normal operating cycle.
(ii)	Held primarily for the purpose of trading.
---	---
(iii)	Expected to be realized within twelve months after the reporting period.
---	---
(iv)	Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
---	---

A liability is current when:

•	It is expected to be settled in the normal operating cycle.
•	It is held primarily for the purpose of trading.
---	---
•	It is due to be settled within twelve months after the reporting period.
---	---
•	There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
---	---

The Company classifies all other assets and liabilities, including deferred income tax assets and liabilities, as non-current.

y) Presentation of consolidated statements of comprehensive income

The costs and expenses shown in the consolidated statements of comprehensive income are presented in combined manner (based on both their function and nature), which allows a better understanding of the components of the Company’s operating income. This classification allows a comparison to the telecommunications industry.

The Company presents operating income in its consolidated statements of comprehensive income since it is a key indicator of the Company’s performance. Operating income represents operating revenues less operating costs and expenses.

z) Operating segments

Segment information is presented based on information used by management in its decision-making processes. Segment information is presented based on the geographic areas in which the Company operates. The management of the Company is responsible for making decisions regarding the resources to be allocated to the Company’s different segments, as well as evaluating the performance of each segment. Intersegment revenues and costs, intercompany balances as well as investments in shares in consolidated entities are eliminated upon consolidation and reflected in the “eliminations” column in Note 23.

None of the segment’s records revenue from transactions with a single external customer amounting to 10% or more of the revenues.

Aa) Convenience translation

The consolidated financial statements are stated in thousands of Mexican pesos (“Ps.”); however, solely for the convenience of the readers, the consolidated statement of financial position as of December 31, 2021 and the

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consolidated statement of comprehensive income and consolidated statement of cash flows for the year ended December 31, 2021 were converted into U.S. dollars at the exchange rate of Ps. 20.5835 per U.S. dollar, which was the exchange rate at that date. This arithmetic conversion should not be construed as representations that the amounts expressed in Mexican pesos may be converted into U.S. dollars at that or any other exchange rate.

Ab) Significant accounting judgments, estimates and assumptions

In preparing its consolidated financial statements, the Company makes estimates concerning a variety of matters. Some of these matters are highly uncertain, and its estimates involve judgments it makes based on the available information. In the discussion below, the Company has identified several of these matters for which its financial statements would be materially affected if either (1) the Company uses different estimates that it could have reasonably used or (2) in the future América Móvil changes its estimates in response to changes that are reasonably likely to occur.

The following discussion addresses only those estimates that the Company considers most important based on the degree of uncertainty and the likelihood of a material impact had it used a different estimate. There are many other areas in which the Company uses estimates about uncertain matters, but the reasonably likely effect of changed or different estimates is not material to the financial presentation for those other areas.

Estimated useful lives of plant, property and equipment

The Company currently depreciates most of its network infrastructure based on an estimated useful life determined upon the expected particular conditions of operation and maintenance in each of the countries in which it operates. The estimates are based on AMX’s historical experience with similar assets, anticipated technological changes and other factors, taking into account the practices of other telecommunications companies. The Company reviews estimated useful lives each year to determine, for each particular class of assets, whether they should be changed. The Company may shorten/extend the estimated useful life of an asset class in response to technological changes, changes in the market or other developments. This results in increased/decreased depreciation expense. See Note 10.

Revaluation of passive infrastructure of telecommunications towers

The Company recognizes the passive infrastructure of the telecommunication towers at fair value, recognizing the changes in OCI. The discounted cash flow model was used. The Company hired a valuation specialist with industry experience to measure fair values as of December 31, 2021

Impairment of Long-Lived Assets

The Company has large amounts of long-lived assets, including property, plant and equipment, intangible assets, investments in affiliates and goodwill on its consolidated statements of financial position. The Company is required to test long-lived assets for impairment when circumstances indicate a potential impairment or, in some cases, at least on an annual basis. The impairment analysis for long-lived assets requires the Company to estimate the recoverable amount of the asset, which is the higher of its fair value (minus any disposal costs) and its value in use. To estimate the fair value of a long-lived asset, the Company typically takes into account recent market transactions or, if no such transactions can be identified, the Company uses a valuation model that requires making certain assumptions and estimates. Similarly, to estimate the value in use of long-lived assets, the Company typically makes various assumptions about the future prospects for the business to which the asset relates, considers market factors specific to that business and estimates future cash flows to be generated by that business. Based on this impairment analysis, including all assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets different assumptions and estimates could materially impact the Company’s reported financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net

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income and result in lower asset values on the consolidated statements of financial position. Conversely, less conservative assumptions could result in smaller or no impairment charges, higher net income and higher asset values. The key assumptions used to determine the recoverable amount for the Company’s CGUs, are further explained in Notes 23, 10 and 11.

Deferred Income Taxes

The Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves the jurisdiction-by-jurisdiction estimation of actual current tax exposure and the assessment of temporary differences resulting from the differing treatment of certain items, such as accruals and amortization, for tax and financial reporting purposes, as well as net operating loss carry-forwards and other tax credits. These items result in deferred tax assets and liabilities as discussed in Note 2 s). The analysis is based on estimates of taxable income in the jurisdictions in which the Company operates and the period on which the deferred tax assets and liabilities will be recovered or settled. If actual results differ from these estimates, or the Company adjusts these estimates in future periods, its financial position and results of operations may be materially affected.

In assessing the future realization of deferred tax assets, the Company considers future taxable income, ongoing planning strategies and future results in its operations. In the event that the estimates of projected future taxable income are lowered, or changes in current tax regulations are enacted that would impose restrictions on the timing or extent of the ability to utilize the tax benefits of net operating loss carry-forwards in the future, an adjustment to the recorded amount of deferred tax assets would be made, with a related charge to income. See Note 13.

Accruals

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

If the Company is unable to reliably measure the obligation, no accrual is recorded, and information is then presented in the notes to its consolidated financial statements. Because of the inherent uncertainties in these estimations, actual expenditures may be different from the originally estimated amount recognized. See Note 16.

The Company is subject to various claims and contingencies related to tax, labor and legal proceedings as described in Note 17b).

Labor Obligations

The Company recognizes liabilities on its consolidated statements of financial position and expenses in its statements of comprehensive income to reflect its obligations related to its post-retirement seniority premiums, pension and retirement plans in the countries in which it operates and offer defined contribution and benefit

pension plans. The amounts the Company recognizes are determined on an actuarial basis that involves estimations and accounts for post-retirement and termination benefits.

The Company uses estimates in four specific areas that have a significant effect on these amounts: (i) the rate of return the Company assumes its pension plans will earn on its investments, (ii) the salaries increase rate that the

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Company assumes it will observe in future years, (iii) the discount rates that the Company uses to calculate the present value of its future obligations and (iv) the expected inflation rate. The assumptions applied are further

disclosed in Note 18. These estimates are determined based on actuarial studies performed by independent experts using the projected unit-credit method.

Ac) Discontinued operations

On September 14, 2020, the Company, announced that it ha d entered into an agreement with Verizon Communications Inc. (“Verizon”) to sell its 100% interest in its subsidiary TracFone Wireless, Inc. (“TracFone”), the largest mobile virtual prepaid service operator in the United States, serving 21 million subscribers. On November 23, 2021, the Company announced that it ha d completed the sale of its 100% interest in TracFone to Verizon.

AMX received a closing consideration of US$3,625.7 million in cash, which includes US$500.7 million related to TracFone’s closing cash and working capital, customary adjustment and other adjustments and 57,596,544 shares of Verizon stock valued at approximately US$2,968 million.

Following

the

transaction

closing, Verizon shall pay to AMX: (i) up to US$500 million as an earn-out if TracFone continues to achieve certain performance measures during the 24 months following the closing, calculated and paid in 4 consecutive

semesters

periods, and (ii) US$150 million deferred consideration payable within two years following the

transaction

closing. The earn-out was not recognized as gain by the Company, in accordance with

IFRS 9, 13 and

IAS 37 ,

since management does not believe the realization of income

and the inflow of economic benefits are virtually certain.

TracFone was deconsolidated from that date resulting in a net gain of Ps. 106,527,287 including the recycling of foreign currency exchange losses accumulated in equity. This gain has been recognized under profit after tax from discontinued operations in the consolidated statements of comprehensive income. Furthermore, no impairment loss was identified. Moreover, TracFone had identifiable operations and cash flows and represented a separate geographical area. Therefore, in accordance with IFRS 5, TracFone was classified as discontinued operations for all years presented in these consolidated financial statements; results were accordingly presented as a single amount as profit after tax from discontinued operations in the consolidated statements of comprehensive income. The consolidated statements of comprehensive income comparative figures have therefore been restated accordingly.

All other notes to the consolidated financial statements include amounts for continuing operations, unless indicated otherwise.

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Additionally, TracFone represented the U.S.A. segment until November 23, 2021. With TracFone being classified as discontinued operations, the U.S.A. segment is no longer presented in the segment note. The results of TracFone for the year are presented below:

	For the years ended December 31
	2019			2020			2021
Operating revenues:
Service revenues	Ps.	131,403,268		Ps.	149,376,532		Ps.	130,091,540
Sales of equipment		24,461,125			27,802,837			22,160,481
		155,864,393			177,179,369			152,252,021
Total costs and expenses		144,822,141			157,327,836			134,495,316
Operating income		11,042,252			19,851,533			17,756,705
Financial cost		(77,884	)		(2,026	)		(1,733	)
Gain on disposal of discontinued operations		—			—			132,821,709
Profit before income tax discontinued operations		10,964,368			19,849,507			150,576,681
Tax expense:
Related to pre-tax profit from the ordinary activities for the period		1,119,479			2,856,882			2,571,541
Related to gain on disposal from discontinued operations		—			—			26,294,422
Net profit for the year from discontinued operations	Ps.	9,844,889		Ps.	16,992,625		Ps.	121,710,718

The assets and liabilities deconsolidated on the date of the disposal were as follows:

	November 23,
	2021
Current assets
Cash	Ps.	338,439
Subscribers, distributors, recoverable taxes, contract assets and other net		12,368,407
Inventories, net		9,604,658
Other current assets, net		389,052
Total current assets		22,700,556
Non-current assets:
Property, plant and equipment		1,989,498
Intangibles, net		555,012
Goodwill		2,695,557
Deferred income taxes		1,094,756
Other assets, net		327,546
Rights of use		1,625
Total assets	Ps.	29,364,550
Short term liability related to rigth of use of assets	Ps.	1,625
Accounts payable		17,446,513
Income tax		3,267,585
Deferred revenue		13,187,667
Total liabilities		33,903,390
Net <br>liability<br> directly associated with disposal group	Ps.	(4,538,840	)

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Furthermore, pursuant to the Stock Purchase Agreement, the Company agreed to indemnify Verizon against pre-closing tax matters. As of the closing, certain tax related matters had not been resolved, and Verizon has asserted post-closing claims under the adjustments and other provisions of this agreements, which may result in payments by us.

Ad)

Reclassification

The Company reclassified Ps. 4,540,344

from current

equity investments at fair value through other comprehensive income (OCI) to non-current

debt instruments at fair value through other comprehensive income (OCI)

as of December 31, 2020.

Cash and Cash Equivalents

Cash and cash equivalents are comprised of short-term deposits with different financial institutions. Cash equivalents only include instruments with purchased maturity of less than three months. The amount includes the amount deposited, plus any interest earned.

Equity

and debt

investments at fair value through OCI and other short/long-term investments

As of December 31, 2020 and 2021, equity investments at fair value through OCI and other short-term investments includes an equity investment in KPN for Ps. 50,033,111 and Ps. 56,087,598

, respectively, other short-term investments for Ps. 62,940 and Ps. 15,026, respectively, equity investment in Verizon for Ps. 61,600,578 in December 31,

2021.

The investment s in KPN, Verizon and other s , are carried at fair value with changes in fair value being recognized through other comprehensive (loss) gain items (equity) in the Company’s consolidated statements of financial position. As of December 31, 2020 and 2021, the Company has recognized in equity changes in fair value of Ps. (1,952,414) and Ps. 4,560,869 respectively, net of deferred taxes.

During the years ended December 31, 2019, 2020 and 2021, the Company received dividends from KPN for an amount of Ps. 1,742,242 and Ps. 2,119,668 and Ps. 2,628,600, respectively, which are included within “Valuation of derivatives, interest cost from labor obligations, and other financial items, net” in the consolidated statements of comprehensive income.

As of December 31, 2020 and 2021 long-term debt instrument at fair value through OCI for Ps. 4,540,344 and Ps. 6,894,757, respectively.

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Accounts receivable from subscribers, distributors, recoverable taxes contractual assets and other, net

a) An analysis of accounts receivable by component at December 31, 2020 and 2021 is as follows:

	At December 31,
	2020			2021
Subscribers and distributors		Ps. 168,758,386			Ps. 157,433,609
Telecommunications carriers for network interconnection and other services		4,914,094			3,968,675
Recoverable taxes		44,557,402			43,734,164
Sundry debtors		12,504,566			15,573,586
Contract assets		29,588,104			30,901,277
Impairment of trade receivables		(44,551,735	)		(41,835,826	)
Total net		Ps. 215,770,817			Ps. 209,775,485
Non-current subscribers, distributors and contractual assets		7,792,863			6,928,888
Total current subscribers, distributors and contractual assets		Ps. 207,977,954			Ps. 202,846,597

b) Changes in the impairment of trade receivables is as follows:

	For the years ended December 31,
	2019			2020			2021
Balance at beginning of year		Ps.(40,798,025	)		Ps.(39,480,909	)		Ps.(44,551,735	)
Increases recorded in expenses		(16,346,395	)		(19,112,635	)		(10,677,421	)
Write-offs<br><br>(i)		17,839,957			11,953,227			11,682,343
Business combination		(3,265,490	)		(2,066	)		—
Translation effect		3,089,044			2,090,648			1,710,987
Balance at end of year		Ps.(39,480,909	)		Ps.(44,551,735	)		Ps.(41,835,826	)
(i)	Includes discontinued operation of Tracfone. See Note 2Ac.
---	---

c) The following table shows the aging of accounts receivable at December 31, 2020 and 2021, for subscribers and distributors:

	Past due
	Total		Unbilled services<br>provided		a-30 days		31-60 days		61-90 days		Greater than<br>90 days
December 31, 2020	Ps.	168,758,386	Ps.	75,972,811	Ps.	37,439,995	Ps.	5,325,264	Ps.	3,313,835	Ps.	46,706,481
December 31, 2021	Ps.	157,433,609	Ps.	69,082,837	Ps.	35,694,272	Ps.	4,533,604	Ps.	2,645,034	Ps.	45,477,862

d) The following table shows the accounts receivable from subscribers and distributors included in the impairments of trade receivables, as of December 31, 2020 and 2021:

	Total		1-90 days		Greater than<br>90 days
December 31, 2020	Ps.	44,551,735	Ps.	4,455,174	Ps.	40,096,561
December 31, 2021	Ps.	41,835,826	Ps.	4,183,583	Ps.	37,652,243

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e) An analysis of contract assets and liabilities at December 31, 2020 and 2021 is as follows:

	2020			2021
Contract Assets:
Balance at the beginning of the year	Ps.	34,274,007		Ps.	29,588,104
Additions		27,242,031			31,758,626
Disposals		(1,397,714	)		(5,946,487	)
Amortization		(29,002,995	)		(25,354,712	)
Translation effect		(1,527,225	)		855,746
Balance at the end of the year	Ps.	29,588,104		Ps.	30,901,277
Non-current contract assets	Ps.	817,740		Ps.	989,519
Current portion contracts assets	Ps.	28,770,364		Ps.	29,911,758

Related Parties

a) The following is an analysis of the balances with related parties as of December 31, 2020 and 2021. All of the companies were considered affiliates of América Móvil since the Company’s principal shareholders are either direct or indirect shareholders in the related parties.

	2020		2021
Accounts receivable:
Sears Roebuck de México, S.A. de C.V. and Subsidiaries	Ps.	233,402	Ps.	339,366
Sanborns Hermanos, S.A.		160,116		192,599
Patrimonial Inbursa, S.A.		327,985		145,676
Grupo Condumex, S.A. de C.V. and Subsidiaries		10,038		122,555
Hubard y Bourlon, S.A. de C.V.		437,231		52,026
Claroshop.com, S.A.P.I de C.V.		100,075		40,906
Other		122,453		265,483
Total	Ps.	1,391,300	Ps.	1,158,611
	2020		2021
---	---	---	---	---
Accounts payable:
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries	Ps.	2,192,405	Ps.	1,273,085
Grupo Condumex, S.A. de C.V. and Subsidiaries		1,054,526		1,709,487
Fianzas Guardiana Inbursa, S.A. de C.V.		241,898		385,287
Claroshop.com, S.A.P.I de C.V.		4,300		247,081
Grupo Financiero Inbursa, S.A.B. de C.V.		234,954		102,314
Seguros Inbursa, S.A. de C.V.		92,173		113,089
Sociedad Financiera Inbursa, S.A. de C.V.		—		80,382
PC Industrial, S.A. de C.V. and Subsidiaries		44,198		4,761
Enesa, S.A. de C.V. and Subsidiaries		22,014		9,384
Other		113,448		292,012
Total	Ps.	3,999,916	Ps.	4,216,882

For the years ended December 31, 2019, 2020 and 2021, the Company has not recorded any impairment of receivables in connection with amounts owed by related parties.

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b) For the years ended December 31, 2019, 2020 and 2021, the Company conducted the following transactions with related parties:

	2019		2020		2021
Investments and expenses:
Construction services, purchases of materials, inventories and property, plant and equipment <br>(i)	Ps.	8,573,894	Ps.	7,130,769	Ps.	13,544,289
Insurance premiums, fees paid for administrative and operating services, brokerage services and others <br>(ii)		4,590,620		4,375,113		4,336,133
Other services		1,277,404		1,101,528		1,617,102
	Ps.	14,441,918	Ps.	12,607,410	Ps.	19,497,524
Revenues:
Service revenues	Ps.	538,110	Ps.	608,248	Ps.	714,148
Sales of equipment<br><br><br>(iii)		944,697		656,801		7,629,181
	Ps.	1,482,807	Ps.	1,265,049	Ps.	8,343,329
i)	In 2021, this amount includes Ps.<br><br>11,447,164 (Ps.<br><br>5,312,845 in 2020 and Ps.<br><br>6,809,244 in 2019) for network construction services and construction materials purchased from subsidiaries of Grupo Carso, S.A.B. de C.V. (Grupo Carso).
---	---
ii)	In 2021, this amount includes Ps.<br><br>121,728 (Ps.<br><br>203,013 in 2020 and Ps.<br><br>956,132 in 2019) for network maintenance services performed by Grupo Carso subsidiaries; Ps.<br><br>50,730 in 2021 (Ps.<br><br>13,490 in 2020, and Ps.<br><br>16,161 in 2019) for software services provided by an associate; Ps.<br><br>3,814,995 in 2021 (Ps.<br><br>2,713,370 in 2020 and Ps.<br><br>2,623,795 in 2019) for insurance premiums with Seguros Inbursa S.A. and Fianzas Guardiana Inbursa, S.A., which, in turn, places most of such insurance with reinsurers.
---	---
iii)	In November 2021, a subsidiary of Telmex sold certain tower assets to Telesites, S.A.B. de C.V.
---	---
iv)	The amounts related to payments for tower lease are reflected in Note 15.
---	---

c) The aggregate compensation paid to the Company’s, directors (including compensation paid to members of the Audit and Corporate Practices Committee), and senior management in 2021 was approximately Ps.5,800 and Ps.85,000, respectively. None of the Company’s directors is a party to any contract with the Company or any of its subsidiaries that provides for benefits upon termination of employment. The Company does not provide pension, retirement or similar benefits to its directors in their capacity as directors. The Company’s executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees.

d) Österreichische Bundes- und Industriebeteiligungen GmbH (ÖBIB) is considered a related party due to it is a significant non-controlling shareholder in Telekom Austria. Through Telekom Austria, América Móvil is related to the Republic of Austria and its subsidiaries, which are mainly ÖBB Group, ASFINAG Group and Post Group as well as Rundfunk und Telekom Reguliegungs-GmbH, all of which these are related parties. In 2019, 2020 and 2021, none of the individual transactions associated with government agencies or government-owned entities of Austria were considered significant to América Móvil.

Derivative Financial Instruments

To mitigate the risks of future increases in interest rates and foreign exchange rates for the servicing of its debt, the Company has entered into derivative contracts in over-the-counter transactions carried out with financial institutions. In 2021 the weighted-average interest rate of the total debt including the impact of interest rate derivatives held by the Company is 3.1% (3.5% and 3.8% in 2020 and 2019, respectively).

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An analysis of the derivative financial instruments contracted by the Company at December 31, 2020 and 2021 is as follows:

	At December 31,
	2020					2021
Instrument	Notional amount in<br> millions		Fair Value			Notional amount in<br> millions		Fair Value
Assets:
Swaps US Dollar – Mexican Peso	US$	3,490	Ps.	16,806,937		US$	1,890	Ps.	6,881,934
Swaps US Dollar – Euro	US$	150		117,726		US$	150		307,646
Swaps Yen – US Dollar	¥	9,750		269,215		¥	6,500		119,325
Swaps Pound Sterling – US Dollar	£	1,010		2,237,919		£	100		99,463
Forwards US Dollar – Mexican Peso	US$	240		39,607		US$	2,080		321,864
Forwards Mexican Peso – US Dollar		—		—		MX$	35,419		1,635,087
Forwards Brazilian Real – US Dollar	BRL$	4,193		1,190,292		BRL$	2,480		127,131
Forwards Euro – US Dollar	€	915		266,639			—		—
Put Option		—		—		€	374		638,347
Total Assets		—	Ps.	20,928,335			—	Ps.	10,130,806
	At December 31,
	2020					2021
Instrument	Notional amount in<br> millions		Fair Value			Notional amount in<br> millions		Fair Value
Liabilities:
Swaps US Dollar – Euro	US$	800	Ps.	(4,811,031	)	US$	800	Ps.	(1,270,005	)
Swaps Yen – US Dollar	¥	3,250		(14,802	)	¥	6,500		(119,313	)
Swaps Pound Sterling – Euro	£	640		(3,122,492	)	£	640		(1,924,941	)
Swap Pound Sterling – US Dollar	£	550		(457,559	)	£	1,460		(2,117,583	)
Swaps Euro – US Dollar		—		—		€	495		(528,298	)
Swaps Euro – Mexican Peso		—		—		€	750		(680,720	)
Forwards US Dollar – Mexican Peso	US$	3,494		(4,052,852	)	US$	1,175		(286,937	)
Forwards Brazilian Real – US Dollar	BRL$	1,762		(425,249	)	BRL$	4,021		(234,822	)
Forwards Euro – US Dollar		—		—		€	815		(1,122,641	)
Forwards US Dollar – Euro		—		—		US$	8		(1,570	)
Forwards Euro – Mexican Peso	€	200		(272,274	)	€	200		(22,182	)
Put option	€	374		(1,073,990	)		—		—
Call option		—		—		€	2,097		(1,725,495	)
Total Liabilities		—	Ps.	(14,230,249	)		—	Ps.	(10,034,508	)
*	Totals may not sum due to rounding.
---	---

The changes in the fair value of these derivative financial instruments for the years ended December 31, 2019, 2020 and 2021 amounted to a gain (loss) of Ps.

4,432,023, Ps.

12,378,193 and Ps.

(6,755,214), respectively. Such amounts are included in the consolidated statements of comprehensive income as part of the caption “Valuation of derivatives interest cost from labor obligations and other financial items, net”.

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The maturities of the notional amount of the derivatives are as follows:

Instrument	Notional amount in millions
Assets
Swaps US Dollar-Mexican Peso	US	—	—	—	—	1,890
Swaps Yen-US Dollar		—	—	—	—	6,500
Swaps US Dollar – Euro	US	—	—	—	—	150
Swaps Pound Sterling – US Dollar		—	—	—	—	100
Forwards US Dollar-Mexican Peso	US	2,080	—	—	—	—
Forwards Mexican Peso – US Dollar	MX	35,419	—	—	—	—
Forwards Brazilian Real-US Dollar	BRL	2,480	—	—	—	—
Put Option		—	374	—	—	—
Liabilities
Swaps US Dollar-Euro	US	—	—	—	—	800
Swaps Euro – US Dollar		—	320	175	—	—
Swaps Euro – Mexican Peso	US	—	750	—	—	—
Swaps Yen-US Dollar		—	—	—	—	6,500
Swaps Pound Sterling-Euro		—	—	—	—	640
Swap Pound Sterling-US Dollar		—	—	—	—	1,460
Forwards US Dollar – Mexican Peso	US	1,175	—	—	—	—
Forwards Euro – US Dollar		765	—	50	—	—
Forwards US Dollar—Euro	US	8	—	—	—	—
Forwards Brazilian Real-US Dollar	BRL	4,021	—	—	—	—
Forwards Euro – Mexican Peso		200	—	—	—	—
Call option		—	—	2,097	—	—

All values are in US Dollars.

Inventories, net

An analysis of inventories at December 31, 2020 and 2021 is as follows:


Mobile phones, accessories, computers, TVs, cards and other materials	Ps.33,763,086		Ps.<br><br>26,131,521
Less: Reserve for obsolete and slow-moving inventories	(3,385,647	)	(1,946,211	)
Total	Ps.30,377,439		Ps.<br><br>24,185,310

For the years ended December 31, 2019, 2020 and 2021, the cost of inventories recognized in cost of sales was Ps.

128,559,826, Ps.

114,711,857 and Ps.

122,220,495 respectively .

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Other assets, net

An analysis of other assets at December 31, 2020 and 2021 is as follows:

	2020		2021
Current portion:
Advances to suppliers (different from PP&E and inventories)	Ps.	7,600,644	Ps.	7,474,932
Prepaid insurance		1,300,019		1,749,589
Other		93,244		227,731
	Ps.	8,993,907	Ps.	9,452,252
Non-current portion:
Recoverable taxes	Ps.	11,559,961	Ps.	11,689,094
Prepayments for the use of fiber optics		2,709,358		3,783,496
Judicial Deposits<br>(1)		15,402,840		14,583,504
Prepaid expenses		8,743,667		9,899,996
Total	Ps.	38,415,826	Ps.	39,956,090

For the years ended December 31, 2019, 2020 and 2021, amortization expense for other assets was Ps. 318,824, Ps. 213,833 and Ps. 442,098, respectively.

(1)	Judicial deposits represent cash and cash equivalents pledged in order to fulfill the collateral requirements for tax contingencies mainly in Brazil. As of December 31, 2020 and 2021, the amount for these deposits is Ps. 15,402,840 and Ps. 14,583,504, respectively for Brazil. Based on its evaluation of the underlying contingencies, the Company believes that such amounts are recoverable.

Property, Plant and Equipment, net

a) An analysis of activity in property, plant and equipment, net for the years ended December 31, 2019, 2020 and 2021 is as follows:

	At December 31,<br> 2018		Additions		Retirements			Business<br> combinations		Effect of<br> translation of<br> foreign<br> subsidiaries and<br> hyperinflation<br> adjustment			Depreciation<br> for<br> the year			At December 31,<br> 2019
Cost
Network in operation and equipment	Ps.	969,195,936	Ps.	82,992,062	Ps.	(13,417,360	)	Ps.	9,572,805	Ps.	(57,669,840	)	Ps.	—		Ps.	990,673,603
Land and buildings		57,130,326		1,530,677		(4,025,222	)		115,935		(3,950,463	)		—			50,801,253
Other assets		149,809,137		26,881,611		(7,594,735	)		1,021,051		(7,776,500	)		—			162,340,564
Construction in process and advances plant suppliers <br>(1)		81,092,529		82,640,305		(76,892,011	)		209,790		(5,511,439	)		—			81,539,174
Spare parts for operation of the network		28,444,529		44,776,904		(36,525,735	)		—		(2,462,605	)		—			34,233,093
Total		1,285,672,457		238,821,559		(138,455,063	)		10,919,581		(77,370,847	)		—			1,319,587,687
Accumulated depreciation
Network in operation and equipment		560,005,547		—		(24,954,514	)		—		(47,778,627	)		93,097,695			580,370,101
Buildings		8,810,949		—		(287,072	)		—		(1,386,974	)		2,330,405			9,467,308
Other assets		76,533,494		—		(695,425	)		—		(4,754,982	)		19,249,104			90,332,191
Spare parts for operation of the network		321,747		—		(283,986	)		—		(79,226	)		116,182			74,717
Total	Ps.	645,671,737	Ps.	—	Ps.	(26,220,997	)	Ps.	—	Ps.	(53,999,809	)	Ps.	114,793,386		Ps.	680,244,317
Net Cost	Ps.	640,000,720	Ps.	238,821,559	Ps.	(112,234,066	)	Ps.	10,919,581	Ps.	(23,371,038	)	Ps.	(114,793,386	)	Ps.	639,343,370

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	At December 31,<br>2019		Additions		Retirements			Business<br>combinations		Revaluation<br>adjustments		Transfers			Effect of<br>translation of<br>foreign<br>subsidiaries and<br>hyperinflation<br>adjustment			Depreciation<br>for<br>the year			At December 31,<br>2020
Cost
Network in operation and equipment	Ps.	990,673,603	Ps.	90,387,449	Ps.	(19,574,391	)	Ps.	996,974	Ps.	107,152,628	Ps.	(62,050,212	)	Ps.	(49,993,808	)	Ps.	—		Ps.	1,057,592,243
Land and buildings		50,801,253		570,062		(2,853,037	)		—		—		—			369,300			—			48,887,578
Other assets		162,340,564		17,474,218		(14,454,598	)		55,848		—		—			(8,393,187	)		—			157,022,845
Construction in process and advances plant suppliers <br>(1)		81,539,174		59,635,316		(68,661,847	)		1,099		—		—			(5,011,829	)		—			67,501,913
Spare parts for operation of the network		34,233,093		30,721,413		(37,829,818	)		—		—		—			(2,328,430	)		—			24,796,258
Total		1,319,587,687		198,788,458		(143,373,691	)		1,053,921		107,152,628		(62,050,212	)		(65,357,954	)		—			1,355,800,837
Accumulated depreciation
Network in operation and equipment		580,370,101		—		(25,726,856	)		—		—		(62,050,212	)<br>(<br>2<br>)		(58,055,450	)		96,729,723			531,267,306
Buildings		9,467,308		—		(1,663,796	)		—		—		—			(622,253	)		1,906,140			9,087,399
Other assets		90,332,191		—		(9,317,821	)		—		—		—			(5,120,175	)		16,549,822			92,444,017
Spare parts for operation of the network		74,717		—		(176,131	)		—		—		—			38,898			135,000			72,484
Total	Ps.	680,244,317	Ps.	—	Ps.	(36,884,604	)	Ps.	—	Ps.	—	Ps.	(62,050,212	)	Ps.	(63,758,980	)	Ps.	115,320,685		P	s<br><br>632,871,206
Net Cost	Ps.	639,343,370	Ps.	198,788,458	Ps.	(106,489,087	)	Ps.	1,053,921	Ps.	107,152,628	.	—		Ps.	(1,598,974	)	Ps.	(115,320,685	)	Ps.	722,929,631
	At<br><br><br>December 31,<br>2020		Additions		Retirements <br>(3)			Business<br>combinations		Transfers			Effect of<br>translation of<br>foreign<br>subsidiaries and<br>hyperinflation<br>adjustment			Depreciation<br>for<br>the year			At December 31,<br>2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Cost
Network in operation and equipment	Ps.	1,057,592,243	Ps.	89,696,150	Ps.	(45,044,049	)	Ps.	—	Ps.	53,531,590		Ps.	(44,061,097	)	Ps.	—		Ps<br>.	1,111,714,837
Land and buildings		48,887,578		784,460		(473,785	)		—		38,250			(1,216,894	)		—			48,019,609
Other assets		157,022,845		10,782,903		(11,994,756	)		—		(1,800,756	)		(1,870,104	)		—			152,140,132
Construction in process and advances plant suppliers <br>(1)		67,501,913		83,366,813		(47,178,796	)		—		(38,944,421	)		(1,420,843	)		—			63,324,666
Spare parts for operation of the network		24,796,258		46,909,494		(23,108,928	)		—		(13,824,767	)		(974,011	)		—			33,798,046
Total		1,355,800,837		231,539,820		(127,800,314	)		—		(1,000,104	)		(49,542,949	)		—			1,408,997,290
Accumulated depreciation
Network in operation and equipment		531,267,306		—		(24,322,904	)		—		638,066			(30,254,288	)		97,343,878			574,672,058
Buildings		9,087,399		—		(219,030	)		—		(221,937	)		(738,748	)		1,941,819			9,849,503
Other assets		92,444,017		—		(10,522,319	)		—		549,855			(2,522,458	)		13,310,584			93,259,679
Spare parts for operation of the network		72,484		—		(92,421	)		—		—			(26,823	)		66,131			19,371
Total	Ps	632,871,206	Ps<br>.	—	Ps.	(35,156,674	)	Ps.	—	Ps.	(965,984	)	Ps<br>.	(33,542,317	)	Ps.	112,662,412		Ps<br>.	677,800,611
Net Cost	Ps<br>.	722,929,631	Ps<br>.	231,539,820	Ps<br>.	(92,643,640	)	Ps.	—	Ps.	(1,966,088	)	Ps.	(16,000,632	)	Ps<br>.	(112,662,412	)	Ps<br>.	731,196,679
(1)	Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed.
---	---
(2)	This transfer relates to the accumulated depreciation as at the revaluation date that was eliminated against the gross carrying amount of the revalued asset.
---	---
(3)	Includes disposals related to the sale of TracFone. See Note 2Ac.
---	---

The completion period of construction in progress is variable and depends upon the type of plant and equipment under construction.

b) Revaluation of t e lecommunications towers

The Fair value of the passive infrastructure of telecommunications towers was determined using the “income approach” method through a discounted flow model (DFC) where, among others, inputs such as average rents per tower were used, contract term and discount rates considering market information.

As of December 31, 2020 and 2021, date of the revaluation, the fair values of the passive infrastructure of the telecommunications towers were determinate by a valuation specialist with experience in the industry. The complement for the revaluation of the passive infrastructure of the telecommunications towers amounted to Ps.

107,152,628 and 98,172,675, respectively, and was recognized in OCI, the change in revaluation did not have an impact

during 2020. For

the year ended as of December 31, 2021 the impact amounted to Ps. 6,450,825.

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The information to be disclosed on the fair value measurement for the revalued telecommunications towers is provided in Note 19.

	2020		2021
Book value as of December 31, (cost model)	Ps.	615,777,003	Ps.	633,024,004
Supplement for change in accounting policy		107,152,628		98,172,675
Book value and fair value as of December 31, (revaluation model)	Ps.	722,929,631	Ps.	731,196,679

c) Relevant information related to the computation of the capitalized borrowing costs is as follows:

	Year ended December 31,
	2019			2020			2021
Amount invested in the acquisition of qualifying assets		Ps. 50,783,957			Ps. 46,528,232			Ps. 38,573,605
Capitalized interest		2,233,358			1,771,613			1,527,259
Capitalization rate		4.4	%		3.8	%		4.0	%

Capitalized interest is being amortized over a period of estimated useful life of the related assets.

Intangible assets, net and goodwill

a) An analysis of intangible assets at December 31, 2019, 2020 and 2021 is as follows:

	For the year ended December 31, 2019
	Balance at<br>beginning of<br>year			Acquisitions		Acquisitions<br>in business<br>combinations		Disposals and<br>other			Amortization<br>of the year			Effect of<br>translation of<br>foreign<br>subsidiaries<br>and<br>Hyperinflation<br>adjustment			Balance at end<br>of year
Licenses and rights of use	Ps.	233,478,974		Ps.	13,206,877	Ps.	7,844,339	Ps.	7,286,114		Ps.	—		Ps.	(15,715,442	)	Ps.	246,100,862
Accumulated amortization		(130,180,579	)		—		—		(2,391,624	)		(11,577,160	)		9,481,480			(134,667,883	)
Net		103,298,395			13,206,877		7,844,339		4,894,490			(11,577,160	)		(6,233,962	)		111,432,979
Trademarks		28,207,166			53,467		—		(6,012	)		—			(835,613	)		27,419,008
Accumulated amortization		(23,539,961	)		—		—		—			(1,008,483	)		618,145			(23,930,299	)
Net		4,667,205			53,467		—		(6,012	)		(1,008,483	)		(217,468	)		3,488,709
Customer relationships		25,543,068			20,248		—		5,507			—			(2,693,812	)		22,875,011
Accumulated amortization		(18,761,537	)		—		—		—			(3,371,924	)		2,357,831			(19,775,630	)
Net		6,781,531			20,248		—		5,507			(3,371,924	)		(335,981	)		3,099,381
Software licenses		14,309,258			2,729,480		—		(949,858	)		—			(2,984,770	)		13,104,110
Accumulated amortization		(7,704,803	)		—		—		(1	)		(2,479,088	)		2,183,149			(8,000,743	)
Net		6,604,455			2,729,480		—		(949,859	)		(2,479,088	)		(801,621	)		5,103,367
Content rights		7,549,709			1,427,694		—		1,638,007			—			(455,228	)		10,160,182
Accumulated amortization		(6,763,592	)		—		—		(8,720	)		(1,772,779	)		429,862			(8,115,229	)
Net		786,117			1,427,694		—		1,629,287			(1,772,779	)		(25,366	)		2,044,953
Total of intangibles, net	Ps.	122,137,703		Ps.	17,437,766	Ps.	7,844,339	Ps.	5,573,413		Ps.	(20,209,434	)	Ps.	(7,614,398	)	Ps.	125,169,389
Goodwill	Ps.	145,566,497		Ps<br>.	—	Ps.	10,869,571	Ps.	(843,005	)		—		Ps.	(2,693,262	)	Ps.	152,899,801

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	For the year ended December 31, 2020
	Balance at<br>beginning of<br>year			Acquisitions		Acquisitions<br>in business<br>combinations			Disposals and<br>other			Amortization<br>of the year			Effect of<br>translation of<br>foreign<br>subsidiaries<br>and<br>Hyperinflation<br>adjustment			Balance at end<br>of year
Licenses and rights of use	Ps.	246,100,862		Ps.	15,079,714	Ps.	4,436,313		Ps.	1,502,981		Ps.	—		Ps.	(14,029,709	)	Ps.	253,090,161
Accumulated amortization		(134,667,883	)		—		—			105,892			(14,274,497	)		14,227,424			(134,609,064	)
Net		111,432,979			15,079,714		4,436,313			1,608,873			(14,274,497	)		197,715			118,481,097
Trademarks		27,419,008			162,309		12,110			4,000			—			1,534,938			29,132,365
Accumulated amortization		(23,930,299	)		—		—			(4,276	)		(300,727	)		(1,119,645	)		(25,354,947	)
Net		3,488,709			162,309		12,110			(276	)		(300,727	)		415,293			3,777,418
Customer relationships		22,875,011			1,935		2,689,718			(5,763	)		—			4,018,365			29,579,266
Accumulated amortization		(19,775,630	)		—		—			855			(1,654,237	)		(3,996,593	)		(25,425,605	)
Net		3,099,381			1,935		2,689,718			(4,908	)		(1,654,237	)		21,772			4,153,661
Software licenses		13,104,110			2,445,784		36			(2,485,429	)		—			4,236,645			17,301,146
Accumulated amortization		(8,000,743	)		—		—			2,013,617			(2,667,870	)		(3,578,452	)		(12,233,448	)
Net		5,103,367			2,445,784		36			(471,812	)		(2,667,870	)		658,193			5,067,698
Content rights		10,160,182			1,570,415		—			(313,942	)		—			619,657			12,036,312
Accumulated amortization		(8,115,229	)		—		—			—			(1,440,749	)		(503,241	)		(10,059,219	)
Net		2,044,953			1,570,415		—			(313,942	)		(1,440,749	)		116,416			1,977,093
Total of intangibles, net	Ps.	125,169,389		Ps.	19,260,157	Ps.	7,138,177		Ps.	817,935		Ps.	(20,338,080	)	Ps.	1,409,389		Ps.	133,456,967
Goodwill	Ps.	152,899,801		Ps.	—	Ps.	(7,014,120	)	Ps.	(537,343	)	Ps.	—		Ps.	(2,295,479	)	Ps.	143,052,859

	For the year ended December 31, 2021
	Balance at<br>beginning of<br>year			Acquisitions			Disposals and<br>other			Amortization<br>of the year			Effect of<br>translation of<br>foreign<br>subsidiaries<br>and<br>Hyperinflation<br>adjustment			Balance at end<br>of year
Licenses and rights of use	Ps.	253,090,161		Ps.	24,406,905		Ps.	(4,427,685	)	Ps.	—		Ps.	(7,011,691	)	Ps.	266,057,690
Accumulated amortization		(134,609,064	)		—			6,764,067			(14,682,451	)		6,737,503			(135,789,945	)
Net		118,481,097			24,406,905			2,336,382			(14,682,451	)		(274,188	)		130,267,745
Trademarks<br><br>(1)		29,132,365			75,100			(1,129,666	)		—			(401,946	)		27,675,853
Accumulated amortization		(25,354,947	)		—			802,717			(140,205	)		308,745			(24,383,690	)
Net		3,777,418			75,100			(326,949	)		(140,205	)		(93,201	)		3,292,163
Customer relationships<br><br>(1)		29,579,266			229,936			(4,133,408	)		—			(1,105,668	)		24,570,126
Accumulated amortization		(25,425,605	)		—			3,830,742			(707,500	)		1,093,401			(21,208,962	)
Net		4,153,661			229,936			(302,666	)		(707,500	)		(12,267	)		3,361,164
Software licenses		17,301,146			2,660,330			(3,484,755	)		—			(1,225,585	)		15,251,136
Accumulated amortization		(12,233,448	)		(626	)		3,482,440			(2,738,978	)		1,052,938			(10,437,674	)
Net		5,067,698			2,659,704			(2,315	)		(2,738,978	)		(172,647	)		4,813,462
Content rights		12,036,312			818,436			(281,747	)		—			429,319			13,002,320
Accumulated amortization		(10,059,219	)		—			(147,668	)		(899,666	)		(404,537	)		(11,511,090	)
Net		1,977,093			818,436			(429,415	)		(899,666	)		24,782			1,491,230
Total of intangibles, net	Ps.	133,456,967		Ps.	28,190,081		Ps.	1,275,037		Ps.	(19,168,800	)	Ps.	(527,521	)	Ps.	143,225,764
Goodwill<br><br>(1)	Ps.	143,052,859		Ps.	—		Ps.	(3,516,287	)	Ps.	—		Ps.	(2,958,378	)	Ps.	136,578,194
(1)	Includes disposals related to the sale of TracFone. See <br>Note<br> <br>2Ac.
---	---

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b) The aggregate carrying amount of goodwill is allocated as follows:


Europe	Ps<br>.<br><br><br>53,388,139	Ps<br>.<br><br><br>52,307,190
Brazil	18,730,686	18,017,916
Puerto Rico	17,463,394	17,463,394
Dominican Republic	14,186,723	14,186,723
Colombia	12,253,743	11,685,585
México	10,148,380	10,164,814
Peru	2,710,979	2,532,770
Chile	2,558,098	2,311,239
El Salvador	2,499,544	2,510,595
United States (Tracfone)<br><br><br>(3)	3,362,900	—
Ecuador	2,155,384	2,155,384
Guatemala	2,301,533	1,947,203
Other countries	1,293,356	1,295,381
	Ps.143,052,859	Ps.136,578,194

c) The following is a description of the major changes in the “Licenses and rights of use” caption during the years ended December 31, 2019, 2020 and 2021:

2019 Acquisitions

i) In 2019, Claro Brasil increased its licenses value by Ps.

3,457,251 by renewal licenses Anatel and reversion of IRU of Telxus referring to ICMS.

ii) In 2019,

AMX’s subsidiary in

Austria acquired licenses to operate certain frequencies for Ps.

3,023,732, (3.5 GHz; EUR 64.3 mn), Belarus (2.1 GHz; EUR 9.5 mn) and Croatia (2.1 GHz; EUR 7.2 mn).

iii) In 2019, Telmex increased its licenses value by Ps.

459,668 for rights to use IFETEL with a validity of 20 years, and a right to use submarine cable with a validity of 10 years.

iv) In January 2019, Telcel acquired licenses for an amount of Ps.1,649,525 for PC´s 98 concessions titles and September 30, 2019 for 400 MHZ concessions titles.

v) In December 2019, Comcel increased its licenses value by Ps.

2,753,768 or (468,511,573,375 Colombian pesos) in accordance with Res.3386 of December 23, granted Claro (Comcel) the 20 years renewal of 10 MHz of spectrum in the 1900 MHz band.

vi) Additionally, in 2019, the Company acquired other licenses in Puerto Rico, Argentina, Guatemala, Panamá and other countries in the amount of Ps.

1,862,934.

2020 Acquisitions

i) In February 2020, Comcel increased its licenses value by Ps.

9,246,825 for an auction of the 30 Mhz spectrum in the 2,500 band for a period of 20 years in accordance with resolution. 325,326 and 327 of February 20, 2020 issued by the Ministry of Information and Communication (MINTIC)

ii) In 2020, Telcel acquired licenses for an amount Ps.

1,806,875 for Axtel and Ultra Vision concession titles valid from 2020 to 2040.

iii) In January 2020, CTE acquired licenses by Ps.

620,052 for 12 pairs of frequencies, advance payment of Advanced Wireless Services (AWS) band and complementary payment of AWS band of block 4.

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iv) In 2020, TAG acquired licenses for the right of us for Ps.

1,704,280, in Slovenia and VIP Movil 1940E.

v) Additionally, in 2020, the Company acquired other licenses in Puerto Rico, Argentina, Uruguay, Honduras, Paraguay, Brasil and other countries in the amount of Ps.

1,701,682.

2021 Acquisitions

i) In December the subsidiary Claro Brasil acquired a 5G license for

Ps.

17,789,163 carried out by ANATEL in November 2021, for the sale of radio frequency bands. The total amount of this license was recorded in the intangibles line on December 31, 2021.

ii) During the year, AMX’s subsidiary in Austria acquired licenses for Ps.

1,752,128 .

iii) In November, AMX’s subsidiary in the Dominican Republic acquired a 5G concession and right of operation until 2041 for an amount of Ps.

2,008,503 .

iv) AMX’s subsidiary in Colombia renewed spectrum at 5 MHZ in the 1900 MHZ band for an amount of

Ps.

1,599,473 according to resolution 2802 of October 2021, and made acquisitions of terrestrial fiber optics and submarine cable valid for 2 and 3 years .

v) In February 2021, AMX’s subsidiary in El Salvador acquired licenses for an amount of Ps.139,363 .

The concession is for 10 MHZ in the 1,900 mobile network bandwidth coverage in the national territory, exploitable as of February 28, 2021 with validity of 20 years.

vi) In February 2021, AMX’s subsidiary in Chile acquired a concession for Ps.

411,375 for the Concession of Band 1900 MHZ with a term of 10 years.

Additionally, in 2021, the Company acquired other licenses in Mexico, Guatemala, Brazil, Ecuador, Peru, Argentina and other countries for an amount of

Ps. 706,900

Amortization of intangibles for the years ended December 31, 2019, 2020 and 2021 amounted to Ps.

20,209,434, Ps.

20,338,080 and Ps.

19,168,800 respectively.

Some of the jurisdictions in which the Company operates can revoke their concessions under certain circumstances such as imminent danger to national security, national economy and natural disasters.

Business combinations, acquisitions and non-controlling interest

a) The following is a description of the major acquisitions of investments in associates and subsidiaries during the years ended December 31, 2020 and 2021:

Acquisitions 2020

a) During 2020, the Company acquired through its subsidiaries, other entities for which it paid Ps.

152,896, net of acquired cash.

b) The Company acquired an additional non-controlling interest in its entities for an amount of Ps.

1,104,662.

c) In December 2020, the offer submitted by our Brazilian subsidiary, Claro, jointly with Telefónica Brasil, S.A. and TIM, S.A. for the acquisition of the mobile business owned by Oi Group was accepted. The offer is in the amount of R$16.5 billion, of which Claro will pay 22%. In consideration of such amount, Claro will receive 32% of Oi Group’s mobile business customer base and approximately 4.7 thousand mobile access sites. The closing of the transaction is subject to customary conditions including regulatory approvals from Anatel and Conselho Administrativo de Defesa Econômica, CADE.

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Acquisitions 2021

a) The Company acquired an additional non-controlling interest in its entities for an amount of Ps.7,720

Consolidated subsidiaries with non-controlling interests

The Company has control over Telekom Austria, which has a material non-controlling interest. Set out below is summarized information as of December 31, 2020 and 2021 of TKA’s consolidated financial statements.

The amounts disclosed for this subsidiary are before inter-company eliminations and using the same accounting policies of América Móvil.

Selected financial data from the consolidated statements of financial position

	December 31,
	2020		2021
Assets:
Current assets	Ps<br>.	32,775,046	Ps.	39,781,192
Non-current assets		150,747,947		142,407,870
Total assets	Ps.	183,522,993	Ps.	182,189,062
Liabilities and equity:
Current liabilities	Ps.	49,942,415	Ps.	68,795,807
Non-current liabilities		82,293,652		58,312,238
Total liabilities		132,236,067		127,108,045
Equity attributable to equity holders of the parent		26,129,649		28,066,198
Non-controlling interest		25,157,277		27,014,819
Total equity	Ps.	51,286,926	Ps.	55,081,017
Total liabilities and equity	Ps.	183,522,993	Ps.	182,189,062

Summarized consolidated statements of comprehensive income

	For the year ended December 31,
	2019		2020		2021
Operating revenues	Ps.	98,420,289	Ps.	111,472,191	Ps.	113,838,487
Operating costs and expenses		89,732,428		98,312,325		98,346,896
Operating income	Ps.	8,687,861	Ps.	13,159,866	Ps.	15,491,591
Net income	Ps.	5,051,145	Ps.	7,787,388	Ps.	9,104,962
Total comprehensive income	Ps.	1,466,783	Ps.	12,103,406	Ps.	7,790,499
Net income attributable to:
Equity holders of the parent	Ps.	2,565,733	Ps.	3,986,412	Ps.	4,629,816
Non-controlling interest		2,485,412		3,800,976		4,475,146
	Ps.	5,051,145	Ps.	7,787,388	Ps.	9,104,962
Comprehensive income attributable to:
Equity holders of the parent	Ps.	748,059	Ps.	6,172,737	Ps.	3,973,154
Non-controlling interest		718,724		5,930,669		3,817,345
	Ps.	1,466,783	Ps.	12,103,406	Ps.	7,790,499

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Income Taxes

As explained previously in these consolidated financial statements, the Company is a Mexican corporation which has numerous consolidated subsidiaries operating in different countries. Presented below is a discussion of income tax matters that relates to the Company’s consolidated operations, its Mexican operations and significant foreign operations.

i) Consolidated income tax matters

The composition of income tax expense (benefit) for the years ended December 31, 2019, 2020 and 2021 is as follows:

	2019			2020			2021
In Mexico:
Current year income tax	Ps.	26,295,431		Ps.	13,407,948		Ps.	24,355,240
Deferred income tax		208,658			(9,334,246	)		(5,079,397	)
Foreign:
Current year income tax		19,830,227			12,319,690			23,412,990
Deferred income tax		3,579,739			(2,884,122	)		(14,544,064	)
Total Income tax	Ps.	49,914,055		Ps.	13,509,270		Ps.	28,144,769
Income Tax attributable to a discontinued operation
Income tax discontinued operations in Mexico <br>(1)		—			—			(26,294,422	)
Income tax discontinued operations Foreign <br>(1)		(1,119,479	)		(2,856,882	)		(2,571,541	)
(1)	Includes effects related to the sale of Tracfone. See Note 2Ac.
---	---

Deferred tax related to items recognized in OCI during the year:

	For the years ended December 31,
	2019			2020			2021
Remeasurement of defined benefit plans	Ps.	9,217,320		Ps.	4,151,600		Ps.	(4,760,089	)
Equity investments at fair value		(378,606	)		(665,814	)		583,892
Other		—			(35,670	)		—
Revaluation assets		—			(29,922,597	)		—
Deferred tax benefit recognized in OCI	Ps.	8,838,714		Ps.	(26,472,481	)	Ps.	(4,176,197	)

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A reconciliation of the statutory income tax rate in Mexico to the consolidated effective income tax rate recognized by the Company is as follows:

	Year ended December 31,
	2019			2020			2021
Statutory income tax rate in Mexico		30.0	%		30.0	%		30.0	%
Impact of non-deductible and non-taxable items:
Tax inflation effects		3.8	%		8.6	%		7.9	%
Derivatives		(0.1	%)		(1.0	%)		(0.9	%)
Employee benefits		2.0	%		4.2	%		2.6	%
Other		2.0	%		(3.4	%)		(2.9	%)
Effective tax rate on Mexican operations		37.7	%		38.4	%		36.7	%
Tax recoveries in Brazil		—			(13.2	%)		(10.8	%)
Dividends received from associates Equity		(0.5	%)		(1.3	%)		(0.7	%)
Foreign subsidiaries and other non-deductible items, net		8.0	%		4.5	%		2.2	%
Effective tax rate from continuing operations		45.2	%		28.4	%		27.4	%
Effective tax rate from discontinued operations		10.2	%		14.4	%		19.2	%

An analysis of temporary differences giving rise to the net deferred tax

assets

is as follows:

	Consolidated statements<br> <br>of financial position						Consolidated statements of net income
	2020			2021			2019			2020			2021
Provisions	Ps.	19,312,081		Ps.	18,038,607		Ps.	318,843		Ps.	3,887,471		Ps.	2,324,227
Deferred revenues		6,748,101			9,041,137			(1,077,259	)		897,762			2,202,413
Tax losses carry forward		25,121,933			33,954,926			(9,873	)		2,236,244			10,352,978
Property, plant and equipment <br>(1)		(39,459,549	)		(33,445,815	)		(1,067,307	)		3,990,750			9,246,429
Inventories		(537,404	)		135,658			(55,380	)		(2,394,485	)		814,626
Licenses and rights of <br>use <br>(1)		(5,177,924	)		(3,668,389	)		432,403			344,729			(151,013	)
Employee benefits		45,467,827			40,246,031			(1,019,042	)		422,473			(354,803	)
Other		14,828,012			13,520,684			(1,310,782	)		2,833,424			(4,811,396	)
Net deferred tax assets	Ps.	66,303,077		Ps.	77,822,839
Deferred tax expense in net profit for the year							Ps.	(3,788,397	)	Ps.	12,218,368		Ps.	19,623,461
Deferred tax discontinued operations								(105,986	)		73,646			143,482
(1)	As of December 31, 2020 and 2021, the balance included the effects of hyperinflation and revaluation of telecommunications towers.
---	---

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Reconciliation of deferred tax assets and liabilities, net:

	2019			2020			2021
Opening balance as of January 1,	Ps.	86,613,327		Ps.	88,074,856		Ps.	66,303,077
Deferred tax benefit		(3,894,383	)		12,292,014			19,623,461
Translation effect		2,047,915			375,105			(727,099	)
Deferred tax benefit recognized in OCI		8,838,714			(26,472,481	)		(4,176,197	)
Deferred taxes acquired in business combinations		(276,568	)		(2,580,552	)		—
Hyperinflationary effect in Argentina		(5,254,149	)		(5,385,865	)		(3,540,962	)
Disposals see to 2Ac		—			—			(1,203,203	)
Related discontinued operation		—			—			1,543,762
Closing balance as of December 31,	Ps.	88,074,856		Ps.	66,303,077		Ps.	77,822,839
Presented in the consolidated statements of financial position as follows:
Deferred income tax assets	Ps.	106,167,897		Ps.	115,370,240		Ps.	127,287,934
Deferred income tax liabilities		(18,093,041	)		(49,067,163	)		(49,465,095	)
	Ps.	88,074,856		Ps.	66,303,077		Ps.	77,822,839

The deferred tax assets are in tax jurisdictions in which the Company considers that based on financial projections of its cash flows, results of operations and synergies between subsidiaries, will generate sufficient taxable income in subsequent periods to utilize or realize such assets.

The Company does not recognize a deferred tax liability related to the undistributed earnings of its subsidiaries, because it currently does not expect these earnings to be taxable or to be repatriated in the near future. The Company’s policy has been to distribute the profits when it has paid the corresponding taxes in its home jurisdiction and the tax can be accredited in Mexico.

At December 31, 2020 and 2021, the balance of the contributed capital account (“CUCA”) is Ps. 573,362,949 and Ps. 612,351,412 respectively. Effectively, on January 1, 2014, the Cuenta de Utilidad Fiscal Neta (“CUFIN”) is computed on an América Móvil’s stand-alone basis. The balance of the América Móvil’s stand-alone basis CUFIN amounted to Ps. 332,273,039 and Ps. 431,249,107 as of December 31, 2020 and 2021, respectively.

During 2021, America Móvil sold 100% of its participation in Tracfone Wireless, Inc (Tracfone), virtual operator of the most important mobile prepaid services in USA to Verizon Communications Inc. (“Verizon”), tax profit of this transaction was Ps. 93,968,555.

ii) Significant foreign income tax matters

a) Results of operations

The foreign subsidiaries determine their taxes on profits based on their individual taxable income, in accordance with the specific tax regimes of each country.

The effective income tax rate for the Company’s foreign jurisdictions was 38% in 2019, 15% in 2020 and 14.2% in 2021. The statutory tax rates in these jurisdictions vary, although many approximate 10% to 34%. The primary difference between the statutory rates and the effective rates in 2019, 2020 and 2021 was attributable to dividends received from KPN, other non-deductible items, non-taxable income and tax recoveries in Brazil and registry of benefits related to tax losses credits in Brazil and Chile and Impairment related to subsidiaries in Europe.

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a.1 ) In 2021, The Brazilian Federal Supreme Court’s (STF) ruled in favor of a third party’ thesis related to the unconstitutionality of incidence of the IRPJ (Income Tax in Brazil) and CSLL (Social Contribution ovr Net Profit in Brazil) on the amounts corresponding to the SELIC (Special settlement and custody system) rate received for repetition of the tax that should not be applicable, such thesis being similar to the thesis filed by subsidiaries of the Company in Brazil.

Given the more likely than not position of success of this lawsuit as consequence of the decision, with general repercussion, of the STF, Brazil updated its analysis, support documentation and forecast and recorded Ps. 2,647,919 (R$703,761) of which Ps. 2,076,594 (R$551,915) represent an excess on deferred IRPJ and CSLL and Ps. 571,325 (R$151,846) represent an excess on current IRPJ and CSLL. The subsidiaries are waiting for the necessary procedural steps to continue, to start the compensation of such amounts.

a. 2 ) In 2020 , Claro Brasil began to use the tax benefit related to the ICMS Grant on TV based on Complementary Law 160/2017 and art. 30 of Law 12,973, as well as in recent interpretations on the subject, investment grants are not computed in determining actual profit in the amount of Ps. 1,721,453 (R$411,336). The Company kicked back the application of the benefit for the years 2018 and 2019, with a total impact of Ps. 2,748,084 (R$656,646). In 2021 the tax benefit was Ps. 1,431,164 (R$380,373).

iii) Tax losses

a) At December 31, 2021, the available tax loss carryforwards recorded in deferred tax assets are as follows on a country by country basis:

Country
Brazil	Ps.71,910,653	Ps.24,449,622
Mexico	14,768,325	4,430,497
Europe	2,031,465	507,866
United States	432,301	112,398
Peru	356,133	105,060
Chile	16,109,194	4,349,483
Total	Ps.105,608,071	Ps.33,954,926

b) The tax loss carryforwards in the different countries in which the Company operates have the following terms and characteristics:

bi) The Company has accumulated Ps. 71,910,653 in net operating loss carryforwards (NOL’s) in Brazil as of December 31, 2021. In Brazil, there is no expiration of the NOL’s. The NOL´s amount used against taxable income in each year may not exceed 30% of the taxable income for such year.

The Company believes that it is more likely than not that the accumulated balances of its net deferred tax assets are recoverable, based on the positive evidence of the Company to generate future taxable income related to the same taxation authority which will result in taxable amounts against which the available tax losses can be utilized before they expire.

bii) The Company has accumulated Ps. 14,768,325 in tax losses in Mexico. The company estimates that there is positive evidence that allows it to use these losses, these should be reduced to the extent that it is considered likely that there will be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Mexico.

biii) The Company has accumulated Ps. 2,031,465 in NOL’s in Europe as of December 31, 2021. In Europe, the NOL´s have no expiration, but its annual usage is limited to 75% of the taxable income of the year. The

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realization of deferred tax assets is dependent upon the expected generation of future taxable income during the periods in which these temporary differences become deductible.

biv) The Company has accumulated Ps. 16,109,194 in NOL’s in Chile as of December 31, 2021. In Chile, the NOL´s have no expiration. The Company estimates that there is positive evidence that allows it to use these losses, these should be reduced to the extent that it is considered likely that there will be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Chile.

iv) Optional regime

The Mexican Tax Law establishes an optional regime for group companies called: Optional Regime for Groups of Companies. For these purposes, the integrating (controlling) company must own more than 80% of the shares with voting rights of the integrated (controlled) companies. In general terms, the Integration regime allowed deferral, for each of the companies that make up the group, and for up to three years, or sooner if certain assumptions are made, the whole of the income tax that results from considering the determination of the individual income tax to its charge is the effect derived from recognizing, indirectly, the tax losses incurred by the companies in the group for the year in question .

On December 19, 2019, the integrating company submitted to the Mexican tax authorities, the notice to end to belong under the Optional Regime for Groups of Companies, which implied a payment made in January 2020 related to the deferred income tax for the years 2016-2018. From the year 2020, the group is taxable under the General Regime for Legal Persons.

v) Limiting interest deductions

The Mexican Tax Law establishes since 2020 new rules related to the limit on interest deductions, in concordance with the action 4 of Base Erosion and Profit Shifting (BEPS) project issued by the Organization for Economic Co-operation and Development (OECD), from which Mexico is member.

In general terms, each Mexican companies should calculate an adjusted Tax EBITDA, whose amount times the corporate income tax, will be the interest limit allowed to be deducted in each tax year. It is important to mention that the amount that was not deductible could be carryforward in the following ten years.

vi) Revaluation of telecommunications towers

Deferred taxes related to the revaluation of the passive infrastructure of the telecommunications towers have been calculated at the tax rate of the jurisdiction in which the subsidiaries are located.

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14. Debt

a) The Company’s short- and long-term debt consists of the following:

At December 31, 2020						(Thousands of<br> Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)		3.125%		2022	Ps.	31,917,920
	Fixed-rate Senior notes (i)		3.625%		2029		19,948,700
	Fixed-rate Senior notes (i)		2.875%		2030		19,948,700
	Fixed-rate Senior notes (i)		6.375%		2035		19,576,258
	Fixed-rate Senior notes (i)		6.125%		2037		7,365,559
	Fixed-rate Senior notes (i)		6.125%		2040		39,897,400
	Fixed-rate Senior notes (i)		4.375%		2042		22,941,005
	Fixed-rate Senior notes (i)		4.375%		2049		24,935,875
	Subtotal U.S. dollars					Ps.	186,531,417
Mexican pesos
	Fixed-rate Senior notes (i)		6.450%		2022	Ps.	22,500,000
	Fixed-rate Senior notes (i)		7.125%		2024		11,000,000
	Domestic Senior notes (i)		0.000%		2025		4,911,181
	Fixed-rate Senior notes (i)		8.460%		2036		7,871,700
	Domestic Senior notes (i)		8.360%		2037		5,000,000
	Subtotal Mexican pesos					Ps.	51,282,881
Euros
	Fixed-rate Senior notes (i)		3.000%		2021	Ps.	24,369,332
	Fixed-rate Senior notes (i)		3.125%		2021		18,276,999
	Fixed-rate Senior notes (i)		4.000%		2022		18,276,999
	Fixed-rate Senior notes (i)		4.750%		2022		18,276,999
	Fixed-rate Senior notes (i)		3.500%		2023		7,310,800
	Fixed-rate Senior notes (i)		3.259%		2023		18,276,999
	Fixed-rate Senior notes (i)		1.500%		2024		20,713,932
	Fixed-rate Senior notes (i)		1.500%		2026		18,276,999
	Fixed-rate Senior notes (i)		0.750%		2027		24,369,332
	Fixed-rate Senior notes (i)		2.125%		2028		15,840,066
	Commercial Paper (iv)		(0.230%) - (0.310%)		2021		40,940,477
	Subtotal Euros					Ps.	224,928,934
Pound sterling
	Fixed-rate Senior notes (i)		5.000%		2026	Ps.	13,634,936
	Fixed-rate Senior notes (i)		5.750%		2030		17,725,417
	Fixed-rate Senior notes (i)		4.948%		2033		8,180,962
	Fixed-rate Senior notes (i)		4.375%		2041		20,452,405
	Subtotal Pound sterling					Ps.	59,993,720
Brazilian reais
	Debentures (i)		104.000% of CDI		2021	Ps.	4,222,597
	Debentures (i)		104.250% of CDI		2021		5,815,668
	Promissory notes (i)		CDI + 0.600%		2021		1,381,941
	Debentures (i)		CDI + 0.960%		2022		9,596,811
	Promissory notes (i)		106.000% of CDI		2022		7,677,449
	Debentures (i)		106.500% of CDI		2022		3,838,725
	Subtotal Brazilian reais					Ps.	32,533,191
Other currencies
Japanese yen
	Fixed-rate Senior notes (i)		2.950%		2039	Ps.	2,511,701
	Subtotal Japanese yen					Ps.	2,511,701
Chilean pesos
	Fixed-rate Senior notes (i)		3.961%		2035	Ps.	4,078,453
	Subtotal Chilean pesos					Ps.	4,078,453
	Subtotal other currencies					Ps.	6,590,154

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At December 31, 2020						(Thousands of<br>Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Hybrid Notes
Euros
	Euro NC10 Series B Capital<br> Securities (iii)		6.375%		2073	Ps.	13,403,133
	Subtotal Euros					Ps.	13,403,133
	Subtotal Hybrid notes					Ps.	13,403,133
Lines of Credit and others
Mexican pesos
	Lines of credit (ii)		TIIE + <br>0.300<br>% -<br>TIIE + <br>1.000<br>%		2021	Ps.	27,100,000
Peruvian soles
	Lines of credit (ii)		1.200% - 1.450%		2021	Ps.	17,094,079
Chilean pesos
	Lines of credit (ii)		TAB + <br>0.350<br>%<br><br>and<br> TAB +<br><br><br>0.450<br>%		2021	Ps.	8,868,181
	Financial Leases		8.700% - 8.970%		2021 - 2027	Ps.	57,266
	Subtotal Lines of Credit and others					Ps.	53,119,526
	Total debt					Ps.	628,382,956
	Less: Short-term debt and current portion of long-term<br> debt					Ps.	148,083,184
	Long-term debt					Ps.	480,299,772
At December 31, 2021				(Thousands of<br>Mexican pesos)
---	---	---	---	---	---
Currency	Loan	Interest rate	Maturity	Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)	3.625%	2029	Ps.	20,583,500
	Fixed-rate Senior notes (i)	2.875%	2030		20,583,500
	Fixed-rate Senior notes (i)	6.375%	2035		20,199,206
	Fixed-rate Senior notes (i)	6.125%	2037		7,599,943
	Fixed-rate Senior notes (i)	6.125%	2040		41,167,000
	Fixed-rate Senior notes (i)	4.375%	2042		23,671,025
	Fixed-rate Senior notes (i)	4.375%	2049		25,729,375
	Subtotal U.S. dollars			Ps.	159,533,549
Mexican pesos
	Fixed-rate Senior notes (i)	6.450%	2022	Ps.	22,500,000
	Fixed-rate Senior notes (i)	7.125%	2024		11,000,000
	Domestic Senior notes (i)	0.000%	2025		5,284,885
	Fixed-rate Senior notes (i)	8.460%	2036		7,871,700
	Domestic Senior notes (i)	8.360%	2037		5,000,000
	Subtotal Mexican pesos			Ps.	51,656,585
Euros
	Fixed-rate Senior notes (i)	4.000%	2022	Ps.	17,566,473
	Fixed-rate Senior notes (i)	3.500%	2023		7,026,589
	Fixed-rate Senior notes (i)	3.259%	2023		17,566,474
	Fixed-rate Senior notes (i)	1.500%	2024		19,908,670
	Exchangeable Bond (i)	0.000%	2024		49,115,860
	Fixed-rate Senior notes (i)	1.500%	2026		17,566,473
	Fixed-rate Senior notes (i)	0.750%	2027		23,421,965
	Fixed-rate Senior notes (i)	2.125%	2028		15,224,277
	Subtotal euros			Ps.	167,396,781
Pound sterling
	Fixed-rate Senior notes (i)	5.000%	2026	Ps.	13,924,738
	Fixed-rate Senior notes (i)	5.750%	2030		18,102,159
	Fixed-rate Senior notes (i)	4.948%	2033		8,354,843
	Fixed-rate Senior notes (i)	4.375%	2041		20,887,106
	Subtotal Pound sterling			Ps.	61,268,846

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At December 31, 2021						(Thousands of<br>Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Brazilian reais
	Debentures (i)		CDI + 0.960%		2022	Ps.	9,221,172
	Promissory notes (i)		106.000% of CDI		2022		7,376,937
	Debentures (i)		106.500% of CDI		2022		3,688,469
	Subtotal Brazilian reais					Ps.	20,286,578
Other currencies
Japanese yen
	Fixed-rate Senior notes (i)		2.950%		2039	Ps.	2,325,617
	Subtotal Japanese yen					Ps.	2,325,617
Chilean pesos
	Fixed-rate Senior notes (i)		3.961%		2035	Ps.	3,776,051
	Subtotal Chilean pesos					Ps.	3,776,051
	Subtotal other currencies					Ps.	6,101,668
Hybrid Notes
Euros
	Euro NC10 Series B Capital Securities (iii)		6.375%		2073	Ps.	12,882,081
	Subtotal Euros					Ps.	12,882,081
	Subtotal Hybrid Notes					Ps.	12,882,081
Lines of Credit and others
U.S. dollars
	Lines of credit (ii)		0.350% - 0.700%		2022	Ps.	14,723,980
Euros
	Lines of credit (ii)		(0.400%) -<br>(0.450%)		2022	Ps.	18,737,572
Mexican pesos
	Lines of credit (ii)		TIIE + 0.280% -<br>TIIE + 0.400%		2022	Ps.	34,080,000
Peruvian soles
	Lines of credit (ii)		0.976% - 1.045%		2022	Ps.	9,815,068
Chilean pesos
	Lines of credit (ii)		TAB + 0.450%		2022	Ps.	7,419,372
	Financial Leases		8.700% - 8.970%		2022 - 2027	Ps.	47,743
Others	Lines of credit (ii)		15.790%		2022	Ps.	80,279
	Subtotal Lines of Credit and others					Ps.	84,904,014
	Total debt					Ps.	564,030,102
	Less: Short-term debt and current portion of long-term debt					Ps.	145,222,672
	Long-term debt					Ps.	418,807,430

L = LIBOR (London Interbank Offered Rate)

TIIE = Mexican Interbank Rate

CDI = Brazil Interbank Deposit Rate

TAB = Chilean weighted average funding rate

Interest rates on the Company’s debt are subject to fluctuations in international and local rates. The Company’s weighted average cost of borrowed funds as of December 31, 2020, and December 31, 2021 was approximately 3.72% and 3.78%, respectively.

Such rates do not include commissions or the reimbursements for Mexican tax withholdings (typically a tax rate of 4.9%) that the Company must pay to international lenders.

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An analysis of the Company’s short-term debt maturities as of December 31, 2020, a n d December 31, 2021, is as follows:

	2020			2021
Obligations and Senior Notes	Ps.	95,007,014		Ps.	60,353,052
Lines of credit		53,062,260			84,856,270
Financial Leases		13,910			13,350
Subtotal short term debt	Ps.	148,083,184		Ps.	145,222,672
Weighted average interest rate		2.23	%		4.02	%

The Company’s long-term debt maturities are as follows:

Years	Amount
2023	Ps.	24,599,324
2024		80,031,350
2025		5,292,314
2026 and thereafter		308,884,442
Total	Ps.	418,807,430

(i) Senior Notes

The outstanding Senior Notes as of December 31, 2020, and December 31, 2021, are as follows:

Currency*	2020
U.S. dollars		Ps.186,531,417	Ps.159,533,549
Mexican pesos		51,282,881	51,656,585
Euros		183,988,456	167,396,781
Pound sterling		59,993,720	61,268,846
Brazilian reais		32,533,191	20,286,578
Japanese yens		2,511,701	2,325,617
Chilean pesos		4,078,453	3,776,051
*	Thousands of Mexican pesos
---	---
*	Includes secured and unsecured senior notes.
---	---

In December 2021, the Company redeemed in advance 1,600 million U.S. Dollars senior notes with an interest rate of 3.125% and 750 million Euros senior notes with an interest rate of 4.75%. Both were set to mature in 2022.

(ii) Lines of credit

As of December 31, 2020, and December 31, 2021, debt under lines of credit aggregated to Ps.

53,062 million and Ps.

84,856 million, respectively. Telekom Austria closed December 2021 with an aggregated debt of Ps.

18,818 under lines of credit.

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The Company has two revolving syndicated credit facilities, one for the Euro equivalent of U.S. $1,500 million and the other for U.S. $2,500 million maturing in 2026 and 2024, respectively. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2021, these credit facilities are undrawn. Telekom Austria has an undrawn revolving syndicated credit facility in Euros for €1,000 million that matures in 2026.

(iii) Hybrid Notes

We currently have a Capital Securities (hybrid notes) maturing in 2073: a series denominated in euros for a total amount of €550 million with a coupon of 6.375%. The Capital Securities are deeply subordinated, and when they were issued the principal rating agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50.0% equity credit). Standard & Poor´s considers 100% of the total amount of this note as debt. The Capital Securities are subject to redemption at our option at varying dates beginning in 2023 for the euro-denominated series.

(iv) Commercial Paper

In August 2020, we established a new Euro-Commercial Paper program for a total amount of €2,000 million. As of December 31, 2021, there is no debt under this program.

Restrictions

A portion of the debt is subject to certain restrictions with respect to maintaining certain financial ratios, as well as restrictions on selling a significant portion of groups of assets, among others. As of December 31, 2021, the Company was in compliance with all these requirements.

A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of a change in control of the Company, as defined in each instrument. The definition of change in control varies from instrument to instrument; however, no change in control shall be considered to have occurred as long as its current shareholders continue to hold the majority of the Company’s voting shares.

Covenants

In conformity with the credit agreements, the Company is obliged to comply with certain financial and operating commitments. Such covenants limit in certain cases, the ability of the Company or the guarantor to: pledge assets, carry out certain types of mergers, sell all or substantially all of its assets, and sell control of Telcel.

Such covenants do not restrict the ability of AMX’s subsidiaries to pay dividends or other payment distributions to AMX. The more restrictive financial covenants require the Company to maintain a consolidated ratio of debt to EBITDA (defined as operating income plus depreciation and amortization) that does not exceed 4 to 1, and a consolidated ratio of EBITDA to interest paid that is not below 2.5 to 1 (in accordance with the clauses included in the credit agreements).

Several of the financing instruments of the Company may be accelerated, at the option of the debt holder in the case that a change in control occurs.

As of December 31, 2021, the Company was in compliance with all the covenants.

Right-of-use assets and lease debt

The Company has lease contracts for various items of towers & sites, property and other equipment used in its operations. Towers and sites generally have lease terms between 5 and 12 years, while property and other equipment generally have lease terms between 5 and 25 years.

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At December 31, 2019, 2020 and 2021 the right-of-use assets and lease liabilities are as follows:

	Right-of-use<br> assets												Liability related to<br> <br>right-of-use<br> of<br> assets
	Towers & Sites			Property			Other<br> equipment			Total
As of January 1, 2019	Ps.	94,252,098		Ps.	21,075,884		Ps.	4,750,320		Ps.	120,078,302		Ps.	119,387,660
Additions and release		6,364,508			921,542			729,001			8,015,051			7,437,621
Business Combinations		9,668,507			—			—			9,668,507			10,810,111
Modifications		7,474,469			1,288,974			728,837			9,492,280			8,363,045
Depreciation		(17,286,497	)		(4,941,222	)		(1,365,847	)		(23,593,566	)		—
Interest expense		—			—			—			—			7,940,240
Payments		—			—			—			—			(26,765,075	)
Translation adjustment		(4,370,636	)		(905,808	)		(380,907	)		(5,657,351	)		(6,576,869	)
Balance at December 31, 2019	Ps.	96,102,449		Ps.	17,439,370		Ps.	4,461,404		Ps.	118,003,223		Ps.	120,596,733
	Right-of-use<br> assets												Liability related to<br> <br>right-of-use<br> of<br> assets
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Towers & Sites			Property			Other<br> equipment			Total
Balance at the beginning of the year	Ps.	96,102,449		Ps.	17,439,370		Ps.	4,461,404		Ps.	118,003,223		Ps.	120,596,733
Additions and release		5,745,869			309,576			1,514,519			7,569,964			4,833,959
Modifications		8,559,335			(3,035,831	)		1,048,858			6,572,362			7,769,326
Depreciation		(22,064,413	)		(3,440,428	)		(2,866,244	)		(28,371,085	)		—
Interest expense		—			—			—			—			9,134,288
Payments		—			—			—			—			(29,623,565	)
Translation adjustment		(3,124,365	)		932,748			393,997			(1,797,620	)		(3,383,500	)
Balance at December 31, 2020	Ps.	85,218,875		Ps.	12,205,435		Ps.	4,552,534		Ps.	101,976,844		Ps.	109,327,241
	Right-of-use<br> assets												Liability related to<br> <br>right-of-use<br> of<br> assets
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Towers & Sites			Property			Other<br> equipment			Total
Balance at the beginning of the year	Ps.	85,218,875		Ps.	12,205,435		Ps.	4,552,534		Ps.	101,976,844		Ps.	109,327,241
Additions and release		3,145,941			482,456			1,052,022			4,680,419			3,060,042
Modifications		10,945,985			1,024,573			998,161			12,968,719			12,535,394
Depreciation		(20,699,207	)		(3,221,499	)		(2,630,526	)		(26,551,232	)		—
Interest expense		—			—			—			—			7,301,216
Payments		—			—			—			—			(30,544,750	)
Translation adjustment		(2,054,566	)		(554,260	)		(93,531	)		(2,702,357	)		(3,024,918	)
Balance at December 31, 2021	Ps.	76,557,028		Ps.	9,936,705		Ps.	3,878,660		Ps.	90,372,393		Ps.	98,654,225

At December 31, 2020 and 2021, the total of the right-of-use assets include an amount of Ps.

18,499,851 and Ps. 14,785,012, corresponding to related parties, respectively and the total of lease liabilities include an amount of Ps.

20,016,478 and Ps.

16,212,629 corresponding to related parties, respectively.

The implementation of IFRS 16 required a significant effort due to the fact of the need to make certain estimates, such as the lease term, based on the non-cancelable period and the periods covered by options to extend the lease. The Company considered the extension of the lease terms beyond the non-cancelable period only when it was reasonably certain to extend it. The reasonability of the extension was affected by several factors, such as regulation, business model, and geographical business strategies.

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The lease debt of the Company is integrated according to its maturities as follows:

	2021
Short term	Ps.	27,632,357
Long term		71,021,868
Total	Ps.	98,654,225

The Company’s long-term debt maturities as of December 31, 2021 are as follows:

Year ended December 31,
2023	Ps.	13,370,533
2024		22,664,124
2025		10,342,707
2026 and thereafter		24,644,504
Total	Ps.	71,021,868

During the years ended December 31, 2019, 2020 and 2021, the Company recognized expenses as follows:

	2019
	Others		Related parties		Total
Depreciation expense of right-of-use assets	Ps.	18,176,521	Ps.	5,417,045	Ps.	23,593,566
Interest expense on lease liabilities		5,654,721		2,285,519		7,940,240
Expense relating to short-term leases		1,978,403		1,958		1,980,361
Expense relating to leases of low-value assets		25,935		—		25,935
Variable lease payments		1,299,502		—		1,299,502
Total	Ps.	27,135,082	Ps.	7,704,522	Ps.	34,839,604

	2020
	Others		Related parties		Total
Depreciation expense of right-of-use assets	Ps.	22,404,924	Ps.	5,966,161	Ps.	28,371,085
Interest expense on lease liabilities		7,081,693		2,052,595		9,134,288
Expense relating to short-term leases		32,238		—		32,238
Expense relating to leases of low-value assets		2,883		—		2,883
Variable lease payments		78,494		—		78,494
Total	Ps.	29,600,232	Ps.	8,018,756	Ps.	37,618,988
	2021
---	---	---	---	---	---	---
	Others		Related parties		Total
Depreciation expense of right-of-use assets	Ps.	19,932,316	Ps.	6,618,916	Ps.	26,551,232
Interest expense on lease liabilities		6,212,774		1,088,442		7,301,216
Expense relating to short-term leases		29,833		—		29,833
Expense relating to leases of low-value assets		685		—		685
Variable lease payments		68,236		—		68,236
Total	Ps.	26,243,844	Ps.	7,707,358	Ps.	33,951,202

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Impact on accounting for changes in lease payments applying the exemption.

Based on the information available for evaluation as of the date of adoption, the effect of applying this amendment to IFRS 16 in the Company’s consolidated financial statements as of December 31, 2021 was Ps.

59,104, reflecting an adjustment to accrued liability for leases and recognizing a benefit in the income statement for the period.

Accounts payable, accrued liabilities and asset retirement obligations

a) The components of the captions account payable and accrued liabilities are as follows:

At December 31,
2020	2021
Suppliers	Ps.	74,285,881	Ps.	87,942,106
---	---	---	---	---
Sundry creditors		101,406,307		107,111,390
Interest payable		7,661,762		6,827,225
Guarantee deposits from customers		1,386,645		1,577,424
Dividends payable		2,254,877		3,029,536
Total	Ps.	186,995,472	Ps.	206,487,681

b) The balance of accrued liabilities at December 31, 2020 and 2021 are as follows:

	At December 31,
	2020		2021
Current liabilities
Direct employee benefits payable	Ps.	18,965,160	Ps.	20,052,946
Contingencies		31,326,691		34,338,518
Total	Ps.	50,291,851	Ps.	54,391,464

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The movements in contingencies for the years ended December 31, 2020 and 2021 are as follows:

	Balance at<br> December 31,<br> 2019		Business<br> combination		Effect of<br> translation			Increase of<br> the year		Applications						Balance at<br> December 31,<br> 2020
				Payments						Reversals
Contingencies	Ps.	34,379,969	Ps.	292	Ps.	(4,290,753	)	Ps.	7,442,292	Ps.	(3,214,407	)	Ps.	(2,990,702	)	Ps.	31,326,691
	Balance at<br> December 31,<br> 2020		Business<br> combination		Effect of<br> translation			Increase of<br> the year		Applications						Balance at<br> December 31,<br> 2021
				Payments						Reversals
Contingencies	Ps.	31,326,691	Ps.	—	Ps.	1,556,950		Ps.	7,425,182	Ps.	(4,079,190	)	Ps.	(1,891,115	)	Ps.	34,338,518

Contingencies include tax, labor, regulatory and other legal type contingencies. See Note 17 b) for detail of contingencies.

c) The movements in the asset retirement obligations for the years ended December 31, 2020 and 2021 are as follows:

	Balance at <br> December 31, <br> 2019		Business<br> combination		Effect of <br> translation		Increase of <br> the year		Applications						Balance at <br> December 31, <br> 2020
				Payments					Reversals
Asset retirement obligations	Ps.	15,816,744	Ps.	—	Ps.	374,418	Ps.	2,412,908	Ps.	(593,644	)	Ps.	(122,435	)	Ps.	17,887,991
	Balance at <br> December 31, <br> 2020		Business<br> combination		Effect of <br> translation			Increase of <br> the year		Applications						Balance at <br> December 31, <br> 2021
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
				Payments						Reversals
Asset retirement obligations	Ps.	17,887,991	Ps.	—	Ps.	(910,181	)	Ps.	1,273,201	Ps.	(148,634	)	Ps.	(1,350,154	)	Ps.	16,752,223

The discount rates used for the asset retirement obligation are based on market rates that are expected to be undertaken by the dismantling or restoration of cell sites and may include labor costs.

Commitments and Contingencies

a) Commitments

The Company and its subsidiaries have commitments that mature on different dates, related to committed capital expenditures.

As of December 31, 2021, the total amounts equivalent to the contract period are detailed below:

Year ended December 31,
2022	Ps.	7,770,936
2023		3,469,647
2024		2,808,660
2025 and thereafter		19,960,884
Total	Ps.	34,010,127

b) Contingencies

In each of the countries in which we operate, we are party to legal proceedings in the ordinary course of business. These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters regarding interconnection and tariffs. The following is a description of our material legal proceedings.

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(1) Telcel Mobile Termination Rates

The mobile termination rates between Telcel and other network operators have been the subject of various legal proceedings. With respect to interconnection fees for 2017, 2018, 2019, 2020 and 2021, Telcel has challenged the applicable resolutions and final resolutions are pending.

With respect to 2022, Telcel will challenge the applicable resolutions.

Given that the “zero rate” that prevented Telcel from charging termination rates in its mobile network was held unconstitutional by the Supreme Court (Suprema Corte de Justicia de la Nación or “SCJN”), the IFT has determined asymmetric interconnection rates for the termination of traffic in Telcel’s and other operators’ networks for 2018, 2019, 2020, 2021 and 2022. The resolutions setting such rates have been challenged by Telcel, and final resolutions are pending.

The Company expects that mobile termination rates, as well as other rates applicable to mobile interconnection (such as transit), will continue to be the subject of litigation and administrative proceedings. The Company cannot predict when or how these disputes will be resolved or the financial effects of any such resolution.

( 2 )

Telcel Class Action Lawsuits

One of the three class action lawsuits that have been filed against Telcel by customers allegedly affected by Telcel’s quality of service and wireless and broadband rates continues in process, the remaining two lawsuits have been concluded without any adverse effect on the Company. At this stage, the Company cannot assess whether this class action lawsuit could have an adverse effect on the Company’s business and results of operations in the event that it is resolved against Telcel, due to uncertainty about the factual and legal claims underlying this proceeding. Consequently, the Company has not established a provision in the accompanying consolidated financial statements for an eventual loss arising from this proceeding.

( 3 ) IFT Proceedings Against Telmex

In 2018, the IFT imposed a fine of Ps.

2,543,937 on Telmex relating to a sanction procedure triggered by the alleged breach in 2013 and 2014 of certain minimum quality goals for

dedicated

link services. Telmex challenged this fine, and a final resolution is pending .

( 4 ) Brazilian Tax Matters

As of December 31, 2021, certain Company’s Brazilian subsidiaries had aggregate tax contingencies of Ps.

131,140,527 (R$ 35,554,192) for which the Company has established provisions of Ps.

17,915,605 (R$ 4,857,193) in the accompanying consolidated financial statements for eventual losses arising from contingencies that the Company considers probable.

The most significant contingencies for which provisions have been established are:

•	Ps.<br><br>46,016,079 (R$ 12,475,659) aggregate contingencies and Ps.<br><br>3,297,735 (R$ 894,066) provisions related to value-added tax <br>(Imposto sobre a Circulação de Mercadorias e Prestação de Serviços or “ICMS”<br>) assessments;
•	Ps. 18,360,489 (R$ 4,977,808) aggregate contingencies and Ps. 3,228,656 (R$ 875,338) provisions related to social contribution on net income (Contribuição Social sobre o Lucro Lĺquido or “CSLL”) and corporate income tax (Imposto de Renda sobre Pessoa Jurĺdica or “IRPJ”) assessments;
---	---
•	Ps.<br><br>16,245,325 (R$ 4,404,355) aggregate contingencies and Ps.<br><br>5,116,747 (R$ 1,387,228) <br>provisions related to the social integration program (Programa de Integração Social or “PIS”) and the contribution for social security financing (Contribuição para o Financiamento da Seguridade Social or “COFINS”) assessments;
---	---
•	Ps. 11,684,785 (R$ 3,167,923) aggregate contingencies and Ps. 1,396,376 (R$ 378,579) provisions mainly related to an allegedly improper exclusion of interconnection revenues and costs from the basis used to
---	---

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calculate Fund for Universal Telecommunication Services (Fundo de Universalização dos Serviços de Telecomunicações or “FUST”) obligations, which are being contested;
•	Ps.<br><br>4,778,186 (R$ 1,295,439) aggregate contingencies and Ps.<br><br>387 (R$ 105) <br>provisions related to an alleged underpayment of obligations to the Telecommunications Technology Development Fund (Fundo para o Desenvolvimento Tecnológico das Telecomunicações or “FUNTTEL”), which are being challenged and for which a final resolution is pending;
---	---
•	Ps.<br><br>1,847,959 (R$ 501,010) aggregate contingencies and Ps.<br><br>48,964 (R$ 13,275)<br>provisions related to the alleged nonpayment of Services Tax (Imposto Sobre Serviços or “ISS”) over several communication services, including Pay TV services, considered taxable for ISS by the Municipal Revenue Services, which are being challenged and for which a final resolution is pending;
---	---
•	Ps.<br><br>4,143,670 (R$ 1,123,412) aggregate contingencies and Ps.<br><br>120,856 (R$ 32,766) <br>provisions arising from, among other<br>,<br> things the alleged underpayment of IRRF and CIDE taxes and on remittances made to foreign operators as remuneration for completing international calls abroad (outgoing traffic); and
---	---
•	Ps.<br><br>4,213,972 (R$ 1,142,472) aggregate contingencies and Ps.<br><br>3,762,522 (R$ 1,020,077) <br>provisions related to the requirement to contribute to the Promotion of Public Radio Broadcasting (“EBC”).
---	---

In addition, the Company’s Brazilian subsidiaries are subject to a number of contingencies for which it has not established provisions in the accompanying consolidated financial statements because the Company does not consider the potential losses related to these contingencies to be probable. These include Ps. 18,118,080 (R$ 4,912,087)

related to

an unpaid installation inspection

rate

(Taxa de Fiscalização de Instalação or “TFI”) allegedly due to the renovation of radio base stations, which is being challenged on the basis that there was no new equipment installation that could have led to this charge

, along with any unpaid functioning inspection rate (Taxa de Fiscalização de Funcionamento or “TFF”).

( 5 ) Anatel Challenge to Inflation Adjustments

Anatel has challenged the calculation of inflation-related adjustments due under the concession agreements with Tess S.A. (“Tess”), and Algar Telecom Leste S.A. (“ATL”), two of the Company’s subsidiaries that were previously merged into Claro Brasil. Anatel rejected Tess and ATL’s calculation of the inflation-related adjustments applicable to 60% of the concessions price (which was due in three equal annual installments, subject to inflation-related adjustments and interest), claiming that the companies’ calculation of the inflation related adjustments resulted in a shortfall of the installment payments. The companies filed declaratory and consignment actions seeking the resolution of the disputes and have obtained injunctions from the Federal Court of Appeal. suspending any payment until the pending appeals are resolved.

The amount of the alleged shortfall as well as the method used to calculate monetary corrections are in dispute. If other methods or assumptions are applied, the amount may increase. In 2021, Anatel calculated the monetary correction in a total amount of Ps.

24,620,529 (R$ 6,675,000). As of December 31, 2021, the Company has established a provision of Ps.

4,577,389 (R$ 1,241,000) in the accompanying consolidated financial statements for the losses arising from these contingencies, which the Company considers probable.

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18 . Employee Benefits

An analysis of the net liability and net period cost for employee benefits i s as follows:

	At December 31,
	2020		2021
Mexico	Ps.	129,260,355	Ps.	110,225,654
Puerto Rico		14,924,874		12,502,377
Brazil		8,913,548		6,108,744
Europe		14,392,445		13,127,228
Ecuador		488,161		601,239
El Salvador		154,422		177,922
Nicaragua		61,337		75,084
Honduras		35,060		32,217
Total	Ps.	168,230,202	Ps.	142,850,465
	For the year ended December 31
---	---	---	---	---	---	---
	2019		2020		2021
Mexico	Ps.	12,788,464	Ps.	14,911,208	Ps.	15,507,652
Puerto Rico		747,755		664,046		548,550
Brazil		511,964		722,412		724,587
Europe		2,526,957		1,701,424		1,753,872
Ecuador		34,425		67,402		111,353
El Salvador		—		15,751		19,081
Nicaragua		—		3,711		18,561
Honduras		—		—		4,718
Total	Ps.	16,609,565	Ps.	18,085,954	Ps.	18,688,374

a) Defined Benefit Plans

The defined benefit obligation (DBO) and plan assets for the pension and other benefit obligation plans, by country, are as follows:

	At December 31
	2020									2021
	DBO		Plan Assets			Effect of<br> asset ceiling		Net employee<br> benefit liability		DBO		Plan Assets			Effect of<br> asset ceiling		Net employee<br> benefit<br> liability
Mexico	Ps.	278,434,302	Ps.	(150,090,481	)	Ps.	—	Ps.	128,343,821	Ps.	286,396,483	Ps.	(177,270,561	)	Ps.	—	Ps.	109,125,922
Puerto Rico		40,240,193		(25,315,319	)		—		14,924,874		38,092,662		(25,590,285	)		—		12,502,377
Brazil		18,568,932		(16,143,783	)		3,393,640		5,818,789		15,497,227		(15,466,336	)		4,422,459		4,453,350
Europe		5,490,873		—			—		5,490,873		5,093,036		—			—		5,093,036
Total	Ps.	342,734,300	Ps.	(191,549,583	)	Ps.	3,393,640	Ps.	154,578,357	Ps.	345,079,408	Ps.	(218,327,182	)	Ps.	4,422,459	Ps.	131,174,685

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Below is a summary of the actuarial results generated for the pension and retirement plans as well as the medical services in Puerto Rico and Brazil; the pension plans and seniority premiums related to Telmex; the pension plan, the service awards plan and severance in Austria corresponding to the years ended December 31, 2019, 2020 and 2021:

	At December 31, 2019
	DBO			Plan Assets			Effectofasset<br>ceiling			Net employee<br>benefit liability
Balance at the beginning of the year	Ps.	306,702,447		Ps.	(203,671,122	)	Ps.	5,087,543		Ps.	108,118,868
Current service cost		2,591,975									2,591,975
Interest cost on projected benefit obligation		31,001,348									31,001,348
Expected return on plan assets					(20,070,037	)					(20,070,037	)
Changes in the asset ceiling during the period and others								445,743			445,743
Past service costs and others					144,481						144,481
Actuarial gain for changes in experience		(22,599	)								(22,599	)
Actuarial gain from changes in demographic assumptions		(129	)								(129	)
Actuarial loss from changes in financial assumptions		36,163									36,163
Net period cost	Ps.	33,606,758		Ps.	(19,925,556	)	Ps.	445,743		Ps.	14,126,945
Actuarial loss for changes in experience		31,606,323									31,606,323
Actuarial gain from changes in demographic assumptions		(339,657	)								(339,657	)
Actuarial loss from changes in financial assumptions		7,207,072									7,207,072
Changes in the asset ceiling during the period and others								(712,064	)		(712,064	)
Return on plan assets greater than discount rate (shortfall)					423,514						423,514
Recognized in other comprehensive income	Ps.	38,473,738		Ps.	423,514		Ps.	(712,064	)	Ps.	38,185,188
Contributions made by plan participants		155,188			(155,188	)					—
Contributions to the pension plan made by the Company					(1,337,610	)					(1,337,610	)
Benefits paid		(15,836,928	)		15,836,928						—
Payments to employees		(16,996,920	)								(16,996,920	)
Effect of translation		(3,534,509	)		2,528,213			(393,201	)		(1,399,497	)
Others	Ps.	(36,213,169	)	Ps.	16,872,343		Ps.	(393,201	)	Ps.	(19,734,027	)
Balance at the end of the year		342,569,774			(206,300,821	)		4,428,021			140,696,974
Less short-term portion		(213,065	)								(213,065	)
Non-current obligation	Ps.	342,356,709		Ps.	(206,300,821	)	Ps.	4,428,021		Ps.	140,483,909

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	At December 31, 2020
	DBO			Plan Assets			Effect of asset<br>ceiling			Net employee<br>benefit liability
Balance at the beginning of the year	Ps.	342,569,774		Ps.	(206,300,821	)	Ps.	4,428,021		Ps.	140,696,974
Current service cost		2,810,584									2,810,584
Interest cost on projected benefit obligation		30,482,173									30,482,173
Expected return on plan assets					(17,655,119	)					(17,655,119	)
Changes in the asset ceiling during the period and others								278,639			278,639
Past service costs and other					148,253						148,253
Actuarial gain for changes in experience		(8,945	)								(8,945	)
Actuarial gain from changes in demographic assumptions		(270	)								(270	)
Actuarial loss from changes in financial assumptions		20,219									20,219
Net period cost	Ps.	33,303,761		Ps.	(17,506,866	)	Ps.	278,639		Ps.	16,075,534
Actuarial gain for changes in experience		(9,677	)								(9,677	)
Actuarial gain from changes in demographic assumptions		(103,987	)								(103,987	)
Actuarial loss from changes in financial assumptions		3,475,345									3,475,345
Changes in the asset ceiling during the period and others								(542,430	)		(542,430	)
Return on plan assets greater than discount rate (shortfall)					12,320,777						12,320,777
Others		(924,084	)								(924,084	)
Recognized in other comprehensive income	Ps.	2,437,597		Ps.	12,320,777		Ps.	(542,430	)	Ps.	14,215,944
Contributions made by plan participants		137,947			(137,947	)					—
Contributions to the pension plan made by the Company					(1,882,654	)					(1,882,654	)
Benefits paid		(19,740,727	)		19,740,727						—
Payments to employees		(14,426,720	)								(14,426,720	)
Effect of translation		(1,278,392	)		2,217,201			(770,590	)		168,219
Others	Ps.	(35,307,892)		Ps.	19,937,327		Ps.	(770,590)		Ps.	(16,141,155)
Balance at the end of the year		343,003,240			(191,549,583	)		3,393,640			154,847,297
Less short-term portion		(268,940	)								(268,940	)
Non-current<br> obligation	Ps.	342,734,300		Ps.	(191,549,583)		Ps.	3,393,640		Ps.	154,578,357

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	At December 31, 2021
	DBO			Plan Assets			Effect of asset<br> ceiling			Net employee<br> benefit liability
Balance at the beginning of the year	Ps.	343,003,240		Ps.	(191,549,583)		Ps.	3,393,640		Ps.	154,847,297
Current service cost		2,090,896									2,090,896
Interest cost on projected benefit obligation		28,913,257									28,913,257
Expected return on plan assets		(15,112,669	)								(15,112,669	)
Changes in the asset ceiling during the period and others								215,544			215,544
Past service costs and other					139,910						139,910
Actuarial gain for changes in experience		(23,024	)								(23,024	)
Actuarial gain from changes in demographic assumptions		(48	)								(48	)
Actuarial <br>gain<br> from changes in financial assumptions		(6,907	)								(6,907	)
Net period cost	Ps.	30,974,174		Ps.	(14,972,759)		Ps.	215,544		Ps.	16,216,959
Actuarial <br>loss<br> for changes in experience		10,728,950									10,728,950
Actuarial gain from changes in demographic assumptions		(104,568	)								(104,568	)
Actuarial <br>gain<br> from changes in financial assumptions		(4,099,321	)								(4,099,321	)
Changes in the asset ceiling during the period and others								969,433			969,433
Return on plan assets greater than discount rate (shortfall)					(22,198,615	)					(22,198,615	)
Recognized in other comprehensive income	Ps.	6,525,061		Ps.	(22,198,615	)	Ps.	969,433		Ps.	(14,704,121	)
Contributions made by plan participants		99,201			(99,201	)					—
Contributions to the pension plan made by the Company					311,108						311,108
Benefits paid		(10,574,420	)		10,348,544						(225,876	)
Payments to employees		(25,042,314	)								(25,042,314	)
Effect of translation		330,770			(166,676	)		(156,158	)		7,936
Others	Ps.	(35,186,763)		Ps.	10,393,775		Ps.	(156,158)		Ps.	(24,949,146)
Balance at the end of the year		345,315,712			(218,327,182	)		4,422,459			131,410,989
Less short-term portion		(236,304	)								(236,304	)
Non-current obligation	Ps.	345,079,408		Ps.	(218,327,182)		Ps.	4,422,459		Ps.	131,174,685

In the case of other subsidiaries in Mexico, the net period cost of other employee benefits for the years ended December 31, 2019, 2020 and 2021 was Ps. 49,050, Ps. 174,994 and Ps.267,728, respectively. The balance of other employee benefits at December 31, 2020 and 2021 was Ps. 916,534 and Ps. 1,099,732, respectively.

In the case of Brazil, the net period cost of other benefits for the years ended December 31, 2019, 2020 and 2021 was Ps. 99,498, Ps. 268,562 and Ps. 225,984, respectively. The balance of employee benefits at December 31, 2020 and 2021 was Ps. 2,111,801 and Ps.1,380,764, respectively.

In the case of Ecuador, the net period cost of other benefits for the years ended December 31, 2019, 2020 and 2021 was Ps. 34,425, Ps. 67,402 and Ps. 111,353, respectively. The balance of employee benefits at December 31, 2020 and 2021 was Ps. 488,161 and Ps. 601,239, respectively.

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In the case of Central America, the net period cost of other benefits for the years ended December 31 , 2020 and 2021 was Ps. 19,462 and Ps. 42,360 , respectively. The balance of employee benefits at December 31 , 2020 and 2021 was Ps. 250,819 and Ps. 285,223 , respectively.

Plan assets are invested in:

At December 31

	2020									2021
	Puerto Rico			Brazil			Mexico			Puerto Rico			Brazil			Mexico
Equity instruments		43	%		—			68	%		42	%		—			74	%
Debt instruments		22	%		95	%		32	%		21	%		94	%		26	%
Others		35	%		5	%		—			37	%		6	%		—
		100	%		100	%		100	%		100	%		100	%		100	%

Included in the Telmex’s net pension plan liability are plan assets of Ps. 150,090,481 and Ps.

177,270,561 as of December 31, 2020 and 2021, respectively, of which 36.9% and 47.5% during 2020 and 2021, respectively, were invested in equity and debt instruments of both América Movil and also of related parties, primarily entities that are under common control of the Company’s principal shareholder. The Telmex pension plan recorded a re-measurement of its defined pension plan of Ps. 11,753,416 and Ps . ( 9,928,728) during 20 20 and 202 1 , respectively, attributable to a change in actuarial assumptions, and also a decline and an increase in the fair value of plan investments from December 31, 2020 to December 31, 2021. The decrease and increase in fair value of the aforementioned related party pension plan investments approximated Ps. 14,820,220 and Ps. (20,234,095) during the years ended December 31, 2020 and 2021, respectively.

The assumptions used in determining the net period cost were as follows:

	2019										2020										2021
	Puerto<br>Rico			Brazil			Mexico			Europe	Puerto<br>Rico			Brazil			Mexico			Europe	Puerto<br>Rico			Brazil		Mexico			Europe
										0.75%,										0.25%,									0.25%,
										1.00% &					6.48% &					0.50% &					8.51% &				0.75% &
Discount rate and long-term<br><br>rate<br><br>return		3.23	%		7.03	%		10.50	%	1.25%		2.34	%		7.39	%		10.04	%	0.75%		2.75	%		8.67%		10.4	%	1.00%
										3.00%,										3.00%,									3.00%,
										3.5% &										3.5% &									3.40% &
Rate of future salary increases		2.75%			3.80%			3.20%		4.40%		2.75%			3.25%			2.84%		4.10%		2.75%			3.25%		2.80%		4.00%
Percentage of increase in health care<br> costs for the coming year		3.18%			10.30%							2.28%			9.96%							2.72%			9.44%
Year to which this level will be<br> maintained		N/A			2029							N/A			2031							NA			2030
Rate of increase of pensions										1.60%										1.60%									1.60%
Employee turnover rate*										0.00%-1.38%										0.00%-1.31%									0.00%-1.12%
*	Depending on years of service
---	---

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Biometric

Puerto Rico:
Mortality:	RP 2014, MSS 202<br>1<br> Tables.
Disability:	1985 Pension Disability Table
Brazil:
Mortality:	2000 Basic AT Table for gender
Disability for assets:	UP 84 modified table for gender
Disability retirement:	80 CSO Code Table
Rotation:	Probability of leaving the Company other than death, Disability and retirement is zero

Europe

Life expectancy in Austria is base on “AVÖ 2018-P – Rechnungsgrundlagen für die Pensionsversicherung – Pagler & Pagler”.

Telmex
Mortality:	Mexican 2000 (CNSF) adjusted
Disability:	Mexican Social Security adjusted by Telmex experience
Turnover:	Telmex experience
Retirement:	Telmex experience

For the year ended December 31, 2021, the Company conducted a sensitivity analysis on the most significant variables that affect the DBO, simulating independently, reasonable changes to roughly 100 basis points in each of these variables. The increase (decrease) would have resulted in the DBO pension and other benefits at December 31, 2021 are as follows:

	-100 points			+100 points
Discount rate	Ps.	32,094,727		Ps.	(22,626,321	)
Health care cost trend rat	Ps.	(431,724	)	Ps.	499,356

Telmex Plans

Part of the Telmex´s employees are covered under defined benefit pension plans and seniority premiums. Pension benefits and seniority premiums are determined on the basis in their final year of employment, their seniority, and their age at the time of retirement. Telmex has set up an irrevocable trust fund to finance these employee benefits and has adopted the policy of making contributions to such fund when it is considered necessary.

Europe

Defined benefit pension plans

A1 Telekom Austria Group provides defined benefits for certain former employees in Austria. All eligible employees are retired and were employed prior to January 1, 1975. This unfunded plan provides benefits based on a percentage of salary and years employed, not exceeding 80% of the salary before retirement, and taking into consideration the pension provided by the social security system. A1 Telekom Austria Group is exposed primarily to the risk of development of life expectancy and inflation because the benefits from pension plans are lifetime benefits. Furthermore, at December 31, 2021, approximately 24% (2020: 20%) of the obligation for pensions relate to the employees of the company Akenes in Lausanne.

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Service awards

Civil servants and certain employees (in the following “employees”) are eligible to receive service awards. In accordance with the legal regulations, eligible employees receive a cash bonus of two months’ salary after 25 years of service and four months’ salary after 40 years of service. Employees with at least 35 years of service when retiring (at the age of 65) or who are retiring based on specific legal regulations are also eligible to receive the service award of four monthly salaries. The obligation is accrued over the period of service, taking into account the employee turnover rate for employees who leave employment prematurely. The main risk that A1 Telekom Austria Group is exposed to is the risk of development of salary increases and changes of interest rates.

Severance

Defined contribution plans

Employees who started work for A1 Telekom Austria Group in Austria on or after January 1, 2003 are covered by a defined contribution plan. In 2021, A1 Telekom Austria Group paid Ps. 68,425 (2020: Ps. 66,294), 1.53% of the salary or wage, into this defined contribution plan (BAWAG Allianz Mitarbeitervorsorgekasse AG).

Defined benefit plans

Severance benefit obligations for employees, whose employment commenced before January 1, 2003, excluding civil servants, are covered by defined benefit plans. Upon termination of employment by A1 Telekom Austria Group or upon retirement, eligible employees receive severance payments. Depending on their time in service, their severance amounts to a multiple of their monthly basic compensation plus variable components such as overtime or bonuses, up to a maximum of twelve monthly salaries. In case of death, the heirs of eligible employees receive 50% of the severance benefits. The primary risks to A1 Telekom Austria Group are salary increases and changes of interest rates.

b) Defined Contribution Plans

Brazil

Claro makes contributions to the DCP through Embratel Social Security Fund – Telos. Contributions are computed based on the salaries of the employees, who decide on the percentage of their contributions to the plan (participants enrolled before October 31st, 2014 is from 1% to 8% and, for those subscribed after that date, the contribution is from 1% to 7% of their salaries). Claro contributes the same percentage as the employee, capped at 8% of the participant’s balance for the employees that are eligible to participate in this plan.

At December 31, 2020 and 2021, the balance of the DCP liability was Ps. 980,014 and Ps . 274,630 respectively. For the years ended December 31, 2019, 2020 and 2021 the cost of labor were Ps. 3,365, Ps. 2,930 and Ps.

61,649, respectively.

Europe

In Austria, pension benefits are generally provided by the social security system for employees, and by the government for civil servants. The contributions of 12.55% of gross salaries that A1 Telekom Austria Group made in 2021 to the social security system and the government in Austria amount to Ps. 1,436,587 (2020: Ps.

1,474,721). In 2021, contributions of the foreign subsidiaries into the respective systems range between 7% and 29% of gross salaries and amount to Ps. 601,626 (2020: Ps. 601,476).

Additionally, A1 Telekom Austria Group offers a defined contribution plan for employees of some of its Austrian subsidiaries. A1 Telekom Austria Group’s contributions to this plan are based on a percentage of the compensation not exceeding 5%. In 2021, the annual expenses for this plan amounted to Ps. 286,195 (2020: Ps.

295,567).

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As of December 31, 2020 and 2021 the liability related to this defined contribution plan amounted to Ps. 134,034 and Ps.

114,233, respectively.

Other countries

For the rest of the countries where the Company operates and that do not have defined benefit plans or defined contribution plans, the Company makes contributions to the respective governmental social security agencies which are recognized in results of operations as they are incurred.

c) Long-term direct employee benefits

	Balance at<br> December 31,<br> 2019		Effect of<br> translation			Increase of<br> the year		Payments			Balance at<br> December 31,<br> 2020
Long-term direct employee benefits	Ps.	8,175,767	Ps.	1,256,880		Ps.	1,729,392	Ps.	(2,411,436	)	Ps.	8,750,603
	Balance at<br> December 31,<br> 2020		Effect of<br> translation			Increase of<br> the year		Payments			Balance at<br> December 31,<br> 2021
Long-term direct employee benefits	Ps.	8,750,603	Ps.	(328,619	)	Ps.	1,824,693	Ps.	(2,320,831	)	Ps.	7,925,846

In 2008, a comprehensive restructuring program was initiated in the segment Austria. The provision for restructuring includes future compensation of employees who will no longer provide services for A1 Telekom Austria Group but who cannot be laid off due to their status as civil servants. These employment contracts are onerous contracts under IAS 37, as the unavoidable cost related to the contractual obligation exceeds the future economic benefit. The restructuring program also includes social plans for employees whose employment will be terminated in a socially responsible way. In 2009 and every year from 2011 to 2019, new social plans were initiated that provide for early retirement, special severance packages and golden handshake options. Due to their nature as termination benefits, these social plans are accounted for according to IAS 19.

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Financial Assets and Liabilities

Set out below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Company as of December 31, 2020 and 2021:

	December 31, 2020
	Loans and<br> Receivables		Fair value<br> through<br> profit or loss		Fair value<br> through OCI
Financial Assets:
Equity investments at fair value through OCI and other short term investments	Ps.	62,940	Ps.	—	Ps.	50,033,111
Accounts receivable from subscribers, distributors, contractual assets and other		171,213,415		—		—
Related parties		1,391,300		—		—
Derivative financial instruments<br>(Note 7)		—		20,928,335		—
Total current assets		172,667,655		20,928,335		50,033,111
Non-current assets
Debt instruments<br> at fair value through OCI		—		—		4,540,344
Total	Ps.	172,667,655	Ps.	20,928,335	Ps.	54,573,455
Financial Liabilities:
Debt	Ps.	628,382,956	Ps.	—	Ps.	—
Liability related to right-of-use of assets		109,327,241		—		—
Accounts payable		186,995,472		—		—
Related parties		3,999,916		—		—
Derivative financial instruments (Note 7)		—		14,230,249		—
Total	Ps.	928,705,585	Ps.	14,230,249	Ps.	—

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	December 31, 2021
	Loans and<br>Receivables		Fair value<br>through<br>profit or loss		Fair value<br>through OCI
Financial Assets:
Equity investments at fair value through OCI and other short term investments	Ps.	15,026	Ps.	—	Ps.	117,688,176
Accounts receivable from subscribers, distributors, contractual assets and other		166,041,321		—		—
Related parties		1,158,611		—		—
Derivative financial instruments<br>(Note 7)		—		10,130,806		—
Total current assets		167,214,958		10,130,806		117,688,176
Non-current assets
Debt instruments<br> at fair value through OCI		—		—		6,894,757
Total	Ps.	167,214,958	Ps.	10,130,806	Ps.	124,582,933
Financial Liabilities:
Debt	Ps.	564,030,102	Ps.	—	Ps.	—
Liability related to right-of-use of assets		98,654,225		—		—
Accounts payable		201,341,806		—		—
Related parties		4,216,882		—		—
Derivative financial instruments (Note 7)		—		10,034,508		—
Total	Ps.	868,243,015	Ps.	10,034,508	Ps.	—

Fair value hierarchy

The Company’s valuation techniques used to determine and disclose the fair value of its financial instruments are based on the following hierarchy:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Variables other than quoted prices in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices); and

Level 3: Variables used for the asset or liability that are not based on any observable market data (non-observable variables).

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The fair value for the financial assets (excluding cash and cash equivalents) and financial liabilities shown in the consolidated statements of financial position at December 31, 2020 and 2021 is as follows:

	Measurement of fair value at December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Equity investments at fair value through OCI and other short-term investments	Ps.	50,033,111	Ps.	62,940	Ps.	—	Ps.	50,096,051
Derivative financial instruments (Note 7)		—		20,928,335		—		20,928,335
Revalued of assets (Note 23)		—		—		107,152,628		107,152,628
Pension plan assets (Note 18)		168,939,091		22,589,392		21,100		191,549,583
Total current assets		218,972,202		43,580,667		107,173,728		369,726,597
Debt instruments<br> at fair value through OCI		—		4,540,344		—		4,540,344
Total	Ps.	218,972,202	Ps.	48,121,011	Ps.	107,173,728	Ps.	374,266,941
Liabilities:
Debt	Ps.	578,712,562	Ps.	135,645,912	Ps.	—	Ps.	714,358,474
Liability related to right-of-use of assets		109,327,241		—		—		109,327,241
Derivative financial instruments (Note 7)		—		14,230,249		—		14,230,249
Total	Ps.	688,039,803	Ps.	149,876,161	Ps.	—	Ps.	837,915,964

	Measurement of fair value at December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Equity investments at fair value through OCI and other short-term investments	Ps.	117,688,176	Ps.	15,026	Ps.	—	Ps.	117,703,202
Derivative financial instruments (Note 7)		—		10,130,806		—		10,130,806
Revalued of assets (Note 23)		—		—		98,172,675		98,172,675
Pension plan assets (Note 18)		196,148,604		22,124,138		54,440		218,327,182
Total current assets		313,836,780		32,269,970		98,227,115		444,333,865
Debt instruments<br> at fair value through OCI		—		6,894,757		—		6,894,757
Total	Ps.	313,836,780	Ps.	39,164,727	Ps.	98,227,115	Ps.	451,228,622
Liabilities:
Debt	Ps.	440,660,165	Ps.	180,122,540	Ps.	—	Ps.	620,782,705
Liability related to right-of-use of assets		98,654,225		—		—		98,654,225
Derivative financial instruments		—		10,034,508		—		10,034,508
Total	Ps.	539,314,390	Ps.	190,157,048	Ps.	—	Ps.	729,471,438

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Fair value of derivative financial instruments is valued using valuation techniques with market observable inputs. To determine its Level 2 fair value, the Company applies different valuation techniques including forward pricing and swaps models, using present value calculations. The models incorporate various inputs including credit quality of counterparties, foreign exchange spot and forward rates and interest rate curves. Fair value of debt Level 2 has been determined using a model based on present value calculation incorporating credit quality of AMX. The Company’s investment in equity investments at fair value, specifically the investment in KPN and Verizon, is valued using the quoted prices (unadjusted) in active markets for identical assets. The net realized (loss) gain related to derivative financial instruments for the years ended December 31, 2020 and 2021 was Ps.

2,606,938 and Ps.

(1,664,465) respectively.

The fair value of the asset revaluation was calculated using valuation techniques, using observable market data and internal information on transactions carried out with independent third parties. To determine fair value we use level 2 and 3 information, the Company used inputs such as average rents, contract term and discount rates for discounted flow modeling techniques; in the case of discount rates, we use level 2 data where the information is public and is found in recognized databases, such as country risks, inflation, etc. In the case of average rents and contract terms, we use level 3 data, where the information is mainly internal based on lease contracts entered into with independent third parties.

During the end of the period ended December 31, 2020 and 2021, there were no transfers between the Level 1 and Level 2 fair value measurement hierarchies.

Changes in liabilities arising from financing activities

	At<br><br>December 31,<br>2019		Cash flow			Foreign currency<br>exchange and<br>other		At December 31,<br>2020
Debt	Ps.	624,254,477	Ps.	(53,091,801	)	Ps.	57,220,280	Ps.	628,382,956
Liability related to right-of-use of assets		120,596,733		(29,623,565	)		18,354,073		109,327,241
Total liabilities from financing activities	Ps.	744,851,210	Ps.	(82,715,366	)	Ps.	75,574,353	Ps.	737,710,197

	At December 31,<br> 2020		Cash flow			Foreign currency<br> exchange and<br> other			At December 31,<br> 2021
Debt	Ps.	628,382,956	Ps.	(58,354,281	)	Ps.	(5,998,573	)	Ps.	564,030,102
Liability related to right-of-use of assets		109,327,241		(30,544,750	)		19,871,734			98,654,225
Total liabilities from <br>financing activities	Ps.	737,710,197	Ps.	(88,899,031	)	Ps.	13,873,161		Ps.	662,684,327

Shareholders’ Equity

a) Pursuant to the Company’s bylaws, the capital stock of the Company consists of a minimum fixed portion of Ps. 252,371, (nominal amount), represented as of December 31, 2021 by a total of 66,411,260,649 shares (including treasury shares available for placement in accordance with the provisions of the Ley del Mercado de Valores), of which (i) 20,554,697,460 are “AA” shares (full voting rights); (ii) 502,404,175 are “A” shares (full voting rights); and (iii) 45,354,159,014 are “L” shares (limited voting rights).

b) As of December 31, 2021 and 2020, the Company’s capital stock was represented by 64,689,740,633 shares (20,554,697,460 “AA” shares, 502,404,175 “A” shares and 43,632,638,998 “L” shares), and 66,862,560,649 shares (20,578,173,274 “AA” shares, 519,926,536 “A” shares and 45,764,460,839 “L” shares), respectively.

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c) As of December 31, 2021 and 2020, the Company’s treasury held for placement in accordance with the provisions of the Ley del Mercado de Valores and the Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes en el Mercado de valores issued by the Comisión Nacional Bancaria y de Valores, a total amount of 1,721,520,016 shares all of which are series L shares and 4,200,651,521 shares (4,200,629,621 “L” shares and 21,900 “A” shares), respectively, all acquired pursuant to the Company’s share repurchase program.

d) The holders of “AA” and “A” shares are entitled to full voting rights. The holders of “L” shares may only vote in limited circumstances, and they are only entitled to appoint two members of the Board of Directors and their respective alternates. The matters in which “L” shares holders are entitled to vote are the following: extension of the Company´s corporate life, dissolution of the Company, change of Company’s corporate purpose, change of nationality of the Company, transformation of the Company, a merger with another company, any transaction representing 20% or more of the Company’s consolidated assets, as well as the cancellation of the inscription of the shares issued by the Company at the Registro Nacional de Valores and any other foreign stock exchanges where they may be registered, except for quotation systems or other markets not organized as stock exchanges. Within their respective series, all shares confer the same rights to their holders.

The Company’s bylaws contain restrictions and limitations related to the subscription and acquisition of “AA” shares by non-Mexican investors.

e) Pursuant to the Company’s bylaws, “AA” shares must at all times represent no less than 20% and no more than 51% of the Company’s capital stock, and they shall also represent at all times, no less than 51% of the common shares (entitled to full voting rights, represented by “AA” and “A” shares) representing said capital stock.

“A” shares, which may be freely subscribed, must not represent more than 19.6% of capital stock and must not exceed 49% of the common shares representing such capital. Common shares (entitled to full voting rights, represented by “AA” and “A” shares), must represent no more than 51% of the Company’s capital stock.

Lastly

, “L” shares which have limited voting rights and may be freely subscribed may not exceed, along with “A” shares, 80 % of the Company’s capital stock. For purposes of determining these restrictions, the percentages mentioned above refer only to the number of the Company’s shares outstanding.

Dividends

On April 26, 2021, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps. 0.40 (forty peso cents) per share to each of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installments of Ps. 0.20 (twenty peso cents) each, on July 19 and November 08, 2021 respectively.

On April 24, 2020, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps. 0.38 (thirty-eight peso cents) per share to each of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installments of Ps. 0.19 (nineteen peso cents) each, on July 20 and November 09, 2020 respectively.

Legal Reserve

According to the Ley General de Sociedades Mercantiles, companies must allocate from the net profit of each year, at least 5% to increase the legal reserve until it reaches 20% of its capital stock. This reserve may not be distributed to shareholders during the existence of the Company, except as a stock dividend. As of December 31, 2021 and 2020, the legal reserve amounted Ps. 358,440.

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Restrictions on Certain Transactions

Pursuant to the Company’s bylaws any transfer of more than 10% of the full voting shares (“A” shares and “AA” shares), effected in one or more transactions by any person or group of persons acting in concert, requires prior approval by our Board of Directors. If the Board of Directors denies such approval, however, the Company bylaws require it to designate an alternate transferee, who must pay market price for the shares as quoted on the Bolsa Mexicana de Valores, S.A.B. de C.V.

Payment of Dividends

Dividends, either in cash or in kind, paid with respect to the “A” Shares, “L” Shares, “A” Share ADSs or “L” Share ADSs will generally be subject to a 10% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2014). Nonresident holders could be subject to a lower tax rate, to the extent that they are eligible for benefits under an income tax treaty to which Mexico is a party.

Earnings per Share

The following table shows the computation of the basic and diluted earnings per share:

	For the years ended December 31,
	2019		2020		2021
Net profit for the period attributable <br>to equity holders of the parent from continuing operations	Ps.	57,886,001	Ps.	29,859,980	Ps.	70,712,449
Net profit for the period attributable <br>to equity holders of the parent from discontinued operations		9,844,889		16,992,625		121,710,718
Net profit for the period attributable <br>to equity holders of the parent		67,730,890		46,852,605		192,423,167
Weighted average shares (in millions)		66,016		66,265		65,967
Earnings per share attributable to <br>equity holders of the parent continuing operations	Ps.	0.88	Ps.	0.45	Ps.	1.07
Earnings per share attributable to<br>equity holders of the parent discontinued operations	Ps.	0.15	Ps.	0.26	Ps.	1.85

Components of other comprehensive loss (income)

The movement on the components of the other comprehensive (loss) income for the years ended December 31, 2019, 2020 and 2021 is as follows:

	For the years ended December 31,
	2019			2020			2021
Controlling interest:
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes	Ps.	883,409		Ps.	(1,952,414	)	Ps.	4,560,869
Translation effect of foreign entities		(34,010,066	)		(13,558,774	)		(4,837,206	)
Translation effect by discontinued operations		—			—			(829,163	)
Remeasurement of defined benefit plan, net of deferred taxes		(29,153,554	)		(10,026,454	)		11,100,835
Asset’s revaluation surplus net of deferred taxes		—			64,835,155			—
Non-controlling interest of the items above		(1,908,304	)		14,165,249			(2,135,886	)
Other comprehensive (loss) income	Ps.	(64,188,515	)	Ps.	53,462,762		Ps.	7,859,449

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Valuation of derivatives, interest cost from labor obligations and other financial items, net

For the years ended December 31, 2019, 2020 and 2021, valuation of derivatives and other financial items are as follows:

	For the years ended December 31,
	2019			2020			2021
Controlling interest:
Gain (loss) in valuation of derivatives, net	Ps.	4,432,023		Ps.	12,378,193		Ps.	(6,755,214	)
Capitalized interest expense (Note 10 b)		2,233,358			1,771,613			1,527,259
Commissions		(2,820,477	)		(1,135,082	)		(1,071,935	)
Interest cost of labor obligations (Note 18)		(11,377,054	)		(13,105,693	)		(14,375,520	)
Interest expense on taxes		(516,522	)		(59,032	)		(243,075	)
Dividend received (Note 4)		1,773,336			2,122,826			2,628,600
Gain on net monetary positions		4,267,194			3,262,512			4,876,842
Other financial cost <br>(i)		(4,989,702	)		(3,942,459	)		(837,023	)
Total with discontinued operations	Ps.	(6,997,844	)	Ps.	1,292,878		Ps.	(14,250,066	)
(i)	Includes discontinued operations of Tracfone (See note 2, Ac)
---	---

Segments

América Móvil operates in different countries. As mentioned in Note 1, the Company has operations in Mexico, Guatemala, Nicaragua, Ecuador, El Salvador, Costa Rica, Brazil, Argentina, Colombia, Honduras, Chile, Peru, Paraguay, Uruguay, Dominican Republic, Puerto Rico, Panama, Austria, Croatia, Bulgaria, Belarus, Macedonian, Serbia and Slovenia. The accounting policies for the segments are the same as those described in Note 2.

The Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), analyzes the financial and operating information by operating segment. All operating segments that (i) represent more than 10% of consolidated revenues, (ii) more than the absolute amount of its reported 10% of profits before income tax or (iii) more than 10% of consolidated assets, are presented separately.

The Company presents the following reportable segments for the purposes of its consolidated financial statements: Mexico (includes Telcel and Corporate operations and assets), Telmex (Mexico), Brazil, Southern Cone (includes Argentina, Chile, Paraguay and Uruguay), Colombia, Andean (includes Ecuador and Peru), Central America (includes Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama), U.S.A. (excludes Puerto Rico), Caribbean (includes Dominican Republic and Puerto Rico), and Europe (includes Austria, Bulgaria, Croatia, Belarus, Slovenia, Macedonia and Serbia).

The segment Southern Cone comprises mobile communication services in Argentina as well as Chile, Paraguay and Uruguay. Beginning in 2018, hyperinflation accounting in accordance with IAS 29 was initially applied to Argentina, which results in the restatement of non-monetary assets, liabilities and all items of the statement of comprehensive income for the change in a general price index and the translation of these items applying the period-end exchange rate.

The Company considers that the quantitative and qualitative aspects of any aggregated operating segments (that is, Central America and Caribbean reportable segments) are similar in nature for all periods presented. In evaluating the appropriateness of aggregating operating segments, the key indicators considered included but were not limited to: (i) the similarity of key financial statements measures and trends, (ii) all entities provide telecommunications services, (iii) similarities of customer base and services, (iv) the methods to distribute services are the same, based on telephone plant in both cases, wireless and fixed lines, (v) similarities of governments and regulatory entities that oversee the activities and services of telecom companies, (vi) inflation trends, and (vii) currency trends.

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	Mexico
As of and for the year ended December 31, 2019 (in Ps.):
External revenues		226,164,231		84,173,980		177,596,077		54,230,682		74,274,684	55,440,675		46,602,036		—	34,580,822	98,420,289		—		851,483,476
Intersegment revenues		11,676,015		11,863,364		4,182,248		11,041,705		361,386	92,249		132,061		—	1,136,879	—		(40,485,907	)	—
Total revenues		237,840,246		96,037,344		181,778,325		65,272,387		74,636,070	55,532,924		46,734,097		—	35,717,701	98,420,289		(40,485,907	)	851,483,476
Depreciation and amortization		24,742,622		16,346,927		39,424,474		13,847,506		13,439,489	10,256,129		11,045,817		—	6,322,648	24,975,146		(2,881,971	)	157,518,787
Operating income (loss)		67,694,409		9,731,852		28,846,565		4,007,614		15,324,977	8,023,002		5,712,068		—	5,741,368	8,687,862		(9,971,433	)	143,798,284
Interest income		23,713,455		1,839,973		3,155,681		896,256		1,306,571	1,283,788		532,046		—	1,478,560	115,359		(28,037,017	)	6,284,672
Interest expense		30,972,658		1,439,785		19,021,965		3,849,318		2,952,123	2,422,887		1,406,720		—	1,435,862	2,220,168		(27,810,532	)	37,910,954
Income tax		30,000,511		1,528,229		4,251,116		2,022,336		5,405,452	1,681,159		2,355,380		—	719,774	1,946,255		3,843		49,914,055
Equity interest in net income (loss) of associated companies		(3,732	)	46,789		(1,538	)	(23,424	)	—	—		(28,795	)	—	—	(6,909	)	—		(17,609	)
Net profit (loss) attributable to equity holders of the parent continues operations		42,598,946		(1,705,068	)	5,618,095		(6,984	)	9,571,046	(2,604,646	)	2,335,963		—	4,312,630	5,051,145		(7,285,126	)	57,886,001
Net profit (loss) attributable to equity holders of the parent discontinued operations		—		—		—		—		—	—		—		—	—	—		—		9,844,889
Net profit (loss) attributable to equity holders of the parent		42,598,946		(1,705,068	)	5,618,095		(6,984	)	9,571,046	(2,604,646	)	2,335,963		—	4,312,630	5,051,145		2,559,763		67,730,890
Assets by segment		915,233,048		201,283,526		382,561,753		132,722,497		115,851,227	94,021,632		77,355,732		30,775,893	100,694,650	191,744,924		(710,311,225	)	1,531,933,657
Plant, property and equipment, net		54,589,459		106,869,482		174,761,167		60,537,650		50,133,642	39,068,450		38,934,747		1,405,755	38,223,641	75,707,738		(888,361	)	639,343,370
Goodwill		27,396,393		215,381		25,379,805		5,241,305		12,124,685	4,895,331		7,289,748		3,220,105	14,186,723	52,950,325		—		152,899,801
Trademarks, net		46,476		212,324		37,207		—		—	—		—		369,950	227,156	2,595,596		—		3,488,709
Licenses and rights, net		11,087,882		452,504		29,324,718		12,103,980		5,530,422	8,064,487		4,390,547		—	7,942,670	25,951,335		—		104,848,545
Investment in associated companies		3,562,323		610,807		111,073		(7,806	)	391	—		25,603		—	—	—		(1,828,198	)	2,474,193
Liabilities by segments		718,354,229		175,774,964		297,877,328		103,330,525		55,576,253	55,463,339		37,993,180		31,557,816	54,276,868	124,319,541		(349,497,251	)	1,305,026,792
(1)	Restated for discontinued operations.
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	Mexico
As of and for the year ended December 31, 2020 (in Ps.):
External revenues		214,578,600		77,920,910		163,865,421		55,484,744		77,282,658	53,846,358	48,073,436	—	37,182,842	111,472,191		—		839,707,160
Intersegment revenues		17,663,525		13,668,264		4,207,466		1,220,100		352,694	88,305	121,580	—	1,440,983	—		(38,762,917	)	—
Total revenues		232,242,125		91,589,174		168,072,887		56,704,844		77,635,352	53,934,663	48,195,016	—	38,623,825	111,472,191		(38,762,917	)	839,707,160
Depreciation and amortization		24,748,756		13,341,479		41,795,397		13,095,004		14,413,760	11,447,356	14,355,899	—	7,094,331	25,593,204		(3,202,788	)	162,682,398
Operating income (loss)		70,851,525		11,204,433		25,203,504		1,877,079		15,111,947	8,698,645	4,004,501	—	6,701,086	13,159,865		(11,309,206	)	145,503,379
Interest income		21,322,406		1,479,021		2,904,430		980,581		822,447	1,049,261	1,130,767	—	1,105,420	90,746		(25,823,043	)	5,062,036
Interest expense		30,936,195		1,306,867		17,976,227		3,334,966		2,586,708	2,223,478	1,559,917	—	1,658,619	2,546,255		(25,467,747	)	38,661,485
Income tax		4,905,863		577,178		(4,442,598	)	992,831		2,078,789	3,115,693	1,518,953	—	2,524,214	2,234,065		4,282		13,509,270
Equity interest in net income (loss) of associated companies		(3,820	)	23,955		(2,972	)	(15,422	)	—	—	—	—	—	(288,747	)	—		(287,006	)
Net profit (loss) attributable to equity holders of the parent continues operations		3,613,907		(1,085,038	)	4,963,424		1,456,062		16,579,303	4,649,047	1,919,558	—	3,294,111	7,777,426		(13,307,820	)	29,859,980
Net profit (loss) attributable to equity holders of the parent discontinued operations		—		—		—		—		—	—	—	—	—	—		—		16,992,625
Net profit (loss) attributable to equity holders of the parent		3,613,907		(1,085,038	)	4,963,424		1,456,062		16,579,303	4,649,047	1,919,558	—	3,294,111	7,777,426		3,684,805		46,852,605
Assets by segment		947,396,510		203,081,314		386,982,711		118,266,380		132,210,369	101,717,708	88,690,683	35,083,285	109,914,293	239,583,759		(737,878,785	)	1,625,048,227
Plant, property and equipment, net		52,117,395		110,751,083		145,307,497		62,157,797		48,876,853	36,102,261	37,855,227	1,761,595	39,128,447	82,595,077		(876,229	)	615,777,003
Revalued of assets		—		—		36,076,207		7,494,408		12,893,284	9,500,708	7,059,247	—	2,572,504	31,556,270		—		107,152,628
Goodwill		26,949,185		215,381		16,048,092		5,436,675		12,253,743	4,866,363	6,345,659	3,362,899	14,186,723	53,388,139		—		143,052,859
Trademarks, net		126,823		181,094		—		—		—	—	—	269,325	219,087	2,981,089		—		3,777,418
Licenses and rights, net		12,017,318		100,623		26,171,345		12,099,873		12,363,039	6,870,531	5,427,857	—	8,616,880	27,963,250		—		111,630,716
Investment in associated companies		51,645		613,449		64,125		(20,970	)	395	—	25,413	—	—	—		1,095,703		1,829,760
Liabilities by segments		725,408,198		193,840,756		263,989,566		61,786,265		63,610,642	53,379,366	34,252,511	33,141,315	60,839,340	138,747,621		(319,064,971	)	1,309,930,609
(1)	Restated for discontinued operations.
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As of and for the year ended December 31, 2021 (in Ps.):
External revenues	225,219,719	87,189,642	148,729,232		62,030,033		79,312,071	52,888,323	48,468,386	37,858,979	113,838,486		—		855,534,871
Intersegment revenues	18,041,465	15,237,420	4,044,386		329,000		360,638	73,828	98,530	2,069,648	—		(40,254,915	)	—
Total revenues	243,261,184	102,427,062	152,773,618		62,359,033		79,672,709	52,962,151	48,566,916	39,928,627	113,838,486		(40,254,915	)	855,534,871
Depreciation and amortization	25,797,791	12,740,332	40,342,871		14,996,243		15,067,211	11,211,523	11,962,486	6,987,129	27,469,463		(3,948,183	)	162,626,866
Operating income (loss)	77,783,972	21,100,316	21,867,457		2,144,825		15,165,356	7,457,802	8,216,945	8,661,475	13,421,147		(9,686,654	)	166,132,641
Interest income	14,864,242	758,126	2,104,574		821,594		431,314	833,540	269,379	701,785	116,031		(17,065,758	)	3,834,827
Interest expense	24,586,641	1,385,103	15,875,138		2,987,751		2,240,707	1,213,421	1,219,061	1,066,733	2,414,415		(16,963,658	)	36,025,312
Income tax	25,002,390	2,496,010	(9,603,701	)	(3,795,160	)	3,112,946	2,375,281	2,945,700	2,171,594	3,438,161		1,548		28,144,769
Equity interest in net income (loss) of associated companies	85,648	44,525	4,575		(19,073	)	—	—	—	—	(1,757	)	—		113,918
Net profit (loss) attributable to equity holders of the parent continues operations	34,195,093	4,594,450	14,185,905		415,994		5,959,563	4,180,473	4,099,930	5,151,166	8,313,018		(10,383,143	)	70,712,449
Net profit (loss) attributable to equity holders of the parent discontinued operations	—	—	—		—		—	—	—	—	—		—		121,710,718
Net profit (loss) attributable to equity holders of the parent	34,195,093	4,594,450	14,185,905		415,994		5,959,563	4,180,473	4,099,930	5,151,166	8,313,018		(10,383,143	)	192,423,167
Assets by segment	999,502,407	195,869,232	407,458,440		135,862,040		133,232,525	95,719,937	101,725,955	102,949,901	210,944,575		(693,615,163	)	1,689,649,849
Plant, property and equipment, net	50,420,866	118,056,718	153,607,199		64,864,986		48,888,907	34,395,339	42,407,727	41,601,009	79,764,422		(983,169	)	633,024,004
Revalued of assets	—	—	33,004,669		6,159,077		10,266,464	8,389,460	9,113,632	2,564,149	28,675,224		—		98,172,675
Goodwill	26,965,618	215,381	15,335,322		5,191,841		11,685,585	4,688,154	6,002,380	14,186,723	52,307,190		—		136,578,194
Trademarks, net	90,673	149,865	—		—		—	—	—	229,000	2,822,625		—		3,292,163
Licenses and rights, net	11,081,972	129,233	39,620,009		13,791,003		11,384,533	5,502,139	5,220,437	10,847,685	25,709,849		—		123,286,860
Investment in associated companies	4,725,279	522,403	65,699		(34,401	)	351	—	26,348	—	—		(2,253,198	)	3,052,481
Liabilities by segments	679,954,783	176,177,522	273,655,967		72,702,285		65,631,866	44,676,727	42,823,861	53,885,848	134,357,142		(308,257,878	)	1,235,608,123

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Recently Issued Accounting Standards

New and amended standards and interpretations

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2021. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16.

The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

•	To require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest
•	To permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued
---	---
•	To provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component
---	---

These amendments had no impact on the consolidated financial statements of the Company. The Company intends to use the practical expedients in future periods if they become applicable.

COVID-19-Related Rent Concessions beyond 30 June 2021 Amendments to IFRS 16

On 28 May 2020, the IASB issued COVID-19-Related Rent Concessions – amendment to IFRS 16 Leases. The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a COVID-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the COVID-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification.

The amendment was intended to apply until 30 June 2021, but as the impact of the COVID-19 pandemic is continuing, on 31 March 2021, the IASB extended the period of application of the practical expedient to 30 June 2022.

The amendment applies to annual reporting periods beginning on or after 1 April 2021; however, the Company has not received COVID-19-related rent concessions.

New standards, amendments and interpretations not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.

Amendments to IAS 1: Classification of Liabilities as Current or Non-current

In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:

•	What is meant by a right to defer settlement
•	That a right to defer must exist at the end of the reporting period
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•	That classification is unaffected by the likelihood that an entity will exercise its deferral right
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•	That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification

The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Company is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation; however, the amendments are not expected to have a material impact on the Company.

Reference to the Conceptual Framework – Amendments to IFRS 3

In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations – Reference to the Conceptual Framework. The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements.

The Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 or IFRIC 21 Levies, if incurred separately.

At the same time, the Board decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements.

The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and apply prospectively.

Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16

In May 2020, the IASB issued Property, Plant and Equipment – Proceeds before Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Company.

Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37

In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making.

The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.

The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The Company will apply these amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments.

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IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter

As part of its 2018-2020 annual improvements to IFRS standards process, the IASB issued an amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRS.

This amendment is also applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier adoption permitted.

IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities

As part of its 2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IFRS 9. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.

The amendment is effective for annual reporting periods beginning on or after January 1, 2022 with earlier adoption permitted. The amendments are not expected to have a material impact on the Company.

Definition of Accounting Estimates – Amendments to IAS 8

In February 2021, the IASB issued amendments to IAS 8, in which it introduces a definition of ‘accounting estimates’. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates.

The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Earlier application is permitted as long as this fact is disclosed.

The amendments are not expected to have a material impact on the Company.

Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2

In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements, in which it provides guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments to IAS 1 are applicable for annual periods beginning on or after January 1, 2023 with earlier application permitted. Since the amendments to the Practice Statement 2 provide non-mandatory guidance on the application of the definition of material to accounting policy information, an effective date for these amendments is not necessary.

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The Company is currently assessing the impact of the amendments to determine the impact they will have on the Company’s accounting policy disclosures.

Subsequent Events

a) In July 2020, the Company announced that its Brazilian subsidiary, Claro S.A. (“Claro”), agreed to extend and amend the binding offer submitted, jointly with Telefónica Brasil S.A. (“Telefonica”) and TIM S.A. (“TIM”), for the acquisition of the mobile business owned by Oi Group, in the amount of R

$ 16,500

million. Such joint offer contemplated, additionally, the possibility of entering into long term agreements for the use of infrastructure with Oi Group. The offer was submitted by the parties, and is subject to certain conditions, including their right to make a higher bid than another offer potentially presented by a third party (“right to top”) in the competitive process of Oi Group’s mobile business sale. Therefore, Claro believes that the joint offer with TIM and Telefonica is the one that best serves the interests of current customers of Oi, as it provides long-term experience in the Brazilian market, investment capacity and technical innovation to the sector as a whole; besides being in line with current regulation. On February 9, 2022, the Company announced that Brazil’s antitrust authority had approved the sale. This transaction closed on April 20, 2022.

b) On March 18, 2022, the Company entered into a credit agreement providing for borrowings in an amount up to Ps.20,558,500 with a group of lenders and BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México, as administrative agent for the lenders (the “Sitios Credit Facility”). The full principal amount available under the Sitios Credit Facility was disbursed on March 23, 2022. Under this credit agreement, the Company is an initial co-borrower with Torres Latinoamérica, S.A. de C.V. (“Torres”). In connection with the spin-off (through an escisión) by the Company of certain of its telecommunications towers and other associated passive infrastructure outside of Mexico to a new company (the “Sitios Spin-off”) to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), on the date on which Sitios is duly incorporated in accordance with Mexican law, pursuant to the resolutions approved by the shareholders of the Company in the extraordinary shareholders’ meeting dated as of September 29, 2021, the Company will be released from its obligations under the Sitios Credit Facility and all liabilities with respect thereto will be transferred to Sitios, and Sitios will assume all of our obligations thereunder. After such date, Torres will continue to be a co-borrower under the Sitios Credit Facility and Torres do Brasil S.A. will become a guarantor thereunder.

c) In April 2022, the Company issued a bond for a total of U.S.$ 1 billion at a rate of 5.375% maturing in 2032. América Móvil plans to transfer, through the spin-off, the total amount of the bonds to Sitios and any obligation of the Company with respect to the Sitios notes will be extinguished.

d) On April 14, 2022, the Company acquired a loan of 1,640.8 million reais maturing in 2023 at a rate of 13.32%.

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EX-1.1

Exhibit 1.1

UNOFFICIAL TRANSLATION | IN THE EVENT OF CONFLICT BETWEEN THE

ENGLISH AND SPANISH VERSION, THE SPANISH VERSION WILL PREVAIL

BYLAWS OF AMÉRICA MÓVIL, SOCIEDAD

ANÓNIMA BURSÁTIL DE CAPITAL VARIABLE

ARTICLES

ONE. The name of the Company shall be “AMÉRICA MÓVIL”, which shall be followed by the words “SOCIEDAD ANÓNIMA BURSÁTIL DE CAPITAL VARIABLE” or its abbreviation, “S.A.B. DE C.V.”

TWO. The domicile of the Company is Mexico City, Federal District; provided, however, that the Company shall be authorized to establish offices, branches or agencies in any other jurisdiction within the United Mexican States and abroad; to submit itself, for purposes of any act, contract or agreement, to any foreign laws or the laws of any other State of the United Mexican States, and to the respective jurisdiction of the competent courts thereof; to submit itself, for purposes of receiving all types of notices or service of any court or out-of-court proceedings, to any contractual domicile in the United Mexican States or abroad; and to appoint, to such or any other effect, any general or special attorneys-in-fact outside the United Mexican States, without any of the foregoing being construed as a change of domicile.

THREE. The purposes of the Company are:

(a)	To promote, incorporate, organize, exploit, acquire and participate in the capital stock or assets of all types<br>of civil or commercial companies, partnerships and industrial, commercial, service or other entities, whether domestic or foreign, and to participate in the management or liquidation thereof.
(b)	To acquire, by any legal means, any shares of stock of and rights, participations or partnership interests in,<br>all types of civil or commercial companies, whether upon their incorporation or at any time thereafter; to sell, transfer and negotiate with such shares, participations and partnership interests, including any other negotiable instruments; and, for<br>as long as the shares of stock of the Company are registered with the National Securities Registry, to acquire its own shares of stock in accordance with the general provisions issued by the National Banking and Securities Commission.<br>
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(c)	To build, install, maintain, operate and exploit public telecommunication networks, in order to provide any<br>telecommunication services and any services involving the transfer of video, voice, data or any other type of content, provided that the Company has obtained the concessions and permits required to such effect pursuant to the law.<br>
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(d)	To acquire the direct ownership of any real property, subject to the provisions of Article 27 (twenty-seven) of<br>the Political Constitution of the United Mexican States and the Foreign Investment Law and its Regulations.
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(e)	To lease, whether as lessor or lessee, all types of real property and rights thereto, and to enter into all<br>types of legal transactions to obtain or permit the use and/or enjoyment of such property.
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(f)	To acquire, sell and enter into any legal transaction relating to, any personal property, personal rights,<br>machinery, equipment and tools, as may be necessary or convenient to achieve its corporate purposes.
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(g)	To carry out any legal acts with respect to any credits or rights.
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(h)	To carry out any legal acts with respect to any patents, trademarks and trade names, or to any other<br>intellectual property rights.
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(i)	To provide and receive all types of advisory and technical, scientific and administrative assistance.<br>
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(j)	To issue bonds and debentures.
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(k)	To establish branches, agencies and offices within the United Mexican States or abroad.
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(l)	To act as agent, representative or commission agent for any Mexican or foreign individuals or entities.<br>
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(m)	To lend or borrow money.
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(n)	To accept, issue, guarantee and endorse all types of negotiable instruments.
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(o)	To grant all types of guaranties in respect of third party obligations, including the obligations of its<br>subsidiaries or any unrelated domestic or foreign corporation, including through the creation of liens on real property or the pledge of any trust beneficiary rights, as may be necessary or convenient to achieve its corporate purposes.<br>
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(p)	To guarantee, by any legal means, including through the creation of liens on real property and the pledge of<br>trust beneficiary rights, with or without consideration, the performance of the obligations of any unrelated domestic or foreign individual or entity, and to act as co-obligor of any unrelated domestic or foreign individual or entity.<br>
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(q)	To carry out any action or enter into any agreement which is related to its corporate purposes and is permitted<br>for a stock corporation.
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FOUR. The duration of the Company shall be indefinite.

FIVE. The Company is of Mexican nationality. No foreign individual or entity may hold any shares of or interest in the Company. If for any reason any such person should acquire by any means any one or more such shares or any such interest in violation of the prohibition

contained in the preceding sentence, it is hereby agreed that such acquisition shall be null and void and, accordingly, the relevant interest and the certificates representing it shall be cancelled and rendered without any value, and the capital stock shall be reduced in an amount equal to that of the interest so cancelled. All the capital shall at all times be subscribed for by Mexican individuals or entities.

SIX. The capital of the Company is variable. The minimum fixed portion of the capital is $252,371,761.14 (two hundred fifty-two million three hundred seventy-one thousand seven hundred sixty-one pesos and fourteen cents), divided into 66,411,260,649 (sixty-six billion four hundred eleven million two hundred sixty thousand six hundred forty-nine) shares, of which 20,578,173,274 (twenty billion five hundred seventy-eight million one hundred seventy-three thousand two hundred seventy-four) are Series “AA” nominative, no par value; 515,208,815 (five hundred fifteen million two hundred eight thousand eight hundred fifteen) are Series “A” nominative, no par value; and 45,317,878,560 (forty-five billion three hundred seventeen million eight hundred seventy-eight thousand five hundred sixty) are Series “L” no par value and limited-voting shares, all of which are fully paid and non-assessable.

The Series “AA” registered shares of common stock, no par value, shall represent no less than 20% (twenty-percent) and no more than 51% (fifty-one percent) of the capital stock) and may only be subscribed or acquired by Mexican nationals; and the Series “L” registered, limited-voting shares, no par value, which are subject to no ownership restrictions, shall represent no more than 80% (eighty percent) of the capital stock.

In the event of an increase in the capital stock, such increase shall be represented by Series “AA” and Series “L” shares in proportion to the number of shares of each such series then outstanding. The Company may issue unsubscribed shares of any series of stock, for their delivery upon subscription.

All of the common shares of the Company, which consist of the Series “AA” shares, must be held at all times by Mexican investors.

The Series “AA” shares may not represent more than 51% (fifty one percent) of the capital stock.

The Series “L” shares shall have no ownership restrictions and, accordingly, may be held by Mexican investors, foreign individuals, entities or economic units, or Mexican corporations where the majority of the capital stock is held by foreign investors or in which such investors have the power, by whichever means, to direct the management of the corporation. The Series “L” shares shall be considered as a neutral investment within the meaning of Article 18 and other applicable provisions of the Foreign Investment Law and, thus, shall not be taken into account for purposes of determining the percentage of the capital stock that is held by foreign investors.

The Series “AA” shares, which may only be held by Mexican investors, must represent at all times at least 20% (twenty percent) of the capital stock. The Series “L” shares, which have no ownership restrictions, may not represent at any time more than 80% (eighty percent) of the capital stock.

The Series “AA” shares may only be subscribed or acquired by:

(a) Mexican individuals.

(b) Mexican corporations the bylaws of which preclude foreign investors from participating therein and in which only Mexican individuals and/or Mexican entities the bylaws of which, in turn, preclude foreign investors from participating therein, may participate as shareholders.

(c) Trusts expressly authorized by the competent authorities to hold Series “AA” shares pursuant to the Foreign Investment Law and its Regulations, where (i) a majority of the trust beneficiary rights are held by Mexican individuals or entities that satisfy the requirements set forth in paragraphs (a), (b) and (d) above, or (ii) the Series “AA” shares held in trust represent a minority of the outstanding shares of such series and are required to be voted by the trustee in the same manner as the majority of the Series “AA” shares.

The shares of stock of the Company may not be acquired by any foreign state or government and, in the event of any such an acquisition, the relevant shares shall be rendered null and without value for the holder as of the date of acquisition.

SEVEN. Within their respective series, all shares of stock entitle their holders to the same rights. Each Series “AA” share of common stock entitles its holder to cast one vote during any general shareholders meeting. Series “L” shares shall be entitled to vote only with respect to the limited matters set forth in these bylaws and the relevant stock certificates. All stock certificates shall be manually signed by one (1) or more Directors or, if authorized by the board of directors, shall bear the facsimile signature(s) of such Director(s). In the latter event, an original of the relevant signatures shall be filed with the applicable Public Registry of Commerce. The stock certificates shall bear consecutive numbers, may represent one or more shares and shall have dividend coupons attached. The stock certificates, as well as any provisional certificates, must satisfy the requirements set forth in Article 125 (one hundred twenty five) of the General Law of Business Corporations and Article Five of these bylaws.

EIGHT. Series “L” shares, which shall be issued pursuant to Article 113 of the General Law of Business Corporations, shall have limited voting rights and shall be entitled to a preferred dividend. The Series “L” shares shall be entitled to vote only with respect to the following matters: the extension of the duration of the Company, the early dissolution of the Company, any change in the corporate purpose of the Company, any change of nationality of the Company, the transformation of the Company, any merger with another entity and the cancellation of the registration of the shares of stock of the Company with the National Securities Registry or any foreign stock exchange, excluding any quotation system or other market not organized as a stock exchange.

Holders of a minority of limited voting shares other than those referred to in Article 113 of the General Law of Business Corporations, representing at least ten percent of one or both series of the capital stock, shall be entitled to appoint one Director and his alternate. The appointment of the directors elected by the shareholders referred to in this paragraph may be revoked only if the appointment of all other Directors is also revoked. The right set forth herein must be exercised by means of a written notice to the Chairman or the Secretary of the board of directors, at least two business days prior to the date of the ordinary shareholders meeting that will consider the election, reelection or revocation of the appointment of the members of the board of directors.

If no appointment is made by the minority referred to in the preceding paragraph, the Series “L” shares, voting as a class during a special meeting held to that effect, shall be entitled to appoint two members of the board of directors and their respective alternates; provided, that the aggregate number of directors appointed pursuant to the preceding paragraph and this paragraph may in no event exceed the aggregate percentage of the capital stock that is represented by the Series “L” shares, divided by 10. The person authorized to such effect by the special meeting, shall give to the Chairman of the ordinary shareholders meeting written notice of the names of the individuals appointed as members and alternate members of the board of directors by the holders of the Series “L” shares.

Lastly, the Series “L” shares shall be entitled to attend and cast one vote per share at any extraordinary shareholders meeting called to consider the amendment of Article Twelve of these bylaws, which refers to the cancellation of the registration of the shares of stock of the Company with the National Securities Registry.

All shares entitle their holders to the same financial rights and, accordingly, all shares shall be entitled to participate equally and without any distinction in any dividend, reimbursement, redemption or distribution of whatever nature, subject only to the following:

(a)

Pursuant to Article One Hundred Thirteen of the General Law of Business Corporations, no dividend may be paid in respect of the Series “AA” shares until after an annual dividend equal to five percent of the theoretical value of the Series “L” shares, which is $0.00833 Mex.Cy. (eight point thirty three thousandths of one Peso) per share, or an annual dividend of $0.00042 Mex.Cy. (four point two tenths of a thousandth of one Peso) per share, has been paid to the holders of the Series “L” limited voting shares. Such dividend shall be paid out of the retained earnings of the Company as reflected in the financial statements for its previous fiscal years, as approved by the shareholders meeting pursuant to Article Nineteen of the General Law of Business Corporations. If no dividends are approved during a given fiscal year, or if the dividends approved during a given fiscal year are less than the aforementioned five percent, the dividend referred to herein shall be paid over subsequent fiscal years in the order set forth above.

(b)

If following the payment of the dividend referred to in subparagraph (a) above to the holders of the Series “L” shares, the general shareholders meeting approves any additional dividends, the holders of the Series “AA” shares shall be entitled to receive dividends in an amount equal to the dividends paid to the holders of the Series “L” shares pursuant to subparagraph (a) above during the current fiscal year or any previous year, so as to enable all shareholders to receive the same amount of dividends.

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(c)	If following the payment of the dividend referred to in subparagraph (b) above to the holders of the<br>Series “AA” shares, and following the receipt or scheduled receipt of dividends in the same amount by all shareholders, the Company approves any additional dividends during the then current fiscal year, then the holders of all Series<br>“AA” and Series “L” shares shall be entitled to receive the same amount of dividends per share and, accordingly, each Series “L” shall receive additional dividends in the same terms, amounts and dates as the dividends<br>paid in respect of the Series “AA” shares.
(d)	In the event of liquidation of the Company, the holders of the Series “L” shares shall be entitled to<br>receive any accrued but unpaid preferred, cumulative dividends amounting to five percent of the theoretical value of such shares, as set forth in subparagraph (a) above, prior to the distribution of any available proceeds among all shares of<br>stock. Following payment of the dividend referred to in the preceding sentence, the holders of the Series “AA” shares shall be entitled to receive a dividend per share equal to the dividend paid in respect of the Series “L”<br>shares.
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(e)	In the event of an increase in the capital stock through the issuance of new Series “L” shares for<br>their subscription and payment in cash or kind, the holders of the outstanding Series “L” shares shall have the right to subscribe such new shares in proportion to their holdings, in accordance with the terms set forth in these bylaws.<br>
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(f)	The Series “L” shares shall be entitled to participate in any stock dividends approved by the Company<br>on the same terms as the shares of all other series.
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NINE. Subject to the provisions contained in these bylaws, the Series “A” shares may be exchanged for Series “L” shares on a one-for-one basis at the request of their holders, upon surrender of the corresponding stock certificates to the Treasurer of the Company for their cancellation.

TEN. [Reserved.]

ELEVEN. Subject to the provisions contained in these bylaws, the Series “AA” shares may be exchanged for Series “L” shares on a one-for-one basis at the request of their holders, upon surrender of the corresponding stock certificates to the Treasurer of the Company for their cancellation, provided that such exchange does not result in the Series “AA” shares representing less than 20% (twenty percent) of the capital stock.

TWELVE. The Company shall maintain a stock registry and shall recognize as shareholders only those persons registered as such therein. The Company shall record in such registry, at the request of any interested party and following any necessary verification, any transfer of shares carried out in accordance with these bylaws and the applicable laws.

Pursuant to Article 48 (forty eight) of the Mexican Securities Market Law and Article 130 (one hundred thirty) of the General Law of Business Corporations, in order to prevent the direct or indirect acquisition by any shareholder or third party, of any control shares within the meaning of the Mexican Securities Market Law, any acquisition of shares, other securities or instruments representing shares, or any rights with respect to shares of the Company, through a single transaction or a series of related transactions carried out over any period of time, shall be subject to the prior approval of the board of directors, in its sole discretion, if the number of shares or the rights subject matter of the proposed acquisition represent or involve a group of related shareholders representing 10% (ten percent) or more of the voting shares of the Company.

For purposes of the above, the person or group of persons interested in acquiring 10% (ten percent) or more of the voting stock of the Company, shall be required to submit a written request for authorization to the Chairman and the Secretary of the board of directors of the Company. Such request shall include, at least, the following information: (i) a statement as to their acceptance of and intent to abide by the bylaws of the Company and the discretional authorization process set forth in the foregoing article; (ii) the number and class of shares currently owned by the person or group of persons intending to acquire the relevant shares; (iii) the number and class of shares subject matter of the proposed acquisition; (iv) the identity and nationality of each prospective buyer; and (v) a statement as to whether they intend to acquire a significant influence in or the control of the Company within the meaning of the Mexican Securities Market Law; provided, that the board of directors may request such additional information as it may deem necessary or convenient as a basis for any decision concerning the above.

If the board of directors denies the authorization required pursuant to the foregoing article, it shall designate one (1) or more alternative buyers and such buyers shall be required to pay to the relevant party the price quoted for the shares by the stock exchange. If the shares are not registered with the National Securities Registry, then the price shall be determined in accordance with Article 130 of the General Law of Business Corporations.

The board of directors shall issue its decision within not more than 3 (three) months from the date of receipt of the relevant request or, as the case may be, the date of receipt of any additional information, taking into consideration (i) such criteria as may be in the best interest of the Company, its business activities and its long-term prospects and those of its subsidiaries, (ii) that not one (1) or more shareholders of the Company, other than the persons who intend to acquire the control thereof, is precluded from receiving any financial benefits arising as a result of the enforcement of this article; and (iii) that the acquisition of the control of the Company is not restricted in an absolute manner.

The Company may not take any action intended to render ineffective the exercise of the financial rights of the prospective buyer or which violates the provisions contained in the Mexican Securities Market Law concerning mandatory tender offers. Notwithstanding the above, any person who acquires shares, other securities or instruments representing shares, or any rights with respect to shares of the Company in violation of the provisions contained in the preceding paragraph, will be required to pay to the Company a penalty in an amount equal to the aggregate price of all the shares or other securities or instruments representing shares of the Company owned by such person, directly or indirectly, or of all the shares subject matter of the prohibited transaction. If the transactions resulting in the acquisition of shares or other securities, instruments or rights representing more than 10% (ten percent) of the capital stock of the Company, do not provide for the payment of any consideration in exchange therefor, the amount of the penalty shall be equal to the market value of such shares or other certificates, instruments or rights if such transactions were carried out without the authorization referred to in the foregoing article.

For purposes of the requirements set forth above, for so long as the shares of stock of the Company are registered with the National Securities Registry, any transaction carried out through the stock exchange shall also be subject to the provisions contained in the Mexican Securities Market Law and the rules issued thereunder by the National Banking and Securities Commission. For clarification purposes, any transfer of shares of the Company that does not result in the acquisition of an interest equal to or greater than 10% (ten percent) of the voting stock by a single person or a group of persons acting in a concerted fashion, and which is carried out through a stock exchange, shall not be subject to the prior authorization of the board of directors of the Company.

Any person or group of persons that acquires or increases a material interest in the Company without first conducting a public offering to purchase such shares as required by the Mexican Securities Market Law, will not be entitled to exercise the corporate rights pertaining to the relevant voting shares, and the Company may refuse to register such shares in the registry referred to in articles 128 (one hundred twenty eight) and 129 (one hundred twenty nine) of the General Law of Business Corporations.

Consequently, in the event of any acquisition required to be carried out through a public tender offer pursuant to the Mexican Securities Market Law, the buyer shall be required to obtain the authorization of the board of directors prior to the commencement of the relevant offering period. In any event involving the acquisition of 10% (ten percent) or more of the shares of stock of the Company, the buyer shall be required to disclose the existence of the prior board approval process set forth herein.

In addition, any change of control of the Company shall be subject to the prior written authorization of the board of directors, as evidenced by a resolution adopted by the affirmative vote of a majority of the directors that were elected to their positions prior to the occurrence of any fact which may result in the change of control, during a board meeting held in the terms set forth in these bylaws to consider, expressly, such change.

The provisions contained in the foregoing article do not preclude, but are in addition to, any notice, communication and/or authorization required to be given, delivered or obtained by the prospective buyer pursuant to the applicable law.

For purposes of the foregoing article, the board of directors shall determine, in its own discretion, if various persons are acting as a group or in a concerted fashion. In the event of such determination, such persons shall be considered as a single person for purposes of the foregoing article.

No entity which is controlled by the Company may acquire, directly or indirectly, any shares of stock of the Company or other instruments representing such shares, unless such acquisition (i) is carried out through an investment fund, or (ii) is carried out by an entity in which the Company is the majority shareholder, for purposes of a stock option or stock purchase plan established or designed for the benefit of the officers or employees of such entity or the Company itself, provided that the number of shares so acquired may not exceed 25% (twenty five percent) of the aggregate number of shares of the Company that are then outstanding.

Pursuant to the Mexican Securities Market Law and the general rules issued by the National Banking and Securities Commission, for so long as the shares of the Company are registered with the National Securities Registry, in the event of cancellation of such registration, whether at the request of the Company or by resolution of the National Banking and Securities Commission in accordance with the law, the Company shall be required to conduct a public offer in the terms set forth in Article 108 (one hundred eight) of the Mexican Securities Market Law, to purchase all the outstanding shares of stock thereof. Such offer shall be addressed exclusively to those persons other than the members of the controlling group of shareholders, who were shareholders or holders of other securities representing such shares (i) as of the date set forth by the National Banking and Securities Commission, if the registration is cancelled by resolution thereof, or (ii) as of the date of the resolution adopted by the general extraordinary shareholders meeting, if the registration is cancelled voluntarily.

If upon completion of the public offering and prior to the cancellation of the registration of the shares of stock of the Company or other securities representing such shares with the National Securities Registry, the Company does not acquire 100% of its outstanding shares of stock, the Company shall be required to transfer to a trust, for a period of at least 6 (six) months as of the date of cancellation of the registration, such amount as may be necessary to purchase, at the same offering price, the shares held by those shareholders that did not tender their shares in connection with the offering.

The tender offer described herein shall be made for a price that is at least equal to the highest of (i) the trading price, and (ii) the book value of the shares or other securities representing such shares pursuant to the most recent quarterly report filed with the Commission and the stock exchange prior to the commencement of the offering, provided that such value may be adjusted to the extent of any changes in the criteria applicable to the calculation of the relevant information, in which case such value shall be determined based on the most recent information available to the Company, which shall be accompanied by a certificate as to the basis for the determination of the book value, issued by an authorized officer of the Company.

For purposes hereof, the trading price shall be the weighted average price per volume of all transactions carried out during the last thirty days on which the shares of the Company or other securities representing such shares were quoted prior to the commencement of the offering, within a period not to exceed 6 (six) months. If the number of days on which the shares of the Company or other securities representing such shares were quoted during such period is less than 30 (thirty), only those days on which such shares or other securities were quoted shall be taken into consideration. If no price was quoted during such period, the book value shall apply.

The National Banking and Securities Commission, taking into consideration the financial condition of the Company, may authorize the offering price to be determined pursuant to another basis, provided that such circumstance is approved by the board of directors based on an opinion issued by the corporate governance committee, which opinion shall state the reasons that justify the use of such other price and shall be supported by a report issued by an independent expert.

In any event, the voluntary cancellation of the registration of the shares with the National Securities Registry shall be subject, in addition to the requirements set forth in the Mexican Securities Market Law and other applicable laws, to (i) the prior authorization of the National Banking and Securities Commission, and (ii) the authorization of not less than 95% (ninety five percent) of the outstanding shares during a general extraordinary shareholders meeting.

THIRTEEN. Except for any increase or reduction in the capital stock as a result of any repurchase of shares conducted pursuant to the Mexican Securities Market Law, the variable portion of the capital stock may be increased or reduced without the need to amend these bylaws, provided, only, that such increase or reduction must be approved by the ordinary shareholders meeting and the minutes of such meeting must be formalized by a notary public without the need to file the relevant public instrument with the applicable Public Registry of Commerce.

The minimum fixed portion of the capital stock may not be increased or reduced except by resolution of the general extraordinary shareholders meeting, subject to the amendment of these bylaws, unless such capital increase or reduction results from the placement of any shares previously repurchased by the Company pursuant to this article. All capital increases and reductions shall be recorded in a book maintained to such effect by the Company.

In the event of a capital increase, the shareholders shall have a preemptive right to subscribe the new shares issued or placed by the Company, in proportion to the number of shares of each series held by them. The right set forth in this paragraph must be exercised within 15 (fifteen) days from the publication of the relevant resolution in the Official Gazette of the Federation and a newspaper of general circulation in Mexico City, Federal District. Such right will not be available to the shareholders in the event of a merger, a conversion of convertible debentures, a public placement pursuant to Article 53 (fifty three) of the Mexican Securities Market Law and these bylaws, or a sale of shares previously repurchased pursuant to Article 56 (fifty six) of the Mexican Securities Market Law.

If any shares remain unsubscribed after the expiration of the period for the exercise of the preemptive rights available to the shareholders pursuant to this article, such shares may be offered to any person for their subscription and payment in the terms and over the periods authorized by the shareholders meeting that approved the capital increase, by the board of directors or by the persons authorized to such effect by the shareholders meeting; provided, that the subscription price offered to any third party may not be lower than subscription price offered to the shareholders.

The variable portion of the capital stock may be reduced by means of a redemption of shares on a pro-rata basis among all series of shares representing such capital, a redemption of such shares as a whole, or a reimbursement of shares to the shareholders, at the price quoted by the stock exchange on the date of the capital reduction. During the shareholders meeting, the shareholders may request that the shares be redeemed on a pro-rata basis, and in the event of an impasse the shares to be redeemed shall be selected by means of a raffle conducted before a notary public or broker.

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Following the selection of the shares to be redeemed, the Company will publish in the Official Gazette of the Federation and a newspaper of general circulation in Mexico City, Federal District, a notice indicating the number of shares to be redeemed, the numbers of the stock certificates that will be cancelled or exchanged as a result, and the name of the financial institution where the Company will deposit the redemption price, which shall be available to the shareholders as of the date of publication of the aforementioned notice, without interest.

Pursuant to Article 56 (fifty six) of the Mexican Securities Market Law, the Company shall be authorized to repurchase its own shares through the stock exchange, at the then prevailing market price.

Notwithstanding the provisions contained in the General Law of Business Corporations, any repurchased shares held by the Company, as well as any treasury shares, may be publicly offered without the need, in the latter event, for the relevant capital increase to be approved by the shareholders meeting or for such placement to be authorized by the board of directors.

The Company may issue unsubscribed shares of any series of its capital stock, which shall be kept in its treasury for their delivery upon subscription.

The Company may also issue unsubscribed shares to be held in its treasury for their placement among the investing public, provided that (i) the general extraordinary shareholders meeting must determine the maximum amount of the capital increase and the conditions for the relevant issue, (ii) the shares issued pursuant hereto must be placed through a public offering, subject to the prior registration of such shares with the Public Registry of Securities, and (iii) the Company must disclose the amount of its paid-in capital together with the amount of its authorized capital that is represented by treasury shares, and provided, further, that the conditions set forth to such effect in the Mexican Securities Market Law are satisfied.

FOURTEEN. [Reserved.]

GENERAL SHAREHOLDERS MEETINGS

FIFTEEN. The general shareholders meeting shall be the supreme authority of the Company, and all other corporate bodies shall be subordinated thereto.

SIXTEEN. General shareholders meetings may be ordinary or extraordinary, and shall be held in the domicile of the Company. Extraordinary shareholders meetings shall be those called to consider any of the matters set forth in Article 182 (one hundred eighty two) of the General Law of Business Corporations or the cancellation of the registration of the shares of stock of the Company with the National Securities Registry or with any foreign stock exchange in which such shares may be listed. Shareholders meetings may consider only those matters set forth in the agenda therefor.

Each year, the board of directors shall call a special meeting of the holders of the Series “L” shares to appoint the 2 (two) members of the board of directors that such holders are entitled to appoint, which meeting shall be held prior to the general annual ordinary shareholders meeting. Special meetings of the holders of the Series “L” shares called solely to appoint the aforementioned members of the board of directors, shall be governed by the provisions applicable to general ordinary shareholders meetings held upon second notice, as set forth in Article Twenty Three of these bylaws.

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SEVENTEEN. A general ordinary shareholders meeting shall be held at least once a year, on such date as the board of directors may determine but within 4 (four) months following the end of each fiscal year, to consider, in addition to the matters included in the relevant agenda, the matters set forth in Article 181 (one hundred eighty one) of the General Law of Business Corporations.

In addition, pursuant to Article 47 (forty seven) of the Mexican Securities Market Law, the ordinary shareholders meeting must approve any proposed transaction by the Company or any entity controlled thereby, involving, during any given year, 20% (twenty percent) or more of the consolidated assets of the Company based on its financial information as of the end of the most recent quarter, regardless of whether such transaction is carried out through a series of simultaneous or successive acts, if by reason of their characteristics such acts may be considered as a single transaction. Holders of the Series “L” shall be entitled to vote during such shareholders meeting.

EIGHTEEN. Shareholders meetings shall be called by the board of directors, the Chairman of the board of directors or the Secretary, or in its case by the members of any committee authorized to such effect, or a competent judge. Pursuant to Article 184 (one hundred eighty four) of the General Law of Business Corporations and the Mexican Securities Market Law, holders of at least 10% (ten) percent of the voting shares stock, including any limited voting shares, may request that a general shareholders meeting be called to consider the matters indicated in such request.

NINETEEN. Notices of shareholders meetings shall be published in the Official Gazette of the Federation or a newspaper of general circulation in Mexico City, Federal District, at least 15 (fifteen) days prior to the date of the meeting. All the information and documents pertaining to each of the matters included in the agenda shall be made available to the shareholders, free of charge, as of the date of publication of the notice of the meeting.

TWENTY. Notices of shareholders meetings must indicate the place, date and time of the meeting, must include the agenda therefor, which agenda may not include any item designated as “general matters” or other similar designation, and must be signed by the person or persons issuing such notice.

TWENTY ONE. Shareholders meetings may be held without prior notice if all shares entitled to vote with respect to the matters to be discussed thereat are represented at the meeting.

TWENTY TWO. The quorum for an ordinary shareholders meeting held upon first notice shall be one-half of the shares of common stock, and the resolutions of such meeting shall be valid if approved by a majority of the shares present.

TWENTY THREE. If an ordinary shareholders meeting is not held on the date set therefor, a second notice disclosing such circumstance shall be published, setting a date not earlier than 7 (seven) calendar days from the date set in the first notice, and the new meeting shall take action with respect to the matters set forth in the agenda, by majority of votes, regardless of the number of common shares present.

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TWENTY FOUR. The quorum for an extraordinary shareholders meeting held upon first notice to consider any matter with respect to which the holders of the Series “L” shares are not entitled to vote, shall be three-quarters of the common shares entitled to vote with respect to such matters, and the resolutions of such meeting shall be valid if approved by a majority of the common shares present that are entitled to vote thereon.

The quorum for an extraordinary shareholders meeting held to consider any matter with respect to which the holders of the Series “L” shares are entitled to vote, shall be three-quarters of the outstanding shares of stock, and the resolutions of such meeting shall be valid if approved by a majority of the outstanding shares of stock.

The quorum for an extraordinary shareholders meeting held upon second or subsequent notice to consider any matter with respect to which the holders of the Series “L” shares are not entitled to vote, shall be a majority of the common shares entitled to vote with respect to such matters, and the resolutions of such meeting shall be valid if approved by a majority of the outstanding shares that are entitled to vote thereon.

The quorum for an extraordinary shareholders meeting held upon second or subsequent notice to consider any matter with respect to which the holders of the Series “L” shares are entitled to vote, shall be a majority of the outstanding shares of stock, and the resolutions of such meeting shall be valid if approved by a majority of the outstanding shares of stock present.

The resolutions of an extraordinary shareholders meeting held upon first or subsequent notice to consider any matter with respect to which the holders of the Series “L” shares are entitled to vote, shall be valid taken if approved by the majorities set forth in the preceding paragraphs, including a majority of the outstanding Series “AA” shares.

Subject to the terms and conditions set forth in Article 199 (one hundred ninety nine) of the General Law of Business Corporations and Article 50 (fifty) of the Mexican Securities Market Law, any holder of at least 10% of the voting shares present at a meeting, including any holder of limited voting shares, may request that voting on any matter with respect to which such shareholder does not consider himself to be sufficiently informed, be deferred.

TWENTY FIVE. In order to be entitled to attend and vote during a shareholders meeting, shareholders shall be required to deposit with the Secretary of the Company, at least one (1) day prior to the shareholders meeting, their stock certificates or, as the case may be, any provisional certificates, and to obtain therefrom an admission pass. Stock certificates may also be deposited with a Mexican or foreign credit institution or a Mexican brokerage firm, and in such event the shareholders shall be required to submit to the Secretary of the Company, as a condition for the issuance of the admission pass, evidence of the deposit of such stock certificates with such institution and evidence of the agreement of the relevant credit institution, brokerage firm or securities depositary institution to hold in deposit such stock certificates until it has received a notice from the Secretary of the board of directors to the effect that the relevant shareholders meeting has been held. The Secretary of the Company shall deliver to the relevant shareholders and admission pass stating the name of the shareholder, the number of shares deposited thereby and the number of votes that such shareholder is entitled to cast.

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TWENTY SIX. Shareholders may be represented at any meeting thereof by attorneys-in-fact appointed by proxy, provided that the members of the board of directors may not serve as attorneys-in-fact.

Pursuant to Article 49 (forty nine) of the Mexican Securities Market Law, shareholders may also be represented at any meeting thereof by holders of powers of attorney granted through the special forms prepared to such effect by the Company, which forms shall contain (i) the name of the Company and a copy of the agenda for the meeting, provided that such agenda may not include under the caption “general matters” any matter referred to in the applicable law, and (ii) a blank space for the inclusion of any instructions from the shareholder to the attorneys-in-fact.

The Secretary of the board of directors shall ensure that the provisions contained in the preceding paragraph are complied with, and shall submit to the shareholders meeting a report thereon, which circumstance shall be evidenced in the minutes of the relevant meeting.

TWENTY SEVEN. Shareholders meetings shall be presided by the Chairman of the board of directors or, in his absence, by one (1) Vice Chairman or, in the absence of both such persons, by one (1) of the Mexican directors present or, in the absence of all such persons, by the person appointed by the attendants. The Secretary or the Alternate Secretary of the board of directors, or in the absence of such two (2) persons, the person appointed by the chairman of the meeting, shall act as secretary of the meeting.

TWENTY EIGHT. Upon commencement of the shareholders meeting, the chairman thereof shall appoint two (2) tellers of inspection who shall determine the number of shares present and shall prepare a list of attendance containing the names of the shareholders present or represented at the meeting and the number of shares deposited by each of them prior to the meeting.

TWENTY NINE. If the time allotted for a shareholders meeting at which a quorum is present, is not sufficient to consider all the matters for which the meeting was called, the meeting may be adjourned and continued at a later date without further notice, provided that such adjournment must be approved by the majority required to take action at such meeting.

The resolutions adopted during the continuance meeting shall be valid if approved by the majority required pursuant to these bylaws.

THIRTY. The proceedings of the shareholders meetings shall be evidenced in the minutes thereof, which shall contain the resolutions approved thereby, shall be recorded in the relevant minutes book and shall be signed by the chairman and the secretary of the meeting.

THIRTY ONE. Any holder of at least 20% (twenty percent) of the voting shares of stock, including any holder of limited voting shares, may have any resolution adopted by the general shareholders meeting with respect to any matter on which such holder was entitled to vote, set aside by a court through the procedures set forth in Articles 201 (two hundred one) and 202 (two hundred two) of the General Law of Business Corporations.

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Pursuant to the Securities Market Law, any holder of at least 5% (five percent) of the outstanding shares of stock shall have the right to bring any directors’ liability action.

MANAGEMENT

THIRTY TWO. The management of the Company shall be entrusted to a board of directors and a Chief Executive Officer, who shall have the duties set forth in the Mexican Securities Market Law.

The board of directors shall consist of not less than 5 (five) and not more than 21 (twenty one) directors of which at least 25% (twenty five percent) shall be appointed by the ordinary shareholders meeting. The shareholders meeting may also appoint up to an identical number of alternate directors, in which case it shall establish the rules pursuant to which the alternate directors may replace the directors; provided, that if no such rules are established by the shareholders meeting, each alternate director shall be authorized to replace any director, except that the alternate directors appointed by the holders of the Series “L” shares shall be authorized to replace only any of the directors appointed by such holders, and except, further, that the alternate directors appointed by any minority shareholders shall be authorized to replace only the directors appointed by such shareholders. A majority of the directors and alternate directors must be Mexican citizens and must be appointed by Mexican shareholders. The directors and alternate directors shall be appointed by a majority of the Series “AA” shares, and the other 2 (two) directors and alternate directors shall be appointed by a majority of the Series “L” shares.

The members of the board of directors may or may not be shareholders and must satisfy the requirements set forth in the Mexican Securities Market Law. Any shareholder or group of shareholders representing at least 10% (ten percent) of the common shares shall be entitled to appoint one (1) director and one (1) alternate director, in which case such shareholder or group of shareholders shall not be entitled to vote with respect to the appointment of the directors and alternate directors required to be appointed by the majority of the shareholders. If any shareholder or group of shareholders representing at least 10% (ten percent) of the common shares, exercises the right to appoint one (1) director and his alternate, then the majority of the shareholders shall be entitled to appoint only the remaining number of directors.

The board of directors shall appoint a Secretary, who will not be a board member and will have the duties and responsibilities set forth in the Mexican Securities Market Law.

The directors shall be appointed to a one (1) year term, but shall continue in their positions for up to an additional 30 (thirty) day period following the expiration of such term if their successors have not been appointed or have not taken office, without being subject to Article 154 (one hundred fifty four) of the General Law of Business Corporations. The directors may be reelected and shall receive such compensations as the general shareholders meeting may determine.

Alternate directors shall replace the corresponding directors in the event of absence.

In the events set forth in the preceding paragraph and in Article 155 (one hundred fifty five) of the General Law of Business Corporations, the board of directors may appoint provisional directors without the need for shareholder authorization. Shareholders may ratify the appointment of any such director or appoint a replacement director during the first shareholders meeting held after such occurrence.

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The Company must satisfy the requirements of the Mexican Securities Market Law as to the composition, authority, and operation of the board of directors, including, without limitation, the rules governing the appointment and certification of the independent directors.

For the performance of its duties, the board of directors shall receive support from one (1) or more committees. Pursuant to Article 25 (twenty five) of the Mexican Securities Market Law, the corporate governance and audit committee(s) shall consist of at least 3 (three) members appointed by the board of directors, all of whom must be independent directors.

The appointment of the independent directors shall be subject to Article 26 of the Mexican Securities Market Law.

THIRTY THREE. Irrespective of the Company’s obligation to comply with the provisions set forth in the preceding article, and for so long as such article remains in effect, no failure to comply with such article, for whatever reason, shall entitle any third party to challenge the validity of any legal act, contract, understanding, agreement or other transaction executed by the Company through its board of directors or other intermediate corporate body, representative or attorney-in-fact thereof, and no such provision shall be construed as constituting a requirement for the validity or legal existence of any such act.

For purposes of the Mexican Securities Market Law, and considering that the members of the board of directors are appointed by the shareholders meeting and, consequently, are deemed for all legal purposes to have obtained all requisite waivers from the Company, no such person shall be deemed to have taken advantage of or exploited a business opportunity pertaining to the Company or to any entity controlled by the Company or in which the Company exercises a significant influence, if such person, directly or indirectly, carries out any act within the ordinary course of the Company’s business or the business of any entity controlled by the Company or in which the Company exercises a significant influence.

THIRTY FOUR. Unless otherwise determined by the shareholders meeting, the directors, alternate directors, committee members, executive officers and managers shall not be required to post any guaranty in respect of the liabilities in which they may incur during the performance of their duties.

Pursuant to the Mexican Securities Market Law, the obligation of the members of the board of directors, the secretary or the alternate secretary, to indemnify the Company or any entity controlled by the Company or in which the Company exercises a significant influence, for any damages and losses suffered thereby as a result of a breach of the directors’ duty of care in connection with any act carried out or any resolution adopted by the board of directors, any resolution not adopted by the board of directors due to the inability to legally hold a meeting thereof and, generally, any other breach of such duty of care, shall in no event exceed, in one or more instances, an amount equal to the aggregate net fees paid to such persons by the Company, any entity controlled by the Company or any entity in which the Company exercises a significant influence, during the previous 12 (twelve) month period; provided, that the limit set forth herein with respect to such liability shall not be applicable in the event of any act involving bad faith or

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which violates the provisions of the Mexican Securities Market Law and other applicable laws. The Company shall indemnify and hold its executive officers, directors, secretary and alternate secretary free and harmless from any liability in which they may incur with third parties as a result of the performance of their duties, and shall pay the amount of any indemnification for any damages suffered by any third party as a result of such performance, except in the event of any act involving bad faith or which violates the provisions of the Mexican Securities Market Law of other applicable laws.

THIRTY FIVE. The board of directors shall meet at least every 3 (three) months, either in Mexico City or in such other jurisdiction within the United Mexican States as may be designated for such purpose, on such dates as the board of directors itself may determine. Meetings of the board of directors may be called by at least 25% (twenty five percent) of the members of the board of directors or of any committee thereof, by the chairmen thereof, or by the secretary or the alternate secretary.

In addition to the regular meetings of the board of directors referred to above, the chairman or at least 25% (twenty five percent) of the members of the board of directors or any committee thereof, the secretary or the alternate secretary, may at any time call a meeting of the board of directors by written notice to its members at least 5 (five) days prior to the date of the meeting.

Notices of the meetings of the board of directors shall contain the agenda for the relevant meeting. The quorum for any meeting of the board of directors shall be a majority of the directors, provided that the majority of the directors present must be Mexican citizens, and action shall be validly taken by a majority of the directors present. In the event of a tie, the chairman of the board of directors shall cast the deciding vote.

Any action with respect to any of the matters set forth in paragraphs (1) through (12) of Article Forty One of these bylaws shall be subject to the favorable opinion of the executive committee. To such effect, the executive committee shall be required to issue its opinion within 10 (ten) days following the request of the board of directors, the chairman of the board or the chief executive officer of the Company. If the executive committee does not issue an opinion within the aforementioned term, or if the members thereof are unable to reach an agreement with respect to the relevant matter during a meeting of such committee, then the board of directors shall take action on such matter without the opinion of the executive committee.

Notwithstanding the above, if a majority of the members of the board of directors or any other corporate body, or the chief executive officer of the Company, determines in good faith that action on a matter subject to the favorable opinion of the executive committee is of the essence and cannot wait until the next scheduled meeting thereof, then action on the specific matter may be taken by the board or directors or any other corporate body, or by the chief executive officer of the Company, without the opinion of the executive committee.

THIRTY SIX. The proceedings of the meetings of the board of directors shall be evidenced in the minutes thereof, which shall contain the resolutions approved thereby, shall be recorded in the relevant book of minutes and shall be signed by the chairman and the secretary of the meeting.

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Pursuant to the last paragraph of Article 143 (one hundred forty three) of the General Law of Business Corporations, action by the board of directors or any committee thereof may be taken without a meeting. Any resolution adopted without a meeting must be unanimously approved by all members of the relevant corporate body or, in the event of permanent absence or incapacitation of any such member, with the consent of the relevant alternate member, and shall be further subject to the following provisions:

I.	The chairman, acting either in his own discretion or at the request of any 2 (two) members of the board of<br>directors or any committee thereof, shall give to all the members and alternate members of the relevant corporate body notice, by oral or written communication or by such other means as he may deem convenient, of any action proposed to be taken<br>without a meeting, explaining the reasons thereof. The chairman shall deliver to all such members, upon their request, all such documents and notes as such members may require. In giving the notices referred to herein, the chairman may seek the<br>assistance of any 1 (one) or more members of the board of directors or the relevant committee, or of the secretary or the alternate secretary.
II.	If all members of the board of directors or relevant committee, or, as the case may be, all the alternate<br>members whose vote is required, give to the chairman or his assistants oral notice their consent for the adoption of the resolutions submitted to their consideration, such persons shall be required to confirm such consent in writing within 2 (two)<br>business days from the date on which they gave oral notice of their consent, in the manner set forth in the following subparagraph. Such written confirmation shall be delivered to the chairman and the secretary by mail, telex, facsimile, telegram,<br>courier service or any other means that ensures its delivery within the next 2 (two) business days.
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III.	For purposes of the preceding subparagraph, the chairman, either directly or through his assistants, shall<br>deliver to each member of the relevant corporate body an official draft of the minutes containing the resolutions to be adopted without a meeting, together with such other documents as he may deem convenient, and following any necessary revisions<br>such official draft, duly signed by each member of the board of directors or, as the case may be, the relevant committee, shall be returned to the chairman and the secretary.
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IV.	Upon receipt by the chairman and the secretary of the written confirmations of all the members of the relevant<br>corporate body, the chairman and the secretary shall immediately record in the corresponding book of minutes the minutes containing all the relevant resolutions, and shall both sign such minutes. The minutes shall be dated as of the date on which<br>the oral or written consent of all the members was obtained, regardless of whether or not all such consents had been confirmed in writing as of such date; provided, that upon their receipt all such written confirmations shall be filed in the records<br>maintained by the secretary of the Company. Such records shall also include the written comments to the draft minutes by the audit committee, if any.
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THIRTY SEVEN. Unless the shareholders meeting that appointed the members of the board of directors shall have also appointed the persons referred to herein, the board of directors, at its first meeting following such shareholders meeting or at any subsequent meeting, shall designate from among its members a chairman, who must be a Mexican citizen, and may also designate one or more vice chairmen, a secretary and an alternate secretary, provided that the secretary and the alternate secretary may not be members of the board of directors. Except for the positions of chairman, vice chairman, secretary and alternate secretary, all positions may be held by the same person. In the event of temporary or permanent absence of the chairman, such person shall be replaced by one (1) vice chairman who is a Mexican citizen, and in the event of temporary or permanent absence of the secretary, such person shall be replaced by the alternate secretary or, if no person has been appointed to such position, by such person as the board of directors may determine.

POWERS AND AUTHORITY OF THE BOARD OF DIRECTORS

THIRTY EIGHT. The board of directors shall have the broadest authority to manage the affairs of the Company, with general powers of attorney for lawsuits and collections, for administration matters and for acts of domain, without any limitation and with all the general powers and those special powers required to be expressly contained in a special clause pursuant to the first 3 (three) paragraphs of Article 2,554 (two thousand five hundred fifty four) of the Civil Code for the Federal District, including the powers referred to in Article 2,587 (two thousand five hundred eighty seven) thereof. Such powers shall include, but not be limited to, the following:

I.	Power to represent the Company before all types of federal, state or municipal authorities; to represent the<br>Company before all types of individuals or entities; to represent the Company before any federal or local labor board and labor arbitration board, with express powers for purposes of Sections II and III of Article 692 (six hundred ninety two) and<br>articles 786 (seven hundred eighty six) and 876 (eight hundred seventy six) of the Federal Labor Law, with power to file and argue any motion in the name and on behalf of the Company; to submit to arbitration; to agree to settlements; to enter into<br>any agreements; to file criminal claims and complaints; to file and withdraw from any action or recourse, including amparo proceedings; to represent the Company before all types of judicial, administrative or other authorities having<br>jurisdiction over labor and employment matters; to file and withdraw from any amparo proceedings; to file criminal claims and, if applicable, grant pardons in connection therewith; to file criminal complaints and cooperate with the Attorney<br>General’s office; to withdraw from any proceedings; to agree to any settlement; to submit to arbitration; to file and argue all types of motions; to file petitions for the recusation of judges; and to receive any payments.<br>
II.	Power to issue, subscribe, endorse and guarantee all types of credit instruments.
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III.	Power to appoint the officers, employees, managers and attorneys-in-fact of the Company, and to determine the<br>duties, obligations and compensations thereof.
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IV.	Power to establish or close any offices, branches or agencies.
V.	Power to acquire any shares, partnership interests or securities issued by third parties, and to exercise the<br>voting rights pertaining thereto.
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VI.	Power to enter into, amend, terminate and rescind all types of agreements.
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VII.	Power to accept, on behalf of the Company, any mandate from any Mexican or foreign individuals or corporations.<br>
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VIII.	Power to open bank accounts and withdraw deposits therefrom, appoint authorized signatories therefor, make<br>deposit therein and withdraw funds therefrom, subject to such limitations as the board of directors may determine.
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IX.	Power to grant all types of real, personal and trust guaranties in respect of the obligations of the Company;<br>to act as co-obligor, guarantor and generally, obligor in respect of the obligations of any third party; and to encumber real property and convey in trust any assets as security for such obligations.
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X.	Power to grant, substitute and delegate general and special powers of attorney for acts of domain, provided<br>that such powers shall in all events be exercised jointly by at least two individuals; to grant, substitute and delegate general and special powers of attorney for administration matters and for lawsuits and collections, provided that such powers<br>shall not supersede the powers of the board of directors; and to revoke any powers of attorney.
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XI.	Power to grant powers of attorney to issue, subscribe, endorse and guarantee all types of credit instruments;<br>provided, that the power to guarantee credit instruments shall in all events be exercised jointly by at least two individuals.
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XII.	Power to call shareholders meetings and enforce the resolutions thereof.
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XIII.	Powers pursuant to the Mexican Securities Market Law.
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XIV.	Power to carry out any legal acts and take such other action as may be necessary or convenient in the pursuit<br>of the corporate purposes.
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CHAIRMAN AND VICE CHAIRMEN

THIRTY NINE. The chairman, who must be a Mexican citizen, shall preside over all shareholders meetings and meetings of the board of directors; shall represent the board of directors; shall enforce the resolutions adopted by the shareholders meeting and the board of directors, unless such bodies shall have appointed one (1) or more special delegates for such purpose; and shall oversee the affairs of the Company and ensure the compliance of the provisions contained in these bylaws, in any applicable regulations, in the resolutions adopted by the shareholders meeting and the board of directors or in the law, and shall, together with the secretary, sign the minutes of all shareholders meetings and meetings of the board of directors. In the event of temporary or permanent absence of the chairman, the duties thereof shall be fulfilled by 1 (one) of the vice chairmen or, in the event of absence of a vice chairman, by such person as the board of directors may appoint to temporarily replace the chairman, provided that such person must be a Mexican citizen and must have been appointed by the holders of a majority of the common shares.

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SECRETARY

FORTY. The secretary shall have such powers and authority as the board of directors may determine, and shall keep the books of minutes and record in such books the minutes of all shareholders meetings and meetings of the board of directors, which shall be signed by such secretary and the chairman. In the event of his absence, the secretary shall be replaced by the alternate secretary or, in the event of absence of an alternate secretary, by such person as the chairman may appoint to such effect.

EXECUTIVE COMMITTEE

FORTY ONE. The shareholders meeting, by the affirmative vote of a majority of the common shares, shall appoint from among the members of the board of directors an executive committee formed by such number of members and their alternates as the shareholders meeting may determine. A majority of the members of the executive committee must be Mexican citizens and must be appointed by the holders of a majority of the common shares.

The executive committee shall be subordinated to the board of directors and shall have the powers and authority set forth in Article Thirty Six of these bylaws, except for the powers set forth in Section XIII thereof; provided, that the powers and authority of the executive committee shall not include those powers and authority expressly reserved to any other corporate body pursuant to the law of these bylaws. The executive committee shall not be authorized to delegate in full to any 1 (one) or more attorneys-in-fact, the powers and authority vested therein. Subject to the provisions contained in these bylaws, the executive committee shall review and approve or, as the case may be, submit to the board of directors for its approval, any proposed action with respect to the following matters:

Any amendment, change or other modification in full of these bylaws.
Any issuance, authorization, cancellation, amendment, modification, reclassification and redemption of or change in any securities of the capital stock of the Company or any of its subsidiaries.
Any sale or other transfer (other than any sale or transfer of inventories or obsolete assets, or any transfer made in the ordinary course of business of the Company or any of its subsidiaries) of, or the creation of any lien (other than any lien mandated by law) on, any asset of the Company or its subsidiaries with a value in excess of $175 (one hundred seventy five) million U.S. dollars or its equivalent in Mexican pesos.
Any new line of business, or any acquisition by the Company or any of its subsidiaries of any interest in any other entity or corporation, with a value in excess of $100 (one hundred) million U.S. dollars or its equivalent in Mexican pesos.

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The annual budget for capital expenditures of the Company.
Any transaction with respect to any additional net debt of or any new loan or financing to the Company or its subsidiaries in excess of $150 (one hundred fifty) million U.S. dollars or its equivalent in Mexican pesos; or any new revolving credit facility which enables the Company or its subsidiaries to borrow, through a single disposition, an aggregate amount of funds in excess of $150 (one hundred fifty) million U.S. dollars or its equivalent in Mexican pesos;
The annual business plan or budget of the Company;
The appointment of the chief executive officer of the Company;
Any merger or similar transaction involving the Company or its subsidiaries;
The execution of any agreement or transaction with or for the benefit of any holder of Series “AA” shares or any Affiliate thereof, which is not included in the policies issued by the executive committee;
The dividend policy of the Company; and
Any transfer of any material trade name or trademark, or of the goodwill attributable thereto.

Action with respect to the aforementioned matters may be taken either by the board of directors or by the executive committee.

The quorum for a meeting of the executive committee shall be a majority of its members, provided that such majority includes a majority of the members appointed by the Mexican shareholders, and action shall be validly taken by a majority of the members present. The members of the executive committee shall make their best efforts to reach a consensus on the matters submitted to such committee for its consideration.

In the event of a tie, the chairman of the committee shall cast the deciding vote.

The executive committee shall meet as frequently as necessary to be constantly involved in the matters entrusted thereto. The executive committee shall meet whenever it may deem convenient, but shall always meet prior to each meeting of the board of directors. Notice of the meetings of the executive committee shall be given (by facsimile and courier service) to all members thereof at least 5 (five) days prior to the date set for the meeting; provided, that such period may be reduced or the notice requirement waived with the consent of all such members. Such notice shall include, among other things, the agenda for the meeting, with reasonable detail of all the matters to be considered, and shall be accompanied by copies of the documents to be discussed at the meeting. In the event that a matter not included in the relevant agenda is brought before the executive committee, and that the members of the committee have not received all the necessary documents pertaining to such matter, if such members are unable to reach a consensus with respect to such matter, then action on such matter shall be postponed until the next scheduled meeting of the committee, or until approved by the unanimous consent of all the members, or until all of the aforementioned requirements have been satisfied.

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Notwithstanding the above, if a majority of the members of the executive committee determines in good faith that action on a matter submitted thereto is of the essence and cannot wait until the next scheduled meeting thereof, then action on the specific matter may be taken by simple majority of the members present and shall be discussed with all other members prior to any formal action, and the opinion of each member shall be included in the minutes of the next scheduled meeting of the executive committee.

The executive committee shall issue its own operating rules based upon these bylaws, and such rules shall be subject to the approval of the board of directors.

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AUDIT COMMITTEE

FORTY TWO. The oversight of the performance, conduction and execution of the Company’s business shall be entrusted to the board of directors, which for such purposes shall act through an audit committee and an external auditor. The Company shall not be subject to Section V of Article 91 (ninety one), Article 164 (one hundred sixty four), Article 171 (one hundred seventy one), to the last paragraph of Article 172 (one hundred seventy two), Article 173 (one hundred seventy three), and Article 176 (one hundred seventy six) of the General Law of Business Corporations.

The chairman of the audit committee shall be appointed and/or removed exclusively by the general shareholders meeting, shall not be authorized to also act as chairman of the board of directors, shall be selected based on his experience, recognized ability and professional reputation, and shall prepare and submit to the board of directors an annual report with respect to the activities of such committee. Such report shall include, at least, the following information: (i) with respect to the Company’s corporate practices, (a) any observations concerning the performance of the executive officers, (b) any related party transactions carried out during the year, including a detailed description of the most relevant such transactions, (c) the compensation and overall benefits package of the chief executive officer, and (d) any waiver granted by the board of directors pursuant to Section III (f) of Article 28 (twenty eight) of the Mexican Securities Market Law, in order for any director, executive officer or other person in a commanding position to take advantage of a business opportunity for his own benefit or the benefit of third parties; (ii) with respect to the Company’s audit practices, (a) the status of the internal control and internal audit systems of the Company and any entity controlled thereby, including, if applicable, a description of any deficiency therein, any deviation therefrom, and any aspect thereof that requires improvement, taking into consideration the opinions, reports, communications and certifications issued by the external auditor, and the reports issued by any independent expert who may have rendered services during the year, (b) a description of and progress report on the preventive and corrective measures implemented as a result of any investigation concerning the violation of the operating and accounting guidelines and policies of the Company or any entity controlled thereby, (c) an evaluation of the performance of the entity responsible for the external audit services, and of the external auditor in charge thereof, (d) a description of and the amount represented by any additional or supplemental services provided by the entity responsible for the external audit duties and by any independent experts, (e) the principal results of the review of the financial statements of the Company and all entities controlled thereby, (f) a description and the effects of any change in the accounting policies approved during the year to which the report is related, (g) any measures implemented as a result of any significant comments received from the shareholders, executive officers, employees and, generally, third parties with respect to the accounting, internal controls and other matters associated with the internal or external audit duties, or of any complaint regarding any action on the part of the management which is deemed irregular, and (h) a status report regarding the implementation of the resolutions adopted by the shareholders meeting and the board of directors.

For purposes of the preparation of the reports referred to in this article, and of the opinions referred to in Article 42 (forty two) of the Mexican Securities Market Law, the audit committee shall request the opinion of the executive officers of the Company and, in the event of a discrepancy of opinions therewith, shall include a description of such differences in the aforementioned reports and opinions.

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In addition, the audit committee shall be responsible for:

(a)	Providing to the board of directors opinions with respect to the matters entrusted thereto pursuant to the<br>Mexican Securities Market Law.
(b)	Requesting the opinion of independent experts in such instances as it may deem it convenient to adequately<br>perform its duties or as required by the Mexican Securities Market Law and/or any general rules.
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(c)	Calling shareholders meetings and requesting the inclusion in the agenda therefor, of any matter as it may deem<br>convenient.
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(d)	Providing assistance to the board of directors in connection with the preparation of the reports referred to in<br>Section IV (e) and (f) of Article 28 (twenty eight) of the Mexican Securities Market Law.
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(e)	Evaluating the performance of the entity responsible for the external audit duties, and analyzing the reports<br>and opinions issued and signed by the external auditor. To such effect, the committee may require the attendance of such auditor in such instances as it may deem convenient, provided that it shall meet with the external auditor at least one a year.<br>
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(f)	Discussing the Company’s financial statements with the individuals responsible for their preparation and<br>review and, based on such discussions, recommending to the board of directors their approval or rejection.
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(g)	Submitting to the board of directors a report concerning the status of the internal control and internal audit<br>systems of the Company and all entities controlled thereby, including any irregularities detected therein.
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(h)	Preparing the opinion referred to in Section IV (c) of Article 28 (twenty eight) of the Mexican Securities<br>Market Law, with respect to the contents of the report submitted by the chief executive officer, and submitting such opinion to the board of directors for its subsequent review by the shareholders meeting, taking into consideration, among others,<br>the report of the external auditor. Such opinion shall state, at least:
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1.	If the accounting and information policies and criteria followed by the Company are adequate and sufficient in<br>light of its specific circumstances.
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2.	If such policies and criteria have been applied consistently in the information submitted by the chief<br>executive officer.
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3.	If as a result of subparagraphs 1 (one) and 2 (two) above, the information submitted by the chief executive<br>officer reasonably reflects the Company’s financial condition and results.
(i)	Providing assistance to the board of directors in connection with the preparation of the reports referred to in<br>Section IV (d) and (e) of Article 28 (twenty eight) of the Mexican Securities Market Law, with respect to the principal accounting and information policies and criteria, and the report with respect to the transactions and activities<br>carried out thereby during the performance of its duties under these bylaws and the Mexican Securities Market Law.
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(j)	Ensuring that the transactions referred to in Section III of Article 28 (twenty eight) and Article 47 (forty<br>seven) of the Law, are carried out in accordance with the provisions contained therein and the policies derived therefrom.
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(k)	Requesting the opinion of independent experts in such instances as it may deem it convenient to adequately<br>perform its duties or as required by the Mexican Securities Market Law and/or any general rules.
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(l)	Requesting form the executive officers and employees of the Company or any entity controlled thereby, any<br>report with respect to the preparation of the financial or other information thereof as it may deem convenient for the performance of its duties.
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(m)	Investigating any potential violation of the transactions, operating guidelines and policies, internal control<br>and internal audit systems and accounting systems of the Company or any entity controlled thereby, and reviewing any documents, records and other evidence thereof to such level and extent as it may deem convenient to oversee the above.<br>
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(n)	Receiving comments from the shareholders, directors, executive offices, employees and, generally, third parties<br>with respect to the matters referred to in the preceding paragraph, and implementing any actions as it may deem appropriate in response to such comments.
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(o)	Requesting periodic meetings with the executive officers, and requesting therefrom any information with respect<br>to the internal control and internal audit of the Company or any entity controlled thereby.
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(p)	Reporting to the board of directors any significant deviation encountered thereby during the course of its<br>duties and, if applicable, any corrective measures adopted or proposed to be adopted thereby.
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(q)	Overseeing the execution by the chief executive officer, of the resolutions adopted by the shareholders meeting<br>and the board of directors in accordance with the instructions provided thereby.
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(r)	Overseeing the establishment of internal procedures and controls so as to ensure that all acts and transactions<br>carried out by the Company and the entities controlled thereby are in compliance with the applicable laws, and implementing procedures to facilitate such oversight.
(s)	Any other duties provided for in the Mexican Securities Market Law or these bylaws.
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EXTERNAL AUDITOR

FORTY THREE. The Company shall have an external auditor who may be called to participate in and address the meetings of the board of directors, without being entitled to vote thereat, and who shall refrain from participating in any discussion regarding any item of the agenda with respect to which he may have a conflict of interest or which may affect his independent status.

The external auditor of the Company shall issue a report in connection with the financial statements prepared in accordance with generally accepted audit procedures and accounting principles.

CHIEF EXECUTIVE OFFICER

FORTY FOUR. The performance, conduction and execution of the business activities of the Company and its controlled entities shall be entrusted to the chief executive officer, subject to the strategies, policies and guidelines approved by the board of directors.

For purposes of the performance of his duties, the chief executive officer shall have broad powers of attorney for administration matters and lawsuits and collections, including any power that must be expressly provided for through a special clause. For purposes of any acts of domain, the chief executive officer shall have such powers of attorney, which shall be subject to such terms and conditions, as the board of directors of the Company may determine.

Without prejudice of the above, the chief executive office shall be responsible for:

I.	Submitting to the board of directors, for its approval, the business strategies of the Company and the entities<br>controlled thereby, based on the information received therefrom.
II.	Executing the resolutions of the shareholders meeting and the board of directors in accordance with the<br>instructions provided thereby.
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III.	Recommending to the committee responsible for performing the audit duties, the internal control and internal<br>audit guidelines of the Company and the entities controlled thereby, and implementing any guidelines approved by the board of directors of the Company.
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IV.	Signing, together with the executive offices responsible for its preparation within their respective duties,<br>any relevant information concerning the Company.
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V.	Disclosing any relevant information or event that is required to be publicly disclosed pursuant to the Mexican<br>Securities Market Law.
VI.	Complying with the provisions applicable to any transaction involving the acquisition and placement of the<br>Company’s own shares of stock.
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VII.	Implementing, either directly or through an authorized representative, any corrective measure or liability<br>action within the scope of its duties or as directed by the board of directors.
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VIII.	Verifying the payment of all capital contributions by the shareholders.
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IX.	Complying with the requirements set forth in the law and these bylaws with respect to the payment of dividends<br>to the shareholders.
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X.	Ensuring that all of the Company’s accounting, record keeping and information systems are adequately<br>maintained.
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XI.	Preparing and submitting to the board of directors the report referred to in Article 172 (one hundred seventy<br>two) of the General Law of Business Corporations, except as provided in subparagraph (b) thereof.
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XII.	Establishing internal procedures and controls so as to ensure that all acts and transactions carried out by the<br>Company and the entities controlled thereby are in compliance with the applicable laws, following up on the results of such internal procedures and controls and, if necessary, adopting any necessary measures in connection therewith.<br>
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XIII.	Bringing liability actions pursuant to the Mexican Securities Market Law and these bylaws, against any related<br>or third party alleged to have caused a damage to the Company or any entity controlled by the Company or in which the Company exercises a significant influence, unless the board of directors, based on the opinion of the audit committee, shall<br>determine that such damage is immaterial.
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FORTY FIVE. For purposes of the performance of his duties and activities, and in order to adequately comply with his obligations, the chief executive officer will be assisted by those executive officers designated to such effect, and by any other employee of the Company or any entity controlled thereby.

FISCAL YEARS; FINANCIAL INFORMATION

FORTY SIX. The fiscal years of the Company shall consist of 12 (twelve) months and shall run from January 1 (one) through December 31 (thirty one) of each year.

FORTY SEVEN. Within 3 (three) months following the end of each fiscal year, the board of directors shall prepare a report containing, at a minimum, the information set forth in Article 172 (one hundred seventy two) of the General Law of Business Corporations. The board of directors shall deliver such report, together with any relevant support documentation, at least one month prior to the date of the shareholders meeting that will be held to consider such report. The report of the board of directors referred to in this article must be completed and made available to the shareholders at least 15 (fifteen) days prior to the date of the shareholders meeting that will consider such report. Shareholders will be entitled to receive, free of charge, a copy of such report.

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In addition, during the annual ordinary shareholders meeting referred to in Article Twenty Seven hereof, the Company shall disclose a report with respect to the satisfaction of its tax obligations under Section XX of Article 86 (eighty six) of the Income Tax Law. Such report may be included within the report referred to in the preceding paragraph or within any other report provided for in the applicable laws.

LEGAL RESERVE; DISTRIBUTION OF PROFITS AND LOSSES

FORTY EIGHT. The net profits of the Company, as reflected by the balance sheet approved by the annual ordinary shareholders meeting, shall be allocated as follows:

(a)	First, at least 5% (five percent) shall be allocated to create or replenish a legal reserve, until the amount<br>of such legal reserve amounts to at least one-fifth of the capital stock.
(b)	Thereafter, the amounts determined by the shareholders meeting shall be allocated to create any extraordinary,<br>special or additional reserves that may be deemed convenient.
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(c)	Thereafter, the amounts determined by the shareholders meeting shall be allocated to create or increase any<br>general or special reserves, including, if applicable, the reserve for the repurchase of shares referred to in Article 56 (fifty six) of the Mexican Securities Market Law.
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(d)	Thereafter, any amount as may be necessary shall be allocated to pay the preferred dividend payable to the<br>holders of the Series “L” shares in respect of the relevant fiscal year or, as the case may be, any dividend accrued during previous fiscal years which remains unpaid.
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(e)	The remainder of the net profits may be distributed as dividends to the shareholders, in proportion to the paid<br>amount of their shares.
---	---

Unless otherwise approved by the shareholders meeting, dividends shall be paid only upon surrender of the corresponding dividend coupons. Dividends not collected within 5 (five) years from the date on which they became payable, shall be forfeited to the Company.

The annual shareholders meeting shall determine the compensations of the members of the board of directors.

Losses, if any, shall be covered by the shareholders in proportion to their respective holdings of shares; provided, that the obligations of the shareholders pursuant hereto shall be limited to the amount of their respective capital contributions and that the shareholders shall not be required to pay any amounts in excess thereof.

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EVENTS OF DISSOLUTION

FORTY NINE. The Company shall be dissolved:

I.	In the event of impossibility to achieve its corporate purpose.
II.	By resolution of the shareholders pursuant to the law and these bylaws.
---	---
III.	If the number of shareholders of the Company decreases to less than the minimum of 2 (two) shareholders<br>required pursuant to Section I of Article 89 (eighty nine) of the General Law of Business Corporations.
---	---
IV.	In the event of a loss amounting to two-thirds of the capital stock.
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LIQUIDATION

FIFTY. Following its dissolution, the Company shall be liquidated. The general extraordinary shareholders meeting, by affirmative vote of a majority of the holders of the shares of common stock, shall appoint 1 (one) or more liquidators. The liquidators shall hold the legal representation of the Company, shall have the powers and obligations set forth in Article 242 (two hundred forty two) of the General Law of Business Corporations and shall, in due course, distribute any remaining funds to the shareholders, all in accordance with the provisions contained in articles 247 (two hundred forty seven) and 248 (two hundred forty eight) of the General Law of Business Corporations and the following rules:

I.	They shall conclude all pending matters in such manner as they may deem most convenient;
II.	They shall collect all the accounts receivable and pay off all the debts, and shall sell any the assets of the<br>Company as may be necessary to such effect.
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III.	They shall prepare the final balance, and
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IV.	Following the approval of the final balance, they shall distribute any remaining assets among the shareholders<br>as follows:
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1.	The holders of the Series “L” shall receive payment of the preferred dividend equal to 5% (five<br>percent) of the capital attributable to such shares, accrued by such shares but which remains unpaid;
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2.	The holders of the Series “AA” shares of common stock shall receive payment of a dividend equal to<br>the dividend paid to the holders of the Series “L” shares pursuant to subparagraph 1 of this Section IV.
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3.	Following the payment of the dividends referred to in paragraphs 1 (one) and 2 (two) above, the holders of the<br>Series “L” shares shall receive the reimbursement of the capital attributable to their shares;
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4.	Thereafter, the holders of the Series “AA” shares shall receive payment of an amount equal to the<br>amount paid to the holders of the Series “L” shares pursuant to paragraph 3 (three) above, and
5.	The balance, if any, shall be distributed among all the shareholders in proportion to the number of shares<br>owned by each of them and in proportion also to the paid-in value of each such share. In the event of dissent among the liquidators, the statutory auditor shall call a general extraordinary shareholders meeting, which shall resolve any matter under<br>dispute.
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FIFTY ONE. The founding shareholders do not reserve themselves any right whatsoever.

FIFTY TWO. Any matter not expressly contemplated in these bylaws shall be subject to the provisions contained in the General Law of Business Corporations.

FIFTY THREE. Any dispute arising in connection with the execution, interpretation and performance of these bylaws, to which the Company is a party, shall be submitted to the jurisdiction of the federal courts of the United Mexican States. In the event of any dispute between the Company and its shareholders, or among the shareholders in connection with any matter pertaining to the Company, the Company and the shareholders, upon the subscription or acquisition of any shares, shall expressly submit to the applicable laws of and the competent courts sitting in Mexico City, Federal District, and waive any other jurisdiction to which they may be entitled by reason of their present or future domiciles.

INTERIM PROVISIONS

ONE. The capital of the Company is variable. The minimum fixed portion of the capital is $252,371,761.14 (two hundred fifty-two million three hundred seventy-one thousand seven hundred sixty-one pesos and fourteen cents), divided into 66,411,260,649 (sixty-six billion four hundred eleven million two hundred sixty thousand six hundred forty-nine) shares, of which 20,578,173,274 (twenty billion five hundred seventy eight million one hundred seventy three thousand two hundred seventy four) are Series “AA” nominative, no par value; 515,208,815 (five hundred fifteen million two hundred eight thousand eight hundred fifteen) are Series “A” nominative, no par value; and 45,317,878,560 (forty-five billion three hundred seventeen million eight hundred seventy-eight thousand five hundred sixty) are Series “L” no par value and limited-voting shares, all of which are fully paid and non-assessable.

It is hereby stated that in the treasury of the Company, for its relocation pursuant to the Mexican Securities Market Law and the general rules issued by the National Banking and Securities Commission, there are no representative shares of the company’s capital stock.

TWO. It is hereby certified that the Company has 515,208,815 (five hundred fifteen million two hundred eight thousand eight hundred fifteen) Series “A” shares of common stock outstanding, which may be converted into Series “L” shares in accordance with Article Nine of the Company’s bylaws. The Series “A” shares are currently held by Mexican investors, and/or by non-Mexican individuals, legal entities and economic units, and/or by Mexican corporations a

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majority of whose shares of stock are held by non-Mexican investors or in which non-Mexican investors have the ability to determine the course of the management. For as long as any Series “A” shares may be outstanding, such shares shall confer the same rights and impose the same obligations provided for in these bylaws in respect of the Company’s other series of common stock, that is, the Series “AA” shares, with the exception that the Series “A” currently outstanding may be held by non-Mexican individuals, legal entities and economic units, and/or by Mexican corporations a majority of whose shares of stock are held by non-Mexican investors or in which non-Mexican investors have the ability to determine the course of the management. Without limitation, for as long as any Series “A” shares may be outstanding, such shares shall confer the same rights and impose the same obligations set forth as with respect to the Series “AA” shares in (i) Article Seven of the Company’s bylaws; (ii) items (a), (b), (c) and (d) of the fifth paragraph of Article Eight of the Company’s bylaws; (iii) the fifth paragraph of Article Twenty-Four of the Company’s bylaws; (iv) the second paragraph of Article Thirty-Two of the Company’s bylaws; and (v) items 2 and 4 of Section IV of Article Fifty of the Company’s bylaws.

As of the date hereof and for so long as there may be any Series “A” shares outstanding, the Company’s capital structure shall be subject to the following:

(a)	The Company’s capital stock shall be represented by Series “AA” common shares, issued in<br>registered form, no par value, which may only be subscribed or acquired by Mexican investors and shall represent not less than 20% (twenty percent) and not more than 51% (fifty one percent) of the capital stock, and not less than 51% (fifty one<br>percent) of the common shares of stock; by Series “A” common shares, issued in registered form, no par value, which may not represent more than 19.6% (nineteen point six percent) of the capital stock or more than 49% (forty nine percent)<br>of the common shares and may only be held by Mexican nationals; and by Series “L” limited voting shares, with no ownership restrictions, which, together with the Series “A” shares, may not represent more than 80% (eighty percent)<br>of the capital stock.
(b)	The Series “AA” and Series “A” shares of common stock may not represent, in the aggregate,<br>more than 51% (fifty one percent) of the capital stock.
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(c)	The Series “AA” shares, which may only be subscribed by Mexican nationals, shall at all times<br>represent not less than 20% (twenty percent) of the capital stock. The Series “A” and Series “L” shares may not represent, in the aggregate, more than 80% (eighty percent) of the capital stock.
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This Interim Article Two shall be in effect until such time as there remain no Series “A” shares outstanding.

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EX-2.1

Exhibit 2.1

DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT

As of December 31, 2021, América Móvil (the “Company,” “we,” “us,” and “our”) had the following classes of securities registered pursuant to Section 12(b) of the Exchange Act:

No.	Title of each class	Trading symbol(s)	Name of eachexchange onwhichregistered
I.	AA Shares, A Shares and L Shares*	—	—
II.	A Shares ADSs	AMOV	New York Stock Exchange
	L Shares ADSs	AMX	New York Stock Exchange
III.	6.375% Notes Due 2035	AMX35	New York Stock Exchange
	6.125% Notes Due 2037	AMX37	New York Stock Exchange
	6.125% Senior Notes Due 2040	AMX40	New York Stock Exchange
	4.375% Senior Notes Due 2042	AMX42	New York Stock Exchange
	3.625% Senior Notes Due 2029	AMX29	New York Stock Exchange
	4.375% Senior Notes Due 2049	AMX49	New York Stock Exchange
	2.875% Senior Notes Due 2030	AMX30	New York Stock Exchange
*	Not for trading, but only in connection with the registration of A Share ADSs and L Shares ADSs representing<br>such shares.
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Capitalized terms used but not defined herein have the meanings given to them in our annual report on Form 20-F for the fiscal year ended December 31, 2021.

I.	AA SHARES, A SHARES AND L SHARES

Below is a brief summary of certain significant provisions of our current bylaws and Mexican law relating to the AA Shares, A Shares and L Shares. It does not purport to be complete and is qualified by reference to the bylaws themselves. An English translation of our bylaws has been filed with the SEC as an exhibit to our annual report.

Shareholders’ Equity

We have three classes of outstanding shares: AA Shares, A Shares and L Shares, all without par value, fully paid and non-assessable.

AA Shares and A Shares have full voting rights

L Shares may vote only in limited circumstances as described below under “Voting Rights.”

The rights of all series of shares are generally identical except for voting rights and the limitations on non-Mexican ownership of AA Shares and A Shares. The AA Shares must always represent at least 51.0% of the combined AA Shares and A Shares. At least 20.0% of our outstanding shares must consist of AA Shares, and not more than 80% can be A Shares and L Shares.

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

Any capital increase must be represented by new shares of each series in proportion to the number of shares of each series outstanding.

Voting Rights

Each AA Share or A Share entitles the holder to one vote at any shareholders meeting.

Each L Share entitles the holder to one vote at any meeting at which L Shares are entitled to vote. L Shares are entitled to vote to elect only two members of the Board and the corresponding alternate directors, as well as on the following limited matters: our transformation from one type of company to another; any merger involving us; the extension of our authorized corporate duration; our voluntary dissolution; any change in our corporate purpose; any transaction that represents 20.0% or more of the Company’s consolidated assets; any change in our jurisdiction of incorporation; removal of our shares from listing on the Mexican Stock Exchange or any foreign exchange; and any action that would prejudice the rights of L Shares. A resolution on any of the specified matters requires the affirmative vote of both a majority of all outstanding shares and a majority of the AA Shares and the A Shares voting together.

Shares of any series are also entitled to vote as a class on any action that would prejudice the rights of that series and are entitled to judicial relief against any action taken without their vote.

Shareholders’ Meetings

General shareholders’ meetings may be ordinary or extraordinary. Extraordinary general meetings are those called to consider certain specified matters, including, principally, changes to the bylaws, liquidation, merger and transformation, as well as to consider the removal of our shares from listing on the Mexican Stock Exchange or any foreign stock exchange. General meetings called to consider all other matters are ordinary meetings.

An ordinary general meeting of AA Shares and A Shares must be held each year to consider the approval of the financial statements for the preceding fiscal year, to elect directors and to determine the allocation of the profits. Transactions that represent 20.0% or more of our consolidated assets in any fiscal year must be approved by an ordinary general shareholder meeting of all shareholders, including L Shares. All other matters on which L Shares are entitled to vote would be considered at an extraordinary general meeting.

The two directors elected by the L Shares are elected at a special meeting of L Shares. A special meeting of the L Shares must be held each year for the election of directors.

The quorum for an ordinary general meeting of the AA Shares and A Shares is 50.0% of such shares, and action may be taken by a majority of the shares present. If a quorum is not available, a second meeting may be called at which action may be taken by a majority of the AA Shares and A Shares present, regardless of the number of such shares. Special meetings of L Shares are governed by the same rules applicable to ordinary general meetings of AA Shares and A Shares. The quorum for an extraordinary general meeting at which L Shares may not vote is 75.0% of the AA Shares and A Shares, and the quorum for an extraordinary general meeting at which L Shares are entitled to vote is 75.0% of the outstanding capital stock. If a quorum is not available in either case, a second meeting may be called and action may be taken, provided a majority of the shares entitled to vote is present. Whether on first or second call, actions at an extraordinary general meeting may be taken by a majority vote of the AA Shares and A Shares outstanding and, on matters which L Shares are entitled to vote, a majority vote of all the capital stock.

Holders of 20.0% of our outstanding capital stock may have any shareholder action set aside by filing a complaint with a Mexican court of law within 15 days after the close of the meeting at which such action was taken and showing that the challenged action violates Mexican law or our bylaws. In addition, any holder of our capital stock may bring an action at any time within five years challenging any shareholder action. Relief under these provisions is only available to holders who were entitled to vote on, or whose rights as shareholders were adversely affected by, the challenged shareholder action and whose shares were not represented when the action was taken or, if represented, voted against it.

Shareholders’ meetings may be called by the Board, its chairman, its corporate secretary, the Chairman of the Audit and Corporate Practices Committee or a Mexican court of law. The Chairman of the Board or the Chairman of the Audit and Corporate Practices Committee may be required to call a meeting of shareholders by the holders of 10.0% of the outstanding shares. Notice of meetings must be published at least 15 days prior to the meeting.

A shareholder is required to deposit its shares with a custodian in order to attend a shareholders’ meeting.

Dividend Rights

At the annual ordinary general meeting of AA Shares and A Shares, the Board submits our financial statements for the previous fiscal year to the holders of AA Shares and A Shares for approval. Once financial statements are approved, the allocation of our net profits is determined, and we must allocate 5.0% of such net profits to a legal reserve, which is not thereafter available for distribution except as a stock dividend, until the amount of the legal reserve equals 20.0% of our capital stock. The remainder of net profits is available for distribution.

All shares outstanding are entitled to participate in a dividend or other distribution. L shares are entitled to a nominal preference with respect to dividends or liquidation, but the preference has no economic significance.

Preemptive Rights

In new issuances of shares, each shareholder has a preferential right to subscribe for a sufficient number of shares of the same series to maintain its existing proportionate holdings, except in certain circumstances such as mergers, convertible debentures, public offers and placement of treasury or repurchased shares. These rights cannot be traded separately from the shares. As a result, there is no trading market for such rights.

Limitations on Share Ownership

AA Shares and A Shares may be owned only by holders that qualify as Mexican investors as defined in the Foreign Investment Law (Ley de InversiónExtranjera) and our bylaws. AA Shares can only be held or acquired by Mexican citizens, Mexican corporations whose capital stock is held completely by Mexican citizens or other Mexican qualified investors. Non-Mexican investors cannot hold AA Shares except through trusts that effectively neutralize their votes.

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

We have a foreign exclusion clause that restricts ownership of our shares to holders that qualify as Mexican investors. It does not apply to the L Shares, and, under transitional provisions adopted by our shareholders, it does not limit foreign ownership of A Shares outstanding as of the date of the shareholders’ meeting approving the amendment.

Restrictions on Certain Transfers

Any transfer of 10.0% or more of our voting shares, in one or more transactions, by any person or group of persons acting in concert, requires prior approval by our Board. If the Board denies such approval, however, it shall designate an alternate transferee, who must pay market price for the shares as quoted on the Mexican Stock Exchange.

Restrictions on Deregistration in Mexico

Our shares are registered with the RNV maintained by the CNBV.

If we wish to cancel our registration, or if it is cancelled by the CNBV, we are required to conduct a public offer to purchase all of the outstanding shares prior to such cancellation. Such offer shall exclude our controlling group of shareholders. If, after the public offer is concluded, there are still outstanding shares held by the general public, we will be required to create a trust for a period of six months, with funds in an amount sufficient to purchase, at the same price as the offer price, the number of outstanding shares held by the public that did not participate in the offer.

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

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

Tender Offer Requirement

Certain significant acquisitions of our capital stock may require the purchaser to make a tender offer.

Other Provisions

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

PURCHASE OF OUR OWN SHARES. We may repurchase our shares on the Mexican Stock Exchange at any time at the then-prevailing market price. Any such repurchase must conform to guidelines established by the Board, and the amount available to repurchase shares must be approved by the general ordinary shareholders’ meeting. The economic and voting rights corresponding to repurchased shares may not be exercised during the period in which we own such shares, and such shares are not deemed to be outstanding for purposes of calculating any quorum or vote at any shareholders’ meeting during such period.

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

WITHDRAWAL RIGHTS. Whenever a shareholders meeting approve a change of corporate purposes, change of nationality of the corporation or transformation from one type of company to another, any shareholder entitled to vote on such change that has voted against may withdraw and receive the book value of its shares, provided this right is exercised within 15 days following the meeting.

II.	AMERICAN DEPOSITARY SHARES

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

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

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

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

Payments by the Depositary

The Depositary reimburses us for certain expenses we incur in connection with the ADR program, subject to a ceiling agreed between us and the Depositary from time to time. These reimbursable expenses currently include legal and accounting fees, listing fees, investor relations expenses and fees payable to service providers for the distribution of material to ADS holders. During the year ended December 31, 2021, the Depositary reimbursed us a total of U.S.$2.9 million for reimbursable expenses.

Shareholders’ Meetings

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

Preemptive Rights

result, there is no trading market for such rights. Holders of ADSs may exercise these rights only through the depositary. We are not required to take steps that may be necessary to make this possible.

III.	DEBT SECURITIES

Each series of notes listed on the New York Stock Exchange, as set forth on the cover page of América Móvil’s annual report on Form 20-F for the fiscal year ended December 31, 2021, has been issued by América Móvil. Some series have also been guaranteed by a subsidiary, as set forth in the descriptions below. Each of these series of notes and related guarantees was issued under an indenture (each a “Base Indenture”) and a supplemental indenture (each a “Supplemental Indenture”).

The following table sets forth the general information of each relevant series of notes (the “Notes”).

Section	Series	Date of Base Indenture	Date of Supplemental Indenture
A	6.375% Notes Due 2035<br><br><br>(“2035 Notes”)	March 9, 2004<br><br><br>(“2004 Indenture”)	February 25, 2005<br><br><br>(“2005 Supplemental Indenture”)
	6.125% Notes due 2037<br><br><br>(“2037 Notes”)		October 30, 2007<br><br><br>(“2007 Supplemental Indenture”)
B	6.125% Senior Notes Due 2040<br><br><br>(“2040 Notes”)	September 30, 2009<br><br><br>(“2009 Indenture”)	March 30, 2010<br><br><br>(“2010 Supplemental Indenture”)
C	4.375% Senior Notes Due 2042<br><br><br>(“2042 Notes”)	June 28, 2012<br><br><br>(“2012 Indenture”)	July 16, 2012<br><br><br>(“2012 Supplemental Indenture”)
D	3.625% Senior Notes due 2029<br><br><br>(“2029 Notes”)	October 1, 2018<br><br><br>(“2018 Indenture”)	April 22, 2019<br><br><br>(“2019 Supplemental Indenture”)
	4.375% Senior Notes Due 2049<br><br><br>(“2049 Notes”)
	2.875% Senior Notes Due 2030<br>(“2030 Notes”)		May 7, 2020<br><br><br>(“2020 Supplemental Indenture”)

The summary set out below of the general terms and provisions of our debt securities does not purport to be complete and issubject to, and qualified in its entirety by reference to, all of the definitions and provisions of the relevant Indenture and the instrument representing each series of our Notes. Certain terms, unless otherwise defined here, have the meaning givento them in the relevant Indenture.

A.	2035 Notes and 2037 Notes

General

The 2035 Notes and the 2037 Notes constitute separate series of notes. The following discussion of the terms of the notes, including without limitation the discussions under “Optional Redemption”, “Defaults, Remedies and Waiver of Defaults,” “Modification and Waiver” and “Defeasance” below, applies to each series separately. References to “notes” and “debt securities” in this section III.A. are to the 2035 Notes and the 2037 Notes.

Indenture and Supplemental Indenture

The 2035 Notes were issued under the 2004 Indenture and the 2005 Supplemental Indenture. The 2037 Notes were issued under the 2004 Indenture and the 2007 Supplemental Indenture. The indentures are agreements among América Móvil, Radiomóvil Dipsa, S.A. de C.V (“Telcel”), as guarantor, and The Bank of New York (as successor to JPMorgan Chase Bank, N.A.), as trustee. References to the “indenture” in this section III.A. are to the 2004 Indenture as supplemented by the applicable Supplemental Indenture.

The trustee has the following two main roles:

•	First, the trustee can enforce the rights of holders of the notes against América Móvil if it<br>defaults in respect of the notes and Telcel defaults in respect of the guarantees. There are some limitations on the extent to which the trustee acts on the holders’ behalf, which are described under “Defaults, Remedies and Waiver of<br>Defaults” below.
•	Second, the trustee performs administrative duties for América Móvil, such as making interest<br>payments and sending notices to holders of the notes.
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Principal and Interest

The original aggregate principal amount of the 2035 Notes is U.S.$1,000,000,000. The 2035 Notes will mature on March 1, 2035.

The 2035 Notes bear interest at a rate of 6 3/8% per year from February 25, 2005. Interest on the 2035 Notes is payable semi-annually on March 1 and September 1 of each year, to the holders in whose names the notes are registered at the close of business on the February 15 or August 15 immediately preceding the related interest payment date.

The original aggregate principal amount of the 2037 Notes is U.S.$400,000,000. The 2037 Notes will mature on November 15, 2037.

The 2037 Notes bear interest at a rate of 6.125% per year from October 30, 2007. Interest on the 2037 Notes is payable semi-annually on May 15 and November 15 of each year, to the holders in whose names the notes are registered at the close of business on the May 1 or November 1 immediately preceding the related interest payment date.

América Móvil pays interest on the notes on the interest payment dates stated above and at maturity. Each payment of interest due on an interest payment date or at maturity will include interest accrued from and including the last date to which interest has been paid or made available for payment, or from the issue date, if none has been paid or made available for payment, to but excluding the relevant payment date. América Móvil computes interest on the notes on the basis of a 360-day year of twelve 30-day months.

Subsidiary Guarantor

Telcel has irrevocably and unconditionally guaranteed the full and punctual payment of principal, premium, if any, interest, additional amounts and any other amounts that may become due and payable by América Móvil in respect of the notes. If América Móvil fails to pay any such amount, Telcel will immediately pay the amount that is due and required to be paid.

Ranking of the Notes and the Guarantees

América Móvil is a holding company and its principal assets are shares that it holds in its subsidiaries. The notes are not secured by any of its assets or properties. As a result, a holder of the notes is an unsecured creditor of América Móvil. The notes are not subordinated to any of América Móvil’s other unsecured debt obligations. In the event of a bankruptcy or liquidation proceeding against América Móvil, the notes would rank equally in right of payment with all its other unsecured and unsubordinated debt.

Telcel’s guarantees of the notes are not secured by any of its assets or properties. As a result, if Telcel is required to pay under the guarantees, holders of the notes would be unsecured creditors of Telcel. The guarantees are not subordinated to any of Telcel’s other unsecured debt obligations. In the event of a bankruptcy or liquidation proceeding against Telcel, the guarantees would rank equally in right of payment with all of Telcel’s other unsecured and unsubordinated debt.

A creditor of Telcel, including a holder of the notes, which are guaranteed by Telcel, may face limitations under Mexican law in attempting to enforce a claim against Telcel’s assets to the extent those assets are used in providing public service under Telcel’s concessions.

Form and Denominations

The notes were issued only in registered form without coupons and in denominations of U.S.$2,000 and integral multiples of U.S.$1,000 in excess thereof.

Except in limited circumstances, the notes will be issued in the form of global notes.

Further Issues

América Móvil reserves the right, from time to time without the consent of holders of the notes, to issue additional notes of either series on terms and conditions identical to those of the original notes of that series, which additional notes shall increase the aggregate principal amount of, and shall be consolidated and form a single series with, the original notes of that series.

Payment of Additional Amounts

América Móvil is required by Mexican law to deduct Mexican withholding taxes from payments of interest to investors who are not residents of Mexico for tax purposes.

América Móvil will pay to holders of the notes all additional amounts that may be necessary so that every net payment of interest or principal to the holder will not be less than the amount provided for in the notes. By net payment, América Móvil means the amount that it or its paying agent will pay the holder after deducting or withholding an amount for or on account of any present or future taxes, duties, assessments or other governmental charges imposed with respect to that payment by a Mexican taxing authority.

América Móvil’s obligation to pay additional amounts is, however, subject to several important exceptions. It will not pay additional amounts to any holder for or on account of any of the following:

•	any taxes, duties, assessments or other governmental charges imposed solely because at any time there is or was a<br>connection between the holder and Mexico (other than the mere receipt of a payment or the ownership or holding of a debt security);
•	any estate, inheritance, gift or other similar tax, assessment or other governmental charge imposed with respect<br>to the debt securities;
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•	any taxes, duties, assessments or other governmental charges imposed solely because the holder or any other<br>person fails to comply with any certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with Mexico of the holder or any beneficial owner of the debt security if compliance is<br>required by law, regulation or by an applicable income tax treaty to which Mexico is a party, as a precondition to exemption from, or reduction in the rate of, the tax, assessment or other governmental charge and we have given the holders at least<br>30 days’ notice prior to the first payment date with respect to which such certification, identification or reporting requirement is required to the effect that holders will be required to provide such information and identification;<br>
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•	any tax, duty, assessment or other governmental charge payable otherwise than by deduction or withholding from<br>payments on the debt securities;
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•	any taxes, duties, assessments or other governmental charges with respect to a debt security presented for<br>payment more than 15 days after the date on which the payment became due and payable or the date on which payment thereof is duly provided for and notice thereof given to holders, whichever occurs later, except to the extent that the holders of such<br>debt security would have been entitled to such additional amounts on presenting such debt security for payment on any date during such 15-day period; and
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•	any payment on a debt security to a holder that is a fiduciary or partnership or a person other than the sole<br>beneficial owner of any such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of the payment would not have been entitled to the additional amounts had the<br>beneficiary, settlor, member or beneficial owner been the holder of such debt security.
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The limitations on América Móvil’s obligations to pay additional amounts described in the third bullet point above will not apply if the provision of information, documentation or other evidence described in the applicable bullet point would be materially more onerous, in form, in procedure or in the substance of information disclosed, to a holder or beneficial owner of a debt security, taking into account any relevant differences between U.S. and Mexican law, regulation or administrative practice, than comparable information or other reporting requirements imposed under U.S. tax law (including the United States/Mexico Income Tax Treaty), regulations (including proposed regulations) and administrative practice.

Applicable Mexican regulations currently allow América Móvil to withhold at a reduced rate, provided that it complies with certain information reporting requirements. Accordingly, the limitations on its obligations to pay additional amounts described in the third bullet point above also will not apply unless (a) the provision of the information, documentation or other evidence described in the applicable bullet point is expressly required by the applicable Mexican regulations, (b) it cannot obtain the information, documentation or other evidence necessary to comply with the applicable Mexican regulations on its own through reasonable diligence, and (c) it otherwise would meet the requirements for application of the applicable Mexican regulations.

In addition, the limitation described in the third bullet point above does not require that any person, including any non-Mexican pension fund, retirement fund or financial institution, register with the Ministry of Finance and Public Credit to establish eligibility for an exemption from, or a reduction of, Mexican withholding tax.

América Móvil will remit the full amount of any Mexican taxes withheld to the applicable Mexican taxing authorities in accordance with applicable law. It will also provide the trustee with documentation satisfactory to the trustee evidencing the payment of Mexican taxes in respect of which we have paid any additional amount. It will provide copies of such documentation to the holders of the debt securities or the relevant paying agent upon request.

Any reference in the indenture or the debt securities or guarantees to principal, premium, if any, interest or any other amount payable in respect of the debt securities by América Móvil will be deemed also to refer to any additional amount that may be payable with respect to that amount under the obligations referred to in this subsection.

In the event that additional amounts actually paid with respect to the debt securities pursuant to the preceding paragraphs are based on rates of deduction or withholding of withholding taxes in excess of the appropriate rate applicable to the holder of such debt securities, and as a result thereof such holder is entitled to make a claim for a refund or credit of such excess from the authority imposing such withholding tax, then such holder shall, by accepting such debt securities, be deemed to have assigned and transferred all right, title and interest to any such claim for a refund or credit of such excess to América Móvil. However, by making such assignment, the holder makes no representation or warranty that América Móvil will be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto.

Optional Redemption

América Móvil will not be permitted to redeem the notes before their stated maturity, except as set forth below. The notes will not be entitled to the benefit of any sinking fund—meaning that we will not deposit money on a regular basis into any separate account to repay holders’ notes. In addition, holders will not be entitled to require América Móvil to repurchase their notes from them before the stated maturity.

Optional Redemption With “Make-Whole” Amount

América Móvil will have the right at its option to redeem any of the notes in whole or in part, at any time or from time to time prior to their maturity, on at least 30 days’ but not more than 60 days’ notice, at a redemption price equal to the greater of (1) 100% of the principal amount of such notes and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 35 basis points in the case of the 2035 Notes and 25 basis points in the case of the 2037 Notes (the “Make-Whole Amount”), plus in each case accrued interest on the principal amount of the notes to the date of redemption.

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such notes.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by América Móvil.

“Comparable Treasury Price” means, with respect to any redemption date (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotation or (2) if the trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Reference Treasury Dealer” means (i) in the case of the 2035 Notes, Credit Suisse First Boston LLC , or its respective affiliates which are primary United States government securities dealers and two other leading primary United States government securities dealers in New York City reasonably designated by América Móvil and (ii) in the case of the 2037 Notes, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., or their respective affiliates which are primary United States government securities dealers and two other leading primary United States government securities dealers in New York City reasonably designated by América Móvil; provided, however, that if any of the foregoing shall cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), América Móvil will substitute therefor another Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the trustee by such Reference Treasury Dealer at 3:30 pm New York time on the third business day preceding such redemption date.

On and after the redemption date, interest will cease to accrue on the notes or any portion of the notes called for redemption (unless América Móvil defaults in the payment of the redemption price and accrued interest). On or before the redemption date, América Móvil will deposit with the trustee money sufficient to pay the redemption price of and (unless the redemption date shall be an interest payment date) accrued interest to the redemption date on the notes to be redeemed on such date. If less than all of the notes are to be redeemed, the notes to be redeemed shall be selected by the trustee by such method as the trustee shall deem fair and appropriate.

Redemption for Taxation Reasons

América Móvil will have the right to redeem the notes upon the occurrence of certain changes in the tax laws of Mexico as a result of which we become obligated to pay additional amounts on the notes in respect of withholding taxes at a rate in excess of 10% for the 2035 Notes and 4.9% for the 2037 Notes, in which case we may redeem the notes in whole but not in part, at any time on giving not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the notes plus accrued interest to the redemption date and any additional amounts due thereon up to but not including the date of redemption; provided, however, that (1) no notice of redemption for tax reasons may be given earlier than 90 days prior to the earliest date on which América Móvil would be obligated to pay these additional amounts if a payment on the debt securities of such series were then due and (2) at the time such notice of redemption is given such obligation to pay such additional amounts remains in effect.

Prior to the publication of any notice of redemption for taxation reasons, América Móvil will deliver to the trustee:

•	a certificate signed by one of our duly authorized representatives stating that we are entitled to effect the<br>redemption and setting forth a statement of facts showing that the conditions precedent to our right of redemption for taxation reasons have occurred; and
•	an opinion of Mexican legal counsel (which may be América Móvil’s counsel) of recognized<br>standing to the effect that it has or will become obligated to pay such additional amounts as a result of such change or amendment.
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This notice, after it is delivered by América Móvil to the trustee, will be irrevocable.

Merger, Consolidation or Sale of Assets

América Móvil may not consolidate with or merge into any other person or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose of all or substantially all of its assets and

properties and may not permit any person to consolidate with or merge into it, unless all of the following conditions are met:

•	if América Móvil is not the successor person in the transaction, the successor is organized and<br>validly existing under the laws of Mexico or the United States or any political subdivision thereof and expressly assumes our obligations under the debt securities or the indenture;
•	immediately after the transaction, no default under the debt securities has occurred and is continuing. For this<br>purpose, “default under the debt securities” means an event of default or an event that would be an event of default with respect to any series of debt securities if the requirements for giving América Móvil default notice<br>and for its default having to continue for a specific period of time were disregarded. See “Defaults, Remedies and Waiver of Defaults” below; and
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•	América Móvil has delivered to the trustee an officers’ certificate and opinion of counsel,<br>each stating, among other things, that the transaction complies with the indenture.
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If the conditions described above are satisfied, América Móvil will not have to obtain the approval of the holders in order to merge or consolidate or to sell or otherwise dispose of its properties and assets substantially as an entirety. In addition, these conditions will apply only if it wishes to merge into or consolidate with another person or sell or otherwise dispose of all or substantially all of its assets and properties. América Móvil will not need to satisfy these conditions if it enters into other types of transactions, including any transaction in which it acquires the stock or assets of another person, any transaction that involves a change of control of the company, but in which it does not merge or consolidate, and any transaction in which it sells or otherwise disposes of less than substantially all its assets.

Telcel may not consolidate with or merge into any other person or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose of all or substantially all of its assets and properties and may not permit any person to consolidate with or merge into it, unless substantially the same conditions set forth above are satisfied with respect to Telcel.

Covenants

The following covenants will apply to América Móvil and certain of its subsidiaries for so long as any debt security remains outstanding. These covenants restrict its ability and the ability of its subsidiaries to enter into certain transactions. However, these covenants do not limit its ability to incur indebtedness or require it to comply with financial ratios or to maintain specified levels of net worth or liquidity.

Limitation on Liens

América Móvil may not, and América Móvil may not allow any of its restricted subsidiaries to, create, incur, issue or assume any liens on its restricted property to secure debt where the debt secured by such liens, plus the aggregate amount of our attributable debt and that of its restricted subsidiaries in respect of sale and leaseback transactions, would exceed an amount equal to an aggregate of 15% of its Consolidated Net Tangible Assets unless it secures the debt securities equally with, or prior to, the debt secured by such liens. This restriction will not, however, apply to the following:

•	liens on restricted property acquired and existing on the date the property was acquired or arising after such<br>acquisition pursuant to contractual commitments entered into prior to such acquisition;
•	liens on any restricted property securing debt incurred or assumed for the purpose of financing its purchase<br>price or the cost of its construction, improvement or repair, provided that such lien attaches to the restricted property within 12 months of its acquisition or the completion of its construction, improvement or repair and does not attach to<br>any other restricted property;
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•	liens existing on any restricted property of any restricted subsidiary prior to the time that the restricted<br>subsidiary became a subsidiary of América Móvil or liens arising after that time under contractual commitments entered into prior to and not in contemplation of that event;
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•	liens on any restricted property securing debt owed by a subsidiary of América Móvil to<br>América Móvil or to another of its subsidiaries; and
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•	liens arising out of the refinancing, extension, renewal or refunding of any debt described above, provided that<br>the aggregate principal amount of such debt is not increased and such lien does not extend to any additional restricted property.
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“Consolidated Net Tangible Assets” means total consolidated assets less (1) all current liabilities, (2) all goodwill, (3) all trade names, trademarks, patents and other intellectual property assets and (4) all licenses, each as set forth on our most recent consolidated balance sheet and computed in accordance with Mexican GAAP.

“Restricted property” means (1) any exchange and transmission equipment, switches, cellular base stations, microcells, local links, repeaters and related facilities, whether owned as of the date of the indenture or acquired after that date, used in connection with the provision of telecommunications services in Mexico, including any land, buildings, structures and other equipment or fixtures that constitute any such facility, owned by América Móvil or its restricted subsidiaries and (2) any share of capital stock of any restricted subsidiary.

“Restricted subsidiaries” means América Móvil’s subsidiaries that own restricted property.

Limitation on Sales and Leasebacks

América Móvil may not, and América Móvil may not allow any of its restricted subsidiaries to, enter into any sale and leaseback transaction without effectively providing that the debt securities will be secured equally and ratably with or prior to the sale and leaseback transaction, unless:

•

the aggregate principal amount of all debt then outstanding that is secured by any lien on any restricted property that does not ratably secure the debt securities (excluding any secured indebtedness permitted under “Limitation on Liens” above) plus the aggregate amount of our attributable debt and the attributable debt of its restricted subsidiaries in respect of sale and leaseback transactions then outstanding (other than any sale and leaseback transaction permitted under the following bullet point) would not exceed an amount equal to 15% of its Consolidated Net Tangible Assets; or

•

América Móvil or one of its restricted subsidiaries, within 12 months of the sale and leaseback transaction, retire an amount of its secured debt which is not subordinate to the debt securities in an amount equal to the greater of (1) the net proceeds of the sale or transfer of the property or other assets that are the subject of the sale and leaseback transaction and (2) the fair market value of the restricted property leased.

Notwithstanding the foregoing, América Móvil and/or its restricted subsidiaries may enter into sale and leaseback transactions during 2004 in respect of which attributable debt is not in excess of U.S.$300 million in the aggregate, and additional sale and leaseback transactions that solely refinance, extend, renew or refund such sale and leaseback transactions, and (a) the restriction described in the preceding paragraph shall not apply to such sale and leaseback transactions and (b) such transactions shall be excluded in determining the aggregate amount of its attributable debt and the attributable debt of our restricted subsidiaries for purposes of the preceding paragraph and also for purposes of the covenant described under “Limitation on Liens” described above.

“Sale and leaseback transaction” means an arrangement between América Móvil or one of its restricted subsidiaries and a bank, insurance company or other lender or investor where it or its restricted subsidiary leases a restricted property for an initial term of three years or more that was or will be sold by it or its restricted subsidiary to that lender or investor for a sale price of U.S.$1 million or its equivalent or more.

“Attributable debt” means, with respect to any sale and leaseback transaction, the lesser of (1) the fair market value of the asset subject to such transaction and (2) the present value, discounted at a rate per annum equal to the discount rate of a capital lease obligation with a like term in accordance with Mexican generally accepted accounting principles, of the obligations of the lessee for net rental payments (excluding amounts on account of maintenance and repairs, insurance, taxes, assessments and similar charges and contingent rents) during the term of the lease.

Limitation on Sale of Capital Stock of Telcel

América Móvil may not, and América Móvil may not allow any of our subsidiaries to, sell, transfer or otherwise dispose of any shares of capital stock of Telcel if following such sale, transfer or disposition it would own, directly or indirectly, less than (1) 50% of the voting power of all of the shares of capital stock of Telcel and (2) 50% of all of the shares of capital stock of Telcel.

Provision of Information

América Móvil will furnish the trustee with copies of its annual report and the information, documents and other reports that it is required to file with the SEC pursuant to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended, including its annual reports on Form 20-F and reports on Form 6-K. In addition, América Móvil will make the same information, documents and other reports available, at its expense, to holders who so request in writing. In the event that, in the future, América Móvil is not required to file such information, documents or other reports pursuant to Section 13 or 15(d) of the Securities Exchange Act, it will furnish on a

reasonably prompt basis to the trustee and holders who so request in writing, substantially the same financial and other information that it would be required to include and file in an annual report on Form 20-F and reports on Form 6-K.

If any of América Móvil’s officers becomes aware that a default or event of default or an event that with notice or the lapse of time would be an event of default has occurred and is continuing, as the case may be, América Móvil will also file a certificate with the trustee describing the details thereof and the action we are taking or propose to take.

Defaults, Remedies and Waiver ofDefaults

Holders have special rights if an event of default with respect to the notes they hold occurs and is not cured, as described below.

Events of Default

Each of the following will be an “event of default” with respect to any series of debt securities:

•	América Móvil or Telcel fail to pay the principal of any debt securities of that series on its due<br>date;
•	América Móvil or Telcel fail to pay interest on any debt securities of that series within 30 days<br>after its due date;
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•	América Móvil or Telcel remain in breach of any covenant in the indenture for the benefit of<br>holders of that series of debt securities, for 60 days after América Móvil receives a notice of default (sent by the trustee or the holders of not less than 25% in principal amount of the series of debt securities) stating that it is<br>in breach;
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•	América Móvil or Telcel file for bankruptcy, or other events of bankruptcy, insolvency or<br>reorganization or similar proceedings occur relating to América Móvil or Telcel;
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•	América Móvil or Telcel experience a default or event of default under any instrument relating to<br>debt having an aggregate principal amount exceeding U.S.$25 million (or its equivalent in other currencies) that constitutes a failure to pay principal or interest when due or results in the acceleration of the debt prior to its maturity;<br>
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•	a final judgment is rendered against América Móvil or Telcel in an aggregate amount in excess of<br>U.S.$25 million (or its equivalent in other currencies) that is not discharged or bonded in full within 30 days; or
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•	the guarantee of the debt securities of that series is held in a final judgment to be unenforceable or invalid or<br>ceases for any reason to be in full force and effect, or Telcel, or any person acting on behalf of Telcel, denies or disaffirms its obligations under the guarantees of the debt securities.
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Remedies Upon Event of Default

If an event of default with respect to any series of debt securities occurs and is not cured or waived, the trustee, at the written request of holders of not less than 25% in principal amount of that series of debt securities, may declare the entire principal amount of all the debt securities of that series to be due and payable immediately, and upon any such declaration the principal, any accrued interest and any additional amounts shall become due and payable. If, however, an event of default occurs because of a bankruptcy, insolvency or reorganization relating to América Móvil or Telcel, the entire principal amount of all the debt securities and any accrued interest and any additional amounts will be automatically accelerated, without any action by the trustee or any holder and any principal, interest or additional amounts will become immediately due and payable.

Each of the situations described above is called an acceleration of the maturity of the debt securities. If the maturity of any series of the debt securities is accelerated and a judgment for payment has not yet been obtained, the holders of a majority in aggregate principal amount of that series of debt securities may cancel the acceleration for all the debt securities of that series, provided that all amounts then due (other than amounts due solely because of such acceleration) have been paid and all other defaults with respect to that series of debt securities have been cured or waived.

If any event of default occurs, the trustee will have special duties. In that situation, the trustee will be obligated to use those of its rights and powers under the indenture, and to use the same degree of care and skill in doing so, that a prudent person would use under the circumstances in conducting his or her own affairs.

Except as described in the prior paragraph, the trustee is not required to take any action under the indenture at the request of any holders unless the holders offer the trustee reasonable protection, known as an indemnity, from expenses and liability. If the trustee receives an indemnity that is reasonably satisfactory to it, the holders of a majority in principal amount of a series of debt securities may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. These majority holders may also direct the trustee in performing any other action under the indenture with respect to the debt securities.

Before holders bypass the trustee and bring their own lawsuit or other formal legal action or take other steps to enforce their rights or protect their interests relating to the debt securities of any series, the following must occur:

•	they must give the trustee written notice that an event of default has occurred and the event of default has not<br>been cured or waived;
•	the holders of not less than 25% in principal amount of debt securities of that series must make a written<br>request that the trustee take action with respect to that series because of the default and they or other holders must offer to the trustee indemnity reasonably satisfactory to the trustee against the cost and other liabilities of taking that<br>action;
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•	the trustee must not have taken action for 60 days after the above steps have been taken; and<br>
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•	during those 60 days, the holders of a majority in principal amount of debt securities of that series must not<br>have given the trustee for such series directions that are inconsistent with the written request of the holders of not less than 25% in principal amount of debt securities of that series.

Holders of the notes are entitled, however, at any time to bring a lawsuit for the payment of money due on their debt security on or after its due date.

Book-entry and other indirect holders should consult their bank or brokers for information on how to give notice or direction to or make a request of the trustee and how to declare or cancel an acceleration of the maturity.

Waiver of Default

The holders of not less than a majority in principal amount of the debt securities of any series may waive a past default for all the debt securities of that series. If this happens, the default will be treated as if it had been cured. No one can waive a payment default on any debt security, however, without the approval of the particular holder of that debt security.

Modification and Waiver

There are three types of changes América Móvil can make to the indenture, the outstanding debt securities under the indenture and guarantees thereof.

ChangesRequiring Each Holder’s Approval

The following changes cannot be made without the approval of each holder of an outstanding debt security affected by the change:

•	a change in the stated maturity of any principal or interest payment on a debt security;
•	a reduction in the principal amount, the interest rate or the redemption price for a debt security;<br>
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•	a change in the obligation to pay additional amounts;
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•	a change in the currency of any payment on a debt security other than as permitted by the debt security;<br>
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•	a change in the place of any payment on a debt security;
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•	an impairment of the holder’s right to sue for payment of any amount due on its debt security;<br>
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•	a change in the terms and conditions of the obligations of the guarantor under the guarantees to make due and<br>punctual payment of the principal, premium, if any, or interest in respect of the outstanding debt securities under the indenture;
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•	a reduction in the percentage in principal amount of the debt securities needed to change the indenture, the<br>outstanding debt securities under the indenture or guarantees thereof; and
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•	a reduction in the percentage in principal amount of the debt securities needed to waive our compliance with the<br>indenture or to waive defaults.

Changes Not Requiring Approval

Some changes will not require the approval of holders of debt securities. These changes are limited to specific kinds of changes, like the addition of covenants, events of default or security, and other clarifications and changes that would not adversely affect the holders of outstanding debt securities under the indenture in any material respect.

Changes Requiring Majority Approval

Any other change to the indenture, the debt securities or the guarantees will be required to be approved by the holders of a majority in principal amount of each series of debt securities affected by the change or waiver. The required approval must be given by written consent.

The same majority approval will be required for América Móvil to obtain a waiver of any of its covenants in the indenture. Its covenants include the promises it makes about merging and creating liens on our interests, which are described under “Merger, Consolidation or Sale of Assets” and “Covenants” above. If the holders approve a waiver of a covenant, América Móvil will not have to comply with it. The holders, however, cannot approve a waiver of any provision in a particular debt security or guarantee, or the indenture, as it affects that debt security, that América Móvil cannot change without the approval of the holder of that debt security as described under “Changes Requiring Each Holder’s Approval” above, unless that holder approves the waiver.

Book-entry and other indirect holders should consult their banks or brokers for information on how approval may be granted or denied if we seek to change the indenture or the debt securities or request a waiver.

Defeasance

América Móvil may, at its option, elect to terminate (1) all of its or Telcel’s obligations with respect to a series of debt securities and the related guarantees (“legal defeasance”), except for certain obligations, including those regarding any trust established for defeasance and obligations relating to the transfer and exchange of the debt securities of that series, the replacement of mutilated, destroyed, lost or stolen debt securities of that series and the maintenance of agencies with respect to the debt securities of that series or (2) América Móvil’s or Telcel’s obligations under the covenants in the indenture, so that any failure to comply with such obligations will not constitute an event of default (“covenant defeasance”) in respect of debt securities of that series. In order to exercise either legal defeasance or covenant defeasance, América Móvil must irrevocably deposit with the trustee money or U.S. government obligations, or any combination thereof, in such amounts as will be sufficient to pay the principal, premium, if any, and interest (including additional amounts) in respect of the debt securities of that series then outstanding on the maturity date of the debt securities of that series, and comply with certain other conditions, including, without limitation, the delivery of opinions of counsel as to specified tax and other matters.

If América Móvil elects either legal defeasance or covenant defeasance with respect to any debt securities of a series, it must so elect it with respect to all of the debt securities of that series.

Special Rules for Actions by Holders

When holders take any action under the indenture, such as giving a notice of default, declaring an acceleration, approving any change or waiver or giving the trustee an instruction, América Móvil will apply the following rules.

Only Outstanding Debt Securities are Eligible forAction by Holders

Only holders of outstanding debt securities will be eligible to vote or participate in any action by holders. In addition, América Móvil will count only outstanding debt securities in determining whether the various percentage requirements for voting or taking action have been met. For these purposes, a debt security will not be “outstanding” if it has been surrendered for cancellation or if we have deposited or set aside, in trust for its holder, money for its payment or redemption.

Determining Record Dates for Action by Holders

América Móvil will generally be entitled to set any day as a record date for the purpose of determining the holders that are entitled to take action under the indenture. In some limited circumstances, only the trustee will be entitled to set a record date for action by holders. If América Móvil or the trustee set a record date for an approval or other action to be taken by holders, that vote or action may be taken only by persons or entities who are holders on the record date and must be taken during the period that we specify for this purpose, or that the trustee specifies if it sets the record date. América Móvil or the trustee, as applicable, may shorten or lengthen this period from time to time. This period, however, may not extend beyond the 180th day after the record date for the action. In addition, record dates for any global debt securities may be set in accordance with procedures established by the depositary from time to time.

Payment Provisions

Payments on the Debt Securities

For interest due on a debt security on an interest payment date, América Móvil will pay the interest to the holder in whose name the debt security is registered at the close of business on the regular record date relating to the interest payment date. For interest due at maturity but on a day that is not an interest payment date, América Móvil will pay the interest to the person or entity entitled to receive the principal of the debt security. For principal due on a debt security at maturity, América Móvil will pay the amount to the holder of the debt security against surrender of the debt security at the proper place of payment. América Móvil will compute interest on debt securities bearing interest at a fixed rate on the basis of a 360-day year of twelve 30-day months.

Payments on Global Debt Securities. For debt securities issued in global form, América Móvil will make payments on the debt securities in accordance with the applicable policies of the depositary as in effect from time to time. Under those policies, América Móvil will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in a global debt security. An indirect holder’s right to receive those payments will be governed by the rules and practices of the depositary and its participants.

Payments on Certificated Debt Securities. For debt securities issued in certificated form, América Móvil will pay interest that is due on an interest payment date by check mailed on the interest payment date to the holder at the holder’s address shown on the trustee’s records as of the close of business on the regular record date, and América Móvil will make all other payments by check to the paying agent described below, against surrender of the debt security. All payments by check may be made in next-day funds, that is, funds that become available on the day after the check is cashed. If América Móvil issues debt securities in certificated form, holders of debt securities in certificated form will be able to receive payments of principal and interest on their debt securities at the office of our paying agent maintained in New York City.

Payment When Offices Are Closed

If any payment is due on a debt security on a day that is not a business day, América Móvil will make the payment on the day that is the next business day. Payments postponed to the next business day in this situation will be treated under the indenture as if they were made on the original due date. Postponement of this kind will not result in a default under the debt securities, guarantees or the indenture, and no interest will accrue on the postponed amount from the original due date to the next day that is a business day.

“Business day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City or Mexico City generally are authorized or obligated by law, regulation or executive order to close and a day on which banks and financial institutions in Mexico are open for business with the general public.

Paying Agents

If América Móvil issues debt securities in certificated form, it may appoint one or more financial institutions to act as our paying agents, at whose designated offices the debt securities may be surrendered for payment at their maturity. América Móvil may add, replace or terminate paying agents from time to time, provided that if any debt securities are issued in certificated form, so long as such debt securities are outstanding, it will maintain a paying agent in New York City. América Móvil may also choose to act as its own paying agent. Initially, América Móvil has appointed the trustee, at its corporate trust office in New York City, as a paying agent. América Móvil must notify holders of the notes of changes in the paying agents as described under “Notices” below.

Unclaimed Payments

All money paid by América Móvil to a paying agent that remains unclaimed at the end of two years after the amount is due to a holder will be repaid to América Móvil. After that two-year period, the holder may look only to América Móvil for payment and not to the trustee, any other paying agent or anyone else.

Governing Law

The indenture, the debt securities and the guarantees will be governed by, and construed in accordance with, the laws of the State of New York, United States of America.

Submission to Jurisdiction

In connection with any legal action or proceeding arising out of or relating to the debt securities, the guarantees or the indenture (subject to the exceptions described below), América Móvil and the guarantor have each:

•	submitted to the jurisdiction of any New York state or U.S. federal court sitting in New York City, and any<br>appellate court thereof;
•	agreed that all claims in respect of such legal action or proceeding may be heard and determined in such New York<br>state or U.S. federal court and waived, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding and any right of jurisdiction in such action or proceeding on account of the place<br>of residence or domicile of we or the guarantor; and
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•	appointed CT Corporation System, with an office at 111 Eighth Avenue, New York, New York 10011, United States of<br>America as process agent.
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The process agent will receive, on behalf of each of América Móvil and the guarantor, service of copies of the summons and complaint and any other process which may be served in any such legal action or proceeding brought in such New York state or U.S. federal court sitting in New York City. Service may be made by mailing or delivering a copy of such process to América Móvil or the guarantor, as the case may be, at the address specified above for the process agent.

A final judgment in any of the above legal actions or proceedings will be conclusive and may be enforced in other jurisdictions, in each case, to the extent permitted under the applicable laws of such jurisdiction.

In addition to the foregoing, the holders may serve legal process in any other manner permitted by applicable law. The above provisions do not limit the right of any holder to bring any action or proceeding against either América Móvil or the guarantor or América Móvil or its properties in other courts where jurisdiction is independently established.

To the extent that either we or the guarantor has or hereafter may acquire or have attributed to América Móvil or the guarantor any sovereign or other immunity under any law, each of América Móvil and the guarantor has agreed to waive, to the fullest extent permitted by law, such immunity from jurisdiction or to service of process in respect of any legal suit, action or proceeding arising out of or relating to the indenture or the debt securities.

Currency Indemnity

América Móvil’s obligations and the obligations of the guarantor under the debt securities and the guarantees, respectively, will be discharged only to the extent that the relevant holder is able to

purchase U.S. dollars with any other currency paid to that holder in accordance with any judgment or otherwise. If the holder cannot purchase U.S. dollars in the amount originally to be paid, we and the guarantor have agreed to pay the difference. The holder, however, agrees that, if the amount of U.S. dollars purchased exceeds the amount originally to be paid to such holder, the holder will reimburse the excess to América Móvil or the guarantor, as the case may be. The holder will not be obligated to make this reimbursement if we or the guarantor are in default of our or its obligations under the debt securities or the guarantees.

Transfer Agents

América Móvil may appoint one or more transfer agents, at whose designated offices any notes in certificated form may be transferred or exchanged and also surrendered before payment is made at maturity. Initially, América Móvil has appointed the trustee, at its corporate office in New York City, as transfer agent. América Móvil may also choose to act as its own transfer agent. América Móvil must notify holders of the notes of changes in the transfer agents as described under “Notices” below. If it issues notes in certificated form, holders of notes in certificated form will be able to transfer their notes, in whole or in part, by surrendering the notes, with a duly completed form of transfer, for registration of transfer at the office of our transfer agent in New York City, The Bank of New York. América Móvil will not charge any fee for the registration or transfer or exchange, except that it may require the payment of a sum sufficient to cover any applicable tax or other governmental charge payable in connection with the transfer.

Notices

As long as América Móvil issues notes in global form, notices to be given to holders will be given to DTC, in accordance with its applicable policies as in effect from time to time. If it issues notes in certificated form, notices to be given to holders will be sent by mail to the respective addresses of the holders as they appear in the trustee’s records, and will be deemed given when mailed.

Neither the failure to give any notice to a particular holder, nor any defect in a notice given to a particular holder, will affect the sufficiency of any notice given to another holder.

B.	2040 Notes

General

Indenture and Supplemental Indenture

The 2040 Notes were issued under the 2009 Indenture and the 2010 Supplemental Indenture, as supplemented by an additional notes supplement. The indenture is an agreement among América Móvil, Telcel, as guarantor, and The Bank of New York Mellon, as trustee. References to the “indenture” in this section III.B are to the 2009 Indenture as supplemented by the 2010 Supplemental Indenture and the additional notes supplement.

The trustee has the following two main roles:

•	First, the trustee can enforce the rights of the holders of the 2040 Notes against América Móvil,<br>if it defaults in respect of the 2040 Notes and Telcel defaults in respect of the guarantees.

•	Second, the trustee performs administrative duties for América Móvil, such as making interest<br>payments and sending notices to holders of notes.

Principal and Interest

The aggregate principal amount of the 2040 Notes is U.S.$2,000,000,000. The 2040 Notes will mature on March 30, 2040 and bear interest at a rate of 6.125% per year from March 30, 2010.

Interest on the 2040 Notes is payable on March 30 and September 30 of each year, to the holders in whose names the 2040 Notes were registered at the close of business on March 15 or September 15 immediately preceding the related interest payment date.

América Móvil will pay interest on the 2040 Notes on the interest payment dates stated above and at maturity. Each payment of interest due on an interest payment date or at maturity will include interest accrued from and including the last date to which interest has been paid or made available for payment, or from the issue date, if none has been paid or made available for payment, to but excluding the relevant payment date. América Móvil computes interest on the 2040 Notes on the basis of a 360-day year consisting of twelve 30-day months.

Subsidiary Guarantor

Telcel has irrevocably and unconditionally guaranteed the full and punctual payment of principal, premium, if any, interest, additional amounts and any other amounts that may become due and payable by América Móvil in respect of the 2040 Notes. If América Móvil fails to pay any such amount, Telcel will immediately pay the amount that is due and required to be paid.

Ranking ofthe Notes and the Guarantees

América Móvil is a holding company, and its principal assets are shares that it holds in its subsidiaries. The 2040 Notes are not secured by any of its assets or properties. As a result, by owning the 2040 Notes, the holders of the 2040 Notes will be one of our unsecured creditors. The 2040 Notes are not be subordinated to any of our other unsecured debt obligations. In the event of a bankruptcy or liquidation proceeding against América Móvil, the 2040 Notes would rank equally in right of payment with all our other unsecured and unsubordinated debt.

Telcel’s guarantees of the 2040 Notes are not secured by any of its assets or properties. As a result, if Telcel is required to pay under the guarantees, holders of the 2040 Notes would be unsecured creditors of Telcel. The guarantees are not subordinated to any of Telcel’s other unsecured debt obligations. In the event of a bankruptcy or liquidation proceeding against Telcel, the guarantees would rank equally in right of payment with all of Telcel’s other unsecured and unsubordinated debt.

A creditor of Telcel, including a holder of the 2040 Notes, which are guaranteed by Telcel, may face limitations under Mexican law in attempting to enforce a claim against Telcel’s assets to the extent those assets are used in providing public service under Telcel’s concessions.

Form and Denominations

The 2040 Notes will were issued only in registered form without coupons and in minimum denominations of U.S.$100,000 and integral multiples of U.S.$1,000 in excess thereof.

Except in limited circumstances, the 2040 Notes will be issued in the form of global notes.

Further Issues

América Móvil reserves the right, from time to time without the consent of holders of the 2040 Notes, to issue additional notes of a series on terms and conditions identical to the 2040 Notes, which additional notes will increase the aggregate principal amount of, and will be consolidated and form a single series with, the 2040 Notes.

Payment of Additional Amounts

América Móvil is required by Mexican law to deduct Mexican withholding taxes from payments of interest to investors who are not residents of Mexico for tax purposes.

América Móvil will pay to holders of the 2040 Notes all additional amounts that may be necessary so that every net payment of interest or principal or premium, if any, to the holder will not be less than the amount provided for in the 2040 Notes. By net payment, América Móvil means the amount that it or its paying agent will pay the holder after deducting or withholding an amount for or on account of any present or future taxes, duties, assessments or other governmental charges imposed with respect to that payment by a Mexican taxing authority.

América Móvil’s obligation to pay additional amounts is, however, subject to several important exceptions. América Móvil will not pay additional amounts to any holder for or on account of any of the following:

•	any taxes, duties, assessments or other governmental charges imposed solely because at any time there is or was a<br>connection between the holder and Mexico (other than the mere receipt of a payment or the ownership or holding of a debt security);
•	any estate, inheritance, gift or other similar tax, assessment or other governmental charge imposed with respect<br>to the 2040 Notes;
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•	any taxes, duties, assessments or other governmental charges imposed solely because the holder or any other<br>person fails to comply with any certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with Mexico of the holder or any beneficial owner of the 2040 Notes if compliance is required<br>by law, regulation or by an applicable income tax treaty to which Mexico is a party, as a precondition to exemption from, or reduction in the rate of, the tax, assessment or other governmental charge and we have given the holders at least 30<br>days’ notice prior to the first payment date with respect to which such certification, identification or reporting requirement is required to the effect that holders will be required to provide such information and identification;<br>
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•	any tax, duty, assessment or other governmental charge payable otherwise than by deduction or withholding from<br>payments on the debt securities;
•	any taxes, duties, assessments or other governmental charges with respect to the 2040 Notes presented for payment<br>more than 15 days after the date on which the payment became due and payable or the date on which payment thereof is duly provided for and notice thereof given to holders, whichever occurs later, except to the extent that the holders of such 2040<br>Notes would have been entitled to such additional amounts on presenting such notes for payment on any date during such 15-day period; and
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•	any payment on the 2040 Notes to a holder that is a fiduciary or partnership or a person other than the sole<br>beneficial owner of any such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of the payment would not have been entitled to the additional amounts had the<br>beneficiary, settlor, member or beneficial owner been the holder of such note.
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The limitations on América Móvil’s obligations to pay additional amounts described in the third bullet point above will not apply if the provision of information, documentation or other evidence described in the applicable bullet point would be materially more onerous, in form, in procedure or in the substance of information disclosed, to a holder or beneficial owner of a note, taking into account any relevant differences between U.S. and Mexican law, regulation or administrative practice, than comparable information or other reporting requirements imposed under U.S. tax law (including the United States/Mexico Income Tax Treaty), regulations (including proposed regulations) and administrative practice.

Applicable Mexican regulations currently allow América Móvil to withhold at a reduced rate, provided that América Móvil complies with certain information reporting requirements. Accordingly, the limitations on América Móvil’s obligations to pay additional amounts described in the third bullet point above also will not apply unless (a) the provision of the information, documentation or other evidence described in the applicable bullet point is expressly required by the applicable Mexican regulations, (b) América Móvil cannot obtain the information, documentation or other evidence necessary to comply with the applicable Mexican regulations on its own through reasonable diligence and (c) América Móvil otherwise would meet the requirements for application of the applicable Mexican regulations.

América Móvil will remit the full amount of any Mexican taxes withheld to the applicable Mexican taxing authorities in accordance with applicable law. América Móvil will also provide the trustee with documentation satisfactory to the trustee evidencing the payment of Mexican taxes in respect of which we have paid any additional amount. América Móvil will provide copies of such documentation to the holders of the 2040 Notes or the paying agent upon request.

Any reference in the indenture, the 2040 Notes or the guarantees to principal, premium, if any, interest or any other amount payable in respect of the 2040 Notes by América Móvil will be deemed also to refer to any additional amount that may be payable with respect to that amount under the obligations referred to in this subsection.

In the event that additional amounts actually paid with respect to the 2040 Notes pursuant to the preceding paragraphs are based on rates of deduction or withholding of withholding taxes in excess of the appropriate rate applicable to the holder of such notes, and as a result thereof such holder is entitled to make a claim for a refund or credit of such excess from the authority imposing such withholding tax, then such holder shall, by accepting such notes, be deemed to have assigned and transferred all right, title and interest to any such claim for a refund or credit of such excess to América Móvil. However, by making such assignment, the holder makes no representation or warranty that we will be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto.

Optional Redemption

América Móvil will not be permitted to redeem the 2040 Notes before their stated maturity, except as set forth below. The 2040 Notes will not be entitled to the benefit of any sinking fund (meaning that América Móvil will not deposit money on a regular basis into any separate account to repay the 2040 Notes). In addition, the holders of the 2040 Notes will not be entitled to require América Móvil to repurchase their notes before the stated maturity.

Optional Redemption With “Make-Whole” Amount

América Móvil will have the right at its option to redeem the 2040 Notes in whole or in part, at any time or from time to time prior to their maturity, on at least 30 days’ but not more than 60 days’ notice, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2040 Notes to be redeemed and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis points (the “Make-Whole Amount”), plus accrued interest on the principal amount of the 2040 Notes being redeemed to the redemption date.

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the 2040 Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such notes.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by América Móvil.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotation or (2) if the trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Reference Treasury Dealer” means Citigroup Global Markets, Inc., Goldman, Sachs & Co. and J.P. Morgan Securities LLC, or, their respective affiliates which are primary United States government securities dealers and two other leading primary United States government securities dealers in New York City reasonably designated by América Móvil; provided, however, that if any of the foregoing shall cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), América Móvil will substitute therefor another Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the trustee by such Reference Treasury Dealer at 3:30 pm (New York City time) on the third business day preceding such redemption date.

On and after the redemption date, interest will cease to accrue on the 2040 Notes or any portion of the 2040 Notes called for redemption (unless América Móvil defaults in the payment of the redemption price and accrued interest). On or before the redemption date, América Móvil will deposit with the trustee money sufficient to pay the redemption price of and (unless the redemption date shall be an interest payment date) accrued interest to the redemption date on the 2040 Notes to be redeemed on such date. If less than all of the 2040 Notes are to be redeemed, the notes to be redeemed shall be selected by the trustee by such method as the trustee shall deem fair and appropriate.

TaxRedemption

América Móvil will have the right to redeem the 2040 Notes upon the occurrence of certain changes in the tax laws of Mexico as a result of which América Móvil becomes obligated to pay additional amounts on the 2040 Notes in respect of withholding taxes at a rate in excess of 4.9%, in which case América Móvil may redeem the 2040 Notes, in whole but not in part, at any time on giving not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the 2040 Notes, plus accrued interest to the redemption date and any additional amounts due thereon up to but not including the date of redemption; provided, however, that (1) no notice of redemption for tax reasons may be given earlier than 90 days prior to the earliest date on which América Móvil would be obligated to pay these additional amounts if a payment on the debt securities were then due and (2) at the time such notice of redemption is given such obligation to pay such additional amounts remains in effect.

Merger, Consolidation or Sale of Assets

América Móvil may not consolidate with or merge into any other person or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose of all or substantially all of its assets and properties and may not permit any person to consolidate with or merge into them, unless all of the following conditions are met:

•	if América Móvil is not the successor person in the transaction, the successor is organized and<br>validly existing under the laws of Mexico or the United States or any political subdivision thereof and expressly assumes our obligations under the 2040 Notes and the indenture;
•	immediately after the transaction, no default under the 2040 Notes has occurred and is continuing. For this<br>purpose, “default under the debt securities” means an event of default or an event that would be an event of default with respect to the 2040 Notes if the requirements for giving América Móvil default notice and for its<br>default having to continue for a specific period of time were disregarded. See “Defaults, Remedies and Waiver of Defaults” below; and
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•	América Móvil has delivered to the trustee an officers’ certificate and opinion of counsel,<br>each stating, among other things, that the transaction complies with the indenture.
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If the conditions described above are satisfied, América Móvil will not have to obtain the approval of the holders in order to merge or consolidate or to sell or otherwise dispose of its properties and assets substantially as an entirety. In addition, these conditions will apply only if América Móvil wishes to merge into or consolidate with another person or sell or otherwise dispose of all or substantially all of its assets and properties. América Móvil will not need to satisfy these conditions if it enters into other types of transactions, including any transaction in which it acquires the stock or assets of another person, any transaction that involves a change of control of the company, but in which it does not merge or consolidate, and any transaction in which it sells or otherwise disposes of less than substantially all its assets.

Covenants

The following covenants will apply to América Móvil and certain of its subsidiaries for so long as the 2040 Notes remain outstanding. These covenants restrict América Móvil’s ability and the ability of its subsidiaries to enter into certain transactions. However, these covenants do not limit América Móvil’s ability to incur indebtedness or require América Móvil to comply with financial ratios or to maintain specified levels of net worth or liquidity.

Limitation on Liens

subsidiaries in respect of sale and leaseback transactions, would exceed an amount equal to an aggregate of 15% of its Consolidated Net Tangible Assets unless América Móvil secures the debt securities equally with, or prior to, the debt secured by such liens. This restriction will not, however, apply to the following:

•	liens on restricted property acquired and existing on the date the property was acquired or arising after such<br>acquisition pursuant to contractual commitments entered into prior to such acquisition;
•	liens on any restricted property securing debt incurred or assumed for the purpose of financing its purchase<br>price or the cost of its construction, improvement or repair, provided that such lien attaches to the restricted property within 12 months of its acquisition or the completion of its construction, improvement or repair and does not attach to<br>any other restricted property;
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•	liens existing on any restricted property of any restricted subsidiary prior to the time that the restricted<br>subsidiary became a subsidiary of América Móvil or liens arising after that time under contractual commitments entered into prior to and not in contemplation of that event;
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•	liens on any restricted property securing debt owed by a subsidiary of América Móvil to<br>América Móvil or to another of its subsidiaries; and
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•	liens arising out of the refinancing, extension, renewal or refunding of any debt described above, provided that<br>the aggregate principal amount of such debt is not increased and such lien does not extend to any additional restricted property.
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“Restricted property” means (1) any exchange and transmission equipment, switches, cellular base stations, microcells, local links, repeaters and related facilities, whether owned as of the date of the 2009 Indenture or acquired after that date, used in connection with the provision of telecommunications services in Mexico, including any land, buildings, structures and other equipment or fixtures that constitute any such facility, owned by América Móvil or our restricted subsidiaries and (2) any share of capital stock of any restricted subsidiary.

“Restricted subsidiaries” means América Móvil’s subsidiaries that own restricted property.

Limitation on Sales and Leasebacks

América Móvil may not, and América Móvil may not allow any of its restricted subsidiaries to, enter into any sale and leaseback transaction without effectively providing that the 2040 Notes will be secured equally and ratably with or prior to the sale and leaseback transaction, unless:

•	the aggregate principal amount of all debt then outstanding that is secured by any lien on any restricted<br>property that does not ratably secure the 2040 Notes (excluding any secured indebtedness permitted under “Limitation on Liens” above) plus the aggregate amount of

América Móvil’s attributable debt and the attributable debt of its restricted subsidiaries in respect of sale and leaseback transactions then outstanding (other than any sale and leaseback transaction permitted under the following bullet point) would not exceed an amount equal to 15% of its Consolidated Net Tangible Assets; or

•

América Móvil or one of its restricted subsidiaries, within 12 months of the sale and leaseback transaction, retire an amount of its secured debt which is not subordinate to the 2040 Notes in an amount equal to the greater of (1) the net proceeds of the sale or transfer of the property or other assets that are the subject of the sale and leaseback transaction and (2) the fair market value of the restricted property leased.

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“Sale and leaseback transaction” means an arrangement between América Móvil or one of its restricted subsidiaries and a bank, insurance company or other lender or investor where América Móvil or its restricted subsidiary leases a restricted property for an initial term of three years or more that was or will be sold by América Móvil or its restricted subsidiary to that lender or investor for a sale price of U.S.$1 million or its equivalent or more.

Limitation on Sale of Capital Stock of Telcel

América Móvil may not, and América Móvil may not allow any of its subsidiaries to, sell, transfer or otherwise dispose of any shares of capital stock of Telcel if following such sale, transfer or disposition América Móvil would own, directly or indirectly, less than (1) 50% of the voting power of all of the shares of capital stock of Telcel and (2) 50% of all of the shares of capital stock of Telcel.

Provision of Information

América Móvil will furnish the trustee with copies of its annual report and the information, documents and other reports that it is are required to file with the SEC pursuant to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended, including our annual reports on Form 20-F and reports on Form 6-K, within 15 days after we file them with the SEC. In addition, América Móvil will make the same information, documents and other reports available, at its expense, to holders who so request in writing.

In the event that, in the future, América Móvil is not required to file such information, documents or other reports pursuant to Section 13 or 15(d) of the Securities Exchange Act, América Móvil will furnish on a reasonably prompt basis to the trustee and holders who so request in writing, substantially the same financial and other information that América Móvil would be required to include and file in an annual report on Form 20-F and reports on Form 6-K.

Defaults, Remedies and Waiver of Defaults

A Holder of the 2040 Notes will have special rights if an event of default with respect to the 2040 Notes it holds occurs and is not cured, as described below.

Events of Default

Each of the following will be an “event of default” with respect to the 2040 Notes:

•	América Móvil or Telcel fail to pay the principal of the 2040 Notes on its due date;<br>
•	América Móvil or Telcel fail to pay interest on the 2040 Notes within 30 days after its due date;<br>
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•	América Móvil or Telcel remain in breach of any covenant in the indenture for the benefit of<br>holders of the 2040 Notes, for 60 days after América Móvil receives a notice of default (sent by the trustee or the holders of not less than 25% in principal amount of the 2040 Notes) stating that it is in breach;<br>
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•	América Móvil or Telcel file for bankruptcy, or other events of bankruptcy, insolvency or<br>reorganization or similar proceedings occur relating to América Móvil or Telcel;
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•	América Móvil or Telcel experience a default or event of default under any instrument relating to<br>debt having an aggregate principal amount exceeding U.S.$25 million (or its equivalent in other currencies) that constitutes a failure to pay principal or interest when due or results in the acceleration of the debt prior to its maturity;<br>
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•	a final judgment is rendered against América Móvil or Telcel in an aggregate amount in excess of<br>U.S.$25 million (or its equivalent in other currencies) that is not discharged or bonded in full within 30 days; or
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•	the guarantee of the 2040 Notes is held in a final judgment proceeding to be unenforceable or invalid or ceases<br>for any reason to be in full force and effect, or Telcel, or any person acting on behalf of Telcel, denies or disaffirms its obligations under the guarantees of the 2040 Notes.
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Remedies Upon Event of Default

If an event of default with respect to the 2040 Notes occurs and is not cured or waived, the trustee, at the written request of holders of not less than 25% in principal amount of the 2040 Notes, may declare the entire principal amount of all the 2040 Notes to be due and payable immediately, and upon any such declaration the principal, any accrued interest and any additional amounts shall become due and payable. If, however, an event of default occurs because of a bankruptcy, insolvency or reorganization relating to América Móvil or Telcel, the entire principal amount of

all the 2040 Notes and any accrued interest and any additional amounts will be automatically accelerated, without any action by the trustee or any holder and any principal, interest or additional amounts will become immediately due and payable.

Each of the situations described in the preceding paragraph is called an acceleration of the maturity of the 2040 Notes. If the maturity of the 2040 Notes is accelerated and a judgment for payment has not yet been obtained, the holders of a majority in aggregate principal amount of the 2040 Notes may cancel the acceleration for all the 2040 Notes, provided that all amounts then due (other than amounts due solely because of such acceleration) have been paid and all other defaults with respect to the 2040 Notes have been cured or waived.

Except as described in the prior paragraph, the trustee is not required to take any action under the indenture at the request of any holders unless the holders offer the trustee reasonable protection, known as an indemnity, from expenses and liability. If the trustee receives an indemnity that is reasonably satisfactory to it, the holders of a majority in principal amount of the 2040 Notes may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. These majority holders may also direct the trustee in performing any other action under the indenture with respect to the 2040 Notes.

Before any holder of the 2040 Notes bypasses the trustee and bring its own lawsuit or other formal legal action or take other steps to enforce its rights or protect its interests relating to the 2040 Notes, the following must occur:

•	holders of the 2040 Notes must give the trustee written notice that an event of default has occurred and the<br>event of default has not been cured or waived;
•	the holders of not less than 25% in principal amount of the 2040 Notes must make a written request that the<br>trustee take action with respect to the 2040 Notes because of the default and they or other holders must offer to the trustee indemnity reasonably satisfactory to the trustee against the cost and other liabilities of taking that action;<br>
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•	the trustee must not have taken action for 60 days after the above steps have been taken; and<br>
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•	during those 60 days, the holders of a majority in principal amount of the 2040 Notes must not have given the<br>trustee directions that are inconsistent with the written request of the holders of not less than 25% in principal amount of the 2040 Notes.
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Holders of the 2040 Notes will be entitled, however, at any time to bring a lawsuit for the payment of money due on the 2040 Notes on or after its due date.

Book-entry and other indirect holders should consult their banks or brokers for information on how to give notice or direction to or make a request of the trustee and how to declare or cancel an acceleration of the maturity.

Waiver of Default

The holders of not less than a majority in principal amount of the 2040 Notes may waive a past default for all the 2040 Notes. If this happens, the default will be treated as if it had been cured. No one can waive a payment default on any debt security, however, without the approval of the particular holder of that debt security.

Modification and Waiver

There are three types of changes América Móvil can make to the indenture, the outstanding 2040 Notes and guarantees thereof.

Changes Requiring Each Holder’sApproval

The following changes cannot be made without the approval of each holder of a 2040 Note affected by the change:

•	a change in the stated maturity of any principal or interest payment on the 2040 Notes;
•	a reduction in the principal amount, the interest rate or the redemption price of the 2040 Notes;<br>
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•	a change in the obligation to pay additional amounts;
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•	a change in the currency of any payment on the 2040 Notes other than as permitted by the 2040 Notes;<br>
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•	a change in the place of any payment on the 2040 Notes;
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•	an impairment of the holder’s right to sue for payment of any amount due on its debt security;<br>
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•	a change in the terms and conditions of the obligations of the guarantor under the guarantees to make due and<br>punctual payment of the principal, premium, if any, or interest in respect of the outstanding 2040 Notes;
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•	a reduction in the percentage in principal amount of the 2040 Notes needed to change the indenture, the<br>outstanding 2040 Notes or guarantees thereof; and
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•	a reduction in the percentage in principal amount of the 2040 Notes needed to waive América<br>Móvil’s compliance with the indenture or to waive defaults.
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Changes Not Requiring Approval

Some changes will not require the approval of holders of the 2040 Notes. These changes are limited to specific kinds of changes, like the addition of covenants, events of default or security, and other clarifications and changes that would not adversely affect the holders of outstanding 2040 Notes under the indenture in any material respect.

Changes Requiring Majority Approval

Any other change to the indenture, the 2040 Notes or the guarantees will be required to be approved by the holders of a majority in principal amount of each series of debt securities affected by the change or waiver. The required approval must be given by written consent.

The same majority approval will be required for América Móvil to obtain a waiver of any of its covenants in the indenture. América Móvil’s covenants include the promises it makes about merging and creating liens on its interests, which is described under “Merger, Consolidation or Sale of Assets” and “Covenants”. If the holders approve a waiver of a covenant, América Móvil will not have to comply with it. The holders, however, cannot approve a waiver of any provision in a particular debt security or guarantee, or the indenture, as it affects that debt security, that it cannot change without the approval of the holder of that debt security as described under in “Changes Requiring Each Holder’s Approval”, unless that holder approves the waiver.

Book-entry and other indirect holders should consult their banks or brokers for information on how approval may be granted or denied if América Móvil seeks to change the indenture or the 2040 Notes or request a waiver.

Defeasance

América Móvil may, at its option, elect to terminate (1) all of its or Telcel’s obligations with respect to the 2040 Notes and the related guarantees (“legal defeasance”), except for certain obligations, including those regarding any trust established for defeasance and obligations relating to the transfer and exchange of the 2040 Notes, the replacement of mutilated, destroyed, lost or stolen debt securities and the maintenance of agencies with respect to the debt securities or (2) América Móvil’s or Telcel’s obligations under the covenants in the indenture, so that any failure to comply with such obligations will not constitute an event of default (“covenant defeasance”) in respect of the 2040 Notes. In order to exercise either legal defeasance or covenant defeasance, América Móvil must irrevocably deposit with the trustee money or U.S. government obligations, or any combination thereof, in such amounts as will be sufficient to pay the principal, premium, if any, and interest (including additional amounts) in respect of the 2040 Notes then outstanding on the maturity date of the 2040 Notes, and comply with certain other conditions, including, without limitation, the delivery of opinions of counsel as to specified tax and other matters.

If América Móvil elects either legal defeasance or covenant defeasance with respect to the 2040 Notes, América Móvil must so elect it with respect to all of the 2040 Notes.

Special Rules for Actions by Holders

Only Outstanding Debt Securities are Eligible for Action by Holders

Only holders of outstanding 2040 Notes will be eligible to vote or participate in any action by holders. In addition, América Móvil will count only outstanding debt securities in determining whether the various percentage requirements for voting or taking action have been met. For these purposes, a debt security will not be “outstanding” if it has been surrendered for cancellation or if we have deposited or set aside, in trust for its holder, money for its payment or redemption.

Determining Record Dates forAction by Holders

América Móvil will generally be entitled to set any day as a record date for the purpose of determining the holders that are entitled to take action under the indenture. In some limited circumstances, only the trustee will be entitled to set a record date for action by holders. If América Móvil or the trustee set a record date for an approval or other action to be taken by holders, that vote or action may be taken only by persons or entities who are holders on the record date and must be taken during the period that América Móvil specifies for this purpose, or that the trustee specifies if it sets the record date. América Móvil or the trustee, as applicable, may shorten or lengthen this period from time to time. This period, however, may not extend beyond the 180th day after the record date for the action. In addition, record dates for any global debt securities may be set in accordance with procedures established by the depositary from time to time.

Payment Provisions

Payments on the Debt Securities

For interest due on the 2040 Notes on an interest payment date, América Móvil will pay the interest to the holder in whose name the note is registered at the close of business on the regular record date relating to the interest payment date. For interest due at maturity but on a day that is not an interest payment date, América Móvil will pay the interest to the person or entity entitled to receive the principal of the note. For principal due on a note at maturity, we will pay the amount to the holder of the note against surrender of the note at the proper place of payment.

América Móvil will compute interest on the 2040 Notes bearing interest at a fixed rate on the basis of a 360-day year of twelve 30-day months.

Payments on Global DebtSecurities . América Móvil will make payments on the 2040 Notes in accordance with the applicable policies of the depositary. Under those policies, América Móvil will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in a global debt security. An indirect holder’s right to receive those payments will be governed by the rules and practices of the depositary and its participants.

Payments on Certificated Debt Securities . For debt securities issued in certificated form, América Móvil will pay interest that is due on an interest payment date by check mailed on the interest payment date to the holder at the holder’s address shown on the trustee’s records as of the close of business on the regular record date, and we will make all other payments by check to the paying agent described below, against surrender of the debt security. All payments by check may be made in next-day funds, that is, funds that become available on the day after the check is cashed. If América Móvil issues debt securities in certificated form, holders of debt securities in certificated form will be able to receive payments of principal and interest on their debt securities at the office of our paying agent maintained in New York City.

Payment When Offices Are Closed

If any payment is due on the 2040 Notes on a day that is not a business day, América Móvil will make the payment on the day that is the next business day. Payments postponed to the next business day in this situation will be treated under the indenture as if they were made on the original due date. Postponement of this kind will not result in a default under the 2040 Notes, guarantees or the indenture, and no interest will accrue on the postponed amount from the original due date to the next day that is a business day.

“Business day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is (a) not a day on which banking institutions in New York City or Mexico City generally are authorized or obligated by law, regulation or executive order to close and (b) a day on which banks and financial institutions in Mexico are open for business with the general public.

Paying Agents

If América Móvil issues debt securities in certificated form, it may appoint one or more financial institutions to act as its paying agents, at whose designated offices the debt securities may be surrendered for payment at their maturity. América Móvil may add, replace or terminate paying agents from time to time, provided that if any debt securities are issued in certificated form, so long as such debt securities are outstanding, América Móvil will maintain a paying agent in New York City. América Móvil may choose to act as its own paying agent. Initially, América Móvil has appointed the trustee, at its corporate trust office in New York City, as a paying agent. América Móvil must notify the holders of the 2040 Notes of changes in the paying agents as described under “Notices” below.

Unclaimed Payments

Governing Law

The indenture, the 2040 Notes and the guarantees will be governed by, and construed in accordance with, the laws of the State of New York, United States of America.

Submission to Jurisdiction

In connection with any legal action or proceeding arising out of or relating to the 2040 Notes, the guarantees or the indenture (subject to the exceptions described below), América Móvil and Telcel have each:

•	submitted to the jurisdiction of any New York state or U.S. federal court sitting in New York City, and any<br>appellate court thereof;
•	agreed that all claims in respect of such legal action or proceeding may be heard and determined in such New York<br>state or U.S. federal court and waived, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding and any right of jurisdiction in such action or proceeding on account of the place<br>of residence or domicile of we or the guarantor; and
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•	appointed CT Corporation System, with an office at 111 Eighth Avenue, New York, New York 10011, United States of<br>America, as process agent.
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The process agent will receive, on behalf of each of América Móvil and Telcel, service of copies of the summons and complaint and any other process which may be served in any such legal action or proceeding brought in such New York state or U.S. federal court sitting in New York City. Service may be made by mailing or delivering a copy of such process to América Móvil or Telcel, as the case may be, at the address specified above for the process agent.

In addition to the foregoing, the holders may serve legal process in any other manner permitted by applicable law. The above provisions do not limit the right of any holder to bring any action or proceeding against either América Móvil or the guarantor or our or its properties in other courts where jurisdiction is independently established.

To the extent that either América Móvil or Telcel have or hereafter may acquire or have attributed to América Móvil or Telcel any sovereign or other immunity under any law, each of América Móvil and Telcel has agreed to waive, to the fullest extent permitted by law, such immunity from jurisdiction or to service of process in respect of any legal suit, action or proceeding arising out of or relating to the indenture or the 2040 Notes.

Currency Indemnity

América Móvil’s obligations and the obligations of the guarantor under the 2040 Notes and the guarantees, respectively, will be discharged only to the extent that the relevant holder is able to purchase U.S. dollars with any other currency paid to that holder in accordance with any judgment or otherwise. If the holder cannot purchase U.S. dollars in the amount originally to be paid, América Móvil and the guarantor have agreed to pay the difference. The holder, however, agreed that, if the amount of U.S. dollars purchased exceeds the amount originally to be paid to such holder, the holder will reimburse the excess to América Móvil or the guarantor, as the case may be. The holder will not be obligated to make this reimbursement if América Móvil or the guarantor are in default of its obligations under the 2040 Notes or the guarantees.

Transfer Agents

América Móvil may appoint one or more transfer agents, at whose designated offices any debt securities in certificated form may be transferred or exchanged and also surrendered before payment is made at maturity. Initially, América Móvil has appointed the trustee, at its corporate office in New York City, as transfer agent. América Móvil may also choose to act as our its own transfer agent. América Móvil must notify holders of the 2040 Notes of changes in the transfer agent as described under “Notices” below. If América Móvil issues debt securities in certificated form, holders of debt securities in certificated form will be able to transfer their debt securities, in whole or in part, by surrendering the debt securities, with a duly completed form of transfer, for registration of transfer at the office of our transfer agent in New York City. América Móvil will not charge any fee for the registration or transfer or exchange, except that it may require the payment of a sum sufficient to cover any applicable tax or other governmental charge payable in connection with the transfer.

Notices

As long as we issue notes in global form, notices to be given to holders will be given to DTC, in accordance with its applicable policies as in effect from time to time. If América Móvil issues debt securities in certificated form, notices to be given to holders will be sent by mail to the respective addresses of the holders as they appear in the trustee’s records, and will be deemed given when mailed.

Neither the failure to give any notice to a particular holder, nor any defect in a notice given to a particular holder, will affect the sufficiency of any notice given to another holder.

C.	2042 Notes

General

Indenture and Supplemental Indenture

The 2042 Notes were issued under the 2012 Indenture and the 2012 Supplemental Indentures, as supplemented by additional notes supplements. References to the “indenture” in this section III.C are to the 2012 Indenture as supplemented by the applicable supplemental indenture and additional notes supplement. The indenture is an agreement between América Móvil and The Bank of New York Mellon, as trustee.

The 2042 Notes are not guaranteed by any of América Móvil’s subsidiaries.

The trustee has the following two main roles:

•	First, the trustee can enforce the rights of the holder of the 2042 Notes against América Móvil if<br>it defaults in respect of the 2042 Notes. There are some limitations on the extent to which the trustee acts on its behalf, which are described under “Defaults, Remedies and Waiver of Defaults”.
•	Second, the trustee performs administrative duties for América Móvil, such as making interest<br>payments and sending notices to holders of notes.
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Principal and Interest

The original aggregate principal amount of the 2042 Notes is U.S.$1,150,000,000. The 2042 Notes will mature on July 16, 2042 and bear interest at a rate of 4.375% per year from July 16, 2012.

Interest on the 2042 Notes is payable on January 16 and July 16 of each year, to the holders in whose names the 2042 Notes are registered at the close of business on January 1 or July 1 immediately preceding the related interest payment date. Purchasers of the 2042 Notes were entitled to receive the full amount of the first interest payment on January 16, 2013.

América Móvil pays interest on the 2042 Notes on the interest payment dates stated above and at maturity. Each payment of interest due on an interest payment date or at maturity include interest accrued from and including the last date to which interest has been paid or made available for payment, or from the issue date, if none has been paid or made available for payment, to but excluding the relevant payment date. América Móvil computes interest on the 2042 Notes on the basis of a 360-day year consisting of twelve 30-day months.

If any payment is due on the 2042 Notes on a day that is not a business day, América Móvil will make the payment on the next business day. Payments postponed to the next business day in this situation will be treated under the indenture as if they were made on the original payment date. Postponement of this kind will not result in a default under the notes or the indenture, and no interest will accrue on the postponed amount from the original payment date to the next business day.

Ranking of the Notes

América Móvil is a holding company, and its principal assets are shares that it holds in its subsidiaries. The 2042 Notes are not secured by any of its assets or properties. As a result, by owning the 2042 Notes, the holder is one of América Móvil’s unsecured creditors. The 2042 Notes are not subordinated to any of América Móvil’s other unsecured debt obligations. In the event of a bankruptcy or liquidation proceeding against América Móvil, the 2042 Notes would rank equally in right of payment with all of América Móvil’s other unsecured and unsubordinated debt.

Claims of creditors of América Móvil’s subsidiaries, including trade creditors and bank and other lenders, will have priority over the holders of the 2042 Notes in claims to assets of its subsidiaries. All of América Móvil’s outstanding debt securities that were issued in the Mexican and international markets through mid-September 2011 are unconditionally guaranteed by Telcel. Accordingly, the holders of those outstanding debt securities will have priority over the holders of the 2042 Notes with respect to claims to the assets of Telcel.

Form and Denominations

The 2042 Notes were issued only in registered form without coupons in minimum denominations of U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof.

Except in limited circumstances, the 2042 Notes will be issued in the form of global notes.

Further Issues

América Móvil reserves the right, from time to time without the consent of holders of the 2042 Notes , to issue additional notes of a series on terms and conditions identical to those of the 2042 Notes (except for issue date, issue price and the date from which interest will accrue and, if applicable, first to be paid), which additional notes will increase the aggregate principal amount of, and will be consolidated and form a single series with the 2042 Notes.

Payment of Additional Amounts

América Móvil is required by Mexican law to deduct Mexican withholding taxes from payments of interest to investors who are not residents of Mexico for tax purposes.

América Móvil will pay to holders of the 2042 Notes all additional amounts that may be necessary so that every net payment of interest or principal or premium, if any, to the holder will not be less than the amount provided for in the 2042 Notes. By net payment, América Móvil means the amount that it or its paying agent will pay the holder after deducting or withholding an amount for or on account of any present or future taxes, duties, assessments or other governmental charges imposed with respect to that payment by a Mexican taxing authority.

América Móvil’s obligation to pay additional amounts is, however, subject to several important exceptions. América Móvil will not pay additional amounts to or on behalf of any holder or beneficial owner, or to the trustee, for or on account of any of the following:

•	any taxes, duties, assessments or other governmental charges imposed solely because at any time there is or was a<br>connection between the holder and Mexico (other than the mere receipt of a payment or the ownership or holding of a debt security);
•	any taxes, duties, assessments or other governmental charges imposed solely because the holder or any other<br>person fails to comply with any certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with Mexico of the holder or any beneficial owner of the 2042 Notes if compliance is required<br>by law, regulation or by an applicable income tax treaty to which Mexico is a party, as a precondition to exemption from, or reduction in the rate of, the tax, assessment or other governmental charge and we have given the holders at least 30<br>calendar days’ notice prior to the first payment date with respect to which such certification, identification or reporting requirement is required to the effect that holders will be required to provide such information and identification;<br>
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•	any taxes, duties, assessments or other governmental charges with respect to the 2042 Notes presented for payment<br>more than 15 days after the date on which the payment became due and payable or the date on which payment thereof is duly provided for and notice thereof given to holders, whichever occurs later, except to the extent that the holders of such 2042<br>Notes would have been entitled to such additional amounts on presenting such debt security for payment on any date during such 15-day period;
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•	any estate, inheritance, gift or other similar tax, assessment or other governmental charge imposed with respect<br>to the 2042 Notes;
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•	any tax, duty, assessment or other governmental charge payable otherwise than by deduction or withholding from<br>payments on the debt securities;
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•	any payment on the 2042 Notes to a holder that is a fiduciary or partnership or a person other than the sole<br>beneficial owner of any such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of the payment would not have been entitled to the additional amounts had the<br>beneficiary, settlor, member or beneficial owner been the holder of such debt security;
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•	any taxes, duties, assessments or other governmental charges that are imposed on a payment to an individual and<br>are required to be made pursuant to European Council Directive 2003/48/EC on the
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•	taxation of savings income or any other directive implementing the conclusions of the ECOFIN Council meetings of<br>November 26 and 27, 2000, December 13, 2001, and January 21, 2003, or any law or agreement implementing or complying with, or introduced in order to conform to, such a directive; and
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•	any combination of the items in the bullet points above.

The limitations on América Móvil’s obligations to pay additional amounts described in the second bullet point above will not apply if the provision of information, documentation or other evidence described in the applicable bullet point would be materially more onerous, in form, in procedure or in the substance of information disclosed, to a holder or beneficial owner of a debt security, taking into account any relevant differences between U.S. and Mexican law, regulation or administrative practice, than comparable information or other reporting requirements imposed under U.S. tax law (including the United States/Mexico Income Tax Treaty), regulations (including proposed regulations) and administrative practice.

Applicable Mexican regulations currently allow América Móvil to withhold at a reduced rate, provided that it complies with certain information reporting requirements. Accordingly, the limitations on our obligations to pay additional amounts described in the second bullet point above also will not apply unless (a) the provision of the information, documentation or other evidence described in the applicable bullet point is expressly required by the applicable Mexican regulations, (b) América Móvil cannot obtain the information, documentation or other evidence necessary to comply with the applicable Mexican regulations on its own through reasonable diligence and (c) América Móvil otherwise would meet the requirements for application of the applicable Mexican regulations.

In addition, the limitation described in the second bullet point above does not require that any person, including any non-Mexican pension fund, retirement fund or financial institution, register with the Ministry of Finance and Public Credit (Secretaría de Hacienda y CréditoPúblico) to establish eligibility for an exemption from, or a reduction of, Mexican withholding tax.

América Móvil will remit the full amount of any Mexican taxes withheld to the applicable Mexican taxing authorities in accordance with applicable law. América Móvil will also provide the trustee with documentation satisfactory to the trustee evidencing the payment of Mexican taxes in respect of which we have paid any additional amounts. América Móvil will provide copies of such documentation to the holders of the 2042 Notes or the relevant paying agent upon request.

In the event that additional amounts actually paid with respect to the 2042 Notes pursuant to the preceding paragraphs are based on rates of deduction or withholding of withholding taxes in excess of the appropriate rate applicable to the holder of such debt securities, and as a result thereof such holder is entitled to make a claim for a refund or credit of such excess from the authority imposing such withholding tax, then such holder shall, by accepting such debt securities, be deemed to have assigned and transferred all right, title and interest to any such claim for a refund or credit of such excess to América Móvil. However, by making such assignment, the holder makes no representation or warranty that América Móvil will be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto.

Any reference to the indenture or the 2042 Notes to principal, premium, if any, interest or any other amount payable in respect of the debt securities by América Móvil will be deemed also to refer to any additional amounts that may be payable with respect to that amount under the obligations referred to in this subsection.

Optional Redemption

América Móvil is not permitted to redeem the 2042 Notes before their stated maturity, except as set forth below. The 2042 Notes will not be entitled to the benefit of any sinking fund (meaning that we will not deposit money on a regular basis into any separate account to repay the 2042 Notes). In addition, the holders of the 2042 Notes will not be entitled to require América Móvil to repurchase their notes from them before the stated maturity.

Optional Redemption With “Make-Whole” Amount

América Móvil will have the right at its option to redeem the 2042 Notes in whole or in part, at any time or from time to time prior to their maturity, on at least 30 days’ but not more than 60 days’ notice, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2042 Notes to be redeemed and (2) the sum of the present values of each remaining scheduled payment of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 30 basis points (the “make-whole” amount), plus accrued interest on the principal amount of the 2042 Notes being redeemed to the redemption date.

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the 2042 Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such notes.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by América Móvil.

“Reference Treasury Dealer” means each of Goldman, Sachs & Co. and Morgan Stanley & Co. LLC or their respective affiliates which are primary United States government securities dealers and two other leading primary United States government securities dealers in New York City reasonably designated by América Móvil; provided, however, that if any of the foregoing shall cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), América Móvil will substitute therefor another Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the trustee, of the bid and asked prices for

the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the trustee by such Reference Treasury Dealer at 3:30 pm (New York City time) on the third business day preceding such redemption date.

On and after the redemption date, interest will cease to accrue on the 2042 Notes or any portion of the 2042 Notes called for redemption (unless América Móvil defaults in the payment of the redemption price and accrued interest). On or before the redemption date, América Móvil will deposit with the trustee money sufficient to pay the redemption price of and (unless the redemption date shall be an interest payment date) accrued interest to the redemption date on the 2042 Notes to be redeemed on such date. If less than all of the 2042 Notes are to be redeemed, the notes to be redeemed shall be selected by the trustee by such method as the trustee shall deem fair and appropriate or in accordance with the applicable procedures of DTC.

Tax Redemption

América Móvil will have the right to redeem the 2042 Notes upon the occurrence of certain changes in the tax laws of Mexico as a result of which América Móvil becomes obligated to pay additional amounts on the 2042 Notes in respect of withholding taxes at a rate in excess of 4.9%, in which case América Móvil may redeem the 2042 Notes, in whole but not in part at any time on giving not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the 2042 Notes, plus accrued interest to the redemption date and any premium applicable in the case of a redemption prior to maturity and any additional amounts due thereon up to but not including the date of redemption; provided, however, that (1) no notice of redemption for tax reasons may be given earlier than 90 days prior to the earliest date on which América Móvil would be obligated to pay these additional amounts if a payment on the debt securities were then due and (2) at the time such notice of redemption is given such obligation to pay such additional amounts remains in effect.

Prior to the publication of any notice of redemption for taxation reasons, América Móvil will deliver to the trustee:

•	a certificate signed by one of our duly authorized representatives stating that América Móvil is<br>entitled to effect the redemption and setting forth a statement of facts showing that the conditions precedent to its right of redemption for taxation reasons have occurred; and
•	an opinion of Mexican legal counsel (which may be América Móvil’s counsel) of recognized<br>standing to the effect that América Móvil have or will become obligated to pay such additional amounts as a result of such change or amendment.
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This notice, after it is delivered to the holders, will be irrevocable.

Merger, Consolidation or Sale of Assets

América Móvil may not consolidate with or merge into any other person or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose of all or substantially all of its assets and properties and may not permit any person to consolidate with or merge into América Móvil, unless all of the following conditions are met:

•	if América Móvil is not the successor person in the transaction, the successor is organized and<br>validly existing under the laws of Mexico or the United States or any political subdivision thereof and expressly assumes its obligations under the 2042 Notes or the indenture;
•	immediately after the transaction, no default under the 2042 Notes has occurred and is continuing. For this<br>purpose, “default under the debt securities” means an event of default or an event that would be an event of default with respect to the 2042 Notes if the requirements for giving América Móvil default notice and for its<br>default having to continue for a specific period of time were disregarded. See “Defaults, Remedies and Waiver of Defaults”; and
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•	América Móvil has delivered to the trustee an officer’s certificate and opinion of counsel,<br>each stating, among other things, that the transaction complies with the indenture.
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If the conditions described above are satisfied, América Móvil will not have to obtain the approval of the holders in order to merge or consolidate or to sell or otherwise dispose of its properties and assets substantially as an entirety. In addition, these conditions will apply only if América Móvil wishes to merge into or consolidate with another person or sell or otherwise dispose of all or substantially all of its assets and properties. América Móvil will not need to satisfy these conditions if it enters into other types of transactions, including any transaction in which it acquires the stock or assets of another person, any transaction that involves a change of control of the company, but in which América Móvil does not merge or consolidate, and any transaction in which it sells or otherwise dispose of less than substantially all of its assets.

Covenants

Holders of the 2042 Notes will benefit from the following covenants contained in the indenture and affecting América Móvil’s ability to incur liens to secure debt, enter into sale and leaseback transactions, sell shares of capital stock of Telcel, merge or consolidate with other entities and take other specified actions, as well as requiring América Móvil to provide certain reports or information to holders of the 2042 Notes.

Limitation on Liens

América Móvil may not, and América Móvil may not allow any of its restricted subsidiaries to, create, incur, issue or assume any liens on our restricted property to secure debt where the debt secured by such liens, plus the aggregate amount of our attributable debt and that of our restricted subsidiaries in respect of sale and leaseback transactions, would exceed an amount equal to an aggregate of 15% of its Consolidated Net Tangible Assets unless it secures the debt securities equally with, or prior to, the debt secured by such liens. This restriction will not, however, apply to the following:

•	liens on restricted property acquired and existing on the date the property was acquired or arising after such<br>acquisition pursuant to contractual commitments entered into prior to such acquisition;
•	liens on any restricted property securing debt incurred or assumed for the purpose of financing its purchase<br>price or the cost of its construction, improvement or repair; provided that such lien attaches to the restricted property within 12 months of its acquisition or the completion of its construction, improvement or repair and does not attach to<br>any other restricted property;
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•	liens existing on any restricted property of any restricted subsidiary prior to the time that the restricted<br>subsidiary became a subsidiary of América Móvil or liens arising after that time under contractual commitments entered into prior to and not in contemplation of that event;
•	liens on any restricted property securing debt owed by a subsidiary of América Móvil to<br>América Móvil or to another of its subsidiaries; and
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•	liens arising out of the refinancing, extension, renewal or refunding of any debt described above, provided that<br>the aggregate principal amount of such debt is not increased and such lien does not extend to any additional restricted property.
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“Consolidated Net Tangible Assets” means total consolidated assets less (1) all current liabilities, (2) all goodwill, (3) all trade names, trademarks, patents and other intellectual property assets and (4) all licenses, each as set forth on América Móvil’s most recent consolidated balance sheet and computed in accordance with International Financial Reporting Standards (“IFRS”).

“Restricted subsidiaries” means our subsidiaries that own restricted property.

Limitation on Sales and Leasebacks

América Móvil may not, and it may not allow any of its restricted subsidiaries to, enter into any sale and leaseback transaction without effectively providing that the 2042 Notes will be secured equally and ratably with or prior to the sale and leaseback transaction, unless:

•

the aggregate principal amount of all debt then outstanding that is secured by any lien on any restricted property that does not ratably secure the 2042 Notes (excluding any secured indebtedness permitted under “Limitation on Liens”) plus the aggregate amount of América Móvil’s attributable debt and the attributable debt of its restricted subsidiaries in respect of sale and leaseback transactions then outstanding (other than any sale and leaseback transaction permitted under the following bullet point) would not exceed an amount equal to 15% of its Consolidated Net Tangible Assets; or

•

América Móvil or one of its restricted subsidiaries, within 12 months of the sale and leaseback transaction, retire an amount of its secured debt which is not subordinate to the 2042 Notes in an amount equal to the greater of (1) the net proceeds of the sale or transfer of the property or other assets that are the subject of the sale and leaseback transaction and (2) the fair market value of the restricted property leased.

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“Sale and leaseback transaction” means an arrangement between América Móvil or one of its restricted subsidiaries and a bank, insurance company or other lender or investor where América Móvil or its restricted subsidiary leases a restricted property for an initial term of three years or more that was or will be sold by América Móvil or its restricted subsidiary to that lender or investor for a sale price of U.S.$1 million (or its equivalent in other currencies) or more.

“Attributable debt” means, with respect to any sale and leaseback transaction, the lesser of (1) the fair market value of the asset subject to such transaction and (2) the present value, discounted at a rate per annum equal to the discount rate of a capital lease obligation with a like term in accordance with IFRS, of the obligations of the lessee for net rental payments (excluding amounts on account of maintenance and repairs, insurance, taxes, assessments and similar charges and contingent rents) during the term of the lease.

Limitation on Sale of Capital Stock of Telcel

América Móvil may not, and it may not allow any of its subsidiaries to, sell, transfer or otherwise dispose of any shares of capital stock of Telcel if following such sale, transfer or disposition it would own, directly or indirectly, less than (1) 50% of the voting power of all of the shares of capital stock of Telcel and (2) 50% of all of the shares of capital stock of Telcel.

Provision of Information

América Móvil will furnish the trustee with copies of its annual report and the information, documents and other reports that it is required to file with the SEC pursuant to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), including its annual reports on Form 20-F and reports on Form 6-K, within 15 days after it files them with the SEC. In addition, América Móvil will make the same information, documents and other reports available, at its expense, to holders who so request in writing.

In the event that, in the future, América Móvil is not required to file such information, documents or other reports pursuant to Section 13 or 15(d) of the Exchange Act, it will furnish on a reasonably prompt basis to the trustee and holders who so request in writing, substantially the same financial and other information that we would be required to include and file in an annual report on Form 20-F and reports on Form 6-K.

If América Móvil becomes aware that a default or event of default or an event that with notice or the lapse of time would be an event of default has occurred and is continuing, as the case may be, it will deliver a certificate to the trustee describing the details thereof and the action it is taking or propose to take.

Defaults, Remedies and Waiver of Defaults

Holders of the 2042 Notes will have special rights if an event of default with respect to the 2042 Notes it holds occurs and is not cured, as described below.

Events of Default

Each of the following will be an “event of default” with respect to the 2042 Notes:

•	América Móvil fails to pay interest on the 2042 Notes within 30 days after its due date;<br>
•	América Móvil fails to pay the principal or premium, if any, of the 2042 Notes on its due date;<br>
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•	América Móvil remains in breach of any covenant in the indenture for the benefit of holders of the<br>2042 Notes, for 60 days after it receives a notice of default (sent by the trustee or the holders of not less than 25% in principal amount of the 2042 Notes) stating that it is in breach;
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•	América Móvil or Telcel experience a default or event of default under any instrument relating to<br>debt having an aggregate principal amount exceeding U.S.$50 million (or its equivalent in other currencies) that constitutes a failure to pay principal or interest when due or results in the acceleration of the debt prior to its maturity;<br>
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•	a final judgment is rendered against América Móvil or Telcel in an aggregate amount in excess of<br>U.S.$50 million (or its equivalent in other currencies) that is not discharged or bonded in full within 30 days; or
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•	América Móvil or Telcel file for bankruptcy, or other events of bankruptcy, insolvency or<br>reorganization or similar proceedings occur relating to América Móvil or Telcel.
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Remedies Upon Event of Default

If an event of default with respect to the 2042 Notes occurs and is not cured or waived, the trustee, at the written request of holders of not less than 25% in principal amount of the 2042 Notes, may declare the entire principal amount of all the 2042 Notes to be due and payable immediately, and upon any such declaration the principal, any accrued interest and any additional amounts shall become due and payable. If, however, an event of default occurs because of a bankruptcy, insolvency or reorganization relating to América Móvil or Telcel, the entire principal amount of all the 2042 Notes and any accrued interest and any additional amounts will be automatically accelerated, without any action by the trustee or any holder and any principal, interest or additional amounts will become immediately due and payable.

Each of the situations described in the preceding paragraph is called an acceleration of the maturity of the 2042 Notes. If the maturity of the 2042 Notes is accelerated and a judgment for payment has not yet been obtained, the holders of a majority in aggregate principal amount of the 2042 Notes may cancel the acceleration for all the 2042 Notes, provided that all amounts then due (other than amounts due solely because of such acceleration) have been paid and all other defaults with respect to the 2042 Notes have been cured or waived.

reasonably satisfactory to it, the holders of a majority in principal amount of the 2042 Notes may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. These majority holders may also direct the trustee in performing any other action under the indenture with respect to the 2042 Notes.

Before the holders bypass the trustee and bring their own lawsuit or other formal legal action or take other steps to enforce their rights or protect their interests relating to the debt securities of any series, the following must occur:

•	they must give the trustee written notice that an event of default has occurred and the event of default has not<br>been cured or waived;
•	the holders of not less than 25% in principal amount of the 2042 Notes must make a written request that the<br>trustee take action with respect to the 2042 Notes because of the default and they or other holders must offer to the trustee indemnity reasonably satisfactory to the trustee against the cost and other liabilities of taking that action;<br>
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•	the trustee must not have taken action for 60 days after the above steps have been taken; and<br>
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•	during those 60 days, the holders of a majority in principal amount of the 2042 Notes must not have given the<br>trustee directions that are inconsistent with the written request of the holders of not less than 25% in principal amount of the 2042 Notes.
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Holders of the 2042 Notes will be entitled, however, at any time to bring a lawsuit for the payment of money due on the 2042 Notes on or after its due date.

Waiver of Default

The holders of not less than a majority in principal amount of the 2042 Notes may waive a past default for all the 2042 Notes. If this happens, the default will be treated as if it had been cured. No one can waive a payment default on any debt security, however, without the approval of the particular holder of that debt security.

Modification and Waiver

There are three types of changes América Móvil can make to the indenture and the outstanding 2042 Notes under the indenture.

Changes Requiring Each Holder’sApproval

The following changes cannot be made without the approval of each holder of a 2042 Note affected by the change:

•	a change in the stated maturity of any principal or interest payment on the 2042 Notes;

•	a reduction in the principal amount, the interest rate or the redemption price for the 2042 Notes;<br>
•	a change in the obligation to pay additional amounts;
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•	a change in the currency of any payment on the 2042 Notes other than as permitted by the 2042 Notes;<br>
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•	a change in the place of any payment on the 2042 Notes;
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•	an impairment of the holder’s right to sue for payment of any amount due on its debt security;<br>
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•	a reduction in the percentage in principal amount of the 2042 Notes needed to change the indenture or the<br>outstanding 2042 Notes under the indenture; and
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•	a reduction in the percentage in principal amount of the 2042 Notes needed to waive our compliance with the<br>indenture or to waive defaults.
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Changes Not Requiring Approval

Some changes will not require the approval of holders of the 2042 Notes. These changes are limited to specific kinds of changes, like the addition of covenants, events of default or security, and other clarifications and changes that would not adversely affect the holders of outstanding 2042 Notes under the indenture in any material respect.

Changes Requiring Majority Approval

Any other change to the indenture or the 2042 Notes will be required to be approved by the holders of a majority in principal amount of the debt securities affected by the change or waiver. The required approval must be given by written consent.

The same majority approval will be required for América Móvil to obtain a waiver of any of its covenants in the indenture. América Móvil’s covenants include the promises it makes about merging and creating liens on our interests, which are described under “Merger, Consolidation or Sale of Assets” and “Covenants”. If the holders approve a waiver of a covenant, América Móvil will not have to comply with it. The holders, however, cannot approve a waiver of any provision in a particular debt security or the indenture, as it affects that debt security, that América Móvil cannot change without the approval of the holder of that debt security as described under in “Changes Requiring Each Holder’s Approval”, unless that holder approves the waiver.

Defeasance

América Móvil may, at its option, elect to terminate (1) all of its obligations with respect to the 2042 Notes (“legal defeasance”), except for certain obligations, including those regarding any trust established for defeasance and obligations relating to the transfer and exchange of the 2042 Notes,

the replacement of mutilated, destroyed, lost or stolen debt securities and the maintenance of agencies with respect to the debt securities or (2) its obligations under the covenants in the indenture, so that any failure to comply with such obligations will not constitute an event of default (“covenant defeasance”) in respect of the 2042 Notes. In order to exercise either legal defeasance or covenant defeasance, América Móvil must irrevocably deposit with the trustee U.S. dollars or such other currency in which the 2042 Notes are denominated (the “securities currency”), government obligations of the United States or a government, governmental agency or central bank of the country whose currency is the securities currency, or any combination thereof, in such amounts as will be sufficient to pay the principal, premium, if any, and interest (including additional amounts) in respect of the 2042 Notes then outstanding on the maturity date of the 2042 Notes, and comply with certain other conditions, including, without limitation, the delivery of opinions of counsel as to specified tax and other matters.

If América Móvil elects either legal defeasance or covenant defeasance with respect to the 2042 Notes, it must so elect it with respect to all of the 2042 Notes.

Special Rules for Actions by Holders

Only Outstanding Debt Securities are Eligible for Action byHolders

Only holders of outstanding 2042 Notes will be eligible to vote or participate in any action by holders. In addition, América Móvil will count only outstanding debt securities in determining whether the various percentage requirements for voting or taking action have been met. For these purposes, a debt security will not be “outstanding” if it has been surrendered for cancellation or if América Móvil has deposited or set aside, in trust for its holder, money for its payment or redemption.

Determining Record Dates for Action by Holders

Payment Provisions

Payments on the Debt Securities

América Móvil will pay interest on the 2042 Notes on the interest payment dates stated above and at maturity. Each payment of interest due on an interest payment date or at maturity include interest accrued from and including the last date to which interest has been paid or made available for payment, or from the issue date, if none has been paid or made available for payment, to but excluding the relevant payment date.

Unless otherwise specified, América Móvil computes interest on the 2042 Notes bearing interest at a fixed rate on the basis of a 360-day year of twelve 30-day months.

Payments on Global Debt Securities . **** For the 2042 Notes issued in global form, América Móvil makes payments on the 2042 Notes in accordance with the applicable procedures of the depositary as in effect from time to time. Under those procedures, América Móvil makes payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in a global debt security. An indirect holder’s right to receive those payments is governed by the rules and practices of the depositary and its participants.

Payments on Certificated Debt Securities . **** For debt securities issued in certificated form, América Móvil pays interest that is due on an interest payment date by check mailed on the interest payment date to the holder at the holder’s address shown on the trustee’s records as of the close of business on the regular record date, and it will make all other payments by check to the paying agent described below, against surrender of the debt security. All payments by check may be made in next-day funds, that is, funds that become available on the day after the check is cashed. If América Móvil issues debt securities in certificated form, holders of debt securities in certificated form will be able to receive payments of principal and interest on their debt securities at the office of our paying agent maintained in New York City.

Payment When Offices Are Closed

If any payment is due on the 2042 Notes on a day that is not a business day, América Móvil makes the payment on the day that is the next business day. Payments postponed to the next business day in this situation are treated under the indenture as if they were made on the original due date. Postponement of this kind will not result in a default under the 2042 Notes or the indenture. If interest on the 2042 Notes is calculated on the basis of a 360-day year of twelve 30-day months, no interest will accrue on the postponed amount from the original due date to the next day that is a business day.

Paying Agents

If América Móvil issues debt securities in certificated form, it may appoint one or more financial institutions to act as its paying agents, at whose designated offices the debt securities may be surrendered for payment at their maturity. América Móvil may add, replace or terminate paying agents from time to time; provided that if any debt securities are issued in certificated form, so long as such debt securities are outstanding, América Móvil will maintain a paying agent in New York City. América Móvil may also choose to act as its own paying agent. Initially, América Móvil has appointed the trustee, at its corporate trust office in New York City, as a paying agent. América Móvil must notify holder of the 2042 Notes of changes in the paying agents as described under “Notices”.

Unclaimed Payments

All money paid by América Móvil to the trustee or any paying agent that remains unclaimed at the end of two years after the amount is due to a holder will be repaid to América Móvil. After that two-year period, the holder may look only to América Móvil for payment and not to the trustee, any paying agent or anyone else.

Governing Law

The indenture and the 2042 Notes will be governed by, and construed in accordance with, the laws of the State of New York, United States of America.

Submission to Jurisdiction

In connection with any legal action or proceeding arising out of or relating to the 2042 Notes or the indenture (subject to the exceptions described below), América Móvil has:

•	submitted to the jurisdiction of any U.S. federal or New York state court in the Borough of Manhattan, The City<br>of New York, and any appellate court thereof;
•	agreed that all claims in respect of such legal action or proceeding may be heard and determined in such U.S.<br>federal or New York state court and waived, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding and any right of jurisdiction in such action or proceeding on account of our<br>place of residence or domicile; and
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•	appointed CT Corporation System, with an office at 111 Eighth Avenue, New York, New York 10011, United States of<br>America, as process agent.
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The process agent will receive, on América Móvil’s behalf, service of copies of the summons and complaint and any other process which may be served in any such legal action or proceeding brought in such New York state or U.S. federal court sitting in New York City. Service may be made by mailing or delivering a copy of such process to América Móvil at the address specified above for the process agent.

In addition to the foregoing, the holders may serve legal process in any other manner permitted by applicable law. The above provisions do not limit the right of any holder to bring any action or proceeding against América Móvil or our properties in other courts where jurisdiction is independently established.

To the extent that América Móvil has or hereafter may acquire or have attributed to América Móvil any sovereign or other immunity under any law, América Móvil has agreed to waive, to the fullest extent permitted by law, such immunity from jurisdiction or to service of process in respect of any legal suit, action or proceeding arising out of or relating to the indenture or the 2042 Notes.

Currency Indemnity

América Móvil’s obligations under the 2042 Notes will be discharged only to the extent that the relevant holder is able to purchase the securities currency with any other currency paid to that holder in accordance with any judgment or otherwise. If the holder cannot purchase the securities currency in the amount originally to be paid, América Móvil agrees to pay the difference. The holder, however, agrees that, if the amount of the securities currency purchased exceeds the amount originally to be paid to such holder, the holder will reimburse the excess to América Móvil. The holder will not be obligated to make this reimbursement if América Móvil is in default of its obligations under the 2042 Notes.

Transfer Agents

América Móvil may appoint one or more transfer agents, at whose designated offices any debt securities in certificated form may be transferred or exchanged and also surrendered before payment is made at maturity. Initially, América Móvil has appointed the trustee, at its corporate trust office in New York City, as transfer agent. América Móvil may also choose to act as its own transfer agent. América Móvil must notify holders of the 2042 Notes of changes in the transfer agent as described under “Notices”. If América Móvil issues debt securities in certificated form, holders of debt securities in certificated form will be able to transfer their debt securities, in whole or in part, by surrendering the debt securities, with a duly completed form of transfer, for registration of transfer at the office of our transfer agent in New York City. América Móvil will not charge any fee for the registration or transfer or exchange, except that it may require the payment of a sum sufficient to cover any applicable tax or other governmental charge payable in connection with the transfer.

Notices

As long as we issue notes in global form, notices to be given to holders will be given to DTC, in accordance with its applicable policies as in effect from time to time. If América Móvil issues notes in certificated form, notices to be given to holders will be sent by mail to the respective addresses of the holders as they appear in the trustee’s records, and will be deemed given when mailed.

Neither the failure to give any notice to a particular holder, nor any defect in a notice given to a particular holder, will affect the sufficiency of any notice given to another holder.

D.	2029 Notes, 2049 Notes and 2030 Notes

The 2029 Notes, the 2049 Notes and the 2030 Notes constitute separate series of notes. The following discussion of the terms of the notes, including without limitation under “Optional Redemption”, “Defaults, Remedies and Waiver of Defaults,” “Modification and Waiver” and “Defeasance” below, applies to each series separately. References to “notes” and “debt securities” in this section III.D are to the 2029 Notes, 2049 Notes and the 2030 Notes, as applicable.

General

Indenture and Supplemental Indentures

The 2029 Notes and the 2049 Notes were issued under the 2018 Indenture and the 2019 Supplemental Indentures. The 2030 Notes were issued under the 2018 Indenture and the 2020 Supplemental Indenture. References to the “indenture” in this section III.D are to the 2018 Indenture as supplemented by the supplemental indentures relating to each series of notes. The indenture is an agreement among América Móvil, Citibank, N.A., as trustee, registrar and transfer agent, and Citibank, N.A., London Branch, as paying agent and, in the case of the 2030 Notes, authenticating agent.

The trustee has the following two main roles:

•	First, the trustee can enforce the rights of holders against us if we default in respect of the debt securities.<br>There are some limitations on the extent to which the trustee acts on behalf of holders, which we describe under “Defaults, Remedies and Waiver of Defaults” below.
•	Second, the trustee performs administrative duties for América Móvil, such as making interest<br>payments and sending notices to holders of debt securities.
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Principal and Interest

The original aggregate principal amount of the 2029 Notes is U.S.$1,000,000,000. The 2029 Notes will mature on April 22, 2029 and bear interest at a rate of 3.625% per year from April 22, 2019.

The original aggregate principal amount of the 2049 Notes is U.S.$1,250,000,000. The 2049 Notes will mature on April 22, 2049 and bear interest at a rate of 4.375% per year from April 22, 2019.

The original aggregate principal amount of the 2030 Notes is U.S.$1,000,000,000. The 2030 Notes will mature on May 7, 2030 and bear interest at a rate of 2.875% per year from May 7, 2020.

Interest on the 2029 Notes and the 2049 Notes is payable on April 22 and October 22 of each year, to the holders in whose names the notes are registered at the close of business on April 7 or October 7 immediately preceding the related interest payment date (whether or not a business day).

Interest on the 2030 Notes is payable on May 7 and November 7 of each year, commencing on November 7, 2020, to the holders in whose names the notes are registered at the close of business on April 22 or October 23 immediately preceding the related interest payment date (whether or not a business day).

América Móvil pays interest on each series of the notes on the interest payment dates stated above and at maturity. Each payment of interest due on an interest payment date or at maturity will include interest accrued from and including the last date to which interest has been paid or made available for payment, or from the issue date, if none has been paid or made available for payment, to but excluding the relevant payment date. Interest on the notes are computed at a fixed rate on the basis of a 360-day year of twelve 30-day months.

If any payment is due on the notes on a day that is not a business day, América Móvil will make the payment on the next business day. Payments postponed to the next business day in this situation will be treated under the indenture as if they were made on the original payment date. Postponement of this kind will not result in a default under the notes or the indenture, and no interest will accrue on the postponed amount from the original payment date to the next business day.

“Business day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is (a) not a day on which banking institutions in New York City, London or Mexico City generally are authorized or obligated by law, regulation or executive order to close and (b) a day on which banks and financial institutions in Mexico are open for business with the general public.

Ranking of the Debt Securities

América Móvil is a holding company and its principal assets are shares that it holds in its subsidiaries. Its debt securities will not be secured by any of its assets or properties. As a result, by owning the debt securities, holders will be one of its unsecured creditors. The debt securities will not be subordinated to any of its other unsecured debt obligations. In the event of a bankruptcy or liquidation proceeding against América Móvil, the debt securities would rank equally in right of payment with all of its other unsecured and unsubordinated debt.

América Móvil’s debt securities will not be guaranteed by any of its subsidiaries. Claims of creditors of its subsidiaries, including trade creditors and bank and other lenders, will have priority over the holders of the debt securities in claims to assets of its subsidiaries. Some of its outstanding debt securities that were issued in the Mexican and international markets are guaranteed by Telcel. Accordingly, the holders of those outstanding debt securities will have priority over the holders of the debt securities with respect to claims to the assets of Telcel. In addition, some securities América Móvil has issued in the Mexican and international markets provide for a covenant and events of default relating to Telcel (specifically, relating to its continued control of Telcel and to defaults or insolvency events involving Telcel) that are not included in its debt securities offered by the indenture.

Form and Denominations

The notes were issued only in registered form without coupons and in minimum denominations of U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof.

Except in limited circumstances, the notes will be issued in the form of global notes.

Further Issues

América Móvil reserves the right, from time to time without the consent of holders of the notes of any series, to issue additional notes of a series on terms and conditions identical to those of the notes of that series (except for issue date, issue price and the date from which interest will accrue and, if applicable, the date on which interest will first be paid), which additional notes will increase the aggregate principal amount of, and will be consolidated and form a single series with, the notes of that series.

Payment of Additional Interest

América Móvil is required by Mexican law to deduct Mexican withholding taxes from payments of interest to holders of the notes who are not residents of Mexico for tax purposes.

América Móvil will pay to holders of the notes all additional interest that may be necessary so that every net payment of interest or principal or premium, if any, to the holder will not be less than the amount provided for in the notes. By net payment, América Móvil means the amount that it or its paying agent will pay the holder after deducting or withholding an amount for or on account of any present or future taxes, duties, assessments or other governmental charges imposed or levied with respect to that payment by a Mexican taxing authority.

Any references to principal, premium, if any, interest or any other amount payable in respect of the notes by América Móvil will be deemed also to refer to any additional interest that may be payable in accordance with the provisions described herein.

América Móvil’s obligation to pay additional interest is, however, subject to several important exceptions. América Móvil will not pay additional interest to or on behalf of any holder or beneficial owner, or to the trustee, for or on account of any of the following:

•	any taxes, duties, assessments or other governmental charges imposed solely because at any time there is or was a<br>connection between the holder and Mexico (other than the mere receipt of a payment or the ownership or holding of a debt security);
•	any taxes, duties, assessments or other governmental charges imposed solely because the holder or any other<br>person fails to comply with any certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with Mexico of the holder or any beneficial owner of a debt security if compliance is required<br>by law, regulation or by an applicable income tax treaty to which Mexico is a party, as a precondition to exemption from, or reduction in the rate of, the tax, assessment or other governmental charge and we have given the holders at least 30<br>calendar days’ notice prior to the first payment date with respect to which such certification, identification or reporting requirement is required to the effect that holders will be required to provide such information and identification;<br>
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•	any taxes, duties, assessments or other governmental charges with respect to a debt security presented for<br>payment more than 15 days after the date on which the payment became due and
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<br>payable or the date on which payment thereof is duly provided for and notice thereof given to holders, whichever occurs later, except to the extent that the holders of such debt security would<br>have been entitled to such additional interest on presenting such debt security for payment on any date during such 15-day period;
•	any estate, inheritance, gift or other similar tax, assessment or other governmental charge imposed with respect<br>to the debt securities;
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•	any tax, duty, assessment or other governmental charge payable otherwise than by deduction or withholding from<br>payments on the debt securities;
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•	any payment on a debt security to a holder that is a fiduciary or partnership or a person other than the sole<br>beneficial owner of any such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of the payment would not have been entitled to the additional interest had the<br>beneficiary, settlor, member or beneficial owner been the holder of such debt security; and
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•	any combination of the items in the bullet points above.
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The limitations on América Móvil’s obligations to pay additional interest described in the second bullet point above will not apply if the provision of information, documentation or other evidence described in that bullet point would be materially more onerous, in form, in procedure or in the substance of information disclosed, to a holder or beneficial owner of a debt security, taking into account any relevant differences between U.S. and Mexican law, regulation or administrative practice, than comparable information or other reporting requirements imposed under U.S. tax law (including the United States/Mexico Income Tax Treaty), regulations (including proposed regulations) and administrative practice.

Applicable Mexican laws and regulations (including Article 166, Section II, subsection (a) of the Mexican Income Tax Law or any substantially similar successor provision, whether included in any law or regulation) currently allow América Móvil to withhold at a reduced rate, provided that it complies with certain information reporting requirements. Accordingly, the limitations América Móvil’s obligations to pay additional interest described in the second bullet point above also will not apply unless (a) the provision of the information, documentation or other evidence described in that bullet point is expressly required by the applicable Mexican laws and regulations (including Article 166, Section II, subsection (a) of the Mexican Income Tax Law or any substantially similar successor provision, whether included in any law or regulation), (b) América Móvil cannot obtain the information, documentation or other evidence necessary to comply with the applicable Mexican laws and regulations on its own through reasonable diligence and (c) it otherwise would meet the requirements for application of the applicable Mexican laws and regulations (including Article 166, Section II, subsection (a) of the Mexican Income Tax Law or any substantially similar successor provision, whether included in any law or regulation).

In addition, the limitation described in the second bullet point above does not require that any person, including any non-Mexican pension fund, retirement fund or financial institution, register with the Mexican Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) to establish eligibility for an exemption from, or a reduction of, Mexican withholding tax.

América Móvil will remit the full amount of any Mexican taxes withheld to the applicable Mexican taxing authorities in accordance with applicable law. It will also provide the trustee with documentation satisfactory to the trustee evidencing the payment of Mexican taxes in respect of which we have paid any additional interest. América Móvil will provide copies of such documentation to the holders of the debt securities or the relevant paying agent upon request.

In the event that additional interest actually paid with respect to the debt securities pursuant to the preceding paragraphs is based on rates of deduction or withholding of withholding taxes in excess of the appropriate rate applicable to the holder of such debt securities, and as a result thereof such holder is entitled to make a claim for a refund or credit of such excess from the authority imposing such withholding tax, then such holder shall, by accepting such debt securities, be deemed to have assigned and transferred all right, title and interest to any such claim for a refund or credit of such excess to América Móvil. However, by making such assignment, the holder makes no representation or warranty that América Móvil will be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto.

Any reference in the indenture or the debt securities to principal, premium, if any, interest or any other amount payable in respect of the debt securities by América Móvil will be deemed also to refer to any additional interest that may be payable with respect to that amount under the obligations referred to in this subsection.

Optional Redemption

América Móvil will not be permitted to redeem the notes before their stated maturity, except as set forth below. The notes will not be entitled to the benefit of any sinking fund—meaning that América Móvil will not deposit money on a regular basis into any separate account to repay the notes. In addition, holders will not be entitled to require América Móvil to repurchase their notes from them before the stated maturity.

Optional Redemption With “Make-Whole” Amount or at Par

Prior to the applicable Par Call Date, América Móvil will have the right, at its option, to redeem the outstanding notes of each series, in whole at any time or in part from time to time, on at least 30 days’ but not more than 60 days’ notice, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes to be redeemed and (2) the sum of the present values of the Remaining Payments, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points, in the case of the 2029 Notes, or plus 25 basis points, in the case of the 2049 Notes, or plus 35 basis points, in the case of the 2030 Notes (in each case, the “make-whole” amount), plus, in each case, accrued and unpaid interest on the principal amount of the notes being redeemed to the redemption date. On or after the applicable Par Call Date, América Móvil will have the right, at its option, to redeem the outstanding notes of each series, in whole at any time or in part from time to time, on at least 30 days’ but not more than 60 days’ notice, at par plus accrued and unpaid interest on the principal amount of the notes being redeemed to the redemption date.

“Par Call Date” means, in the case of the 2029 Notes, January 22, 2029 (the date that is three months prior to the stated maturity of the 2029 Notes), in the case of the 2049 Notes, October 22,

2048 (the date that is six months prior to the stated maturity of the 2049 Notes) and, in the case of the 2030 Notes, February 7, 2030 (the date that is three months prior to the stated maturity of the notes).

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined below) for such redemption date.

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker (as defined below) as having an actual or interpolated maturity comparable to the applicable Par Call Date of the series of notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the applicable Par Call Date of the series of notes to be redeemed.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by América Móvil.

“Comparable Treasury Price” means, with respect to any redemption date, (1) the arithmetic average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotation or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the arithmetic average of all such quotations.

“Reference Treasury Dealer” means Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays Capital Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated or their respective affiliates, in the case of the 2029 Notes and the 2049 Notes, or BofA Securities, Inc., J.P. Morgan Securities LLC, BBVA Securities Inc., BNP Paribas Securities Corp. and Morgan Stanley and Co. LLC, in the case of the 2030 Notes, which are primary United States government securities dealers and at least one additional leading primary United States government securities dealers in New York City reasonably designated by América Móvil; provided, however, that if any of the foregoing shall cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), América Móvil will substitute therefor another Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m. (New York City time) on the third business day preceding such redemption date.

“Remaining Payments” means, with respect to the notes of a series to be redeemed, the remaining payments of principal of and interest on such notes that would be due after the related redemption date as if the notes were redeemed on the applicable Par Call Date. If the applicable redemption

date is not an interest payment date with respect to the applicable series of notes, the amount of the next succeeding scheduled interest payment on the notes will be reduced by the amount of interest accrued on the notes to such redemption date.

On and after the redemption date, interest will cease to accrue on the notes or any portion of the notes called for redemption (unless we default in the payment of the redemption price and accrued interest). On or before the redemption date, América Móvil will deposit with the trustee money sufficient to pay the redemption price of and (unless the redemption date shall be an interest payment date) accrued and unpaid interest thereon to the redemption date on the notes to be redeemed on such date. If less than all of the outstanding notes of any series are to be redeemed, the notes to be redeemed shall be selected by the trustee on a pro rata basis or by lot (and, in the case of notes in global form, in accordance with the applicable procedures of DTC).

Tax Redemption

We will have the right to redeem the notes of any series upon the occurrence of certain changes in the tax laws of Mexico as a result of which we become obligated to pay additional interest on the notes of that series in respect of withholding taxes at a rate in excess of 4.9%, in which case we may redeem the outstanding notes of that series, in whole but not in part, at any time on giving not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest thereon to the redemption date, any premium applicable in the case of a redemption prior to maturity and any additional interest due thereon up to but not including the date of redemption; provided, however, that (1) no notice of redemption for tax reasons may be given earlier than 90 days prior to the earliest date on which América Móvil would be obligated to pay such additional interest if a payment on the debt securities of that series were then due and (2) at the time such notice of redemption is given such obligation to pay such additional interest remains in effect.

Prior to the publication of any notice of redemption for taxation reasons, América Móvil will deliver to the trustee:

•	a certificate signed by one of our duly authorized representatives stating that we are entitled to effect the<br>redemption and setting forth a statement of facts showing that the conditions precedent to our right of redemption for taxation reasons have occurred; and
•	an opinion of Mexican legal counsel (which may be our counsel) of recognized standing to the effect that<br>América Móvil have or will become obligated to pay such additional interest as a result of such change or amendment.
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This notice, after it is delivered to the holders, will be irrevocable.

Merger, Consolidation or Sale of Assets

América Móvil may not consolidate with or merge into any other person or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose of all or substantially all of its assets and properties and may not permit any person to consolidate with or merge into it, unless all of the following conditions are met:

•	if América Móvil is not the successor person in the transaction, the successor is organized and<br>validly existing under the laws of Mexico or the United States or any political subdivision thereof and expressly assumes our obligations under the debt securities or the indenture;
•	immediately after the transaction, no default under the debt securities has occurred and is continuing. For this<br>purpose, “default under the debt securities” means an event of default or an event that would be an event of default with respect to the debt securities if the requirements for giving América Móvil default notice and for its<br>default having to continue for a specific period of time were disregarded. See “Defaults, Remedies and Waiver of Defaults”; and
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•	América Móvil has delivered to the trustee an officer’s certificate and opinion of counsel,<br>each stating, among other things, that the transaction complies with the indenture.
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If the conditions described above are satisfied, América Móvil will not have to obtain the approval of the holders in order to merge or consolidate or to sell or otherwise dispose of its properties and assets substantially as an entirety. In addition, these conditions will apply only if it wishes to merge into or consolidate with another person or sell or otherwise dispose of all or substantially all of its assets and properties. América Móvil will not need to satisfy these conditions if it enters into other types of transactions, including any transaction in which it acquires the stock or assets of another person, any transaction that involves a change of control of the company, but in which it does not merge or consolidate, or any transaction in which it sells or otherwise disposes of less than substantially all its assets.

Covenants

The following covenants will apply to América Móvil and certain of our subsidiaries for so long as any debt security remains outstanding. These covenants restrict our ability and the ability of these subsidiaries to enter into certain transactions. However, these covenants do not limit América Móvil’s ability to incur indebtedness or require América Móvil to comply with financial ratios or to maintain specified levels of net worth or liquidity.

Limitation on Liens

América Móvil may not, and it may not allow any of its restricted subsidiaries to, create, incur, issue or assume any liens on its restricted property to secure debt where the debt secured by such liens, plus the aggregate amount of our attributable debt and that of our restricted subsidiaries in respect of sale and leaseback transactions, would exceed an amount equal to an aggregate of 15% of our Consolidated Net Tangible Assets unless it secures the debt securities equally with, or prior to, the debt secured by such liens. This restriction will not, however, apply to the following:

•	liens on restricted property acquired and existing on the date the property was acquired or arising after such<br>acquisition pursuant to contractual commitments entered into prior to such acquisition;
•	liens on any restricted property securing debt incurred or assumed for the purpose of financing its purchase<br>price or the cost of its construction, improvement or repair; provided that such lien attaches to the restricted property within 12 months of its acquisition or the completion of its construction, improvement or repair and does not attach to<br>any other restricted property;
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•	liens existing on any restricted property of any restricted subsidiary prior to the time that the restricted<br>subsidiary became a subsidiary of América Móvil or liens arising after that time under contractual commitments entered into prior to and not in contemplation of that event;
•	liens on any restricted property securing debt owed by a subsidiary of América Móvil to<br>América Móvil or to another of its subsidiaries; and
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•	liens arising out of the refinancing, extension, renewal or refunding of any debt described above;<br>provided that the aggregate principal amount of such debt is not increased and such lien does not extend to any additional restricted property.
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“Restricted property” means (1) any exchange and transmission equipment, switches, cellular base stations, microcells, local links, repeaters and related facilities, whether owned as of the date of the indenture or acquired after that date, used in connection with the provision of telecommunications services in Mexico, including any land, buildings, structures and other equipment or fixtures that constitute any such facility, owned by América Móvil or our restricted subsidiaries and (2) any share of capital stock of any restricted subsidiary.

“Restricted subsidiaries” means América Móvil’s subsidiaries that own restricted property.

Limitation on Sales and Leasebacks

•

the aggregate principal amount of all debt then outstanding that is secured by any lien on any restricted property that does not ratably secure the debt securities (excluding any secured indebtedness permitted under “Limitation on Liens”) plus the aggregate amount of its attributable debt and the attributable debt of its restricted subsidiaries in respect of sale and leaseback transactions then outstanding (other than any sale and leaseback transaction permitted under the following bullet point) would not exceed an amount equal to 15% of our Consolidated Net Tangible Assets; or

•

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“Sale and leaseback transaction” means an arrangement between América Móvil or one of its restricted subsidiaries and a bank, insurance company or other lender or investor where América Móvil or its restricted subsidiary leases a restricted property for an initial term of three years or more that was or will be sold by it or its restricted subsidiary to that lender or investor for a sale price of U.S.$ 1 million (or its equivalent in other currencies) or more.

“Attributable debt” means, with respect to any sale and leaseback transaction, the lesser of (1) the fair market value of the asset subject to such transaction and (2) the present value, discounted at a rate per annum equal to the discount rate inherent in the applicable lease, of the obligations of the lessee for net rental payments (excluding, amounts on account of maintenance and repairs, insurance, taxes, assessments and similar charges and contingent rents) during the term of the lease (as determined in good faith by América Móvil in accordance with IFRS).

Provision of Information

América Móvil will furnish the trustee with copies of its annual report and the information, documents and other reports that we are required to file with the SEC pursuant to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), including our annual reports on Form 20-F and reports on Form 6-K, within 15 days after it files them with the SEC. In addition, it will make the same information, documents and other reports available, at its expense, to holders who so request in writing.

In the event that, in the future, América Móvil is not required to file such information, documents or other reports pursuant to Section 13 or 15(d) of the Exchange Act, América Móvil will furnish on a reasonably prompt basis to the trustee and holders who so request in writing, substantially the same financial and other information that it would be required to include and file in an annual report on Form 20-F and reports on Form 6-K.

If América Móvil becomes aware that a default or event of default or an event that with notice or the lapse of time would be an event of default has occurred and is continuing, as the case may be, América Móvil will deliver a certificate to the trustee describing the details thereof and the action we are taking or propose to take.

Defaults, Remedies and Waiver of Defaults

Holders will have special rights if an event of default with respect to the debt securities they hold occurs and is not cured, as described below.

Eventsof Default

Each of the following will be an “event of default” with respect to the debt securities:

•	América Móvil fails to pay interest on any debt security within 30 days after its due date;<br>
•	América Móvil fails to pay the principal or premium, if any, of any debt security on its due date;<br>
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•	América Móvil remains in breach of any covenant in the indenture for the benefit of holders of the<br>debt securities, for 60 days after it receives a notice of default (sent by the trustee or the holders of not less than 25% in principal amount of the debt securities) stating that it is in breach;
•	América Móvil experiences a default or event of default under any instrument relating to debt<br>having an aggregate principal amount exceeding U.S.$50 million (or its equivalent in other currencies) that constitutes a failure to pay principal or interest when due or results in the acceleration of the debt prior to its maturity;<br>
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•	a final judgment is rendered against América Móvil in an aggregate amount in excess of<br>U.S.$50 million (or its equivalent in other currencies) that is not discharged or bonded in full within 30 days; or
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•	América Móvil files for bankruptcy, or other events of bankruptcy, insolvency or reorganization or<br>similar proceedings occur relating to it.
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Remedies Upon Event of Default

If an event of default with respect to the debt securities occurs and is not cured or waived, the trustee, at the written request of holders of not less than 25% in principal amount of the debt securities, may declare the entire principal amount of all the debt securities to be due and payable immediately, and upon any such declaration the principal, any accrued interest and any additional interest shall become due and payable. If, however, an event of default occurs because of a bankruptcy, insolvency or reorganization relating to América Móvil, the entire principal amount of all the debt securities and any accrued interest and any additional interest will be automatically accelerated, without any action by the trustee or any holder and any principal, interest or additional interest will become immediately due and payable.

Each of the situations described in the preceding paragraph is called an acceleration of the maturity of the debt securities. If the maturity of the debt securities is accelerated and a judgment for payment has not yet been obtained, the holders of a majority in aggregate principal amount of the debt securities may cancel the acceleration for all the debt securities, provided that all amounts then due (other than amounts due solely because of such acceleration) have been paid and all other defaults with respect to the debt securities have been cured or waived.

Except as described in the prior paragraph, the trustee is not required to take any action under the indenture at the request of any holders unless the holders offer the trustee reasonable protection, known as indemnity and/or security, from expenses and liability. If the trustee receives an indemnity and/or security that is satisfactory to it, the holders of a majority in principal amount of the debt securities may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. These majority holders may also direct the trustee in performing any other action under the indenture with respect to the debt securities.

•	such holders must give the trustee written notice that an event of default has occurred and the event of default<br>has not been cured or waived;
•	the holders of not less than 25% in principal amount of debt securities of that series must make a written<br>request that the trustee take action with respect to the debt securities because of the default and they or other holders must offer to the trustee indemnity and/or security satisfactory to the trustee against the cost and other liabilities of<br>taking that action;
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•	the trustee must not have taken action for 60 days after the above steps have been taken; and<br>
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•	during those 60 days, the holders of a majority in principal amount of debt securities of that series must not<br>have given the trustee directions that are inconsistent with the written request of the holders of not less than 25% in principal amount of the debt securities of that series.
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Holders will be entitled, however, at any time to bring a lawsuit for the payment of money due on their debt securities on or after its due date.

Waiver of Default

The holders of not less than a majority in principal amount of the debt securities may waive a past default for all the debt securities. If this happens, the default will be treated as if it had been cured. No one can waive a payment default on any debt security, however, without the approval of the particular holder of that debt security.

Modification and Waiver

There are three types of changes América Móvil can make to the indenture and the outstanding debt securities under the indenture.

Changes Requiring Each Holder’sApproval

The following changes cannot be made without the approval of each holder of an outstanding debt security affected by the change:

•	a change in the stated maturity of any principal or interest payment on a debt security;
•	a reduction in the principal amount, the interest rate or the redemption price for a debt security;<br>
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•	a change in the obligation to pay additional interest;
•	a change in the currency of any payment on a debt security other than as permitted by the debt security;<br>
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•	a change in the place of any payment on a debt security;
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•	an impairment of the holder’s right to sue for payment of any amount due on its debt security;<br>
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•	a reduction in the percentage in principal amount of the debt securities needed to change the indenture or the<br>outstanding debt securities under the indenture; and
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•	a reduction in the percentage in principal amount of the debt securities needed to waive our compliance with the<br>indenture or to waive defaults.
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Changes Not Requiring Approval

Some changes will not require the approval of holders of debt securities. These changes are limited to curing any ambiguity, defect or inconsistency, making changes to conform the provisions contained in the indentures to the description of debt securities contained in the prospectus or an applicable prospectus supplement and making changes that do not adversely affect the rights of holders of the debt securities in any material respect, such as adding covenants, additional events of default, collateral or successor trustees.

Changes RequiringMajority Approval

Any other change to the indenture or the debt securities will be required to be approved by the holders of a majority in principal amount of the debt securities affected by the change or waiver. The required approval must be given by written consent.

The same majority approval will be required for América Móvil to obtain a waiver of any of its covenants in the indenture. Its covenants include the promises it makes about merging and creating liens on its interests, which are described under “Merger, Consolidation or Sale of Assets” and “Covenants”. If the holders approve a waiver of a covenant, América Móvil will not have to comply with it. The holders, however, cannot approve a waiver of any provision in a particular debt security or the indenture, as it affects that debt security, that it cannot change without the approval of the holder of that debt security as described under “—Changes Requiring Each Holder’s Approval,” unless that holder approves the waiver.

Defeasance

América Móvil may, at its option, elect to terminate (1) all of its obligations with respect to the debt securities (“legal defeasance”), except for certain obligations, including those regarding any trust established for defeasance and obligations relating to the transfer and exchange of the debt

securities, the replacement of mutilated, destroyed, lost or stolen debt securities and the maintenance of agencies with respect to the debt securities or (2) our obligations under the covenants in the indenture, so that any failure to comply with such obligations will not constitute an event of default (“covenant defeasance”) in respect of the debt securities. In order to exercise either legal defeasance or covenant defeasance, América Móvil must irrevocably deposit with the trustee U.S. dollars or such other currency in which the debt securities are denominated (the “securities currency”), government obligations of the United States or a government, governmental agency or central bank of the country whose currency is the securities currency, or any combination thereof, in such amounts as will be sufficient to pay the principal, premium, if any, and interest (including additional interest) in respect of the debt securities then outstanding on the maturity date of the debt securities, and comply with certain other conditions, including, without limitation, the delivery of opinions of counsel as to specified tax and other matters.

If América Móvil elects either legal defeasance or covenant defeasance with respect to any debt securities, it must so elect it with respect to all of the debt securities.

Special Rules for Actions by Holders

Only Outstanding Debt Securities are Eligible for Action byHolders

Only holders of outstanding debt securities will be eligible to vote or participate in any action by holders. In addition, América Móvil will count only outstanding debt securities in determining whether the various percentage requirements for voting or taking action have been met. For these purposes, a debt security will not be “outstanding” if it has been surrendered for cancellation or if we have deposited with the trustee in trust or the paying agent or set aside (if we act as our own paying agent) in trust for its holder, money for its payment or redemption.

Determining Record Dates for Action by Holders

Payment Provisions

Payments on the Debt Securities

América Móvil will pay interest on the debt securities on the interest payment dates stated above and at maturity. Each payment of interest due on an interest payment date or at maturity will include interest accrued from and including the last date to which interest has been paid or made available for payment or, if none has been paid or made available for payment, from the issue date, to but excluding the relevant payment date.

Payments on Global Debt Securities. For debt securities issued in global form, América Móvil will make payments on the debt securities in accordance with the applicable procedures of the depositary as in effect from time to time. Under those procedures, América Móvil will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in a global debt security. An indirect holder’s right to receive those payments will be governed by the rules and practices of the depositary and its participants.

Payment When Offices Are Closed

If any payment is due on a debt security on a day that is not a business day, América Móvil will make the payment on the day that is the next business day. Payments postponed to the next business day in this situation will be treated under the indenture as if they were made on the original due date. Postponement of this kind will not result in a default under the debt securities or the indenture, and no interest will accrue on the postponed amount from the original due date to the next day that is a business day.

Paying Agents

If América Móvil issues debt securities in certificated form, it may appoint one or more financial institutions to act as its paying agents, at whose designated offices the debt securities may be

surrendered for payment at their maturity. América Móvil may add, replace or terminate paying agents from time to time; provided that if any debt securities are issued in certificated form, so long as such debt securities are outstanding, América Móvil will maintain a paying agent in London. América Móvil may also choose to act as its own paying agent. Initially, América Móvil has appointed Citibank, N.A., London Branch, at its corporate trust office in London, as a paying agent. América Móvil must notify holders of changes in the paying agents as described under “—Notices.”

Unclaimed Payments

Governing Law

The indenture and the debt securities will be governed by, and construed in accordance with, the laws of the State of New York, United States of America.

Submission to Jurisdiction

In connection with any legal action or proceeding arising out of or relating to the debt securities or the indenture (subject to the exceptions described below), América Móvil has:

•	submitted to the jurisdiction of any U.S. federal or New York state court in the Borough of Manhattan, The City<br>of New York, and any appellate court thereof;
•	agreed that all claims in respect of such legal action or proceeding may be heard and determined in such U.S.<br>federal or New York state court and waived, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding and any right of jurisdiction in such action or proceeding on account of our<br>place of residence or domicile; and
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•	appointed CT Corporation System, with an office at 111 Eighth Avenue, New York, New York 10011, United States of<br>America, as process agent.
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The process agent will receive, on our behalf, service of copies of the summons and complaint and any other process which may be served in any such legal action or proceeding brought in such New York state or U.S. federal court sitting in New York City. Service may be made by mailing or delivering a copy of such process to América Móvil at the address specified above for the process agent.

In addition to the foregoing, the holders may serve legal process in any other manner permitted by applicable law. The above provisions do not limit the right of any holder to bring any action or proceeding against América Móvil or our properties in other courts where jurisdiction is independently established.

To the extent that América Móvil has or hereafter may acquire or have attributed to it any sovereign or other immunity under any law, it has agreed to waive, to the fullest extent permitted by law, such immunity from jurisdiction or to service of process in respect of any legal suit, action or proceeding arising out of or relating to the indenture or the debt securities.

Currency Indemnity

América Móvil’s obligations under the debt securities will be discharged only to the extent that the relevant holder is able to purchase the securities currency with any other currency paid to that holder in accordance with any judgment or otherwise. If the holder cannot purchase the securities currency in the amount originally to be paid, América Móvil has agreed to pay the difference. The holder, however, agrees that, if the amount of the securities currency purchased exceeds the amount originally to be paid to such holder, the holder will reimburse the excess to América Móvil. The holder will not be obligated to make this reimbursement if América Móvil is in default of our obligations under the debt securities.

Transfer Agents

América Móvil may appoint one or more transfer agents, at whose designated offices any debt securities in certificated form may be transferred or exchanged and also surrendered before payment is made at maturity. Initially, América Móvil has appointed the trustee, at its corporate trust office in New York City, as transfer agent. América Móvil may also choose to act as its own transfer agent. América Móvil must notify holders of changes in the transfer agent as described under “Notices.” If América Móvil issues debt securities in certificated form, holders of debt securities in certificated form will be able to transfer their debt securities, in whole or in part, by surrendering the debt securities, with a duly completed form of transfer, for registration of transfer at the office of our transfer agent in New York City. América Móvil will not charge any fee for the registration or transfer or exchange, except that it may require the payment of a sum sufficient to cover any applicable tax or other governmental charge payable in connection with the transfer.

Notices

As long as the notes are in global form, notices to be given to holders will be given to DTC, in accordance with its applicable policies as in effect from time to time. If América Móvil issues notes in certificated form, notices to be given to holders will be sent by mail to the respective addresses of the holders as they appear in the trustee’s records, and will be deemed given when mailed.

Neither the failure to give any notice to a particular holder, nor any defect in a notice given to a particular holder, will affect the sufficiency of any notice given to another holder.

EX-8.1

Exhibit 8.1

LIST OF CERTAIN SUBSIDIARIES OF AMÉRICA MÓVIL, S.A.B. DE C.V.

As of March 31, 2021

Name of Company	Jurisdiction	OwnershipInterest	Main Activity
América Móvil B.V.	Netherlands	100.00	Holding Company
Telekom Austria AG	Austria	51.00	Fixed-line/Wireless
AMX Tenedora, S.A. de C.V.	Mexico	100.0	Holding Company
Teléfonos de México, S.A.B. de C.V.	Mexico	98.8	Fixed-line
Compañía Dominicana de Teléfonos, S. A. (Codetel)	Dominican Republic	100.0	Fixed-line/Wireless
Sercotel, S.A. de C.V.	Mexico	100.0	Holding Company
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (Telcel)	Mexico	100.0	Wireless
Puerto Rico Telephone Company, Inc.	Puerto Rico	100.0	Fixed-line/Wireless
Servicios de Comunicaciones de Honduras, S.A. de C.V. (Sercom Honduras)	Honduras	100.0	Wireless
Claro S.A. (Claro Brazil)	Brazil	99.6	Holding Company
AMX Brazil Holding S.A.R.L	Luxembourg	100.00	Holding Company
Claro NXT Telecomunicações S.A.. and subsidiaries	Brazil	99.3	Wireless
Americel S.A.	Brazil	100.0	Wireless
Telecomunicaciones de Guatemala, S.A.	Guatemala	99.3	Fixed-line/Wireless
Claro Guatemala, S.A.	Guatemala	100.00	Wireless
Empresa Nicaragüense de Telecomunicaciones, S.A.	Nicaragua	99.6	Fixed-line/Wireless
Estesa Holding Corp.	Panama	100.0	Holding Company
Cablenet, S.A.	Nicaragua	100.0	Cable TV
Estaciones Terrenas de Satélite, S.A. (Estesa)	Nicaragua	100.0	Cable TV
Compañía de Telecomunicaciones de El Salvador (CTE), S.A. de C.V.	El Salvador	95.8	Fixed-line
Cablenet, S.A. (Cablenet)	Guatemala	95.8	Fixed-line
Telecomoda, S.A. de C.V. (Telecomoda)	El Salvador	95.8	Directories Provider
CTE Telecom Personal, S.A. de C.V.	El Salvador	95.8	Wireless
Comunicación Celular S.A. (Comcel)	Colombia	99.5	Wireless
Name of Company	Jurisdiction	OwnershipInterest	Main Activity
---	---	---	---
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (Conecel)	Ecuador	100.0	Wireless
AMX Argentina, S.A.	Argentina	100.0	Wireless
Telstar, S.A.	Uruguay	100.0	Fixed-line
Flimay, S.A.	Uruguay	100.0	DTH
Ertach, S.A.	Argentina	100.0	Wireless
Telmex Argentina, S.A.	Argentina	100.0	Services to Corporate Customers
AMX Paraguay, S.A.	Paraguay	100.0	Wireless
AM Wireless Uruguay, S.A.	Uruguay	100.0	Wireless
Claro Chile S.A.	Chile	100.0	Wireless
América Móvil Perú, S.A.C.	Peru	100.0	Wireless
Claro Panamá, S.A.	Panama	100.0	Wireless

EX-12.1

Exhibit 12.1

CEO CERTIFICATION

I, Daniel Hajj Aboumrad, certify that:

1.	I have reviewed this annual report on Form 20-F of América<br>Móvil, S.A.B. de C.V.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a<br>material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements, and other financial information included in this report,<br>fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
---	---
4.	The company’s other certifying officer(s) and I are responsible for establishing and maintaining<br>disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act<br>Rules 13a-15(f) and 15d-15(f)) for the company and have:
---	---
(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be<br>designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being<br>prepared;
---	---
(b)	Designed such internal control over financial reporting, or caused such internal control over financial<br>reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting<br>principles;
---	---
(c)	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this<br>report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
(d)	Disclosed in this report any change in the company’s internal control over financial reporting that<br>occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
---	---
5.	The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of<br>internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
---	---
(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over<br>financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
---	---
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in<br>the company’s internal control over financial reporting.
---	---

Dated: April 29, 2022

/s/ Daniel Hajj Aboumrad
Daniel Hajj Aboumrad
Chief Executive Officer

EX-12.2

Exhibit 12.2

CFO CERTIFICATION

I, Carlos José García Moreno Elizondo, certify that:

1.	I have reviewed this annual report on Form 20-F of América<br>Móvil, S.A.B. de C.V.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a<br>material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements, and other financial information included in this report,<br>fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
---	---
4.	The company’s other certifying officer(s) and I are responsible for establishing and maintaining<br>disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act<br>Rules 13a-15(f) and 15d-15(f)) for the company and have:
---	---
(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be<br>designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being<br>prepared;
---	---
(b)	Designed such internal control over financial reporting, or caused such internal control over financial<br>reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting<br>principles;
---	---
(c)	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this<br>report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
(d)	Disclosed in this report any change in the company’s internal control over financial reporting that<br>occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
---	---
5.	The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of<br>internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
---	---
(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over<br>financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
---	---
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in<br>the company’s internal control over financial reporting.
---	---

Dated: April 29, 2022

/s/ Carlos José García Moreno Elizondo
Carlos José García Moreno Elizondo
Chief Financial Officer

EX-13.1

Exhibit 13.1

OFFICER CERTIFICATIONS

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of América Móvil, S.A.B. de C.V., a sociedad anónima bursátil de capital variable organized under the laws of Mexico (the “Company”), does hereby certify to such officer’s knowledge that:

The annual report on Form 20-F for the fiscal year ended December 31, 2021 (the “Form 20-F”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 20-F fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 29, 2022

/s/ Daniel Hajj Aboumrad
Daniel Hajj Aboumrad
Chief Executive Officer

Dated: April 29, 2022

/s/ Carlos José García Moreno Elizondo
Carlos José García Moreno Elizondo
Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-15.1

Exhibit 15.1

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Code of Ethics américa móvil

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INDEX 01 Our Company 02 Our Mission and Vision 03 Our Strategy 04 Values and Principles 07 Why Do We Have a Code of Ethics? 08 What is Expected of Me? 10 Why Do We Have to Comply With this Code? 11 Non-discrimination and Respect for Human Rights 13 Security in the Work Place 15 Treatment of Customers 17 Personal Information 19 Privacy of Communications 20 Freedom of Expression 21 Confidential Information 24 Non-Public Information and Operations Involving Securities Issued by the Company 26 Files and Records 27 Computer Systems and IT Security 28 Anti-Corruption Measures 32 Conflicts of Interest 33 Treatment of Our Suppliers 34 Competition 36 Use of the Company’s Assets 37 Financial Resources 38 Political Activities 39 Sustainability 40 We are All Responsible 41 Our Duty to Report Concerns 43 Help us Improve this Code

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Our Company América Móvil, including all its subsidiaries (América Móvil or the Company) has always distinguished itself as a company that is true to its values and principles, and this has allowed us to achieve success as the preferred choice of millions of telecommunication users in the countries in which we operate. We have transformed our Company from being a local communications operator to becoming a company integrated by telecommunication services and information technology, including fixed and mobile telephone services operating with high-speed broadband connection, cable television, data transmission services, as well as a wide range of innovative connectivity solutions to improve the lifestyle of our clients. América Móvil is the leading telecommunications company in Latin America and one of the world’s largest telecom companies. CODE OF ETHICS AMÉRICA MÓVIL 1

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Our Mission Our mission is to ensure that we provide access to the latest technologically advanced telecommunications products and services, connecting as many people as we can and positively transform their lives. Our Vision Our Vision is to preserve our leadership in the telecommunication´s industry and to continue to be a change agent through the sale of connectivity and high technological services in all the countries in which we operate. We remain committed to our clients, employees, commercial partners and shareholders. CODE OF ETHICS AMÉRICA MÓVIL 2

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Our Strategy We invest in our networks and cutting edge technology to optimize their capacity and coverage in order to offer to our customers innovative products and services of the highest quality. This allows us to be more efficient, take care of the environment and improve the daily experience of our users. CODE OF ETHICS AMÉRICA MÓVIL 3

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Values and Principles Our values and ethical principles are the qualities that differentiate and guide us. We always keep them in mind and put them into practice on a daily basis: they are an essential foundation of our culture of excellence, productivity and leadership. These basic elements of our corporate culture are: Honesty. We are committed to maintaining the highest ethical standards. We must act honestly and with integrity at all times. By conducting ourselves with integrity we foster confidence and trust among ourselves and in our relations with our customers, suppliers, and other business partners. Such conduct also promotes respect towards our organization, which ultimately contributes to the success of our business. Personal Development. We believe in the unlimited potential for the personal and professional growth of all people. This is why we respect and promote human rights in all of our activities. CODE OF ETHICS AMÉRICA MÓVIL 4

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Respect. We value all our employees, clients, suppliers and commercial partners. We respect human rights and the equal value of every person. We do not tolerate any form of discrimination, and we value the various cultures, customs, and ways of thinking. This diversity adds value to our business community. Business Creativity. We foster corporate creativity as a means to provide solutions to the social problems affecting the countries in which we operate, and we put this creativity in practice in our daily activities. Productivity. We remain committed to improving quality, streamlining and optimizing our productive processes, and controlling costs and expenses by adhering to the highest worldwide standards for our industry. Optimism and a Positive Attitude. We believe that when faced with adversity, a positive attitude and an optimistic perspective are essential for solving problems. Compliance with the Law. Our activities are also governed by the applicable laws and regulations in every country where we operate. We strictly abide by and comply with all of these laws, regulations, and rules in effect in each of our markets. We aim to be regarded as a Company that strictly adheres to the law. We also abide by our internal policies. CODE OF ETHICS AMÉRICA MÓVIL 5

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Cost Management. We take care of our Company’s assets as if they were our own. They are the product of our work, and they are intended for the benefit of our customers and our society. Sustainability. Sustainabily for América Móvil means to create a balance between the economic, social and environment aspects, in order to have a positive impact on the communities in which we operate and their surrounding areas by reaffirming our commitment of being a change agent that promotes inclusion, economic growth and wellness. We comply with the best domestic and international practices. CODE OF ETHICS AMÉRICA MÓVIL 6

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Why Do We Have a Code of Ethics? Acting in a way that upholds our Company’s values is essential for the continuity of our operations, and the expression of a culture of integrity. We know that respecting and expressing our Company’s solid values and principles is a way of adding value. We have updated our Code of Ethics to ensure that this ethical culture can be maintained over time. Although we realize that it is impossible to anticipate all of the situations that could arise during our day-to-day operations, we use this Code of Ethics as a guide to make the best ethical decisions related to our work, and to know what to do in cases where we may be uncertain of how to act. CODE OF ETHICS AMÉRICA MÓVIL 7

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What is Expected of Me? Our Code of Ethics represents the values of our company and therefore applies to employees, executives and board members. It is very important to us that our shareholders, suppliers, distributors, commercial partners, and any other person who acts on behalf of the Company assumes and complies with these principles and values. This Code establishes your responsibilities and duties as one of our Company’s employees or partners. The success of our Company depends upon compliance with the standards laid out in this document. You are an important member of this business community, and your support is essential if we are to achieve our defined goals. CODE OF ETHICS AMÉRICA MÓVIL 8

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You must understand and comply with the Code of Ethics. We therefore require that you: • Read the Code carefully. Understand its full scope and know what is expected of you. • Comply with all of the principles found in this Code when carrying out your work and during all of the activities you perform. You must make these principles your own; they are the basis for our business philosophy and culture. • Behave in an ethical manner at all times, and be proud of your conduct and actions. You are responsible for complying with the principles and expectations for conduct described in this document. • Report any employee, supplier, contractor, or other outside party working for the Company if you become aware of any unethical behavior or violation of the principles established in this Code. It is your responsibility to report any cases where you have knowledge or reasonable suspicion regarding any illegal or unethical situation. For more information regarding raising a claim, please consult the “Our Duty to Report Concerns” section at the end of this document. If a situation occurs that is not covered by the Code, please request guidance by emailing codeofethics@americamovil.com Thank you for your cooperation, and for making these basic principles of professionalism and responsibility your own. We are convinced that this Code will help all of us grow, on both a personal and professional level. IF A SITUATION OCCURS THAT IS NOT COVERED BY THE CODE, PLEASE REQUEST GUIDANCE BY EMAILING codeofethics@americamovil.com Report any suspected misconduct or violations of this Code at https://denuncias.americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 9

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Why Do We Have to Comply With this Code? Failure to comply with this Code affects the image and reputation of América Móvil as well as the individuals who work in our Company. As members of a business community, we must all be concerned about our Company’s image, which can be seriously harmed if we fail to comply with the basic standards of ethics and behavior outlined in this Code. This can also affect the perception that people from outside of the Company will have of us, or damage the trust that so many people have shown in us. CODE OF ETHICS AMÉRICA MÓVIL 10

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Non-discrimination and Respect for Human Rights At América Móvil we treat each person with respect and dignity. We work as a team to generate trust and support for each other within our working community. Our operations are now taking place in a globalized world, one with many different cultures and traditions. We believe that these differences enrich our Company, and we show full respect for them. We also believe that different ways of thinking allow us to have a broader perspective and to be more creative when it comes to solving problems. We promote diversity and inclusion, and are committed to the following standards: • We do not tolerate any sort of discrimination and we promote a culture of healthy cooperation, mutual respect, teamwork, solidarity and equality. • We promote respect and inclusion in the workplace and do not discriminate based upon disability, ethnic origin, religion, gender, marital status, pregnancy, nationality, sexual orientation, economic status, age, or political viewpoint, among others. In general terms, this means treating each person with dignity and professionalism. • We do not allow any type of harassment, intimidation, insults, threats, unfair accusations, bullying, or other acts of physical or psychological violence that could have a negative impact on an employee´s dignity and cause him/her to feel unconfortable or harrassed in any manner. • We prohibit any display in the workplace of images or objects with sexual content, as well as images or objects that could promote hatred, discrimination or stereotyping. • We promote equal opportunities between sexes and prohibit any gender violence, sexual or other types of harassment. CODE OF ETHICS AMÉRICA MÓVIL 11

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• We base all decisions on hiring, promotions and other employment-related benefits on job performance. • In AMX we are against child exploitation and we adopt preventive measures, including verification of the minimum age requirements applicable under domestic law, and we assure the care of rights and warranties of minors, in case of employment. We consider that child exploitation is any activity involving girls, boys or teenagers, whether paid or not, that is done outside the law and in dangerous or unhealthy conditions that infringe their rights or that can produce negative immediate or future effects to their physical, mental, psychological or social development or affect their education. • We do not interfere with our employees´ rights of freedom of association and collective bargaining. • We strive to have all companies in our supply chain know the principles applicable under this Code. We are committed to have our suppliers, distributors and other commercial partners comply with the conducts set forth in this Code with respect to their employees, including the respect for human rights. • We promote a culture of transparent, honest and responsible advertising. By doing so, we ensure that our customers are receiving accurate information. • We implement awareness-raising campaigns to promote the importance of respecting human rights, inclusiveness in the workplace, diversity, and gender equality. These are the basic principles of our Human Rights’ policy. If you detect any conduct inconsistent with these principles, please report it using our portal at https://denuncias.americamovil.com If you have questions please email humanrights@americamovil.com We promote a healthy and suitable work environment for the well being of our employees. WE INVITE YOU TO BECOME AWARE OF THE FULL HUMAN RIGHTS AND INCLUSION AND DIVERSITY POLICIES AVAILABLE AT Human Rights Policy Policy of Inclusion and Diversity CODE OF ETHICS AMÉRICA MÓVIL 12

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Safety in the work place Security is a top priority for us. All employees, suppliers and contractors must respect the Company’s policies on personal and corporate security at all times. The failure to comply with these policies may put at risk the health and safety of employees and the public. América Móvil complies with the highest applicable standards in terms of occupational security. One of our goals is to minimize work-related incidents. Therefore, we are committed to: • Providing a safe work environment, including providing the training, equipment and other tools necessary to maintain health and safety, and adopting all measures necessary to prevent or minimize occupational risks. CODE OF ETHICS AMÉRICA MÓVIL 13

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• Maintaining a safe and healthy environment for our employees. The consumption of alcoholic beverages is strictly prohibited when working. It is also strictly prohibited to come to work while under the influence of alcohol or any other type of narcotic or stimulant drug, or to possess, transport, or sell any such substances during working hours or using Company assets. • The carrying of any type of weapon is prohibited in the workplace, while traveling for the Company, or in any other situation where a person is representing the Company (except for authorized weapons for security personnel to protect employees and Company assets). • Complying with all civil protection regulations and training employees on how to respond to emergencies. It is your responsibility to take care of yourself as well as your colleagues to avoid work-related incidents. If you detect any situation that may be a risk to our security, please report it immediately to your supervisor and to our portal https://denuncias.americamovil.com For questions, please email security@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 14

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Treatment of Customers Our customers are the primary reason why we are in business. Catering to them and treating them with utmost courtesy and respect is essential to retaining their loyalty and achieving our mission. In servicing our customers’ demands, among other things, we must: • Provide fair treatment for our customers and respect their human rights. We must not discriminate against any person based on upon their gender, age, social class, disabilities, sexual preference, religion or political affiliation amongst others. • Make available products and services that meet their needs in an efficient and timely manner; and be transparent regarding the terms and conditions set forth in our customer contracts. • Provide customers with adequate, precise, clear and reliable information about our products and services, including the specific products and services they have already purchased. • Address their inquiries, problems and concerns, whether of a general, technical or administrative nature, using highly-trained personnel with a focus on customer service. • Always have the express consent of the client before making any change with respect to the service provided, always according to our internal policies and procedures • Provide the maximum quality possible when serving our customers. CODE OF ETHICS AMÉRICA MÓVIL 15

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These requirements, which have a significant effect on our customers’ preferences, translate into a single word: quality. Our success depends on our ability to develop and offer innovative, high-quality telecommunications products and services, and we are judged by our customers accordingly. We must never give false or misleading information or condition any sale. Our customers’ rights are protected in the countries where we operate by the applicable consumer protection laws, which are designed to safeguard their rights, ensure their equitable treatment and foster confidence in the relations between customers and suppliers. Our failure to maintain adequate customer care and service standards or our participation in illegal or improper commercial practices, may harm our reputation, give rise to an investigation, create legal liability for the Company or the individuals involved, and cause losses for our Company, and damage to our reputation. América Móvil does not tolerate any deviation from our customer care and service standards. In case you detect any conduct inconsistent with these client service standards, please report it using the portal https://denuncias.americamovil.com If you have any concerns, please email customers@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 16

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Personal Information At América Móvil we recognize the importance of protecting and safeguarding the privacy rights and personal data of our clients, and therefore we make sure to have all necessary measures to have an informed, legitimate and controlled treatment of personal information. Our goal is to comply with all applicable laws regarding personal information protection, and to adopt all necessary measures to protect the confidentiality, integrity and availability of personal data. It is important that you remember that personal data of clients is under the duty of confidentiality according to data protection laws. Any different use from what is specifically instructed is strictly prohibited. The person responsible of the safeguard of personal data who breaches the aforementioned confidentiality obligation will be subject to the applicable laws and America Móvil reserves the right to enforce legal actions. In case you detect any violation to the personal information policies, please report it using the portal https://denuncias.americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 17

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If you have any concerns regarding the handling of personal information related to our customers and/or application of these guidelines, you should contact your immediate supervisor. If following your contact with your supervisor, you still have doubts about how to handle personal data, please email privacy@americamovil.com FURTHER INFORMATION ON DATA PRIVACY IS FOUND IN OUR INFORMATION PRIVACY POLICY, AND WE ENCOURAGE YOU TO CONSULT THE FULL POLICY AT Privacy Policy We are committed to protecting and safeguarding all personal information entrusted to us by our customers. CODE OF ETHICS AMÉRICA MÓVIL 18

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Privacy of Communications Privacy of communications is a fundamental principle that guides the conduct at América Móvil and in our entire industry, not just because of the laws in effect, but also because it is the basis for the trust that the public has shown in us. For this reason, it is strictly prohibited to interfere with any communications or transmissions carried out by our customers, such as listening to, manipulating, or monitoring conversations, interfering with data transmissions, or revealing the existence or contents of customer communications, except in cases required by law and/or following appropriate requests from competent authorities. It is also prohibited to use any type of information contained in our customers’ communications for your personal benefit or for the benefit of others. FOR MORE INFORMATION PLEASE CONSULT AMÉRICA MÓVIL´S PRIVACY POLICY Privacy Policy In case you detect a violation to the privacy of communications, report it to our portal at https://denuncias.americamovil.com If you have any questions, please email privacy@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 19

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Freedom of Expression At América Móvil we provide landline, mobile and data telecommunications services to our customers. Our network and infrastructure serve the customers and others who make use of them. These parties have the right to: • Express opinions or ideas without restriction. • Freely carry out communications with individuals, organizations, and entities, without being subject to investigations or scrutiny. • Create or communicate contents, and share this information via our networks or services. We do not put any restrictions on the contents of our customer communications, and we do not interfere with the freedom our users have to create and communicate information, except in cases required by law and/or following appropriate requests from competent authorities. In case you detect any inconsistency related to freedom of expression, please report it through the portal https://denuncias.americamovil.com If you have any questions, please email privacy@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 20

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Confidential Information We develop, generate, and manage sensitive information that represents a competitive advantage for our Company and which must therefore be treated as confidential. You must refrain from divulging confidential information, such as that based upon information of a financial and legal nature; information related to our products and services, including our current and future plans in relation to these; market information developed internally by the Company; information obtained via our telecommunications networks; and business information in general, including information related to current and future plans, programs, and expectations. TIP If you are in possession of confidential information, make sure that you safeguard it in a secure location; do not leave photocopies or printed copies in common areas; do not discuss such information with coworkers who do not have a need to know it; do not leave confidential information visible on your computer screen; never discuss this information with friends or family members; and do not make phone calls or engage in conversations involving confidential information in public places. CODE OF ETHICS AMÉRICA MÓVIL 21

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Disclosure of confidential information could provide third parties with an unfair business advantage, expose us to damages and losses and jeopardize the privacy of our customers’ and commercial partners’ communications. Accordingly, we have established the following guidelines regarding the use of such information: • Access to our proprietary, non-public information is reserved to those who need to know it. No employee may discuss any such information with any other person, including his or her colleagues, except where the person receiving such information requires it for business reasons. • The disclosure of confidential information by any employee is generally prohibited. In limited cases, where the circumstances so warrant, confidential information may be disclosed to third parties with the prior authorization of the person or department assigned by the Company to perform such duties and in accordance with confidentiality agreements or other protective measures, such as those provided by law. • Any request or demand for confidential information from a governmental authority must be forwarded to our Legal Department in order to enable that office to take any appropriate measures for its protection and ensure that all applicable requirements are complied with. CODE OF ETHICS AMÉRICA MÓVIL 22

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• If as a result of our work we inadvertently obtain confidential information from another person, whether it be from a competitor, customer, supplier, government agency or other entity or individual, that was not intended to be delivered to the Company, we must keep such information confidential in accordance with the above criteria. To the extent possible, this information should be returned to the sender without reviewing its content. • If your employment relationship with the Company ends for any reason, you must return to your immediate supervisor all documents and/or work tools that you have been given that contain confidential information. The obligation to maintain confidentiality with respect to information from the Company remains in effect even after termination of any contractual or employment relationship with the Company or the Company’s contractors. In case you detect any inconsistency relating to the handling of confidential information, please report it through the portal https://denuncias.americamovil.com If you have any questions or concerns about how to handle confidential information, you must consult with your immediate supervisor or contact our Legal Department at confidentialinfo@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 23

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Non-Public Information and Operations Involving Securities Issued by the Company Our Company’s securities are traded on multiple stock exchanges, and we are therefore subject to a series of specific rules regarding non-public information regarding the Company and the obligation to refrain from sharing it. As a general rule, you cannot share non-public information about the Company that has not yet been made public. Information is considered public once the general public has been made aware of it via some means of América Móvil communication, such as through the media or on the América Móvil website, among other things. CODE OF ETHICS AMÉRICA MÓVIL 24

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You are specifically prohibited from using or transferring non-public information to a third party for your benefit or the benefit of a family member, friend or other party. For example, buying or selling securities (or having your friend buy or sell securities) based on non-public information is prohibited and likely illegal. These laws are very strict and can result in criminal penalties. Even if you are not trading securities based on non-public information, there may be restrictions on your ability to trade, or the timing of your trading of América Móvil securities. More information on the misuse of non-public Company information can be found in our Guidelines for trading in AMX shares and other securities. We encourage you to become familiar with this policy. In case you detect any inconsistency related to privileged information, please report it through the portal at https://denuncias.americamovil.com If you have any questions or concerns regarding confidential information, non-public information, or when and whether you are allowed to invest in any of América Móvil’s companies, please email securities@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 25

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Files and Records All accounting and other business books and records must be carefully produced and maintained and must be accurate, complete and reliable in every respect. Significant financial, legal and administrative obligations are based on these records, and they cannot be misleading or confusing. Employees must maintain all books and records in a manner that complies with the law and Company policies and procedures. If you detect any alteration or falsification of the Company’s financial information please report it inmediately through the portal https://denuncias.americamovil.com If you have questions or concerns regarding the accuracy or retention of Company records, please email codeofethics@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 26

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Computer Systems and IT Security Our IT systems are critical for our day-to-day operations. The Company has internally developed or acquired the requisite licenses to use all the software installed in its systems. Accordingly, all rights to such software are the Company’s sole and exclusive property. Any copying, appropriation, or improper use of the corporate software is prohibited, as is installation into Company systems of any unauthorized software from outside the Company. We have adopted security measures to protect our networks, IT systems and electronic information. Each of us is individually responsible for protecting the Company’s IT systems and the information stored in them. You must also understand and comply with the policies and guidelines concerning the use of our IT systems. The use of personal email or any other external platform when handling work-related information is prohibited, since the lack of appropriate security measures for protecting and safeguarding such information may put that information at risk. In case you detect a violation to information security, please report it through the portal at https://denuncias.americamovil.com IF YOU HAVE QUESTIONS EMAIL US informationsecurity@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 27

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Anti-Corruption Measures América Móvil is firmly committed to eliminating corruption, complying with local anti-corruption laws, and living up to the standards found in international anti-corruption conventions. Corruption means any abuse of power to gain some benefit for the Company, ourselves, or an outside party. A prominent form of corruption is bribery. América Móvil prohibits indirectly or directly making or receiving bribes, offering or requesting a bribe, or authorizing or aiding the payment or receipt of a bribe. Bribes include making a payment to obtain or retain business or some improper advantage (e.g., obtaining a tax rate lower than allowed by law). Bribes are often paid with money, but they can take the form of gifts, entertainment, travel, loans, payment of fees for another person, vacations, a job offer, special personal services or anything else of value. Giving or receiving gifts, meals or entertainment is generally acceptable, as long as there is no expectation that the person receiving the benefit will provide something in return. These courtesies must be reported to and authorized in advance by your immediate supervisor or, when a public official is involved, our Legal Department, and reasonable under the circumstances (not lavish), and infrequent. TIP When in doubt regarding whether it is appropriate to give or accept a gift or some other benefit, consider how it would look in the eyes of someone from outside of the Company, or on the front page of a newspaper. CODE OF ETHICS AMÉRICA MÓVIL 28

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Note that gifts, meals, entertainment or other types of payments to or from public officials carry relatively higher risk, and these types of payments may be limited or prohibited by local laws. For the purposes of this Code, public officials include employees of state-owned enterprises. If you are unsure whether you should accept or provide gifts, meals or entertainment, especially in your interactions with public officials, you must consult with your immediate supervisor or email our Legal Department at anticorruption@americamovil.com América Móvil also prohibits, directly or on its behalf: 1. Entering into agreements with consultants, lobbyists, contractors, agents or other third parties who pose a bribery risk. In other words, we should not do business with, and you should not make payments to, third parties if there is some warning sign that those third parties will engage in bribery. 2. Making payments for the travel expenses of public officials or their family members. 3. Making facilitating payments, which are generally defined as small payments to expedite the performance of a government service to which one is legally entitled such as a visa. 4. Making political or campaign donations or payments with Company funds or on behalf of América Móvil. You are free to make your own political contributions as long as they otherwise comply with the law. CODE OF ETHICS AMÉRICA MÓVIL 29

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América Móvil also bans any unethical conduct, including, fraud, embezzlement, extortion, use of false information, and money laundering, among others. These activities are prohibited regardless of whether a public official is involved. Finally, América Móvil bars any attempt to aid or conceal corruption of any type, regardless of whether you are obtaining any benefit from the corrupt activity. To combat corruption, we are committed to: 1. Complying with all applicable anti-bribery laws in all countries in which we operate. 2. Complying with all laws and rules regarding accurate and complete recordkeeping. Deliberate falsification of our books and records is strictly prohibited and a crime. 3. Carrying out all negotiations, purchases, and financial transactions in accordance with our own internal procedures, while also maintaining, to the extent appropriate, all related records so that they can be reviewed in the event of an audit. 4. Ensuring that all payments we make, as well as those made on our behalf, are only to pay for goods or services that are provided to the Company. 5. Adopting appropriate internal controls and, when appropriate, reporting to the appropriate authorities acts of corruption by our employees or third parties. CODE OF ETHICS AMÉRICA MÓVIL 30

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Promoting anti-corruption procedures and practices throughout our supply chain, including training personnel on preventive measures and conducting awareness-raising campaigns. If you have knowledge that any person has or may possibly commit a corrupt act, you must immediately report the matter to your supervisor or anonymously report the matter via our portal: https://denuncias.americamovil.com Note that if you do not report suspicious activity, you may be viewed as having aided or concealed an act of corruption, which could have serious consequences for you. For more information on reporting such acts, please consult our section entitled “Our Duty to Report Concerns” at the end of this document. Additional information regarding our Anti-Corruption policy can be found at Anti-Corruption Policy. If you have any questions, contact anticorruption@americamovil.com It is your responsability to report any suspicious activity. CODE OF ETHICS AMÉRICA MÓVIL 31

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Conflicts of Interest A conflict of interest arises when an employee’s or a third party’s interest is inconsistent with the interests of the Company. Whenever we are acting on behalf of América Móvil we must always put the interests of our Company above our own personal interests. This means that we must not allow our own interests, or those of our family members or other people we have some relationship with, to influence the decisions we are making on behalf of our Company. Conflicts of interest can affect our judgment, harm the reputation and image of América Móvil, and expose the Company to potential risks. We must avoid actual or perceived conflicts on matters concerning hiring, promotions, contracting with the Company, or our dealings with other business interests outside the Company. We must not accept gifts, favors or entertainment that may influence our decisions or affect the Company’s business relationships. In case you detect a conflict of interest report it through the portal https://denuncias.americamovil.com If you have any questions or concerns, please email conflictofinterest@americamovil.com TIP When determining whether or not a conflict of interest exists, imagine explaining your actions to a friend or colleague, or to a reporter from the media: would you feel comfortable when doing this? CODE OF ETHICS AMÉRICA MÓVIL 32

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Treatment of Our Suppliers As discussed in the Conflicts of Interest section above, if you have a personal relationship with any of our suppliers or commercial partners, this must not create conflicts of interest, affect your objectivity, or give the appearance of impropriety. If this is the case, you must abstain from taking any decisions that could be viewed as being influenced by that relationship. These risks often arise when we represent América Móvil, in business relations with family, friends, or third parties, or when we receive or give gifts, meals or other payments from or to suppliers, especially when the supplier is a state-owned company. Any conflicts that may arise must be reported to your supervisor immediately. We must maintain a professional relationship with our suppliers or other commercial partners, while ensuring that we comply with the value and principles described in this Code, and endeavor to have our suppliers share, promote and adhere to them, as well. We must select our suppliers based upon the merits of their products and services. We must clearly and precisely inform actual and potential suppliers of the Company’s needs, and ensure that we receive appropriate value for the compensation paid. Furthermore, all interactions with suppliers must follow our procurement procedures, which include all applicable recordkeeping and legal requirements. In case you detect a conflict of interest or a situation with a provider hat is not correct, report it through the portal https://denuncias.americamovil.com If you have questions or want further information regarding potential conflicts of interest, please email conflictofinterest@americamovil.com We remind you that all America Movil´s suppliers and distributors must comply with the Commercial Integrity Policy. CODE OF ETHICS AMÉRICA MÓVIL 33

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Competition The impact of our business activities on the market are regulated by the laws in effect in each country where we operate. We have the obligation to understand these laws, comply with them, and to avoid creating the appearance of prohibited misconduct, as violation of these laws can have serious consequences for the Company. We must always compete based upon the merits of our products and services and our ability to provide them in an innovative and efficient manner, and not on the basis of any collusion with a competitor or any practice that restricts competition in the relevant market. We must not discuss any subject with a competitor if this could be, or seen to be, an effort to impact free competition, except in cases permitted by law and/ or following appropriate requests from competent authorities. CODE OF ETHICS AMÉRICA MÓVIL 34

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Please consult with the Legal Department, before exchanging information, discussing commercial subjects, or negotiating with or entering into contracts with a competitor. We encourage you to become familiar with the toolkit offered by the International Chamber of Commerce (ICC) regarding compliance with the regulations on economic competition1, and the Guide to Exchanges of Information Among Economic Agents produced by Mexico’s Federal Commission on Economic Competition, which can be found at 2. If you detect a violation or possible breach of the competition laws, please report it inmediately through the portal https://denuncias.americamovil.com For questions regarding the compliance of competition laws please email competition@americamovil.com 1 © International Chamber of Commerce (ICC), 2015. 2 Federal Commission on Economic Competition (COFECE), 2015. CODE OF ETHICS AMÉRICA MÓVIL 35

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Use of the Company’s Assets We must always take proper care of all tangible and intangible assets belonging to our Company. This includes its properties and facilities, fixtures and furnishings, tools and equipment, supplies, vehicles, inventories, telephone systems, telecommunications networks and equipment (including all components and computer hardware and software, such as the email and voicemail systems and software developed internally), financial resources, investments, concessions and other authorizations for operating telecommunications networks, industrial and intellectual property rights, information about products and services, and financial information and business information, among other elements, as required in order to carry out our activities and operations. We must use the Company’s property appropriately for our work, not for personal benefit or for unauthorized purposes. Moreover, we must protect Company property, comply with all applicable procedures for the operation, safety and security of that property, and avoid any intentional or negligent conduct that could cause them to be lost, damaged, destroyed, stolen, or wasted. CODE OF ETHICS AMÉRICA MÓVIL 36

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Financial Resources All persons who have control over the Company’s financial resources, such as cash or cash equivalents, securities, negotiable instruments, and credit cards, are personally responsible for their safekeeping and ensuring that they are only used in the conduct of América Móvil’s business. We must also ensure that income and payments are properly recorded and supported by appropriate documentation in accordance with the law. CODE OF ETHICS AMÉRICA MÓVIL 37

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Political Activities América Móvil has no ideological or political affiliation whatsoever, but respects its employees’ right to participate in not-for-profit professional associations and citizens’ organizations devoted to the promotion of the lawful and responsible exercise of political rights. At América Móvil, all employees are entitled to exercise their political rights without being pressured, directly or indirectly, to favor any given political party or candidate. However, to ensure that we comply at all times with the laws to which we are subject, any such political activity must be undertaken solely on a personal basis, during non-business hours and without making any express or implied reference to América Móvil. This activity may under no circumstance involve the use of any of América Móvil’s resources or assets. In addition, some laws make it unlawful for América Móvil, its subsidiaries and their respective employees to make contributions, donations or any other payments, whether in cash or kind, to political parties, employees of political parties, and candidates to public office, including in any foreign country. América Móvil does not make political contributions to individual candidates or parties. Employees may not use América Móvil assets to personally support political candidates. CODE OF ETHICS AMÉRICA MÓVIL 38

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Sustainability Sustainabily for América Móvil means to create a balance between the economic, social and environment aspects, in order to have a positive impact on the communities in which we operate and their surrounding areas by reaffirming our commitment of being a change agent that promotes inclusion, economic growth and wellness. Our “intelligent sustainability” is oriented towards development and the increase in the quality of life of the persons through connectivity. As an example of the commitment with different groups of interest in the counties in which we operate, América Móvil enhances initiatives to manage risks and opportunities in social, environmental and corporate governance areas. These initiatives cover a broad range of areas such as: innovation, health services, accessibility, ethics, employee training, supply chain development, human rights, customer experience, privacy, information security, response in the event of emergencies and natural disasters, narrowing the digital gap, traffic education, environmental care and conservation, amongst others. We also work in a continuous manner to maintain our operations aligned with the best domestic and international standards including the Global Compact, the Women´s Empowerment Principles, as well as the Sustainable Development Goals, all set by the United Nations. Any activity hat could infringe sustainability should be reported at our portal https://denuncias.americamovil.com For questions or further inquiries regarding sustainability initiatives, please refer to our annual report at http://www.americamovil. com/Spanish/Sustentabilidad/default.aspx or contact contacto-rse@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 39

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We are All Responsible Our Code of Ethics reaffirms América Móvil’s commitment to achieving the highest standards of ethics, workplace conduct and corporate practices. However, each individual is ultimately responsible for his or her actions. No guidelines or code of ethics can provide rules that cover every situation or potential misconduct that may arise. Therefore, the contents of this Code of Ethics should be considered together with laws, regulations, policies, practices and procedures, applicable to América Móvil. Being a global company, América Móvil must comply with all laws in each of the countries in which it operates. We are therefore all responsible for knowing and complying with all applicable laws and regulations. We must also act in a way that upholds the spirit and intention of the law. Whenever the contents of this Code of Ethics, or any other guidelines from América Móvil, differ from the local laws or regulations, we must always apply the highest standards of conduct. If you think that any of the provisions contained in this document are in conflict with the local laws, or if you have any uncertainties regarding the application of the Code of Ethics, please email codeofethics@americamovil.com CODE OF ETHICS AMÉRICA MÓVIL 40

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Our Duty to Report Concerns Each of us have an obligation to report through the whistleblower portal any conduct that infringes this Code of Ethics, any applicable law or regulation, or any of América Móvil’s policies and procedures, and in general, any non-ethical conduct. We must all cooperate with any internal or external investigation and keep it confidential. Employees who make a false or misleading claim may be subject to disciplinary actions. Remember that failure to report a serious breach of ethics can have disciplinary consequences for you, since you may be concealing an unethical or criminal act. Reports can be made anonymously if the person filing the report wishes to do so. We do however encourage informants to leave anonymized contact information for any follow-up during the investigation. CODE OF ETHICS AMÉRICA MÓVIL 41

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América Móvil will make every effort to protect any person making good faith reports of misconduct and ensure that no retaliation whatsoever will be taken against that person for reporting the conduct. To the extent possible, the Company will maintain the confidentiality of those making reports. Nothing in this Code is meant to discourage employees or others from reporting misconduct related to América Móvil to law enforcement authorities. In such cases, it is suggested to report to the Legal Department, so that the office can help with any investigations, if necessary. All instances of misconduct received through our whistleblower portal will be administrated and investigated by América Movil´s Compliance Officer, who reports to a multi-disciplinary group of executives of the Company that conform America Móvil´s Ethics Committee. You can always go to the portal https://denuncias.americamovil.com to report any illegal or improper activity. CODE OF ETHICS AMÉRICA MÓVIL 42

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Help us Improve this Code This Code of Ethics establishes the minimum standards to which our Company is committed. We realize that it is impossible to include or regulate all possible ethical or other conduct matters that may arise. To share any suggestions or comments that will help us improve this Code, please email codeofethics@americamovil.com At América Móvil we know that your compliance with this Code of Ethics is essential for the continued development and success of our Company. Thank you in advance for making the effort to read and understand the contents of this Code, and we encourage you to put its rules into practice during all of your work activities. CODE OF ETHICS AMÉRICA MÓVIL 43

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América Móvil

EX-15.2

Exhibit 15.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the Registration Statement (Form F-3ASR No. 333-259910) of América Móvil, S.A.B. de C.V. and subsidiaries, of our reports dated April 29, 2022, with respect to the consolidated financial statements of América Móvil, S.A.B. de C.V. and subsidiaries, and the effectiveness of internal control over financial reporting of América Móvil, S.A.B. de C.V. and subsidiaries, included in this Annual Report on Form 20-F for the year ended December 31, 2021.

/s/ MANCERA, S.C.

Mexico City, Mexico

April 29, 2022

EX-17.1

Exhibit 17.1

Subsidiary Guarantors and Issuers of Guaranteed Securities

Each of the following securities issued by América Móvil, S.A.B. de C.V. (América Móvil) is unconditionally and fully guaranteed, jointly and severally by Radiomóvil Dipsa, S.A. de C.V (Telcel), a wholly owned subsidiary of América Móvil:

•	UDI 743.5 million 0% Notes due 2025
•	£650 million 5.75% Senior Notes due 2030
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•	US$1,000 million 6.375% Notes due 2035
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•	UF 5 million 4.00% Notes due 2035
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•	Ps.8,000 million 8.46% Senior Notes due 2036
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•	US$400 million 6.125% Notes due 2037
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•	¥13,000 million 2.95% Senior Notes due 2039
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•	US$2,000 million 6.125% Senior Notes due 2040
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