Telefonica Celular del Paraguay SA

completed

The project consists of the build-out and expansion of the leading mobile operator in Paraguay, Telefonica Celular del Paraguay S.A.’s (Telecel or the company) GSM network, as an overlay to the Company’s existing nationwide AMPS and TDMA networks. Telecel is controlled by Millicom International Cellular S.A. (Millicom or MIC) which holds 96% of Telecel’s shares, and Estrella Solitaria S.A. which holds the remaining 4%. The company began operations in 1992, as a provider of analog (AMPS) cellular services. In 1997, it was awarded an additional license to provide digital (TDMA) cellular services. The company’s existing operations cover approximately 80% of the total Paraguayan population and 75% of the addressable mobile market. As of June 2004, the company had approximately 485,000 mobile subscribers, and an estimated market share of 43%. For the fiscal year ended December 31, 2003, Telecel achieved revenues of $61.0 million equivalent, EBITDA of $24.4 million equivalent, and net income of $4.7 million equivalent. The company’s performance in 2004 is on-track, with revenues of $32.0 million equivalent, EBITDA of $13.4 million equivalent, and net income of $3.5 million equivalent as of June 30, 2004.