What changed in this filing

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Item 1. Business

2021-03-01 compared with 2020-02-19 · 533 added, 321 removed, 510 unchanged (63% of the section changed)

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Liberty Latin America Ltd.

is an international provider of fixed, mobile and subsea telecommunications services.

Through our subsidiaries, we provide residential and business-to-business ( B2B ) services in (i) over 20 countries, primarily in Latin America and the Caribbean, through Cable & Wireless Communications Limited ( C&W ), (ii) Chile, through VTR Finance B.V.

( VTR Finance ) and its subsidiaries, which includes VTR.com SpA ( VTR ), (iii) Puerto Rico, through Leo Cable LP ( Leo Cable ) and its subsidiaries, which includes Liberty Cablevision of Puerto Rico LLC ( LCPR ), collectively “ Liberty Puerto Rico ,” an entity that, effective October 2018, is a wholly-owned subsidiary, and (iv) Costa Rica, through LBT CT Communications, S.A.

( LBT CT ) and its subsidiary, Cabletica S.A.

( Liberty Latin America ) is a registered company in Bermuda that primarily includes:

(i) Cable & Wireless Communications Limited and its subsidiaries (collectively C&W ), which includes Cable & Wireless Panama, S.A.

(ii) Liberty Communications PR Holding LP and its subsidiaries (collectively Liberty Puerto Rico ), which include Liberty Communications of Puerto Rico LLC ( LCPR ) and, as of October 31, 2020 and as further described in note 4, Liberty Mobile Inc.

and its subsidiaries ( Liberty Mobile );

(iii) VTR Finance N.V.

and its subsidiaries (collectively VTR , which includes VTR.com SpA ( VTR.com ));

(iv) LBT CT Communications, S.A.

and its subsidiary, Cabletica S.A.

( Cabletica ).

As further described in note 19 to our consolidated financial statements, effective October 1, 2018, VTR and Cabletica together comprise one of our reportable segments referred to as “ VTR/Cabletica .” C&W also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

VTR, Liberty Communications PR Holding LP and LCPR were formerly known as VTR Finance B.V., Leo Cable LP and Liberty Cablevision of Puerto Rico LLC, respectively.

C&W owns less than 100% of certain of its consolidated subsidiaries, including The Bahamas Telecommunications Company Limited ( C&W Bahamas ) (a 49%-owned entity that owns all of our operations in the Bahamas), Cable & Wireless Jamaica Limited ( C&W Jamaica ) (a 92%-owned entity that owns the majority of our operations in Jamaica), and CWP (a 49%-owned entity that owns most of our operations in Panama).

Liberty Latin America owns 80% of LBT CT Communications S.A.

We are an international provider of fixed, mobile and subsea telecommunications services.

We provide residential and business-to-business ( B2B ) services in (i) over 20 countries across Latin America and the Caribbean, through two of our reportable segments, “ C&W Caribbean and Networks ” and “ C&W Panama ”, (ii) Chile and Costa Rica, through our reportable segment, “ VTR/Cabletica ”, and (iii) Puerto Rico, through our reportable segment, Liberty Puerto Rico.

Through our “ Networks & LatAm ” business, C&W Caribbean and Networks also provides (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect over 40 markets in that region.

In the following text, the terms “ Liberty Latin America ,” “ we ,” “ our ,” “ our company ” and “ us ” may refer, as the context requires, to Liberty Latin America or collectively to Liberty Latin America and its subsidiaries.

C&W owns less than 100% of certain of its consolidated subsidiaries, including Cable & Wireless Panama, S.A.

( C&W Panama ) (a 49.0% -owned entity that owns most of our operations in Panama), The Bahamas Telecommunications Company Limited ( C&W Bahamas ) (a 49.0% -owned entity that owns all of our operations in the Bahamas) and Cable & Wireless Jamaica Limited ( C&W Jamaica ) (a 92.3% -owned entity that owns the majority of our operations in Jamaica).

In addition, we own 80% of Cabletica through our 80% ownership of its parent company, LBT CT.

We were originally formed as a Bermuda company on July 11, 2017, as a wholly-owned subsidiary of Liberty Global plc ( Liberty Global ) under the name LatAm Splitco Ltd.

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on September 22, 2017.

During October 2017, the Board of Directors of Liberty Global authorized a plan to distribute to the holders of Liberty Global ’s LiLAC Shares (as defined below and described in note 1 to our consolidated financial statements included in Part II of this Annual Report on Form 10-K ) common shares in our company (the Split-Off ), which was completed on December 29, 2017.

During October 2017, the Board of Directors of Liberty Global authorized a plan to distribute to the holders of its ordinary shares (the LiLAC Shares ) common shares in our company (the Split-Off ), which was completed on December 29, 2017.

The LiLAC Shares were tracking shares, which were intended to reflect or “track” the economic performance of Liberty Global’s “ LiLAC Group ” rather than the economic performance of Liberty Global as a whole.

The LiLAC Group comprised the same entities as Liberty Latin America at the time of the Split-Off.

References in the following text to our assets, liabilities or businesses reflect the historical information of (i) certain former subsidiaries of Liberty Global for periods prior to the Split-Off and (ii) Liberty Latin America and its consolidated subsidiaries for the period following the Split-Off.

Although Liberty Latin America was previously reported on a combined basis, the financial and operating information presented herein includes Liberty Latin America and its consolidated subsidiaries for all periods presented, unless stated otherwise.

LiLAC Distribution

On July 1, 2016, a total of 117,430,965 Liberty Global Class A and Class C ordinary shares ( LiLAC Shares ) were issued to holders of Class A and Class C Liberty Global ordinary shares ( Liberty Global Shares ) in recognition of the Liberty Global Shares that were issued to acquire C&W (the LiLAC Distribution ).

For additional information regarding the acquisition of C&W , see note 4 to our consolidated financial statements included in Part II of this Annual Report on Form 10-K .

Split-off of Liberty Latin America from Liberty Global

Following the Split-Off , Liberty Latin America and Liberty Global operate as separate, publicly traded companies, and neither has any share ownership, beneficial or otherwise, in the other.

In the Split-Off , 48,428,841 Class A common shares, 1,940,193 Class B common shares and 120,843,539 Class C common shares of Liberty Latin America were issued.

Developments in the Business

We have expanded our footprint through new build and upgrade projects, mobile coverage expansion, and strategic acquisitions.

We have expanded our footprint through fixed network new build and upgrade projects, mobile coverage expansion, and strategic acquisitions.

Our new build projects consist of network programs pursuant to which we pass additional homes and businesses with our broadband communications network.

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We have made strategic acquisitions to drive scale benefits across our business, enhancing our ability to innovate and deliver quality services, content and products to our customers.

Within the last five years, we completed, or have entered into definitive agreements to complete, the following transactions:

Within the last three years, we completed, or have entered into definitive agreements to complete, the following transactions:

• the acquisition on October 31, 2020, of AT&T’s wireless and wireline operations in Puerto Rico and the U.S.

Virgin Islands in an all-cash transaction (the AT&T Acquisition) based upon an enterprise value of $1.95 billion;

• on July 30, 2020, we entered into a definitive agreement to acquire Telefónica S.A.’s operations in Costa Rica in an all-cash transaction based upon an enterprise value of $500 million on a cash- and debt-free basis (the Telefónica-Costa Rica Acquisition ).

The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2021;

• the disposition on November 5, 2019 of Cable & Wireless Seychelles based on an enterprise value of approximately $104 million to a consortium of local investors (the Seychelles Disposition );

entry into a stock purchase agreement on October 9, 2019 with certain subsidiaries of AT&T Inc.

( AT&T ) to acquire AT&T’s wireless and wireline operations in Puerto Rico and the U.S.

Virgin Islands in an all cash transaction valued at approximately $1.95 billion on a cash and debt-free basis, subject to certain adjustments (the AT&T Acquisition );

• the acquisition on March 31, 2019 of an 87.5% stake from the government of Curacao in United Telecommunications Services N.V.

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Maarten, each in an all cash transaction;

the acquisition on October 17, 2018 of Searchlight Capital Partners L.P.’s 40% interest in both Leo Cable and Leo Cable L.L.C., which in turn gave us 100% ownership of Liberty Puerto Rico, in exchange for 9,500,000 unregistered Class C common shares;

• the acquisition on October 17, 2018 of Searchlight Capital Partners L.P.’s 40% interest in both Leo Cable LP and Leo Cable L.L.C., which in turn gave us 100% ownership of Liberty Puerto Rico, in exchange for 9,500,000 unregistered Class C common shares;

• the acquisition on October 1, 2018 of an 80% stake in Cabletica (the Cabletica Acquisition ), which is a leading cable operator in Costa Rica that provides television, broadband internet and fixed-line telephony services to residential customers, from Televisora de Costa Rica S.A.

in an all cash transaction.

the acquisition on May 16, 2016 of C&W , a full-service telecommunications operator with a well-recognized and respected brand that has been in use for more than 70 years;

the acquisition on June 3, 2015 of Choice Cable TV, a cable and broadband services provider in Puerto Rico, which has been integrated into our Liberty Puerto Rico operations, in an all cash transaction.

For information regarding our material financing transactions, see note 10 to our consolidated financial statements included in Part II of this Annual Report on Form 10-K.

In September 2019, Hurricane Dorian impacted certain islands of the Bahamas, resulting in significant damage to homes, businesses and infrastructure in those areas.

In 2017, Hurricanes Irma and Maria (the 2017 Hurricanes ) impacted a number of our markets in the Caribbean.

The most extensive damage occurred in Puerto Rico and certain markets within our C&W segment, most notably the British Virgin Islands and Dominica (collectively, the Impacted Markets ), including damage to power supply and transmission systems.

In December 2018, we settled our insurance claims for the hurricanes with our third-party insurance provider.

The settlement amount totaled $121 million and comprised $109 million for the 2017 Hurricanes , which was net of $30 million in self-insurance, and $12 million for Hurricane Matthew , which was net of $15 million in self-insurance.

For information regarding the impacts of Hurricane Dorian, see Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Hurricane Dorian included in Part II of this Annual Report on Form 10-K .

Forward-looking Statements

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changes in competitive, regulatory and economic factors;

the timing and impacts of proposed transactions;

the timing and impacts of proposed transactions, including the Telefónica-Costa Rica Acquisition;

anticipated changes in our revenue, costs or growth rates;

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our future projected contractual commitments and cash flows;

the AT&T Acquisition, including the anticipated closing date;

and other information and statements that are not historical fact.

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• fluctuations in currency exchange rates, inflation rates and interest rates;

• our relationships with third-party programming providers and broadcasters and the ability to acquire programming;

• our relationships with suppliers and licensors and the ability to maintain equipment, software and certain services;

• instability in global financial markets, including sovereign debt issues and related fiscal reforms;

• our ability to obtain additional financing and generate sufficient cash to meet our debt obligations;

• the impact of restrictions contained in certain of our subsidiaries’ debt instruments;

• consumer disposable income and spending levels, including the availability and amount of individual consumer debt;

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• our ability to manage rapid technological changes;

the impact of 5G and wireless technologies;

our ability to maintain or increase the number of subscriptions to our video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household;

• the impact of 5G and wireless technologies on broadband internet;

• our ability to maintain or increase the number of subscriptions to our video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household and mobile subscriber;

• our ability to provide satisfactory customer service, including support for new and evolving products and services;

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• government intervention that requires opening our broadband distribution networks to competitors;

our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions, such as the AT&T Acquisition;

our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from and implement our business plan with respect to the businesses we have acquired or that we expect to acquire, such as with respect to the AT&T Acquisition;

• our ability to renew necessary regulatory licenses, concessions or other operating agreements and to otherwise acquire future spectrum or other licenses that we need to offer new mobile data or other technologies or services;

• our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions, such as with respect to the Telefónica-Costa Rica Acquisition;

• our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from and implement our business plan with respect to the businesses we have acquired or that we expect to acquire, such as with respect to the Telefónica-Costa Rica Acquisition;

• changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.S.

or in other countries in which we operate;

or in other countries in which we operate and the results of any tax audits or tax disputes;

• changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks;

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• the availability of capital for the acquisition and/or development of telecommunications networks and services, including property and equipment additions;

problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire, such as with respect to the AT&T Acquisition;

• problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire, such as with respect to the AT&T Acquisition and the Telefónica-Costa Rica Acquisition;

• the effect of any of the identified material weaknesses in our internal control over financial reporting;

• piracy, targeted vandalism against our networks, and cybersecurity threats or other security breaches, including the leakage of sensitive customer data, which could harm our business or reputation;

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• the loss of key employees and the availability of qualified personnel;

• the effect of any strikes, work stoppages or other industrial actions that could affect our operations;

• changes in the nature of key strategic relationships with partners and joint venturers;

• our equity capital structure;

• our ability to realize the full value of our intangible assets;

• changes in and compliance with applicable data privacy laws, rules, and regulations;

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Treasury Department’s Office of Foreign Assets Control ( OFAC );

events that are outside of our control, such as political conditions and unrest in international markets, terrorist attacks, malicious human acts, hurricanes and other natural disasters, pandemics and other similar events.

• events that are outside of our control, such as political conditions and unrest in international markets, terrorist attacks, malicious human acts, hurricanes and other natural disasters, pandemics, including the COVID-19 pandemic, and other similar events.

The broadband distribution and mobile service industries are changing rapidly and, therefore, the forward-looking statements of expectations, plans and intent in this Annual Report on Form 10-K are subject to a significant degree of risk.

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Readers are cautioned not to place undue reliance on any forward-looking statement.

(b) Narrative Description of Business

We are a leading telecommunications company with operations in Chile, Panama, Puerto Rico, Costa Rica, the Caribbean, including Jamaica, and other parts of Latin America .

(b) Description of Business

We are a leading communications company with operations in Puerto Rico, Chile, Panama, Costa Rica, the Caribbean, including Jamaica, and other parts of Latin America .

The communications and entertainment services that we deliver to our residential and business customers include video, broadband internet, telephony and mobile services.

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We also operate an extensive subsea and terrestrial fiber optic cable network that connects over 40 markets in the region, providing connectivity solutions both within and outside our operating footprint.

We are the largest fixed-line provider of high-speed broadband and video services across a number of our markets, including Chile, Puerto Rico, Jamaica and Trinidad and Tobago.

We are the largest fixed-line provider of high-speed broadband and video services across a number of our markets, including Puerto Rico, Chile, Jamaica and Trinidad and Tobago.

We also operate the largest telephony network in most of our C&W markets where we provide residential communications services.

In addition, we offer mobile services throughout most of our operating footprint.

In addition, we offer mobile services throughout most of our operating footprint, including Puerto Rico and the U.S.

Virgin Islands.

Across C&W’s markets, we are a mobile network operator in Panama and most of our Caribbean markets, including the Bahamas and Jamaica.

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Our operating brands include the following:

Liberty Puerto Rico

C&W VTR.com Liberty Puerto Rico Cabletica

Trends in Market Demand

In December 2019, COVID-19 was reported in Wuhan, China.

On March 11, 2020, the World Health Organization declared the outbreak a “pandemic,” pointing to the sustained risk of further global spread.

To date, confirmed cases of COVID-19 have been experienced in each of the markets in which we operate.

During 2020, COVID-19 has negatively impacted our operations, primarily within our C&W Caribbean and Networks, C&W Panama and VTR/Cabletica segments, due to resulting lockdowns, moratoriums, cancellation of live sporting events, and mobility, travel and tourism restrictions across many of the markets in which we operate.

The implications of these restrictions have been (i) the issuance of discounts to customers, (ii) the pause in certain managed service projects, particularly with government agencies, (iii) at VTR, customers experiencing network connection-related issues stemming from the significant increase, over a short period of time, in the capacity usage by our customers, and (iv) delayed or deferred customer payments and increased customer churn.

In VTR, our most competitive consumer fixed market, we experienced increased revenue generating unit churn during the third quarter following network challenges related to the increased bandwidth demand earlier in the year.

We have carried out a number of operational actions to improve the experience for our customers.

Within our mobile operations, the lockdowns negatively impacted, primarily at C&W Caribbean and Networks and C&W Panama during the second quarter of 2020, our customers’ ability to recharge their prepaid mobile devices.

In addition, we experienced declines in inbound roaming activity as a result of travel restrictions and reduced tourism activities in the markets in which we operate.

These factors collectively resulted in declines in revenue within our B2B and mobile operations and lower ARPU (as defined below) associated with our residential fixed subscription services.

Given the impacts of COVID-19 continue to rapidly evolve, the extent to which COVID-19 may further impact our financial condition or results of operations continues to be uncertain and cannot be predicted at this time.

Operating Data

The following tables present certain operating data as of December 31, 2020.

The tables reflect 100% of the data applicable to each of our subsidiaries, regardless of our ownership percentage.

The tables reflect 100% of the data applicable to each of our reportable segments, and for the key markets within the segments of C&W Caribbean and Networks, C&W Panama and VTR/Cabletica, regardless of our ownership percentage.

For additional information regarding terms used in the following tables, see the Operating Data Glossary below.

Relationships

Internet RGUs

Telephony RGUs

Total Mobile Subscribers (c)

The Bahamas (a)

Passed Two-way

Passed Customer

Relationships Total

RGUs Video RGUs Internet RGUs Telephony RGUs Total Mobile Subscribers (d)

C&W Caribbean and Networks:

Jamaica 613,700 613,700 296,700 634,200 128,400 259,600 246,200 992,300

The Bahamas 120,900 120,900 35,300 68,200 7,400 26,400 34,400 181,100

Trinidad and Tobago 334,600 334,600 157,000 332,500 106,200 140,100 86,200 —

Barbados 140,400 140,400 82,400 174,200 33,700 69,400 71,100 118,600

Other 331,700 311,900 233,900 374,100 77,800 177,300 119,000 394,500

Total C&W Caribbean and Networks

1,541,300 1,521,500 805,300 1,583,200 353,500 672,800 556,900 1,686,500

C&W Panama (a) (b) 687,900 687,900 184,700 405,500 89,900 155,900 159,700 1,461,900

Total C&W 2,229,200 2,209,400 990,000 1,988,700 443,400 828,700 716,600 3,148,400

VTR/Cabletica:

Total VTR/Cabletica

Liberty Puerto Rico

In September 2019, Hurricane Dorian impacted certain islands of the Bahamas, resulting in significant damage to homes, businesses and infrastructure.

For those areas of the Bahamas impacted by Hurricane Dorian, the homes passed and subscriber counts reflect the pre-hurricane homes passed and subscriber counts as of August 31, 2019 as adjusted through December 31, 2019 for net voluntary disconnects.

We are still in the process of assessing the impact of the hurricane on our networks and subscriber counts.

The impacted areas in the Bahamas include approximately 30,200 homes passed, 7,700 telephony RGUs, 3,800 internet RGUs, 900 video RGUs, 4,400 postpaid mobile subscribers and 36,500 prepaid mobile subscribers.

For those areas of the Bahamas not impacted by Hurricane Dorian, the homes passed and subscriber counts reflect counts as of December 31, 2019.

C&W's "Other" category includes subscriber data related to UTS.

Subscriber information for UTS is preliminary and subject to adjustment until we have completed our review of such information and determined that it is presented in accordance with our policies.

Mobile subscribers are comprised of the following:

The Bahamas (a)

VTR 3,848,600 3,424,700 1,465,800 2,848,800 1,065,500 1,286,100 497,200 280,300

Cabletica 633,000 627,100 268,300 443,200 206,900 214,800 21,500 —

Total VTR/Cabletica (c) 4,481,600 4,051,800 1,734,100 3,292,000 1,272,400 1,500,900 518,700 280,300

Liberty Puerto Rico (d) 1,137,700 1,137,700 480,500 905,600 235,200 434,300 236,100 1,022,600

Total 7,848,500 7,398,900 3,204,600 6,186,300 1,951,000 2,763,900 1,471,400 4,451,300

(a) RGU balances do not include 58,600 RGUs that, due to the impact of COVID-19, have not been disconnected in accordance with our normal disconnect policy for non-payment and continue to receive services.

(b) During the fourth quarter of 2020, we announced that we would shut down our DTH operations in Panama, which went into effect in January 2021, and as such, the associated customer relationships and RGUs are no longer included in our subscriber count.

(d) On October 31, 2020, we closed the AT&T Acquisition at which point Liberty Puerto Rico began to provide mobile services.

Mobile subscriber information associated with the AT&T Acquisition is preliminary and subject to adjustment until we have completed our review of such information and determined that it is presented in accordance with our policies.

RGU balances do not include 11,200 fixed RGUs representing customers that, due to the impact of COVID-19, have not been disconnected in accordance with our normal disconnect policy for non-payment and were moved to an "essential services plan", a basic service plan.

(d) Mobile subscribers comprise the following:

Prepaid Postpaid Total

C&W Caribbean and Networks:

Jamaica 970,000 22,300 992,300

The Bahamas 150,800 30,300 181,100

Barbados 88,400 30,200 118,600

Other 346,500 48,000 394,500

Total C&W Caribbean and Networks

1,555,700 130,800 1,686,500

C&W Panama (a) 1,338,900 123,000 1,461,900

Total C&W 2,894,600 253,800 3,148,400

VTR 11,300 269,000 280,300

Liberty Puerto Rico (b) 239,000 783,600 1,022,600

Total 3,144,900 1,306,400 4,451,300

(a) RGU balances do not include 12,400 mobile subscribers that, due to the impact of COVID-19, have not been disconnected in accordance with our normal disconnect policy for non-payment and continue to receive services.

(b) Postpaid mobile subscribers include 126,800 Corporate Responsible Users ( CRU ).

A CRU represents an individual receiving mobile services through an organization that has entered into a contract for mobile services with us and the organization is responsible for the payment of the CRU’s mobile services.

Operating Data Glossary

Customer Relationships – The number of customers who receive at least one of our video, internet or telephony services that we count as RGU s, without regard to which or to how many services they subscribe.

Customer Relationships – The number of customers who receive at least one of our video, internet or telephony services that we count as RGUs, without regard to which or to how many services they subscribe.

To the extent that RGU counts include equivalent billing unit (“ EBU ”) adjustments, we reflect corresponding adjustments to our customer relationship counts.

For further information regarding our EBU calculation, see Additional General Notes below.

Fixed-line customer relationships generally are counted on a unique premises basis.

Customer relationships generally are counted on a unique premises basis.

Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two customer relationships.

We exclude mobile-only customers from customer relationships.

Homes Passed – Homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant, except for homes serviced by our direct-to-home (“ DTH ”) service.

Homes Passed – Homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant.

Certain of our homes passed counts are based on census data that can change based on either revisions to the data or from new census results.

We do not count homes passed for DTH .

Internet (Broadband) RGU – A home, residential multiple dwelling unit or commercial unit that receives internet services over our network.

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In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.

Revenue Generating Unit (" RGU ") – RGU is separately a video subscriber, internet subscriber or telephony subscriber.

A home, residential multiple dwelling unit, or commercial unit may contain one or more RGU s.

For example, if a residential customer in Chile subscribed to our video service, fixed-line telephony service and broadband internet service, the customer would constitute three RGU s.

RGU s are generally counted on a unique premises basis such that a given premises does not count as more than one RGU for any given service.

On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGU s for that service.

Revenue Generating Unit (RGU) – RGU is separately a video RGU, internet RGU or telephony RGU.

A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs.

For example, if a residential customer in Chile subscribed to our video service, fixed-line telephony service and broadband internet service, the customer would constitute three RGUs.

RGUs are generally counted on a unique premises basis such that a given premises does not count as more than one RGU for any given service.

On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGUs for that service.

Each bundled video, internet or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion.

Non-paying subscribers are counted as subscribers during their free promotional service period.

Non-paying subscribers are counted as RGUs during their free promotional service period.

Some of these subscribers may choose to disconnect after their free service period.

Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGU s.

Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGUs.

We do not include subscriptions to mobile services in our externally reported RGU counts.

In this regard, our RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.

SOHO - Small office/ home office customers.

Telephony RGU – A home, residential multiple dwelling unit or commercial unit that receives voice services over our network.

Telephony subscribers exclude mobile telephony subscribers.

Telephony RGUs exclude mobile subscribers.

Two-way Homes Passed – Homes passed by those sections of our networks that are technologically capable of providing two-way services, including video, internet and telephony services.

Video RGU – A home, residential multiple dwelling unit or commercial unit that receives our video service over our network primarily via a digital video signal while subscribing to any recurring monthly service that requires the use of encryption-enabling technology.

Video subscribers that are not counted on an EBU basis are generally counted on a unique premises basis.

For example, a subscriber with one or more set-top boxes that receives our video service in one premises is generally counted as just one subscriber.

Additional General Notes to Table:

Video RGUs that are not counted on an EBU basis are generally counted on a unique premises basis.

For example, a subscriber with one or more set-top boxes that receives our video service in one premises is generally counted as just one RGU.

Additional General Notes:

Most of our operations provide telephony, broadband internet, data, video or other B2B services.

Certain of our B2B service revenue is derived from small or home office ( SOHO ) customers that pay a premium price to receive enhanced service levels along with video, internet or telephony services that are the same or similar to the mass marketed products offered to our residential subscribers.

All mass marketed products provided to SOHO customers, whether or not accompanied by enhanced service levels and/or premium prices, are included in the respective RGU and customer counts of our operations, with only those services provided at premium prices considered to be “ SOHO RGU s” or “ SOHO customers.” To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGU s and SOHO customers will increase, but there is no impact to our total RGU or customer counts.

Certain of our B2B service revenue is derived from SOHO customers that pay a premium price to receive enhanced service levels along with video, internet or telephony services that are the same or similar to the mass marketed products offered to our residential subscribers.

All mass marketed products provided to SOHO customers, whether or not accompanied by enhanced service levels and/or premium prices, are included in the respective RGU and customer counts of our operations, with only those services provided at premium prices considered to be “SOHO RGUs” or “SOHO customers.” To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGUs and SOHO customers will increase, but there is no impact to our total RGU or customer counts.

With the exception of our B2B SOHO customers, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes.

Certain of our residential and commercial RGU s are counted on an EBU basis, including residential multiple dwelling units and commercial establishments, such as bars, hotels, and hospitals, in Chile and Puerto Rico.

Our EBU s are generally calculated by dividing the bulk price charged to accounts in an area by the most prevalent price charged to non-bulk residential customers in that market for the comparable tier of service.

Certain of our residential and commercial RGUs are counted on an EBU basis, including residential multiple dwelling units and commercial establishments, such as bars, hotels, and hospitals, in Chile and Puerto Rico.

Our EBUs are generally calculated by dividing the bulk price charged to accounts in an area by the most prevalent price charged to non-bulk residential customers in that market for the comparable tier of service.

As such, we may experience variances in our EBU counts solely as a result of changes in rates.

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Fixed Network and Product Penetration Data (%)

Trinidad and Tobago

Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Chile Costa Rica Puerto Rico

Network data:

Two-way homes passed (1)

100 % 100 % 100 % 100 % 100 % 94 % 89 % 99 % 100 %

Homes passed:

59 % 45 % 31 % 100 % — % 68 % 96 % 97 % 98 %

24 % 14 % 35 % — % 100 % 12 % 4 % 3 % 2 %

16 % 41 % 34 % — % — % 20 % — % — % — %

Product penetration:

Television (3)

13 % 21 % 6 % 32 % 24 % 23 % 28 % 33 % 21 %

Broadband internet (4)

23 % 42 % 22 % 42 % 49 % 57 % 38 % 34 % 38 %

Fixed-line telephony (4)

23 % 40 % 28 % 26 % 51 % 38 % 15 % 3 % 21 %

Double-play (5)

42 % 38 % 52 % 9 % 32 % 32 % 36 % 51 % 11 %

Triple-play (5)

39 % 38 % 21 % 51 % 40 % 14 % 29 % 7 % 39 %

(1) Percentage of total homes passed that are two-way homes passed.

Percentage of two-way homes passed served by a cable, fiber-to-the-home/-cabinet/-building/-node ( FTTx ) or digital subscriber line ( DSL ) network, as applicable.“ VDSL ” refers to both our DSL and very high-speed DSL technology networks.

Percentage of total homes passed that subscribe to cable television services (basic video or enhanced video).

(2) Percentage of two-way homes passed served by a cable, fiber-to-the-home/-cabinet/-building/-node ( FTTx ) or digital subscriber line ( DSL ) network, as applicable.

“ VDSL ” refers to both our DSL and very high-speed DSL technology networks.

(3) Percentage of total homes passed that subscribe to television services.

(4) Percentage of two-way homes passed that subscribe to broadband internet or fixed-line telephony services, as applicable.

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Video, Broadband Internet & Fixed-Line Telephony and Mobile Services

Trinidad and Tobago

Panama Jamaica The Bahamas Trinidad and Tobago Barbados Other C&W Chile Costa Rica Puerto Rico

Video services:

Network System (1)

VDSL/HFC/FTTx

VDSL/HFC/FTTx VDSL/HFC/FTTx VDSL/FTTx HFC FTTx VDSL/HFC/FTTx HFC/FTTx HFC/FTTx HFC / FTTx

Broadband internet service:

Maximum download speed offered ( Mbps )

600 150 300 500 1,000 100 (2)

Mobile services:

Network Technology (3)

LTE LTE LTE — LTE LTE / HSPA+ LTE — 5G

(1) These are the primary systems used for delivery of services in the countries indicated.

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“ LTE” refers to the Long Term Evolution Standard.

“ HSPA+ ” refers to Evolved High Speed Packet Access.

Products and Services

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In the table below, we identify the services we offer in each of the countries in the Caribbean and Latin America where we have operations.

Broadband internet

Fixed-line telephony

Antigua & Barbuda

British Virgin Islands

Cayman Islands

Kitts & Nevis

Vincent & the Grenadines

Trinidad and Tobago

Turks & Caicos

Mobile Broadband internet Video Fixed-line telephony

Anguilla X X X X

Antigua & Barbuda X X X —

Barbados X X X X

Bonaire X — — —

British Virgin Islands X X X X

Cayman Islands X X X X

Curaçao X X X X

Dominica X X X X

Grenada X X X X

Jamaica X X X X

Montserrat X X — X

Eustatius X — — —

Maarten X X — —

Martin X — — —

Kitts & Nevis X X X X

Lucia X X X X

Vincent & the Grenadines X X X X

The Bahamas X X X X

Trinidad and Tobago — X X X

Turks & Caicos X X X X

Panama X X X X

VTR/Cabletica:

Chile X X X X

Costa Rica — X X X

Puerto Rico X X X X

We believe that our ability to offer our customers greater choice and selection in bundling their services enhances the attractiveness of our service offerings, improves customer retention, minimizes churn and increases overall customer lifetime value.

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We offer mobile services throughout most of our operating footprint.

We are a mobile network provider, delivering high-speed LTE services in Panama and all but three of our Caribbean markets, but excluding Costa Rica.

We are a mobile network provider, delivering high-speed services in Puerto Rico, Panama and all but one of our Caribbean markets, but excluding Costa Rica.

In Chile, we provide mobile services as an MVNO, where VTR leases a third-party’s radio access network.

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Where available, we expect our mobile services will allow us to provide an extensive converged product offering with video, internet and fixed-line telephony, allowing our customers connectivity in and out-of-the-home.

We hold spectrum licenses as a mobile network provider, with terms typically ranging from 10 to 15 years.

We hold spectrum licenses as a mobile network provider, with terms typically ranging from 10 to 15 years across our C&W markets.

In Puerto Rico, spectrum licenses are typically held for perpetuity with the exception of CBRS spectrum which has a term of 10 years.

Subscribers to our mobile services pay varying monthly fees depending on whether the mobile service is bundled with one of our other services or includes mobile data services over their phones, tablets or laptops.

Our mobile services are available on a

postpaid or prepaid basis, with most customers purchasing a prepaid plan.

Our mobile services are available on a postpaid or prepaid basis.

We offer our customers the option to purchase mobile handsets with purchase terms typically related to whether the customer selects a prepaid or postpaid plan.

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Our mobile services include voice, SMS and internet access via data plans.

Telephony Services .

C&W is the incumbent fixed-line telephony service provider in many of its Caribbean markets.

VTR is the second largest residential fixed-line telephony operator, and a leading provider within its footprint.

LCPR offers multi-feature residential telephony service over its cable network.

We offer multi-feature telephony service over our various fixed networks, including cable, FTTx and copper networks.

Depending on location, these services are provided via either circuit-switched telephony or voice-over-internet-protocol ( VoIP ) technology.

As we continue to develop and invest in new technologies that will enhance our customers’ experiences, we are replacing obsolete switches with VoIP technology and older copper networks with modern fiber optics.

These digital telephony services cover international and domestic services.

Video Services .

We offer video services in Chile, Costa Rica, Puerto Rico, and in most of C&W ’s residential markets, including Panama, Jamaica, Trinidad and Tobago, Barbados and the Bahamas.

To meet the demands of our customers, we have enhanced our video services with next generation, market-leading digital television platforms that enable our customers to control when and where they watch their programming.

These advanced services are delivered over our FTTx , VDSL and hybrid fiber coaxial cable networks and include a digital video recorder ( DVR ), a video-on-demand ( VoD ) offering and an advanced electronic programming guide.

In most of our markets, customers can pause their programming while a live broadcast is in progress as well as access a selection of channels and VoD content through a mobile application.

In 2018, we also launched “Replay TV” in many of our markets.

Replay TV allows a viewer to watch a TV program from the beginning after it has started or has concluded.

In Chile, we launched the TV Everywhere app (branded “VTR Play”) in 2018, which extends the advanced video viewing experience to connected devices beyond the set-top box, including mobile phones and tablets.

In our Caribbean video markets and Panama, we offer a comprehensive internet streaming video service (branded “ Flow ToGo ” and “ +TV Go ”) that allows our video customers to stream an increasing number of channels with a broadband connection in and out of the home and on multiple devices.

In Puerto Rico, our video customers can watch their favorite channels on the Liberty Go app as well as access over 65 applications from content providers to watch streamed linear and VoD programming by authenticating as a Liberty Puerto Rico customer.

Our operations with video services offer multiple tiers of digital video programming starting with a basic video service.

In addition, subscribers have the option to select extended and/or premium subscription tiers.

Fixed digital video services require a set-top box provided by us that also enables access to enhanced features such as VoD .

Subscribers to our basic digital video services pay a fixed monthly fee and generally can elect to receive, in most of our markets, a skinny entry tier or a basic tier, including a number of high definition ( HD ) channels.

We also offer a variety of premium packages combining linear channels and VoD .

In the few markets where our analog service is still available, including Costa Rica, subscribers to that service typically receive fewer channels than subscribers to our digital services, with the number of channels dependent on their location.

Subscribers to our digital services in each case receive the channels available through our analog service.

In all of our video operations, we continue to upgrade our systems to expand our digital services and encourage our remaining analog subscribers to convert to a digital or premium digital service.

Discounts to our monthly service fees are generally available to a subscriber who selects a bundled service of at least two of the following services:

video, internet and fixed-line telephony.

We tailor our video services in each country of operation based on local preferences, culture, demographics and local regulatory requirements.

Our channel offerings include the most relevant content to our subscribers, combining general entertainment, sports, movies, documentaries, lifestyle, news, adult, children and foreign channels, as well as local, regional and international broadcast networks.

We also operate several channels in the Caribbean, including a leading Caribbean sports network, Flow Sports, and through a consolidated joint venture, RUSH, the channel operating the rights to broadcast the Premier League across the Caribbean (excluding Puerto Rico).

Broadband Internet Services .

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As a result, we are continuing to invest in additional bandwidth and technologies to increase internet speeds throughout our Latin America and Caribbean footprint.

We have increased the top tier internet speed for our customers in Chile to 600 Mbps and Puerto Rico to 500 Mbps.

In C&W’s markets we have also increased our broadband internet speeds following upgrades to our networks, notably in Panama where we now offer speeds of up to 1 Gbps.

We plan to continue the upgrade and expansion of our fixed networks so that we can deploy high-speed internet service to additional customers in the coming years.

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We determine pricing for each different tier of internet service through an analysis of speed, market conditions and other factors.

Video Services .

We offer video services in Puerto Rico, Chile, Costa Rica, and in most of C&W’s residential markets.

These advanced services are delivered over our FTTx, VDSL and hybrid fiber coaxial cable networks and include a digital video recorder ( DVR ), a video-on-demand ( VoD ) offering and an advanced electronic programming guide.

In most of our markets, customers can pause their programming while a live broadcast is in progress as well as access a selection of channels and VoD content through a mobile application.

We have also launched “Replay TV” in many of our markets.

Replay TV allows a viewer to watch a TV program from the beginning after it has started or has concluded.

In Chile, our TV Everywhere app (branded “VTR Play”) extends the advanced video viewing experience to connected devices beyond the set-top box, including mobile phones and tablets.

In Puerto Rico, our video customers can watch their favorite channels on the TiVO serviced Liberty Go app as well as access over 65 applications from content providers to watch streamed linear and VoD programming by authenticating as a Liberty Puerto Rico customer.

Our operations with video services offer multiple tiers of digital video programming starting with a basic video service.

In addition, subscribers have the option to select extended and/or premium subscription tiers.

Fixed digital video services require a set-top box provided by us that also enables access to enhanced features such as VoD.

We also offer a variety of premium packages combining linear channels and VoD.

Subscribers to our digital services in each case receive the channels available through our analog service.

In all of our video operations, we continue to upgrade our systems to expand our digital services and encourage our remaining analog

subscribers to convert to a digital or premium digital service.

Discounts to our monthly service fees are generally available to a subscriber who selects a bundled service of at least two of the following services:

video, internet and fixed-line telephony.

We tailor our video services in each country of operation based on local preferences, culture, demographics and local regulatory requirements.

Telephony Services .

C&W is the incumbent fixed-line telephony service provider in most of its residential markets.

VTR is the second largest residential fixed-line telephony operator, and a leading provider within its footprint.

LCPR and Cabletica also offer telephony services over their respective cable networks.

We offer multi-feature telephony service over our various fixed networks, including cable, FTTx and copper networks.

Depending on location, these services are provided via either circuit-switched telephony or voice-over-internet-protocol ( VoIP ) technology.

These digital telephony services cover international and domestic services.

Business Services

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C&W’s networks also allow us to provide point-to-point, clear channel wholesale broadband capacity services and IP transit, superior switching and routing capabilities and local network services to telecommunications carriers, internet service providers ( ISPs ) and large corporations.

In case of outages on portions of the cable systems, our network provides inbuilt resiliency through our traffic re-routing capability.

In the case of outages on portions of the cable systems, our network provides inbuilt resiliency through our traffic re-routing capability.

C&W has received recognition for its wholesale services.

In 2019, C&W was named the Best Caribbean Wholesale Carrier at the 2019 Global Carrier Awards.

We hold several notable certifications including the International ISO 27001 Certification, which reinforces the commitment to customer data safety, as well as CISCO Cloud and Managed Services Partner Master Certification, along with several others.

In 2020, C&W was recognized by Frost & Sullivan with the Latin American and Caribbean Hosted IP Telephony and UCaaS Growth Excellence Frost Radar Award.

Our C&W Caribbean and Networks business was named the Best Marketing Team and Best Social Media Campaign at the 2020 Global Carrier Awards.

We hold several notable certifications, including the International ISO 27001 Certification, which reinforces the commitment to customer data safety, as well as CISCO Cloud and Managed Services Partner Master Certification, along with several others such as SOC 1 Type 2 and SOC 2 Type 2 attestations and PCI-DSS for select services.

We also provide services to business customers across various segments, from small and medium businesses to larger corporate and enterprise organizations including multi-national companies and governments.

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The extensive reach of our network and assets, as well as our comprehensive set of capabilities positions us to meet the needs of carriers, businesses and government customers that are searching for a capable, progressive provider to manage their ever more complex communications, connectivity and information technology needs .

In many of our markets, we transmit our broadband internet, video and fixed-line telephony services over a hybrid fiber coaxial cable network.

This network consists primarily of fiber networks that we connect to the home over the last few hundred meters by coaxial cable.

In many of our markets, we transmit our broadband internet, video and fixed-line telephony services over a hybrid fiber coaxial ( HFC ) cable network, and increasingly through FTTx networks.

An HFC network consists primarily of fiber networks that we connect to the home over the last few hundred meters by coaxial cable and an FTTx network uses fiber-to-the-home/-cabinet/-building/-node.

In several of our Caribbean markets, we transmit our services over a fixed network consisting of FTTx , VDSL or DSL copper lines.

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In Puerto Rico, our network includes a fiber ring around the island that provides enhanced interconnectivity points to the island’s other local and international telecommunications companies.

As noted above, we operate one of the largest subsea fiber networks in the region and our systems include long-haul terrestrial backbone and metro fiber networks that provide access to major commercial zones, wireless carrier cell sites and customers in key markets within our operating footprint.

For more information about our subsea network, see — Business Services above.

We operate mobile networks in all of our consumer markets except Chile (where we operate as an MVNO), Costa Rica and Trinidad & Tobago.

Our networks deliver high-speed services across our markets, with approximately 95% LTE population coverage .

Our primary wireless networks use GSM/EDGE, 3G and 4G LTE technologies, which we offer in most of the

countries where we operate.

We aim to increase the speed of transmission of our data services and have been expanding our 3G and 4G LTE coverage.

We transmit wireless calls and data through radio frequencies that we use under spectrum licenses.

We have a diversified portfolio of frequencies which support 3G, 4G and 5G (Puerto Rico & USVI only) technologies.

While spectrum is a limited resource, and, as a result, we may face spectrum and capacity constraints on our wireless network in certain countries.

We believe our current spectrum portfolio will allow us to meet subscribers’ needs in the coming years and minimal further investment, although we will continue to evaluate our need to acquire additional frequencies to supplement our existing spectrum portfolio.

For example, in 2020, we acquired CBRS (3.5 GHz) spectrum in Puerto Rico and the USVI in the auction for that frequency.

In Puerto Rico and USVI the 700 MHz FirstNet (Band 14) is usable by us (when not occupied by first responders’ traffic) but owned by AT&T and the First Responders Public Private Partnership.

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.

Our prime 5G deployed market is Puerto Rico and USVI where over 90% of the population is served by our 5G capable network.

We continually look for opportunities to expand our 5G footprint to other countries where a positive business case exists.

Similarly, we are investing to build a new mobile core in Puerto Rico, which when built, will be virtualized, redundant and “pooled” across all our countries/islands in the Caribbean region (inside and outside hurricane regions) to provide redundancy and resilience.

These pooled and redundant network elements will be connected by our owned and operated diverse submarine cable routes with automatic alternate routing.

Across all our mobile operations we continually strive to improve our network performance by commissioning annual competitive performance benchmarking studies and undertaking customer experience improvement programs.

In Puerto Rico and the USVI, we are a part of the national US Firstnet (Emergency/First Responders) network, which necessitates above-average network resilience and other customer performance requirements, subject to governmental penalties for non-compliance.

Supply Sources

With telecommunication companies increasingly offering similar services, content is one of the drivers for customers in selecting a video services provider.

Therefore, in addition to providing services that allow our customers to consume content whenever and wherever they want, we continue to invest in content that matters the most to our customers.

With telecommunication companies increasingly offering similar services, content is one of the drivers for customers in selecting a provider of video, broadband and/or wireless services.

Therefore, in addition to providing products that allow our customers to consume content whenever and wherever they want, we continue to invest into content that matters the most to our customers.

Our programming strategy is based on:

proposition (meeting and exceeding our customers’ expectations on content and entertainment);

product (enabling access anywhere and anytime, including live, catch-up and/or VoD);

acquisition (investment in the most relevant channels, VoD content and sports);

partnering (strategic alliances with content partners and leading distributors).

Except for Flow Sports and Flow 1 Entertainment services in the Caribbean, and the RUSH channel operated by a consolidated joint venture with the Digicel Group, we license almost all of our programming and on-demand offerings through distribution agreements with third-party content providers, including broadcasters and cable programming networks.

For such licenses, we generally pay a monthly fee on a per subscriber basis, with minimum guarantees in certain cases through long-term programming

In our distribution agreements, we seek to include the rights to offer the licensed channels and programming to our authenticated customers through multiple delivery platforms including through our TV Everywhere apps for IP connected devices and on our websites.

We also acquire rights to make available, in selected markets, basic and/or premium video services to mobile and/or broadband subscribers that are not subscribers to fixed TV services.

With respect to rights for our sports and entertainment services in the Caribbean, we seek to license the most locally relevant leagues and events such as the UEFA Champions League and Europa League soccer, Indian Premier League cricket, and WWE Wrestling.

• product (enabling access through home and mobile screens at anytime, including live, restart, catch-up, personal recording, on-demand and third party apps);

• proposition (exceeding our customers’ expectations on content and entertainment by offering access to the wider range of channels and third party app services);

• acquisition (investment in the most relevant channels, sports and on-demand);

• partnering (alliances with content partners and leading distributors to aggregate the best linear, non linear and third party apps content).

Except for Flow Sports and Flow 1 services in the Caribbean, and the RUSH sports channel operated by a consolidated joint venture with the Digicel Group, we license almost all of our programming and on-demand content through distribution agreements with third-party content providers, including broadcasters and leading cable networks.

For such licenses, we generally pay a monthly fee on a per subscriber basis, through long-term programming licenses.

In our distribution agreements, we seek to include the rights to offer the licensed channels and programming to our authenticated customers through multiple delivery platforms including through our apps for IP-connected mobile and fixed devices, and our websites.

We also acquire rights to make available, in selected markets, our and third party video services to mobile and/or broadband subscribers that are not subscribers to fixed TV services.

With respect to rights for the sports and entertainment services we operate directly or in a joint-venture in the Caribbean, we seek to license the most locally relevant sports content, such as the English Premier League, UEFA Champions League and Bundesliga soccer, Indian Premier League cricket, and WWE Wrestling.

Our latest video device that is distributed to a growing number of markets, including Puerto Rico, Chile and Panama, also enables our customers to access, through its App Store, leading subscription video on demand ( SVOD ) services such as Netflix, HBOMax and Amazon Prime Video.

Mobile Handsets and Customer Premises Equipment

We use a variety of suppliers for mobile handsets to offer our customers mobile services.

For other customer premises equipment, we purchase from a number of different suppliers with at least two or more suppliers providing our high-volume products.

Customer premises equipment includes set-top boxes, modems, WiFi routers, DVR s, tuners and similar devices.

For other customer premises equipment, we purchase from a number of different suppliers and regularly assess production lead times to ensure supply continuity and implement dual sourcing strategies to mitigate further risks when applicable.

Customer premises equipment includes set-top boxes, modems, WiFi routers, extenders and similar devices.

For each type of equipment, we retain specialists to provide customer support.

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Software Licenses

We license software products, including email and security software as well as content, such as news feeds, from several suppliers for our internet services.

The agreements for these products require us to pay a per subscriber fee for software licenses and a share of advertising revenue for content licenses.

We license software products, including email and security software as well as content, such as news feeds, from several suppliers for our internet services and internal IT platforms.

The agreements for these products require us to pay a per subscriber fee or a one-off software license fee and a share of advertising revenue for content licenses.

For our mobile network operations and our fixed-line telephony services, we license software products, such as voicemail, text messaging and caller ID, from a variety of suppliers.

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Access Arrangements

For our mobile services provided through the MVNO arrangement at VTR , we are dependent on a third- party wireless network provider, with whom we contract to carry the mobile communications traffic of our customers.

For our mobile services provided through MVNO arrangements at VTR , we are dependent on third-party wireless network providers, with whom we contract to carry the mobile communications traffic of our customers.

We seek to enter into medium to long-term arrangements for this service.

Any termination of this arrangement could significantly impact our mobile services provided through VTR .

Any termination of these arrangements could significantly impact our mobile services provided through VTR .

Regulatory Matters

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Failure to comply with current or future regulation could expose our businesses to various penalties.

The video, broadband and telephony services provided by C&W are subject to regulation and enforcement by various governmental and regulatory entities in each of the jurisdictions where such services are provided.

C&W Caribbean and Networks

The video, broadband, telephony and mobile services provided by C&W Caribbean and Networks are subject to regulation and enforcement by various governmental and regulatory entities in each of the jurisdictions where such services are provided.

The scope and reach of these regulations are distinct in each market.

Generally, C&W provides services in accordance with licenses and concessions granted by national authorities pursuant to national telecommunication legislation and associated regulations.

Generally, C&W Caribbean and Networks provides services in accordance with licenses and concessions granted by national authorities pursuant to national telecommunication legislation and associated regulations.

Certain of these regulatory requirements are summarized below.

As the incumbent telecommunications provider in many of its jurisdictions, C&W is subject to significant regulatory oversight with respect to the provision of fixed-line and mobile telephony services.

Generally, in these markets, C&W operates under a government issued license or concession that enables it to own and operate its telecommunication networks, including the establishment of wireless networks and the use of spectrum.

As the incumbent telecommunications provider in many of its jurisdictions, C&W Caribbean and Networks is subject to significant regulatory oversight with respect to the provision of fixed-line and mobile telephony services.

Generally, in these markets, C&W Caribbean and Networks operates under a government issued license or concession that enables it to own and operate its telecommunication networks, including the establishment of wireless networks and the use of spectrum.

These licenses and concessions are typically non-exclusive and have renewable multi-year terms that include competitive, qualitative and rate regulation.

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In addition, in some of the ECTEL (as defined below) states we are operating under expired licenses and have applied for renewal of such licenses.

We expect that such licenses will be granted or renewed, as applicable,

on the same or substantially similar terms and conditions in a timely manner.

We expect that such licenses will be granted or renewed, as applicable, on the same or substantially similar terms and conditions in a timely manner.

Pending issuance of new or renewed licenses or concessions, we continue to operate on the same terms and conditions as prior to the licenses expiring.

With respect to licenses for mobile spectrum, the initial grant of the spectrum is sometimes subject to an auction process, but in a number of other cases, the license may be granted on the basis of an administrative process at a set level of fees for a fixed period of time, typically to coincide with carrier licenses, subject to the payment of annual fees and compliance with applicable license requirements.

In very rare cases, spectrum previously assigned to C&W may be re-allocated by regulatory authorities to other operators in the market.

Alternatively, spectrum sought by C&W may not be available for grant, due to prior historical grants or due to the need to avoid interference with neighboring markets particularly in the Caribbean.

applicable license requirements.

In very rare cases, spectrum previously assigned to C&W Caribbean and Networks may be re-allocated by regulatory authorities to other operators in the market.

Alternatively, spectrum sought by C&W Caribbean and Networks may not be available for grant, due to prior historical grants or due to the need to avoid interference with neighboring markets particularly in the Caribbean.

By and large, spectrum assignments, once granted, remain unchanged for the duration of a license and beyond.

Rate regulation of C&W ’s telephony services typically includes price caps that set the maximum rates C&W may charge to customers, or legislation that requires consent from a regulator prior to any price increases.

In addition, all regulators determine and set the rates that may be charged by all telephony operators, including C&W , for interconnect charges, access charges between operators for calls originating on one network that are completed through connections with one or more networks of other providers, and charges for network unbundling services.

Rate regulation of C&W Caribbean and Networks’ telephony services typically includes price caps that set the maximum rates it may charge to customers, or legislation that requires consent from a regulator prior to any price increases.

In addition, all regulators determine and set the rates that may be charged by all telephony operators, including C&W Caribbean and Networks , for interconnect charges, access charges between operators for calls originating on one network that are completed through connections with one or more networks of other providers, and charges for network unbundling services.

In addition, in certain markets, regulators set, or are seeking to set, mobile roaming rates.

Interconnection rates (and primarily mobile termination and roaming rates) in the telecommunications industry worldwide are decreasing, and we are experiencing this trend towards lower interconnection rates in our markets.

In recent years, a number of markets in which C&W operates have demonstrated an increased interest in regulating various aspects of broadband internet services due to the increasing importance of high speed broadband.

In recent years, a number of markets in which C&W Caribbean and Networks operates have demonstrated an increased interest in regulating various aspects of broadband internet services due to the increasing importance of high speed broadband.

National regulators have also demonstrated an increased focus on the issues of network resilience, broadband affordability and penetration, quality of services and consumer rights.

For example, in Panama, as a result of a public consultation process, new guidelines and new quality goals were enacted for the internet public service in 2018.

Certain regulators are also seeking to mandate third-party access to C&W ’s network infrastructure, including dark fiber and landing stations, as well as to regulate wholesale services and prices.

Certain regulators are also seeking to mandate third-party access to C&W Caribbean and Networks ’ network infrastructure, including dark fiber and landing stations, as well as to regulate wholesale services and prices.

Any such decision and application to grant access to our network infrastructure may strengthen our competitors by granting them the ability to access our network to offer competing products and services without making the corresponding capital intensive infrastructure investment.

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Once the rules are finalized by the Chief Parliamentary Counsel in Jamaica, they will be formally published and thereafter become law.

C&W intends to appeal to the telecommunications tribunal and finally to the courts for changes to be made to the adverse provisions of the new rules or to revoke them entirely.

Our operations in Jamaica intend to appeal to the telecommunications tribunal and finally to the courts for changes to be made to the adverse provisions of the new rules or to revoke them entirely.

The process of such a challenge is likely to be long and we cannot at this time determine the possibility of a successful outcome.

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Lucia and St.

Vincent and the Grenadines), has adopted an Electronic Communications Bill that may have a material adverse impact on C&W ’s operations in the ECTEL member states.

Vincent and the Grenadines), has adopted an Electronic Communications Bill that may have a material adverse impact on C&W Caribbean, and Networks’ operations in the ECTEL member states.

The proposed Electronic Communications Bill includes provisions relating to:

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• mandated unbundled access to all landing station network elements at cost-based rates.

We currently cannot determine the impact these provisions will have on our operations because national regulators are required to conduct extensive market reviews before adopting specific measures and these measures might be reconsidered in accordance with the market reviews.

accordance with the market reviews.

It is currently unclear as to when the new legislation will be enacted.

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As such, the timing and ultimate effect of the bill is unclear.

The Bahamas is also expected to publish its Electronic Communications Sector Policy later this year, the first under the current administration, and it could have a significant impact on the industry.

In addition to rate regulation, several markets in which C&W operates have imposed, or are considering imposing, regulations designed to further encourage competition, including introducing requirements related to unbundling, network access to third parties, and local number portability ( LNP ) for fixed and mobile services.

Jurisdictions such as Panama, the Bahamas, the Cayman Islands and Jamaica have implemented fixed and mobile LNP and ECTEL has implemented mobile LNP.

Jurisdictions such as the Bahamas, the Cayman Islands and Jamaica have implemented fixed and mobile LNP and ECTEL has implemented mobile LNP.

Other jurisdictions, including Barbados, have considered or begun to implement LNP.

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and its territories.

These facilities are regulated by the Federal Communications Commission ( FCC ), Department of Homeland Security ( DHS ) and other U.S.

governmental agencies that impose additional reporting and licensing obligations on C&W.

These facilities are regulated by the Federal Communications Commission ( FCC ), the Department of Homeland Security and other U.S.

governmental agencies that impose additional reporting and licensing obligations on C&W Caribbean and Networks .

C&W Panama is subject to regulatory entities, principally the National Authority of Public Services ( ASEP ), created in 1996 and modified in 2006 through Decree Law No.

ASEP regulates and controls the public services for the supply of drinking water, sanitary sewerage, telecommunications and electricity.

Also, C&W Panama is subject to the Authority for Consumer Protection and Defense of Competition ( ACODECO ), guarantor of consumer protection and antitrust, which operates under the direction of the Ministry of Commerce and Industries.

By virtue of the Telecommunications Law 1996, public services in Panama are classified as “Type A services” and “Type B services,” with Mobile Telephony (STMC) and Personal Communication (PCS) services being classified as Type A services.

C&W Panama has a total of 65MHz allocated (20 MHz in the 700 MHz band, 20 MHz in the 1900 MHz band and 25 MHz in the 850 MHz band).

Due to COVID-19, ASEP granted temporary use from April 2020 and until June 30th, 2021, free of charge, of 30 MHz to each of the 4 operators, between 1710 – 1780 MHz and 2110 – 2180 MHz (AWS Band).

Concessions .

C&W Panama holds thirteen concessions renewed for the following twenty years, available until the year 2037, except a pay TV license that was renewed in 2008 for 25 years.

C&W Panama decided not to renew the concessions corresponding to discontinued or not provided services (facsimile retransmission service and conventional trunk systems service for public or private use), and the Concession #104 (Pay Phone Services), was renewed under special conditions imposed by the regulator.

C&W Panama was obliged to obtain regulator approval to remove public pay phones in places where the service is no longer exclusive and are not profitable;

the service can be provided by any other concessionaires in the territory of Panama.

C&W Panama filed a legal action within the Supreme Court of the Republic of Panama, opposing the aforementioned condition imposed by the regulator, however in 2019, the Supreme Court confirmed the obligation to obtain regulator approval and the necessity to define a procedure to formalize each disconnection.

Public Telephone Service .

By means of Resolution AN No.

11208-Telco of May 3rd, 2017, renewed for the following twenty years the concession for the Public and Semi-Public Terminal Service (identified with No.

C&W Panama is the only operator that provides Public Telephone Service in Panama.

Fixed Services (Fixed-Line Telephony, Public and Semipublic Telephone) .

C&W Panama has a license to provide Basic Local, National and International Telecommunications Services, as well as Public and Semipublic Terminals and Rental of Dedicated Voice Circuits, within the entire territory of Panama until the year 2037.

C&W Panama is a Type B concessionaire, with or without use of radio spectrum, subject to compliance with Law No.

31 of February 8th, 1996, Executive Decree No.

73 of 1997 and the Resolutions issued by the regulator regarding the fulfillment of quality goals for the provision of these services, such as the attention to recommendations issued by the International Telecommunications Union (ITU).

Mobile Services .

Through Contract DAF-034-2013, dated November 22nd, 2013, C&W Panama is authorized to install, maintain, manage, operate and commercially exploit the Mobile Telephone Service, in the assigned radio spectrum segments, which currently C&W Panama has 65 MHz (32.5MHz uplink + 32.5MHz downlink), under the prepaid and post-paid contract modalities, public and semi-public telephones, including supplementary services and other Mobile Telephony services, throughout Panama, which is valid until 2037.

Pay Television Service .

Initially, the concession for the provision of the pay television service was granted to the International Contact Center Company in 2008, and then the rights were transferred in favor of C&W Panama, whose provision is governed by Law No.

24/99, and its regulations in Executive Decree No.

189/99 and No.

The license was granted to retransmit audio and video signals through coaxial cable and fiber optics in the province of Panama, with a validity of 25 years, which was later extended to other provinces in the coverage area for the provision of paid TV service.

VTR / Cabletica

VTR is subject to regulation and enforcement by various governmental entities in Chile including the Chilean Antitrust Authority, the Ministry of Transportation and Telecommunications (the Ministry ) through the Chilean Undersecretary of Telecommunications ( SubTel ), the National Television Council ( CNTV ) and the National Consumer Service ( SERNAC ).

In addition to the specific regulations described below, VTR is subject to certain regulatory conditions which were imposed by the Chilean Antitrust Authority in connection with VTR ’s combination with Metrópolis Intercom SA in April 2005.

These conditions are indefinite and include, among others, (i) prohibiting VTR and its control group from participating, directly or indirectly through a related person, in Chilean satellite or microwave television businesses, (ii) prohibiting VTR from using its market power over programmers without justification, (iii) prohibiting VTR from obtaining exclusive broadcast rights, except for specific events, and (iv) requiring VTR to offer its broadband capacity for resale of internet services on a wholesale basis.

In addition to the specific regulations described below, VTR.com is subject to certain regulatory conditions which were imposed by the Chilean Antitrust Authority in connection with VTR.com ’s combination with Metrópolis Intercom SA in April 2005.

These conditions are indefinite and include, among others, (i) prohibiting VTR.com and its control group from participating, directly or indirectly through a related person, in Chilean satellite or microwave television businesses, (ii) prohibiting VTR.com from using its market power over programmers without justification, (iii) prohibiting VTR.com from obtaining exclusive broadcast rights, except for specific events, (iv) requiring VTR.com to offer its broadband capacity for resale of internet services on a wholesale basis, and (v) requiring VTR to maintain a uniform single price policy for all of the national territory.

In September 2019, VTR submitted a petition to the Chilean Competition Court ( TDLC ) to lift all the above-mentioned conditions.

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Cable pay television permits are granted for an indefinite term and are non-exclusive.

As these permits do not involve radio electric spectrum, they are granted without ongoing duties or royalties.

VTR has permits to provide cable pay television services in most of the medium- and large-sized markets in Chile.

As these permits do not involve radio electric spectrum, they are granted

without ongoing duties or royalties.

VTR.com has permits to provide cable pay television services in most of the medium- and large-sized markets in Chile.

Cable television service providers in Chile are free to define the channels and content included in their services and are not required to carry any specific programming, except as described below.

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The full implementation of the retransmission and must carry regimes are still pending.

VTR ’s ability to change its channel lineup is restricted by an agreement reached with Sernac in July 2012 and the general regulation established by SubTel in February 2014 (by the Telecommunication Services General Rulemaking).

This framework allows VTR to change one or more channels from its lineup after a 60-day notice period to its subscribers.

In such cases, VTR shall offer a channel of similar content and quality or proportional compensation.

VTR.com ’s ability to change its channel lineup is restricted by an agreement reached with SERNAC in July 2012 and the general regulation established by SubTel in February 2014 (by the Telecommunication Services General Rulemaking).

This framework allows VTR.com to change one or more channels from its lineup after a 60-day notice period to its subscribers.

In such cases, VTR.com shall offer a channel of similar content and quality or proportional compensation.

Despite this, TVI, a mid-sized programmer in Chile, sued VTR in July 2016, after VTR’s decision to remove TVI’s channels from its channel lineup.

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A law passed in November 2017 requires all ISPs to apply for a public service concession for data transmission within three months of the passage of such law.

Because VTR operates via networks that were previously approved by SubTel , VTR timely applied and an approval is pending.

Because VTR.com operates via networks that were previously approved by SubTel , VTR.com timely applied and an approval is pending.

A law on internet neutrality prohibits “arbitrary blockings” of legal content, applications or services and the provision of differentiated service conditions according to the origin or ownership of the content or service provided through the internet.

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The law also provides for the right of intellectual property owners to judicially request from ISPs the delivery of necessary information to identify the provider of infringing content.

A law passed in November 2017 requires all fixed and mobile ISPs to meet levels of quality of service to be defined in a future SubTel regulation.

The law also requires ISPs to guarantee a minimum broadband throughput based on the offered speed and to provide their subscribers a certified measurement tool allowing subscribers to verify this minimum service level, and imposes on ISPs fines or penalties if the service level is not fulfilled.

Ancillary regulations applicable to this obligation are pending.

A law passed in November 2017 requires all fixed and mobile ISP s to meet levels of quality of service, guarantee a minimum broadband throughput based on the offered speed, and provide their subscribers with a certified measurement tool allowing subscribers to verify this minimum service level, imposing fines or penalties to ISPs if the service level is not fulfilled.

During 2020, the Ministry issued the Regulation on the Organization, Operation, and Public Tender Mechanism of the

Independent Technical Body ( OTI ) which, according to this legal framework, will be responsible for performing the quality-of-service measurements.

Also, SubTel issued a technical rule on the service levels that ISPs need to comply with in the provision of their internet service.

Finally, as required by the above regulation, major ISPs organized a Representative Committee and filed before SubTel a proposal of the terms and conditions of the public tender to designate the OTI (which is not approved by Subtel yet).

Fixed-Line Telephony and Mobile Services .

The provision of fixed-line telephony and mobile services requires a public telecommunications service concession.

VTR holds concessions to provide fixed wireless local telephony service on the 3.5 GHz band in several regions of the country.

These concessions have renewable 30-year terms, expiring in 2036.

During 2018, SubTel partially froze 20MHz of the 50 MHz concession granted to VTR in order to evaluate future 5G concession auctions.

VTR is contesting SubTel’s legal ability to take such a measure.

In November 2018, Movistar asked the TDLC to rule on whether the decision to keep part of the spectrum at 3.5 GHz available for immediate deployment (with potential use for mobile services), was consistent with previous decisions requiring this band to be allocated to fixed services.

In January 2020, Subtel opened for public comments its plan for a 5G tender, contemplating a voluntary procedure for the 3.5 GHz reordering and requiring that all participants give back the allocated spectrum in this band and will receive back at least the same bandwith in the tender.

Additionally, it anticipated that the concessions granted in this tender will contemplate the power of Subtel to modify the licenses in case of non-use or inefficient use of the spectrum.

With respect to mobile services, in 2009, SubTel awarded VTR a 30MHz license in the 1700/2100 MHz band.

The license has a 30-year renewable term, expiring in 2040.

Currently, antitrust bodies and the Supreme Court have declared a 60 MHz cap for mobile concessions and a 100 MHz cap for fixed wireless service (3.5 GHz band).

SubTel filed an application before the Antitrust Court in order to review the spectrum cap regime and the spectrum administration policy for the country under the notion that future telecommunication needs, especially for implementing 5G networks, will require broader bandwidth.

In December 2019, TDLC established a new cap scheme between 25% to 35%, depending on the segment.

VTR does not currently exceed any of its caps.

TDLC did not pronounce on measures to punish non-use of spectrum, nor on complementary pro-competitive measures.

A couple of operators complained against the TDLC decision before the Supreme Court and final resolution is still pending.

VTR has concessions to provide fixed-line telephony in most major and medium-sized markets in Chile.

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VTR has concessions to provide this service, which is non-exclusive, for a 30-year renewable term expiring in September 2025.

VTR.com holds concessions to provide fixed wireless local telephony service on the 3.5 GHz band in several regions of the country.

These concessions have renewable 30-year terms, expiring in 2036.

During 2018, SubTel partially froze 20MHz of the 50 MHz concession granted to VTR.com in order to evaluate future 5G concession auctions.

VTR.com is contesting SubTel’s legal ability to take such a measure.

Although the TDLC rejected Movistar’s request, it considered that in order to allow the use of this already assigned spectrum for mobile services, SubTel should open public tenders to assign the concessions for mobile services.

This decision has been challenged before the Supreme Court by all interested parties, including VTR, and a final decision on the case is pending.

In January 2020, SubTel opened for public comments its plan for a 5G tender, which ended with a contest for four bands of spectrum:

20MHz in the 700 MHz band, 30 MHz in the AWS Band, 150 MHz in the 3.5 MHz band (not including the spectrum previously assigned to fixed wireless local telephony), and 400 MHz in the 26 GHz band.

Technical proposals were submitted in October 2020, and given that several competitors tied there was an auction to define the winners.

In February 2021, Entel, Movistar, WOM and Claro were awarded with several spectrum bands to provide mobile services using 5G technologies.

Additionally, the concessions granted in this tender allow SubTel to modify the licenses in case of non-use or inefficient use of the spectrum.

With respect to mobile services, in 2009, SubTel awarded VTR.com a 30MHz license in the 1700/2100 MHz band.

The license has a 30-year renewable term, expiring in 2040.

Currently, antitrust bodies and the Supreme Court have declared a new cap structure for spectrum allocation, which is variable depending on the macro band were spectrum is being assigned and the amount of spectrum available.

Therein for the low macro-band from 0 to 1.000 MHz the cap is 32% of the band, from 1.001 MHz to 3000MHz the cap is 30% of the band, for 3001MHz band to 6000MHz band the cap is 30% and for higher than 6001MHz the cap is 25%.

VTR.com has concessions to provide fixed-line telephony in most major and medium-sized markets in Chile.

Telephony concessions are non-exclusive and have renewable 30-year terms.

The original term of VTR.com ’s fixed-line telephony concessions expires in November 2025.

Long distance telephony services are considered intermediate telecommunications services and, as such, are also regulated by the Ministry .

VTR.com has concessions to provide this service, which is non-exclusive, for a 30-year renewable term expiring in September 2025.

There are no universal service obligations in Chile.

However, local service concession holders are obligated to provide telephony service to all customers that are within their service area or are willing to pay for an extension to receive service.

All local service providers, including VTR , must give long distance telephony service providers equal access to their network connections at regulated prices and must interconnect with all other public service concession holders whose systems are technically compatible.

All local service providers, including VTR.com , must give long distance telephony service providers equal access to their network connections at regulated prices and must interconnect with all other public service concession holders whose systems are technically compatible.

As a general rule, fixed-line telephony service providers are free to establish the rates directly charged to their customers, unless the Chilean Antitrust Authority concludes that due to a lack of sufficient competition in the market, rates should be fixed by SubTel .

However, SubTel sets the maximum rates that may be charged by each operator for interconnect charges, access charges between operators for calls originating on one network that are completed through connections with one or more networks of other

Rate regulation on interconnection charges is applicable to all fixed-line and mobile telephony companies, including VTR .

Rate regulation on interconnection charges is applicable to all fixed-line and mobile telephony companies, including VTR.com .

The determination of the maximum rates that may be charged by operators for their fixed-line or mobile services are made on a case-by-case basis by SubTel and are effective for five years.

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The Consumer Rights Protection Law has been interpreted to require that any raise in rates exceeding inflation must be previously accepted and agreed to by subscribers.

Although VTR disagrees with this interpretation, in July 2012, VTR reached an agreement with Sernac that permits VTR to make adjustments to its published prices twice per year to adjust for inflation, except those services that are subject to rate regulation.

VTR is generally prohibited from increasing the rates over the inflation adjustment.

VTR may, however, cancel a subscriber’s contract after 12 months and propose a new contract with new rate provisions.

Once a year VTR may propose to its existing subscribers additional changes to their rates, which must be accepted by the subscriber for the rates to go into effect.

Although VTR.com disagrees with this interpretation, in July 2012, VTR.com reached an agreement with SERNAC that permits VTR.com to make adjustments to its published prices twice per year to adjust for inflation, except those services that are subject to rate regulation.

VTR.com is generally prohibited from increasing the rates over the inflation adjustment.

VTR.com may, however, cancel a subscriber’s contract after 12 months and propose a new contract with new rate provisions.

Once a year VTR.com may propose to its existing subscribers additional changes to their rates, which must be accepted by the subscriber for the rates to go into effect.

In 2012, the Chilean Antitrust Authority issued its regulation governing the on-net/off-net pricing practice in the mobile industry and the offering of bundled telecommunication services.

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The powers of the Agency for the Protection of Data of Inhabitants (Prohab) are stipulated in the Law on the Protection of the Person against the Processing of Personal Data (Law No.

Its functions are focused on compliance with data protection

Its functions are focused on compliance with data protection regulations.

The Commission to Promote Competition (Coprocom) is a maximum deconcentration body attached to MEIC.

Its fundamental purpose is to comply with the provisions of the Law on Promotion of Competition and Effective Defense of the Consumer (Law No.

7472) through the protection and promotion of (i) the process of competition and free competition, (ii) investigating and sanctioning monopolistic practices, and (iii) other restrictions related to the efficient functioning of the market.

7472) through the protection and promotion of (i) the process of competition and free

competition, (ii) investigating and sanctioning monopolistic practices, and (iii) other restrictions related to the efficient functioning of the market.

Liberty Puerto Rico

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The FCC and/or the TRB have the authority to impose sanctions, including warnings, fines, license revocations and, in certain specific cases, termination of the franchise, although license revocation and franchise termination are rare.

The Communications Act specifies causes for the termination of FCC licenses, including, for example, the failure to comply with license requirements and conditions or to pay fines or fees in a timely manner.

The Communications Act specifies causes for the termination of licenses, including, for example, the failure to comply with license requirements and conditions or to pay fines or fees in a timely manner.

Such sanctions by the TRB and/or FCC can be appealed to, and reviewed by, Puerto Rican courts and U.S.

federal courts.

By virtue of Order and Notice of Proposed Rulemaking 18-57, dated May 8, 2018, the FCC established the Uniendo a Puerto Rico Fund ( UPR Fund ).

Stage 1 of the UPR Fund made $51 million of new funding available for Puerto Rico telecommunications providers following the 2017 Hurricanes .

In order to be eligible for the UPR Fund, Liberty Puerto Rico requested that TRB designate it as an Eligible Telecommunications Carrier ( ETC ).

TRB designated Liberty Puerto Rico as an ETC on June 22, 2018.

As part of the ETC requirements Liberty Puerto Rico must offer the Lifeline Program and the Libraries and Schools Program ( E-Rate ).

Both E-Rate programs consist of FCC subsidies to ensure customer access to telecommunications services.

Liberty Puerto Rico began offering the Lifeline Program in April 2019 and will bid on the E-Rate Program once the bidding window opens in early 2020.

On September 26, 2019, the FCC adopted a Report and Order that established the guidelines for UPR Fund Stage 2 funding to support certain fixed and mobile providers of voice and broadband service in Puerto Rico.

The FCC will award up to $505 million over 10 years to eligible providers of fixed voice and broadband services in Puerto Rico through a single round competitive bidding process that will select one support recipient in each of the 78 municipalities in Puerto Rico.

The FCC Wireline Competition Bureau ( Bureau ) staff will evaluate support proposals based upon a 270-point scale allocated as follows, with the winner in each municipality compiling the lowest aggregate score:

(1) price per location (100 points);

(2) network performance (speed, latency and usage allowance)(90 points);

and (3) network redundancy/resilience (80 points).

The FCC will award $254 million in UPR Fund Stage 2 funding over three years to mobile providers operating in Puerto Rico.

Eligible mobile providers that elect to participate in Stage 2 will receive support according to the number of mobile subscribers in Puerto Rico as of June 2017 Form 477 data.

The Stage 2 Report and Order also requires Stage 2 support recipients to:

(1) submit to the Bureau a plan that describes and commits to the methods and procedures that recipients will use to prepare for and respond to disasters in Puerto Rico;

In May 2018, the FCC established the Uniendo a Puerto Rico Fund ( UPR Fund ) to provide subsidies for the deployment and hardening of fixed wireline and mobile wireless communications networks in Puerto Rico.

Stage 1 of the UPR Fund made $51 million of new funding available for Puerto Rico telecommunications providers following Hurricanes Maria and Irma in 2017 (the 2017 Hurricanes ).

Stage 2 of the UPR fund made additional funding available to providers of services over fixed wireline networks through a competitive bidding process, and to mobile wireless providers subject to those providers meeting certain conditions.

To be eligible for Stage 2 UPR funding for fixed services, Liberty Puerto Rico requested that TB designate it as an Eligible Telecommunications Carrier ( ETC ), which the TB did in June 2018.

As part of its obligations as an ETC, Liberty Puerto Rico must offer services to low income customers under the federal Lifeline Program and low-cost services to schools and libraries under the Schools and Libraries Program ( E-Rate ).

Both programs provide FCC subsidies to ensure access to telecommunications and broadband access services for specified classes of customers.

Liberty Puerto Rico began offering Lifeline services in April 2019 and will bid on Funding Year 2022 for E-Rate subsidies.

In September 2019, the FCC established rules governing UPR Fund Stage 2 funding to support certain fixed and mobile providers of voice and broadband service in Puerto Rico.

The FCC stated that it would award up to $505 million over 10 years to eligible providers of fixed voice and broadband services in Puerto Rico through a single round competitive bidding process that would select one support recipient in each of the 78 municipalities in Puerto Rico, using a specified formula for evaluating bids.

Entities winning Stage 2 support must also:

(1) submit to the FCC’s Wireline Competition Bureau ( Bureau) a detailed network deployment plan as well as a plan that describes and commits to the methods and procedures that will be used to prepare for and respond to disasters in Puerto Rico;

and (2) participate in the FCC’s Disaster Information Report System, which is a web-based system that communications companies can use to report to the FCC communications infrastructure status during disasters.

On February 5, 2020, the Bureau released a Public Notice that establishes the application requirements and submission process for the UPR Fund Stage 2 Competition.

The Bureau will release an application form and instructions, and announce the application deadline in a public notice following approval of the application form by the U.S.

Office of Management and Budget.

The Bureau anticipates that the filing deadline for all UPR Fund Stage 2 applications will be approximately 30 days after application form approval.

On February 5, 2020, the Bureau released a Public Notice that established the application requirements and submission process for the UPR Fund Stage 2 Competition.

The Bureau later released an application form and instructions, and announced the application deadline.

On November 2, 2020 LCPR received preliminary approval from the FCC for an award of approximately $71.54 million through the UPR Fund.

The funds are in support of providing high-speed broadband access to all locations within 43 of Puerto Rico’s 78 municipalities, representing service to over 914,000 locations.

Liberty Puerto Rico is in the process of submitting all required materials to finalize its award and is awaiting final FCC action.

With respect to Stage 2 UPR funding for mobile wireless providers, the FCC also established in September 2019 that mobile wireless providers providing service in Puerto Rico as of June 2017 were eligible to receive up to $254 million over three years based on their relative number of subscribers for such service as of June 2017.

In order to obtain such support, the mobile providers were required to confirm the number of mobile wireless subscribers they served as of June 2017, and obtain FCC approval of a plan that describes and commits to the methods and procedures that will be used to prepare for and respond to disasters in Puerto Rico.

Liberty’s predecessor wireless provider in Puerto Rico (AT&T) submitted the required documentation and in June 2020, the FCC authorized that entity to receive approximately $33M in funding over three years.

That entity had previously obtained the required ETC designation in Puerto Rico.

Liberty, having purchased that business in the AT&T Acquisition, will now receive those funds.

In Puerto Rico, antitrust regulation is governed by the U.S.

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Although Law 213 does not require Liberty Puerto Rico to obtain any approval of rate increases for cable television or telecommunication services, any such increases must be in compliance with Law 213 ’s requirements, including notification to the TRB before such increases take effect.

The video, internet and fixed-line telephony services that Liberty Puerto Rico provides are all subject to regulation:

The provision of cable television services requires a franchise issued by the TRB .

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Under the Communications Act , competitive local exchange carriers ( CLEC s ), like us, may require interconnection with the incumbent local exchange carrier ( ILEC ), and the ILEC must negotiate a reasonable and nondiscriminatory interconnection agreement with the CLEC .

Such arrangement requires the ILEC to interconnect with the CLEC at any technically feasible point within the ILEC ’s network, provide access to certain unbundled network elements of the ILEC ’s network, and allow physical collocation of the CLEC ’s equipment in the ILEC ’s facilities to permit interconnection or access to unbundled network

element services.

Therefore, we have the right to interconnect with the incumbent local exchange carrier Puerto Rico Telcom ( PRTC ).

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VoIP providers are also required to offer basic and enhanced 911 emergency calling services, which requires disclosure to all VoIP customers.

VoIP providers are also subject to federal customer proprietary network information rules related to customer privacy.

VoIP providers are also subject to federal customer proprietary network information rules related to c ustomer privacy.

Mobile Services .

Liberty Mobile Puerto Rico and Liberty Mobile U.S.

Virgin Islands offer mobile services in Puerto Rico and the U.S.

Virgin Islands.

The FCC regulates virtually all aspects of United States wireless communications systems, including spectrum licensing, tower and antenna construction, modification and operation, the ownership and sale of wireless systems and licenses, as well as the acquisition and use of wireless spectrum.

Local governments, such as in Puerto Rico and the U.S.

Virgin Islands, typically regulate the placement of wireless towers and similar facilities via zoning laws.

At present, neither the FCC nor state or local governments regulate specific service offerings or rate plans.

In addition, other federal and state agencies have asserted jurisdiction over consumer protection and the elimination and prevention of anticompetitive business practices in the wireless industry.

The specific issues as to which our United States mobile services operations are subject to regulatory oversight include:

roaming, interconnection, spectrum allocation and licensing, facilities siting, pole attachments, intercarrier compensation, Universal Service Fund (“USF”) contributions and distributions (such as through the UPR program), network neutrality, 911 services, consumer protection, consumer privacy, and cybersecurity.

Failure to comply with applicable regulations could subject us to fines, forfeitures, and other penalties (including, in extreme cases, revocation of our spectrum licenses), even if any non-compliance was unintentional.

We operate in an emerging region of the world, where market penetration of telecommunication services such as broadband and mobile data is lower than in more developed markets.

Generally, our markets are at a nascent stage of the global shift to a “data-centric” world.

Generally, our markets are at a relatively nascent stage of the global shift to a “data-centric” world.

Although there has been strong growth in data consumption in our key markets, data consumption in our operating regions still lags significantly when compared to international benchmarks.

We believe that we have the opportunity to capitalize upon this underlying growth trend in the majority of our markets, and benefit from increasing penetration of our data services, as well as economic growth, in all of our markets.

However, technological advances and product innovations have increased and are likely to continue to increase giving customers several options for the provision of their telecommunications services.

Our customers want access to high quality telecommunication services that allow for seamless connectivity.

We believe that we have the opportunity to capitalize upon this underlying growth trend in the majority of our markets, and benefit from increasing penetration of our data services as well as economic growth, in all of our markets, over time.

However, technological advances and product innovations have increased and are likely to continue to increase giving customers several options for the provision of their communications services.

Our customers want access to high quality communication services that allow for seamless connectivity.

Accordingly, our ability to offer converged services (video, internet, fixed telephony and mobile) is a key component of our strategy.

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Consequently, our businesses face significant competition.

In all markets, we seek to differentiate our telecommunications services by focusing on customer service, competitive pricing and offering quality high-speed internet.

In all markets, we seek to differentiate our communications services by focusing on customer service, competitive pricing and offering quality high-speed connectivity.

Mobile and Telephony Services

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In the markets where we are one of the top mobile providers, we continue to seek additional bandwidth to deliver our wide range of services to our customers and increase our LTE coverage.

We face competition in all of our markets.

We also offer various calling plans, such as unlimited network, national or international calling, unlimited off-peak calling and minute packages, including calls to fixed and mobile phones.

In addition, we use our bundled offers with our video and high-speed internet services to gain mobile subscribers.

In addition, we use our bundled offers with our video and high-speed internet services to gain mobile subscribers where possible.

Our ability to offer fixed-mobile convergence services is expected to be a key driver.

In several of our markets, we expect to increase focus on converged services, including mobile, fixed-line, broadband and video.

• C&W Caribbean and Networks .

We typically operate in duopoly mobile market structures and face competition from Digicel Group Ltd.

( Digicel ) in most of our C&W Caribbean and Networks’ residential markets, and ALIV in the Bahamas.

• C&W Panama .

In Panama, our most competitive mobile market, we compete with subsidiaries of Millicom International Cellular S.A.

( Millicom ), América Móvil , S.A.B.

( Claro ) and Digicel.

Millicom entered the market through the acquisition of Movistar’s assets in Panama in 2019.

• Liberty Puerto Rico .

Liberty Puerto Rico competes with T-Mobile US, Claro, Worldnet, and Neptuno for the provision of mobile services .

Movistar , Claro and Empresa Nacional de Telecomunicaciones S.A.

( Entel ) are the primary companies that offer mobile telephony in Chile.

In mid-2015, WOM S.A.

( WOM ) entered the mobile services market through its acquisition of the Nextel Chile network.

As an MVNO , VTR offers its mobile services on a standalone basis.

To attract and retain customers, VTR focuses on its triple-play and double-play customer bases, offering them postpaid mobile accounts at an attractive price.

The market for fixed-line telephony services is mature across our markets.

Changes in market share are driven by the combination of price and quality of services provided and the inclusion of telephony services in bundled offerings.

In most of our C&W markets, we are the incumbent telecommunications provider with long established customer relationships.

In most of our C&W Caribbean and Networks’ markets, we are the incumbent telecommunications provider with long established customer relationships.

In our other markets, our fixed-line telephony services compete against the incumbent telecommunications operator in the applicable market.

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In addition, we offer varying plans to meet customer needs and, similar to our mobile services, we use our telephony bundle options with our digital video and internet services to help promote our telephony services and flat rate offers are standard.

VTR faces competition from the incumbent telecommunications operator, Movistar ( Movistar ), and other telecommunications operators.

• C&W Caribbean and Networks .

We face competition in the provision of fixed-telephony services from Digicel in our Caribbean markets and Cable Bahamas Limited ( Cable Bahamas ) in the Bahamas.

These companies all have competitive pricing on similar services, and the intensified level of competition we are experiencing in several of our markets has added increased pressure on the pricing of our services.

• C&W Panama .

We face competition from a subsidiary of Millicom in Panama.

Millicom entered the Panama market through its acquisition of an 80% stake in Cable Onda S.A.

( Cable Onda ) in 2019.

• Liberty Puerto Rico .

Liberty Puerto Rico primarily competes with Claro who is the incumbent fixed operator in Puerto Rico .

For B2B, Liberty Puerto Rico primarily competes with Claro and WorldNet.

VTR faces fixed-telephony competition from the incumbent telecommunications operator, Movistar and other telecommunications operators.

Movistar has substantial experience in providing telephony services, resources to devote to the provision of telephony services and long-standing customer relationships.

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We distinguish our services by delivering reliable market leading internet access speeds with attractive bundled offers .

Movistar , América Móvil , S.A.B.

( Claro ) and Empresa Nacional de Telecomunicaciones S.A.

( Entel ) (as defined below) are the primary companies that offer mobile telephony in Chile.

In mid-2015, WOM S.A.

( WOM ) entered the mobile services market through its acquisition of the Nextel Chile network.

WOM continues to exert significant competitive pressure in the mobile market with its very aggressive price offers.

Such pricing is driving down sales and increasing churn in the mobile market.

As an MVNO , VTR offers its mobile services on a standalone basis.

To attract and retain customers, VTR focuses on its triple-play and double-play customer bases, offering them postpaid mobile accounts at an attractive price.

With respect to mobile services, we face competition from Digicel Group Ltd.

( Digicel ) in most of our C&W residential markets.

We also compete with subsidiaries of Millicom International Cellular S.A.

( Millicom ) in Panama, Movistar in Chile, and Claro in Chile and Panama.

In addition, in the Bahamas, where C&W had previously been the only provider of mobile services, competition has increased significantly due to the commercial launch of mobile services by a competitor, ALIV, during the fourth quarter of 2016.

We also face competition in the provision of broadband services from Digicel in our Caribbean markets, a subsidiary of Millicom in Panama, and Cable Bahamas Limited ( Cable Bahamas ) in the Bahamas.

In Panama, as of 2019 Movistar and Cable Onda S.A.

( Cable Onda ) are a part of the Millicom group after its acquisition of both companies.

To attract and retain customers, C&W focuses on providing quality services and premium content, as well as converged services where customers can access content in and out-of-the home.

Broadband Internet

With respect to broadband internet services and online content, our businesses face competition in a rapidly evolving marketplace from incumbent and non-incumbent telecommunications companies, mobile operators and cable-based ISPs , many of which have substantial resources.

The internet services offered by these competitors include both fixed-line broadband internet services using cable, DSL or FTTx networks and wireless broadband internet services.

These competitors have a range of product offerings with varying speeds and pricing, as well as interactive services, data and other non-video services offered to homes and businesses.

With the demand for mobile internet services increasing, competition from wireless services using various advanced technologies is a competitive factor.

In several of our markets, competitors offer high-speed mobile data via LTE wireless networks.

In addition, other wireless technologies, such as WiFi, are available in almost all of our markets.

In this intense competitive environment, speed, bundling, and pricing are key drivers for customers.

A key component of our strategy is speed leadership.

Our focus is on increasing the maximum speed of our connections as well as offering varying tiers of services and prices, a variety of bundled product offerings and a range of value added services.

We update our bundles and packages on an ongoing basis to meet the needs of our customers.

Our top download speeds generally range from 50 Mbps to speeds of up to 600 Mbps.

In Barbados we also deliver speeds of up to 1 Gbps for our customers.

In many of our markets, we offer the highest download speeds available via our cable and FTTx networks.

The focus is on high-speed internet products to safeguard our high-end customer base and allow us to become more aggressive at the low- and medium-end of the internet market.

By fully utilizing the technical capabilities of DOCSIS 3.0 technology on our cable systems, we can compete with local FTTx initiatives and create a competitive advantage compared to DSL infrastructures and LTE initiatives on a national level.

In several of our C&W Caribbean and Networks’ markets, we are the incumbent phone company offering broadband internet products through a variety of technologies, ranging from DSL to FTTx.

In these markets and our other Latin American markets, our key competition for internet services is from cable and IPTV operators and mobile data service providers.

To compete effectively, we are expanding our LTE service areas and increasing our download speeds.

In most of our markets, we offer our internet service through bundled offerings that include video and fixed-line telephony.

We also offer a wide range of mobile products either on a prepaid or postpaid basis.

• C&W Caribbean and Networks.

Where C&W Caribbean and Networks is the incumbent telecommunications provider, it competes with cable operators, the largest of which are Cable Bahamas in the Bahamas and Digicel in certain of C&W Caribbean and Networks’ markets.

To distinguish itself from these competitors, C&W Caribbean and Networks is investing in footprint expansion and upgrades and uses its bundled offers with video and telephony to promote its broadband internet services.

• C&W Panama .

The largest competitor in Panama is Cable Onda.

VTR faces competition primarily from non-cable-based ISPs , such as Movistar, Entel , and Mundo Pacifico, and from other cable-based providers, such as Claro and GTD Manquehue ( GTD ).

Competition is particularly intense with each of these companies offering competitively priced services, including bundled offers with high-speed internet services.

Mobile broadband competition is significant as well.

Movistar , Claro and Entel have launched LTE networks for high-speed mobile data.

To compete effectively, VTR is expanding its two-way coverage and offering attractive bundling with fixed-line telephony and digital video service and high-speed internet with download speeds of up to 600 Mbps.

• Liberty Puerto Rico .

Liberty Puerto Rico competes primarily with Claro and other operators using fiber networks or fixed wireless access technologies.

To compete with these providers, Liberty Puerto Rico offers its high-speed internet with download speeds of up to 500 Mbps.

Video Distribution

Our video services compete primarily with traditional free-to-air ( FTA ) broadcast television services, DTH satellite service providers and other fixed-line telecommunications carriers and broadband providers, including operations offering (i) services over hybrid fiber coaxial networks, (ii) DTH satellite services, (iii) internet protocol television ( IPTV ) over broadband internet connections using asymmetric DSL or VDSL or an enhancement to VDSL called “vectoring,” (iv) IPTV over FTTx networks, or (v) LTE services.

connections using asymmetric DSL or VDSL or an enhancement to VDSL called “vectoring,” (iv) IPTV over FTTx networks, or (v) LTE services.

Many of these competitors have a national footprint and offer features, pricing and video services individually and in bundles comparable to what we offer.

In certain markets, we also compete with other cable or FTTx based providers who have overbuilt portions of our systems.

OTT aggregators utilizing our or our competitors’ high-speed internet connections are also a significant competitive factor as are other video service providers that overlap our service areas.

The OTT video providers (such as HBO Go/Now, Amazon Prime Video and Netflix in most of our markets, and Hulu, Sling, and Digicel Play in selected markets) offer VoD service for television series and movies, catch-up television in some places and linear channels.

In some cases, these OTT services are provided free-of-charge.

The content library of such services is offered on an unlimited basis for a monthly fee.

OTT aggregators and SVOD services util izing our or our competitors’ high-speed broadband connections are also a significant competitive factor as are other video service providers that overlap our service areas.

OTT video providers (such as HBO Go/Max, Amazon Prime Video, Disney+ and Netflix in most of our markets, and Hulu, DirecTV Now, Sling, and Digicel Play in selected markets) offer rich VOD catalogues and/or linear channels .

In some cases, these AVOD services are provided free-of-charge (such as YouTube and Pluto TV).

Typically these services are available on multiple devices in and out of the home.

To enhance our competitive position, we are developing cloud-based, next generation user interfaces based on advanced technologies and are providing our subscribers with TV Everywhere products and premium OTT video services.

Our businesses also compete to varying degrees with other sources of information and entertainment, such as online entertainment, newspapers, magazines, books, live entertainment/concerts and sporting events.

To enhance our video offering, we are developing cloud-based, next generation user interfaces based on advanced technologies, and are providing our subscribers with TV Everywhere applications, and in some markets, we feature leading premium and AVOD OTT video services in our video platforms (such as HubTV in Puerto-Rico), and our users can subscribe to these OTT services, search and discover and consume programs through our UI.

Our businesses also compete to varying degrees with other sources of entertainment and information, such as online entertainment, newspapers, magazines, books, live entertainment/concerts and sporting events.

Piracy and other unauthorized uses and distribution of content, including through web-based applications, devices and online platforms, also present challenges for our video business.

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For instance, our cable networks allow us to concurrently deliver internet access, together with real-time television and VoD content, without impairing our high-speed internet service.

In addition, our cable infrastructure in most of our footprint allows us to provide triple-play bundled services of broadband internet, television and fixed-line telephony services without relying on a third-party service

provider or network.

Where mobile is available, our mobile networks, together with our fixed fiber-rich networks, will allow us to provide a comprehensive set of converged mobile and fixed-line services.

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In serving the business market, many aspects of the network can be leveraged at very low incremental costs given that business demand peaks at a time when consumer demand is low, and peaks at lower levels than consumer demand.

In response to the continued growth in OTT viewing, we have launched a number of innovative video services, including Flow ToGo and +TV Go in C&W markets, LibertyGo in Puerto Rico and VTR Play in Chile.

Our ability to continue to attract and retain customers depends on our continued ability to acquire appealing content and services on competitive terms and to make such content available on multiple devices and outside the home.

In response to the continued growth in OTT viewing, we have launched a number of innovative video services, including Flow ToGo and +TV Go in C&W Caribbean and Networks’ markets, LibertyGo in Puerto Rico and VTR Play in Chile.

Our ability to attract and retain customers depends on our continued ability to acquire appealing content and services on competitive terms and to make such content available on multiple devices and outside the home.

Some competitors have obtained long-term exclusive contracts for certain sports programs, which limits the opportunities for other providers to offer such programs.

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We use these services, as well as bundles of our fixed-line services, as a means of driving video and other products where we can leverage convenience and price across our portfolio of available services.

C&W competes with a variety of pay TV service providers, with several of these competitors offering double-play and triple-play packages.

Fixed-mobile convergence services are not a significant factor in most of C&W ’s residential markets.

In several of C&W ’s other markets, including Jamaica, Trinidad and Tobago and Barbados, C&W is the largest or one of the largest video service providers.

In these markets, C&W ’s primary competition is from DTH providers, such as DIRECTV Latin America Holdings, Inc.

• C&W Caribbean and Networks .

C&W Caribbean and Networks competes with a variety of pay TV service providers, with several of these competitors offering double-play and triple-play packages.

Fixed-mobile convergence services are not currently a significant factor in most of C&W Caribbean and Networks’ residential markets.

In several of its other markets, including Jamaica, Trinidad and Tobago and Barbados, C&W Caribbean and Networks is the largest or one of the largest video service providers.

In these markets, its primary competition is from DTH providers, such as DIRECTV Latin America Holdings, Inc.

( DirecTV ), which is now called Vrio Corp., and operators of IPTV services over VDSL and FTTx , such as Digicel .

In Panama, C&W competes primarily with Cable Onda, which is 80% owned by Millicom and which offers video, internet and fixed-line telephony over its cable network, and with the DTH services of Claro .

To compete effectively, C&W invests in leading mobile and fixed networks and content.

VTR competes primarily with DTH service providers, including Movistar , Claro , Entel , GTD Manquehue ( GTD ) and DirecTV , among others.

Movistar offers double-play and triple-play packages using DTH for video and DSL for internet and fixed-line telephony and offers mobile services.

On a smaller scale, Movistar also offers IPTV services over FTTx networks in Chile.

• C&W Panama .

C&W Panama competes primarily with Cable Onda, which is 80% owned by Millicom and which offers video, internet and fixed-line telephony over its cable network, and with the DTH services of Claro .

To compete effectively, C&W Panama invests in leading mobile and fixed networks and content.

VTR competes primarily with DTH and IPTV service providers, including Movistar , Claro and DirecTV , among others.

Movistar offers double-play and triple-play packages using IPTV for video in its FTTx footprint and OTT on its DSL footprint.

Claro offers triple-play packages using DTH and, in most major cities in Chile, through a hybrid fiber coaxial cable network.

It also offers mobile services.

To a lesser extent, VTR also competes with video services offered by or over networks of fixed-line telecommunication providers using DSL technology.

To compete effectively, VTR focuses on enhancing its subscribers’ viewing options in and out of the home through offering VoD , catch-up television, DVR functionality, Horizon TV and a variety of premium channels.

DirecTV offers video through DTH and does not bundle with any broadband or telephony services.

To compete effectively, VTR focuses on enhancing its subscribers’ viewing options in and out of the home through a broad non-linear content offering, catch-up television, DVR functionality, and a variety of premium channels.

These services and its variety of bundled options, including internet and telephony, enhance VTR ’s competitive position.

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In addition, Liberty Puerto Rico uses its bundled offers that include high-speed internet with download speeds of up to 500 Mbps to drive its video services.

Broadband Internet

The internet services offered by these competitors include both fixed-line broadband internet services using cable, DSL or FTTx networks and wireless broadband internet services.

These competitors have a range of product offerings with varying speeds and pricing, as well as interactive services, data and other non-video services offered to homes and businesses.

With the demand for mobile internet services increasing, competition from wireless services using various advanced technologies is a competitive factor.

In several of our markets, competitors offer high-speed mobile data via LTE wireless networks.

In addition, other wireless technologies, such as WiFi, are available in almost all of our markets.

In this intense competitive environment, speed, bundling, and pricing are key drivers for customers.

A key component of our strategy is speed leadership.

Our focus is on increasing the maximum speed of our connections as well as offering varying tiers of services and prices, a variety of bundled product offerings and a range of value added services.

We update our bundles and packages on an ongoing basis to meet the needs of our customers.

Our top download speeds generally range from 50 Mbps to speeds of up to 600 Mbps.

In Panama and Barbados we also deliver speeds of up to 1 Gbps for our customers.

In many of our markets, we offer the highest download speeds available via our cable and FTTx networks.

The focus is on high-speed internet products to safeguard our high-end customer base and allow us to become more aggressive at the low- and medium-end of the internet market.

In several of our C&W markets, we are the incumbent phone company offering broadband internet products using various DSL -based technologies.

In these markets and our other Latin American markets, our key competition for internet services is from cable and IPTV operators and mobile data service providers.

To compete effectively, we are expanding our LTE service areas and increasing our download speeds.

In most of our markets, we offer our internet service through bundled offerings that include video and fixed-line telephony.

We also offer a wide range of mobile products either on a prepaid or postpaid basis.

Where C&W is the incumbent telecommunications provider, it competes with cable operators, the largest of which are Cable Onda in Panama, Cable Bahamas in the Bahamas, and Digicel in certain of C&W’s markets.

To distinguish itself from these competitors, C&W uses its bundled offers with video and telephony to promote its broadband internet services.

VTR faces competition primarily from non-cable-based ISPs , such as Movistar and Entel , and from other cable-based providers, such as Claro and GTD .

Competition is particularly intense with each of these companies offering competitively priced services, including bundled offers with high-speed internet services.

Mobile broadband competition is significant as well.

Movistar , Claro and Entel have launched LTE networks for high-speed mobile data.

Liberty Puerto Rico .

Liberty Puerto Rico competes primarily with Claro and other operators using fiber networks or fixed wireless access technologies.

To compete with these providers, Liberty Puerto Rico offers its high-speed internet with download speeds of up to 500 Mbps.

Business and Wholesale Services

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In addition, our network as of December 31, 2020, utilized less than 10% of its potential design capacity, and we believe that our ability to take advantage of this large unused carrying capacity, as well as the financial and time investment required to build a similar network, and the potential delays associated with acquiring governmental permissions, makes it unlikely that our network will be replicated in the near term.

We compete in the provision of B2B services with residential telecommunications operators as noted above, in addition to regional and international service providers, particularly when addressing larger customers.

As of December 31, 2019 , we, including our consolidated subsidiaries, had an aggregate of approximately 10,000 full-time employees, certain of whom belong to organized unions and works council.

We believe that our employee relations are good.

We compete in the provision of B2B services with residential telecommunications operators as noted above.

We also compete with regional and international service providers, particularly when addressing larger customers.

Human Capital Resources

As of December 31, 2020, we employed approximately 11,900 full-time employees across our five reportable segments.

Our employees are employed across our segments as follows:

C&W Caribbean and Networks approximately 4,800 full-time employees, C&W Panama approximately 2,400 full-time employees, VTR/Cabletica approximately 2,300 employees and Liberty Puerto Rico approximately 2,200 employees.

The remaining employees are employed by our corporate entities.

Women represented 42% of our global employees and 38% of our managerial positions.

Of our total employee population, approximately 4,000 are covered by contracts with various unions, primarily across our Caribbean markets, Panama and Puerto Rico.

During 2020, our total employee attrition rate, both voluntary and involuntary, was approximately 21%.

The Employee Net Promoter Score is a widely-used methodology to measure the employee experience (eNPS).

From 2018 to 2020, we saw an increase of 30 points (net change of 243%) in our eNPS as measured by our annual employee survey, and believe that we have a passionate, engaged and dedicated workforce.

Our Chief People Officer, who reports to the CEO and is part of the Executive Team, leads our People and Culture initiatives.

Initiatives form part of the strategy and priorities of all leaders and our Chief People Officer regularly reports progress on these initiatives to our Board of Directors.

Talent Strategy.

We manage our talent strategy through a cycle consisting of Talent Acquisition, Learning & Development, and Performance Management.

We offer prospective candidates a compelling employee value proposition rooted in our culture, which combines a shared vision, philosophy and principles for how we work.

We foster an environment where employees can learn, develop, and gain experience through new opportunities to work in different geographies.

Unique to our region, we have revamped our performance management process from an annual performance rating to a more agile system that better aligns with our culture and ways of working as one team.

We offer a simpler, meaningful, and engaging Agile

Performance Development (APD) experience for all our employees, focused on frequent conversations throughout the year combined with real-time feedback between managers and employees.

Our employees are the heart and soul of our business, helping us to deliver value to our customers, shareholders and communities.

As our employees grow and develop, so will our company.

Equality, Diversity & Inclusion.

Our employees comprise many races, ethnicities, beliefs, and cultures, and we are built on a set of strong principles including respect.

We learned from the events and global dialogue in 2020 that we can always improve our efforts in this area, and in 2020 we took a number of actions in the areas of Equality, Diversity & Inclusion.

In 2020, we conducted a virtual listening tour across 22 countries to learn from our employees, understand their experiences within our company and in their community, and identify focus areas where we could implement initiatives that would drive progress.

As an initial undertaking, this process of listening, asking questions, and being open to feedback created a heightened understanding of the need to continue to work on the areas of Equality, Diversity & Inclusion.

As a result, we developed an Equality, Diversity and Inclusion strategy and established an employee volunteer team and a senior advisory team to oversee, guide and drive the strategy.

Our CEO signed the CEO Action for Diversity & Inclusion pledge with a focus on four components:

creating an environment for open dialogue, conducting implicit bias training, sharing best practices and lessons learned, and developing dedicated Diversity & Inclusion plans in consultation with our Board of Directors.

We know that our success depends on our people.

Having a diverse and inclusive workforce will help us become more innovative, more reflective of our customer base, and more creative when it comes to engaging with our customers and our communities.

COVID-19 Response.

We had to adapt quickly to the impact of the pandemic and rapidly put into place measures that would protect our employees, our customers, and our communities.

As we were deemed an essential business across our markets, providing critical connectivity and access, we mobilized and equipped our office personnel to be able to work remotely, while supplying our front-line team members with appropriate personal protective equipment and sanitation supplies.

We took necessary precautions across our retail footprint as well, and complied with local government regulations.

We also created a COVID-19 Employee Assistance Fund where employees could apply for grants up to $500 USD to support financial needs created by the pandemic.

We funded the Employee Assistance Fund through donations from members of our Board of Directors, our Executive Team and employees.

We also extended our Employee Assistance Program providing 24/7 support via a helpline of trained counselors, psychologists and advisors to those who need it.

Corporate Social Responsibility .

In addition to our core products and services, we contribute to the communities where we operate.

Our communities are so much more than locations for our business.

It’s where we live, where our families grow, where we celebrate and connect.

We believe we have a responsibility to enable progress and build more resilient communities.

We bring this to life through a shared approach across our markets with a focus on four critical areas:

Disaster Relief.

When our communities thrive, we all win.

Our employees lead many of our outreach programs, working alongside our local and regional charitable foundations.

We proudly support and give back.

In 2020, through our company-wide initiative, Mission Week , over 1,000 employees came together to make a positive impact in local communities through a wide range of volunteer activities.

Compensation, Benefits and Well-being.

As part of our Employee Value Proposition, we offer compensation, benefits, and well-being packages that we believe are fair and competitive.

We include a mix of base salary, short and long-term incentives (based on eligibility), as well as a wide range of programs that support our employees’ overall well-being including:

retirement savings plans, healthcare and insurance benefits, paid parental leave, paid time off, and employee assistance programs.

These programs vary by employee level and geography.

Compliance and Ethics.

We conduct our business with honesty and integrity in accordance with high ethical and legal standards, and with respect for each other and those with whom we do business.

Our Code of Conduct sets out the basic rules, standards and behaviors necessary to achieve those objectives.

Employees can confidentially and anonymously report any behavior or action they see or experience which goes against our Code of Conduct through SpeakUp, our employee hotline.

We expect our employees and directors to display responsible and ethical behavior, to follow consistently both the meaning and intent of our Code of Conduct and to act with integrity in all of our business dealings.

We expect managers and supervisors to take such action as is necessary and appropriate to ensure that our business processes and practices are in full compliance with our company culture and principles.

We expect our business partners to also act with integrity in all business dealings with us and others.

Our Business Partner Code of Conduct sets forth the basic rules, standards and behaviors that we expect of our business partners.

As part of our global onboarding process, we require all new employees to complete training on our Code of Conduct.

Additionally, we periodically host seminars on anti-corruption, anti-bribery and other important compliance topics.

Health & Safety.

Our vision is to have the safest operations in our industry and markets.

To reduce the risk of serious injuries we invest in systems that enable us to receive reliable and structured data to enable informed decision making.

We also work to improve our safety practices in the field and in our retail and office locations to prevent work-related illness and injuries.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business