ANNUAL INTEGRATED REPORT 2021 slide image

ANNUAL INTEGRATED REPORT 2021

ANNUAL INTEGRATED REPORT 2021 | AXTEL = The intangible assets with indefinite life of the Company include only goodwill, which has been assigned to the Business segment. The rest of the intangible assets are of definite life. Of the total amortization expense, $22,508, $11,757 and $2,131 were charged to cost of sales and $265,423, $344,836 and $443,108 to selling and administrative expenses in 2021, 2020 and 2019, respectively. Company concessions Axtel has 3 (three) single concessions for commercial use, one in favor of Axtel S.A.B. de C.V., another one given to Alestra Servicios Móviles, S.A. de C.V., and another one in favor of Alestra Innovación Digital, S de R.L de CV, under which the Company is duly authorized to provide any telecommunications and/or broadcasting service, including, but not limited to the services of local fixed and mobile telephony; national and international long distance, SMS (short message service), purchase or rental of network capacity for the generation, transmission or reception of data, signals, writings, images, voice, sounds and other information of any nature; rental of digital circuits, etc. In addition, Axtel S.A.B. de C.V. has concessions to use, take advantage of, and exploit frequency bands for specific use in the frequencies of 7 GHz. (1 concession), 10 GHz. (15 concessions), 15 GHz. (4 concessions), 23 GHz. (6 concessions) and 38 GHz. (5 concessions). The concession of Axtel S.A.B de C.V. is currently used to provide fixed services to the business and government market. Alestra Servicios Móviles uses its unique concession to provide mobile services in both the MVNE and MVNO modalities. The Company has plans to use the unique Alestra Innovación Digital concession to provide services to the government market. In 2021, the Federal Telecommunications Institute (IFT for its Spanish initials) authorized the transition to a Single Concession Contract of a Public Telecommunications Network Concession of Alestra Innovation Digital, a situation that terminates the restructuring strategy of Axtel Concessions as a group that began in 2019. The Company's main commercial use concessions are as follows: Service Period Expiration Single concession for commercial use of Axtel ( Commercial 30 years 2046 Single concession for commercial use of Commercial 30 years 2048 Alestra Servicios Moviles (2) Commercial 30 years Use 2030 Commercial 20 years 2038 Single concession for commercial use of Alestra Digital Innovation (3) Various radio spectrum frequencies for the provision of point-to-point and point-to- multipoint microwave links(4) (1) Concession valid for 30 years and renewable for up to equal terms, provided that the Company is in compliance with all of its obligations under the concession, as well as those contained in the legal, regulatory and administrative provisions. (2) Concession valid for 30 years and renewable up to equal terms, provided that the Company is in compliance with all its obligations of the concession, as well as those contained in the legal, regulatory and administrative provisions. (3) Single concession that was transitioned from the Public Telecommunications Network Concession regime, valid for 30 years from the term initially granted, may be renewable for up to equal terms, as long as it is requested in the year prior to the last fifth of the term of the concession and is also in compliance with all its obligations under the concession, as well as those contained in the legal, regulatory and administrative provisions. (4) The radio spectrum concessions are to operate services in the following Radio Frequency Bands: 7 GHz, 10 GHz, 15 GHz, 23 GHz and 38 GHz. 152 1552
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