Daniel Hajj: What the natural FTTH penetration in Mexico is 69.8%, we only reach 70%, 80% we have next year of penetration. So we are doing a big effort to do the migration from copper to fiber. We’ve been building a lot of fiber into the home. So if I remember last quarter, we mentioned 62% of penetration, now we move to almost 70%. So I think in the next year we will reach 80%.
Carlos Moreno: And the next question on Brazil, can you repeat that please?
Unidentified Analyst: Sure. We have seen that you’ve been accelerating FTTH also in Brazil, just wondering if there is a new mindset regarding fiber overlay. Is there a goal as ambitious as now in Mexico, some color there on the fiber overlay in Brazil?
Daniel Hajj: Well, as you know in Brazil we have a cable we have FTTH — cable, yes. And all the networks are already prepared with DOCSIS 3.1. So we could deliver one gigabit speed in all of the network. Or as you mentioned, we will build in fibre to the homes use three or four years ago. Now we will have around 9.5 million home passes with fiber, we expect to end with 11.1 million home passes with fiber. So, I think we — that’s why you see the figures that we are getting net gain in Brazil because we’ve been doing the speed in cable and in private to the home, both as well in Brazil building work in a lot of customer experience. So all the time on installation on time to repair customer satisfaction. We’ve been really working and putting a lot of effort as well in customer retention. So we will end with that with all the all the cable networks with DOCSIS 3.1 and with the 11.1 million fibre to the home by the end of the year.
Unidentified Analyst: Very clear. Thank you. Thank you for your answers.
Operator: Next question comes from Andres Coello from Scotiabank. Your line is open.
Andres Coello : Thank you for taking my question. And in the last couple of months, we have seen news regarding new technologies that can connect satellite directly to do unmodified mobile phones, especially for rural areas where there are no towers currently, I think Latin America, some of your competitors already have agreements with new satellite companies, such as dialling ports, such as Space Mobile, I was wondering what are your thoughts on these new technologies? And if you can provide some color on what percentage of your CapEx goes into covering rural or distant areas? Thank you.
Daniel Hajj: Well, I think Oscar can comment a little bit more deeply on that. But I think these satellites are like a compliment also for our technology because a lot of our cell sites, towers that are far that are very expensive to connect with the fiber or to connect with the wireless microwaves we connect to with satellite so we have our own satellite business as part one and we connect that but there’s opportunity also with other satellite businesses that we also connect with other satellite business or it’s a compliment I think it’s going to be difficult that the short term to connect every people in Latin America in every place, I think in the long run, we are going do it. But satellite can help to cover that. I don’t think it’s a competition, but it’s also a compliment to do that.
To do it with satellite. It’s more expensive for the customer. It’s more expensive in cost. So as we can do more and more wireless I think it’s going to be better for the people. But Oscar, I don’t know if you…
Oscar Hauske : No, as you mentioned, we’ve been working with Star One for many years for our own company. Of course, the LEO satellite, the LEO constellation that is coming to LEO satellite, the Sterling ASP, but we have relations with different satellite providers we will be using for mobile backhaul, I think in all the countries to reach rural areas. I think these new offering that is a LEO satellite will do more economical official, to rich, another location of rural location. And we are we are working with these companies to complement our infrastructure in rural areas. So I think it’s a good technology to reach rural areas, most cost effective way. And we are working with those companies to bring it together to the market.
Andres Coello: Understood, thank you.
Operator: Our next question comes from Phani Kanumuri from HSBC. Your line is open.
Phani Kanumuri : Thanks for taking my questions. My first question is regarding Colombia fixed competition. There seems to be much better trend this quarter in the fixed broadband revenues compared to last quarter. So just wanted to understand the competitive dynamics, whether you’re seeing the competition easing in Colombia? My second question is regarding your pension inflows and outflows. This quarter you had almost 5.9 billion that are freed up from your pension assets? How do you see the trend going forward? Do you see for the freeing up of assets from the pension funds? And considering that in the last few years you have invested or put money into the pension funds? How do you see the trend going forward? Thank you.
Daniel Hajj: Well, I think in Colombia, as we’re doing in all the countries, we are putting more fiber FTTH, similar to Brazil, similar to Mexico, similar to almost all the countries and it’s bringing us to grow more in the broadband. So it’s doing very good. Also, one of the segments that we’re doing very good is in the corporate side. So fiber that brings to the houses also brings to the small and medium businesses. And it’s, we’re growing very good the revenues in the corporate side. So that’s more or less what is happening in Colombia. And that’s the reason why we’re thinking and trying to do a little bit more CapEx and a little more fiber to see some opportunities that bring us more revenue in the future to bring forward a little bit of our CapEx and to cover more, some places.
So that’s what we’re doing. It is, as Carlos said, the broadband is one of the best quarters that we’re doing is something that we do last year, that bring us more customers this year. And that’s what we want to advance a little bit on that. And I don’t know, Oscar if you want to do comment something more on Columbia.
Oscar Hauske : No, the same thing, we already upgraded a network cable network to deliver high speeds. We’ve been building fibre to the home since four years ago. And we have a very aggressive plan to do fibre to the home this year. So I think we are we’re very well positioned in the market. But there is a lot of competition does the flu in Colombia.
Carlos Moreno: In think on the pension fund, I think it’s important to understand that we have to manage upon and we have to determine how much of the pension in which year should be funded directly out of Telmex fund, obviously, which will be funded from the pension fund itself. And this is something that we faced based on whether, we consider that a given moment, it’s better to keep monitoring the pension funds, or it’s better to take profits. So to speak from the pension fund, take out some cash. It also has to do with the tax deductions from the pension payments made directly by Telmex, they can utilize them, there’s some value there. So those are there’s many, many things in this exercise that we need to take into account.
