Oscar von Hauske: Yes. One is what you mentioned. I mean, we did a lot of migration to fiber [by] (ph) help us to reduce the chance, so that brings us net ads. Secondly is that the market is growing, so we are taking share of the role of the market and the rest suppose is coming from competition. So what has been working is what you mentioned, the new packages that we send to the market that include streaming video and very good speed. And another one that is important is that when getting to the fiber, we offer symmetrical speed. That has been very well received in the market. So that’s why — we see this [growth] (ph).
Fred Mendes: Perfect, perfect. Very, very clear. Thanks, Daniel. Thanks, Oscar.
Oscar von Hauske: Thank you Fred.
Operator: Thank you. Our next question comes from the line of Ernesto Gonzalez of Morgan Stanley. Your line is now open, please go ahead.
Ernesto Gonzalez: Hi, thank you for taking our question. It’s two. The first one is, this quarter we saw a large increase in lease related debt. Just wondering if you could give us some color on the drivers. And then the second one is on the outlook for Chile. The JV ownership is up for review soon and you also had a deal with OnNet. On the latter we were wondering if it’s only for expansion to replace the existing network and if you have any volume commitments with KKR. Thank you.
Daniel Hajj Aboumrad: Well, what we do is we do an agreement with OnNet to use the fiber. Yes, it’s a complex contract. We have a volume, and they give us some prices. So it’s a contract that we think is good for us. We, in one side, we have fiber in Chile and we’re going to use our fiber network, in the other side, where we don’t have fiber, we’re going to use OnNet fiber. So that’s what we do and I think it makes sense to do that. What else in Chile?
Ernesto Gonzalez: Yes, on the JV ownership review.
Daniel Hajj Aboumrad: Yes, the JV ownership, as we said — we’ve got some commitments. It’s what we announced. We have some commitments to put some money and they can match — catch up. I think it’s end of July. We don’t know what they are going to do. So let’s see. We still don’t know. I think the company is going in good shape. We are moving and doing a lot of more coverage in wireless, 5G, 4G, better network. We do an agreement to do a big state-of-the-art network in Chile. So we are in terms of the infrastructure, I think we are okay. We’re moving in the commercial side. We are being more aggressive. We’re gaining a little bit in mobile and starting not to lose in fixed. So we are happy the way the company is developing and we still have a lot of things to do to all the synergies that we do with the two companies and we’re in that process.
It’s not only one year, I think it’s two years, three years to finalize all the synergies that we have and what we are in process and we are okay. We put good management there also. The management is, I think, very good and we’re happy the way they are working.
Carlos Garcia Moreno: And the question on lease related debt, what was the question again?
Ernesto Gonzalez: Yes, we saw a large increase in lease related debt from the end of 2023 to now. Non-current liabilities, for example, lease related debt increased from MXN100 billion to MXN160 billion. So just wondering what was the driver?
Carlos Garcia Moreno: I don’t know. Maybe it might be [ASEC’s] (ph) movements. We don’t have anything else on [towers] (ph) — that has happened this year but you know over the years but [indiscernible] from the end of last year.
Daniel Hajj Aboumrad: We can review that and get back to you.
Carlos Garcia Moreno: Yeah, let’s review it here. But yeah — we obviously have moved it since the spin-off of the European towers, Euro Tele Sites, but that [should be] (ph) picked up by the end of last year.
Daniel Hajj Aboumrad: And also Peru and the Dominican Republic that we sell it also last year, so that will be more leased. Review that.
Oscar von Hauske: Let’s review that. Non-new transactions.
Ernesto Gonzalez: Thank you so much.
Daniel Hajj Aboumrad: Thank you.
Operator: Your next question comes from the line of Alejandro Azar of GBM. Your lines are open. Please go ahead.
Alejandro Azar: Hi everyone. Thank you for taking my questions. Just a quick one. What can you tell us — in terms of the competitive landscape in Mexico, in both markets, in wireless and broadband? I mean, in wireless with Byte having 2 million active users, how should we think about this new entry player? Are these guys unlocking new clients because we’re not seeing churn in AMX? And on the other side, on the broadband, what are you seeing in terms of competition? You mean you’re not increasing prices, but what are you seeing in regards to your competitors? Thank you.
Daniel Hajj Aboumrad: I think Mexico is a very competitive market, very competitive in both in fixed and in wireless. And talking a little bit about [plan] (ph), they have been very aggressive, very big promotions. I don’t know how profitable they are going to be these promotions, but they are doing big, big promotions. And maybe as you are saying, they are unlocking some new subscribers, but we don’t know still how long they take out these promotions, they are going to stay with them because we have it 10 years ago in a lot of markets when you give a lot of things, big promotions, when you stop those promotions, they stop buying things. So we don’t know, but it’s a very competitive market. And what we have — and what we have been doing very good is we have a very good customer service, we have very good capacity, 5G, a very good 4G and 3G network coverage, so a good naming, a good distribution.
