SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of December , 2000. -------------------------------- Transtel S.A. ----------------------------------------------------------------------- (Translation of Registrant's Name Into English) Calle 15 #33-289, Autopista, Cali-Yumbo Km.2, Cali-Valle, Colombia ----------------------------------------------------------------------- (Address of Principal Executive Offices) (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) Form 20-F X Form 40-F ------ ------ (Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.) Yes No X ------ ------- (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .) ----- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Transtel S.A. --------------------------- (Registrant) Date: December 5, 2000 By: /s/ Guillermo O. Lopez ------------------------- Name: Guillermo O. Lopez Title: President Item 5. Other Events On December 4, 2000, Transtel S.A. issued a press release, a copy of which is annexed hereto as Exhibit 99.1 and incorporated herein by reference.

TelePalmira TeleCartago Caucatel TeleJamundi Unitel Bugatel TeleGirardot Unitel Total ----------- ----------- -------- ----------- ---------- ------- ------------ --------- -------- Wireline Wireless ---------- --------- Municipality served Palmira Cartago Popayan Jamundi Yumbo Buga Girardot Cali N/A Population 318,000 125,900 76,600 59,100 72,000 337,400 161,000/(1)/ 1,908,600 3,058,600 Commencement date of Company's operations Sep-95 Apr-97 May-97 Jun-97 Jun-97 Jul-97 Dec-97 Jan-98 N/A Number of subscribers at New New New commencement date 15,600 13,800 10,800 System System 10,700 23,500 System 74,400 Number of subscribers as of December 31, 1999 68,803 32,844 23,721 12,737 9,784 26,931 53,454 57,932 286,206 Number of subscribers as of March 31, 2000 68,138 32,816 23,687 12,700 9,756 26,904 49,799 56,949 280,749 Total subscribers as of June 30, 2000 69,208 33,310 23,862 13,275 10,125 27,558 50,174 59,705 287,217 Penetration/(2)/ 21.8 33.6 31.2 36.4 23.4 17.1 38.1 30.6 28.7

TelePalmira TeleCartago Caucatel TeleJamundi Unitel Bugatel TeleGirardot Unitel Total ----------- ----------- -------- ----------- -------- ------- ------------ --------- --------- Wireline Wireless -------- --------- Municipality served Palmira Cartago Popayan Jamundi Yumbo Buga Girardot Cali N/A Population 318,000 125,900 76,600 59,100 72,000 337,400 161,000/(1)/ 1,908,600 3,058,600 Internet Subscribers -------------------- Number of subscribers as 2,472 742 494 - 2,980 481 - 645 13,732 Of June 30, 2000 Internet Penetration 0.78 0.59 0.64 - 4.14 0.14 - 0.03 0.45 Number of Homes Passed NA NA NA NA NA NA NA 40,000 40,000 Number of subscribers as of June 30, 2000 NA NA NA NA NA NA NA 23,839 23,839

Six months ended ------------------------------------------------------------ 1999 % 2000 % ----------- ------------ ------------ ----------- (in thousands of constant Pesos of June 30, 2000 purchasing power, except percents data) Connection fees.................... Ps 17,657,001 27.4% Ps 3,169,955 5.2% Local usage charges................ 14,814,358 23.0 29,535,295 48.0 Basic charges...................... 9,089,664 14.1 12,745,954 20.7 Long distance charges.............. 10,837,230 16.8 8,743,267 14.2 Other income....................... 3,865,300 5.9 4,821,058 7.8 ------------- ----- ------------ ----- Total telephone............... Ps 56,263,553 87.2 59,015,529 95.9 Pay television services............ 8,243,116 12.8 2,493,356 4.1 ------------- ----- ------------ ----- Total revenues............... Ps 64,506,669 100.0% Ps61,508,885 100.0% ============= ===== ============ =====

Six months ended ----------------------- 1999 2000 ---- ---- Revenues................................................. 100.0% 100.0% ----- ----- Costs and expenses: Operating costs..................................... (15.1) (17.4) Administrative expenses............................. (25.6) (23.4) Marketing expenses.................................. (6.6) (5.7) ----- ----- Total.......................................... 47.3 46.5 ----- ----- Operating income......................................... 52.7 53.5 Nonoperating expenses.................................... (50.1) (77.6) Net monetary inflation adjustment income................. 20.6 26.0 ----- ----- Income before income taxes and minority interest......... 23.2 1.9 Income tax expense....................................... (8.6) (1.1) ----- ----- Income before minority interest.......................... 14.6 0.8 Minority interest........................................ (14.3) (9.6) ----- ----- Net income............................................... 0.3% (8.8)% ===== =====

Six months ended June 30, ---------------------------------- 1999 2000 ----------- ----------- (in thousands of constant Pesos of June 30, 2000 purchasing power) Financial Income: Interest income............................. Ps 15,806,665 Ps 19,094,668 Exchange gains.............................. 32,346,275 28,132,831 Other financial income...................... 217,150 132,739 --------------- ------------- 48,370,090 47,360,238 --------------- ------------- Financial Expenses: Interest expense............................ (25,128,759) (38,124,726) Bank commissions............................ (67,499) (64,131) Exchange losses............................. (53,205,421) (60,001,013) Bank expenses............................... (258,330) (428,583) Other financial expenses.................... (96,157) (69,287) --------------- ------------- (78,756,166) (98,687,740) --------------- ------------- Other: Sales of scrap and extra parts.............. 42,855 49,351 Other, net.................................. (2,005,210) 3,527,410 --------------- ------------- (1,962,355) 3,576,761 --------------- ------------- Total Non-operating Income (Expenses) Ps (32,348,431) Ps(47,750,741) =============== =============

As of June 30, 2000 ------------------------------------------- (in thousands of constant Pesos of June 30, 2000 purchasing power and in Dollars) Unitel........................ Ps 64,152,677 $29,990,359 TeleJamundi................... 46,539,491 21,756,474 TelePalmira................... 48,750,011 22,789,857 TeleCartago................... 21,038,650 9,835,235 Caucatel...................... 15,795,285 7,384,045 Bugatel....................... 7,922,207 3,703,506 -------------- ----------- Ps 204,198,321 $95,459,476 ============== ===========

TelePalmira Unitel TeleJamundi TeleCartago Bugatel Caucatel ------------- ------------- ------------ ------------ ------------ ------------- Total revenues--subscribers........... Ps15,151,920 Ps 15,503,872 Ps 1,766,228 Ps 7,849,283 Ps 6,000,242 Ps 5,119,645 Operating income (loss)............... 9,467,457 10,834,139 468,565 5,883,917 4,059,496 3,293,322 Net income............................ (1,580,251) 9,817,021 591,312 5,601,661 2,013,001 3,355,352

TelePalmira Unitel TeleJamundi TeleCartago Bugatel Caucatel -------------- -------------- ------------ ------------ ------------- ------------- Cash flow (used) provided by operating activities............................ Ps (9,259,027) Ps 11,615,783 Ps (466,477) Ps 758,739 Ps 8,594,607 Ps 2,279,717 Cash flow used by investing activities............................ (656,644) (24,912,610) (10,288,886) (5,685,604) (9,291,218) (4,916,161) Cash flow provided (used) by financing activities............................ 6,857,465 10,377,916 7,642,679 2,344,393 705,911 1,558,481

TelePalmira Unitel TeleJamundi TeleCartago Bugatel Caucatel ------------- ------------- ------------ ------------ ------------ ------------ Current assets...................... Ps 20,442,358 Ps 38,372,570 Ps 6,330,008 Ps 9,414,750 Ps 7,575,489 Ps 5,864,262 Properties, plant and equipment..... 93,363,808 109,739,556 57,786,893 59,311,789 44,901,468 42,814,596 Other noncurrent assets............. 40,439,036 33,651,059 9,342,921 9,744,935 9,901,911 5,499,787 ------------- ------------- ------------ ------------ ------------ ------------ Total assets................. Ps154,245,202 Ps181,763,185 Ps73,459,822 Ps78,471,474 Ps62,378,868 Ps54,178,645 ============= ============= ============ ============ ============ ============ Current liabilities Ps 22,923,354 Ps 32,573,600 Ps 3,785,562 Ps12,963,238 Ps14,932,197 Ps 5,657,299 Capital lease obligations 16,537,831 8,659,710 7,210,037 8,875,070 10,952,607 564,183 Intercompany Note to Transtel 44,894,477 82,235,474 50,862,013 25,917,039 7,378,469 14,331,411 Other noncurrent liabilities 3,846,593 4,467,458 2,460,604 1,492,465 1,349,358 1,447,242 ------------- ------------- ------------ ------------ ------------ ------------ Total liabilities 88,202,255 127,936,242 64,318,216 49,247,812 34,612,631 22,000,135 Total shareholders' equity 66,042,947 53,826,943 9,141,606 29,223,662 27,766,237 32,178,510 ------------- ------------- ------------ ------------ ------------ ------------ Total liabilities and shareholders' Equity......................... Ps154,245,202 Ps181,763,185 Ps73,459,822 Ps78,471,474 Ps62,378,868 Ps54,178,645 ============= ============= ============ ============ ============ ============

1999 2000 2000 -------------- -------------- -------- (Thousands (Thousand of pesos of June 30, 1999) of Dollars) ASSETS Current Cash.................................................................. Ps 12,389,346 Ps 5,498,798 $ 2,571 Short-term and temporary investments.................................. 25,884,515 285,684 134 Accounts receivable, net.............................................. 66,196,633 101,224,971 47,321 Inventories........................................................... 2,861,442 1,854,674 866 Prepaid expenses...................................................... 813,558 2,426,164 1,134 -------------- -------------- -------- Total current assets............................................... 108,145,494 111,290,291 52,026 Noncurrent Accounts receivable................................................... 46,909,620 53,928,308 25,211 Properties, plant and equipment, net.................................. 368,632,592 477,605,817 223,273 Deferred monetary correction.......................................... 5,633,088 7,364,294 3,443 Deferred costs........................................................ 69,905,464 53,081,539 24,815 Long-term investments................................................. 3,374,232 7,130,507 3,333 Other assets.......................................................... 6,579,748 13,587,175 6,352 Reappraisal of assets................................................. 38,545,143 40,395,116 18,884 -------------- -------------- -------- Total assets....................................................... Ps 647,725,381 Ps 764,383,047 $357,337 ============== ============== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt....................................................... Ps 13,323,307 Ps 18,632,798 $ 8,711 Current portion of other long-term debt............................... 1,872,580 3,888,811 1,818 Current portion of capital lease obligations.......................... 10,587,636 12,542,044 5,863 Accounts payable...................................................... 41,189,712 73,121,148 34,183 Tax liabilities....................................................... 15,886,803 20,631,194 9,645 Labor liabilities..................................................... 340,326 2,689,555 1,257 Other liabilities..................................................... 1,823,027 2,444,240 1,143 Accrued pension obligations........................................... 684,597 1,243,186 581 -------------- -------------- -------- Total current liabilities.......................................... 85,707,988 135,192,976 63,201 Long-term liabilities 12 1/2% Senior Notes due 2007......................................... 284,517,170 320,866,500 150,000 20.32% Senior Discount Notes due 2008................................. 31,223,853 42,853,461 20,033 Other long-term debt.................................................. 7,072,334 7,512,562 3,512 Capital lease obligations............................................. 47,439,212 52,876,110 24,719 Deferred monetary correction.......................................... 7,357,306 13,030,465 6,092 Accrued pension obligations........................................... 7,576,809 6,471,898 3,026 Other liabilities..................................................... 12,756,980 14,217,760 6,645 -------------- -------------- -------- Total liabilities.................................................. 483,651,652 593,021,732 277,228 -------------- -------------- -------- Minority interest....................................................... 75,035,075 80,057,958 37,426 -------------- -------------- -------- Commitments Shareholders' equity: Common stock, Ps1 par value, 50 billion shares authorized; 34,611,747,976 shares issued and outstanding (5,039,801,222 in 1998)............................ 52,317,241 52,317,241 24,457 Retained earnings..................................................... 20,855,511 17,900,113 8,368 Surplus from reappraisal of assets.................................... 15,865,902 21,086,003 9,858 -------------- -------------- -------- Total shareholders' equity......................................... 89,038,654 91,303,357 42,683 -------------- -------------- -------- Total liabilities and shareholder's equity......................... Ps 647,725,381 Ps 764,383,047 $357,337 ============== ============== ======== Memorandum accounts..................................................... Ps 184,464,719 Ps 323,376,804 $151,174 ============== ============== ========

For the Six Months Ended June 30, For the Three Months Ended June 30, ------------------------------------------------- ---------------------------------- 1999 2000 2000 2000 2000 ---- ---- ---- ---- ---- (Thousands of Pesos of June 30, (Thousands of (Thousands of (Thousands of 2000 purchasing power) Dollars-- Pesos of June 30, Dollars -- Unaudited) 2000 purchasing Unaudited power) Revenues................................... Ps 64,506,669 Ps 61,508,885 $ 28,754 Ps 30,980,661 $ 14,483 -------------- -------------- --------- -------------- --------- Costs and expenses: Operating costs.......................... 9,720,204 10,708,416 5,006 4,058,611 1,897 Administrative expenses.................. 16,487,668 14,418,040 6,740 8,571,848 4,007 Marketing expenses....................... 4,269,167 3,522,086 1,646 1,508,173 706 -------------- -------------- --------- -------------- --------- 30,477,039 28,648,542 13,392 14,138,632 6,610 -------------- -------------- --------- -------------- --------- Operating income...................... 34,029,630 32,860,343 15,362 16,842,029 7,873 -------------- -------------- --------- -------------- --------- Non operating income (expenses) Financial income......................... 48,370,090 47,360,238 22,140 25,511,196 11,926 Financial expenses....................... (78,756,166) (98,687,740) (46,135) (52,551,784) (24,567) Other.................................... (1,962,355) 3,576,761 1,672 3,518,828 1,645 -------------- -------------- --------- -------------- --------- (32,348,431) (47,750,741) (22,323) (23,521,760) (10,996) -------------- -------------- --------- -------------- --------- Net monetary inflation adjustment income... 13,268,005 15,983,180 7,472 5,460,737 2,553 -------------- -------------- --------- -------------- --------- Income (loss) before income taxes and minority interest.................. 14,949,204 1,092,782 511 (1,218,994) (570) Income tax (expense) benefit............... (5,517,258) (689,765) (323) (32,630) (15) -------------- -------------- --------- -------------- --------- Income (loss) before minority interest.......................... 9,431,946 403,017 188 (1,251,624) (585) Minority interest.......................... (9,222,318) (5,935,206) (2,774) (2,372,034) (1,109) -------------- -------------- --------- -------------- --------- Net income (loss).................... Ps 209,628 Ps (5,532,189) $ (2,586) Ps (3,623,658) $ (1,694) ============== ============== ========= ============== ========= Earnings per share (in single Pesos and Single Dollars per share)................ Ps 0.01 Ps -0.16 $ - $ -0.10 $ - ============== ============== ========= ============== =========

Common Shares Outstanding ---------------------------- Number Amount Retained Surplus from Total ----------- ------------- Earnings Reappraisal Shareholders' -------------- (Thousands) of Assets Equity -------------- -------------- Balance at December 31, 1998.......... 34,611,748 Ps 52,318,388 Ps 20,646,340 Ps 16,829,605 Ps 89,794,333 Net income............................ 209,628 209,628 Movement during the period............ (965,307) (965,307) ---------- ------------- -------------- -------------- -------------- Balance at June 30, 1999.............. 34,611,748 52,318,388 20,855,968 15,864,298 89,038,654 ========== ============= ============== ============== ============== Balance at December 31, 1999.......... 34,611,748 Ps 52,317,241 Ps 23,432,302 Ps 19,136,931 Ps 94,886,474 Net income............................ (5,532,189) (5,532,189) Movement during the period............ 1,949,072 1,949,072 ---------- ------------- -------------- -------------- -------------- Balance at June 30, 2000.............. 34,611,748 Ps 52,317,241 Ps 17,900,113 Ps 21,086,003 Ps 91,303,357 ========== ============= ============== ============== ==============

For the Six Months Ended June 30, For the Three Months Ended June 30, ------------------------------------------------ ------------------------ 1999 2000 2000 2000 2000 ---- ---- ---- ---- ---- (Thousands of (Thousands of Pesos of June 30, 2000 (Thousands Pesos of (Thousands purchasing power) of June 30, 2000 of Dollars-- purchasing Dollars Unaudited) power) Unaudited) Sources of working capital: Net income (loss)................................... Ps 209,628 Ps (5,532,189) $ (2,586) Ps (3,623,658) $ (1,694) Items that do not utilize (provide) Working capital: Depreciation................................... 2,462,103 2,604,851 1,218 1,175,426 549 Amortization................................... 6,729,430 6,773,904 3,167 1,446,872 676 Deferred income taxes.......................... (1,006,012) 0 0 0 0 Allowance for writedown of properties, plant and equipment............................ 43,181 479,529 224 231,808 108 Accretion of Interest on Senior Discount Note.. 2,881,041 6,239,465 2,917 4,453,389 2,082 Allowance for doubtful accounts................ 1,271,711 0 0 0 0 Minority interest.............................. 9,222,116 5,935,206 2,774 3,372,705 1,577 Net inflation adjustment from non-current balance sheet accounts......................... (13,267,714) (15,983,181) (7,472) (5,456,896) (2,550) Deferred monetary correction, net.............. (790,294) (3,098,615) (1,449) (1,321,076) (618) ------------- ------------- -------- ------------- -------- Working capital provided by operations........... 7,755,190 (2,581,030) (1,207) 278,570 130 ------------- ------------- -------- ------------- -------- Financial resources generated otherwise: Senior notes AND discount notes................ 19,114,579 8,936 18,761,905 8,771 Accrued Pension obligations.................... (50,988) 263,493 123 361 0 Increase (decrease) in other debt.............. (3,301,401) 7,512,562 3,512 7,455,844 3,486 Capital lease obligations...................... 13,763,246 12,032,833 5,625 (366,915) (172) Increase in other liabilities.................. (132,986) 1,880,896 879 1,766,253 826 Investment by minority interest................ (4,333,941) (1,713,062) (800) (1,371,362) (641) ------------- ------------- -------- ------------- -------- 5,943,930 39,091,301 18,275 26,246,086 12,270 ------------- ------------- -------- ------------- -------- Total financial resources generated........ 13,699,120 36,510,271 17,068 26,524,656 12,400 ------------- ------------- -------- ------------- -------- Financial resources utilized: Purchases of properties, plant and Equipment..................................... (65,829,028) (70,767,806) (33,083) (30,131,438) (14,086) Increase in accounts receivable................ 2,466,462 1,153 2,466,462 1,153 Increase in deferred charges................... (5,053) (2) (4,297) (2) Decrease in long-term investments.............. 132,419 (5,240,089) (2,450) 860,951 402 Decrease in other assets....................... 1,300,670 1,518,149 710 859,357 402 Increase in deferred costs..................... (5,149,252) 0 0 0 0 Increase in other assets Noncurrent accounts receivable................. 331,060 155 Decrease in accounts receivable................ 2,856,516 0 0 0 0 ------------- ------------- -------- ------------- -------- (66,688,675) (72,028,337) (33,672) (25,617,905) (11,976) ------------- ------------- -------- ------------- -------- Effect of revaluing to constant pesos............ 34,571,671 25,229,407 11,794 7,451,556 3,483 ------------- ------------- -------- ------------- -------- Increase (decrease) in working capital..... Ps(18,417,884) Ps(10,288,659) $ (4,810) Ps 8,358,307 $ 3,907 ============= ============= ======== ============= ======== Changes in working capital components: Cash................................................ Ps 8,182,491 Ps (131,038) $ (61) Ps (365,483) $ (171) Short-term and temporary investments................ (43,377,698) (8,845,326) (4,135) (2,678,473) (1,252) Accounts receivable................................. 32,107,376 19,894,608 9,300 11,599,345 5,423 Inventories......................................... (280,019) (672,807) (315) (196,796) (92) Prepaid expenses.................................... (116,025) 2,014,532 942 1,971,015 921 Short-term debt..................................... 2,658,599 (4,868,018) (2,276) 3,429,289 1,603 Short-term and current portion of Other long-term debt................................ (149,212) (321,293) (150) 459,822 215 Current portion of capital lease obligations........ (5,750,087) (2,464,084) (1,152) 3,838,372 1,794 Accounts payable.................................... (5,595,344) (22,397,740) (10,471) (6,612,416) (3,091) Tax liabilities..................................... (9,385,617) 6,164,661 2,882 (4,241,811) (1,983) Labor liabilities ................................. 797,656 (1,441,993) (674) 2,241,795 1,048 Current Portion Pension obligations................. (50,654) (239,438) (112) (372) Other liabilities................................... 2,540,650 3,019,277 1,412 (1,085,980) (508) ------------- ------------- -------- ------------- -------- Increase (decrease) in working capital..... Ps(18,417,884) Ps(10,288,659) $ (4,810) Ps 8,358,307 $ 3,907 ============= ============= ======== ============= ========

For the Six Months Ended June 30, For the Three Months Ended June 30, --------------------------------------------------------------------------------- 1999 2000 2000 2000 2000 ---- ---- ---- ---- ---- (Thousands of Pesos of June 30, 2000 (Thousands (Thousands of (Thousands 30, purchasing power) of Pesos of June Dollars-- 30, Dollars-- Unaudited) 2000 purchasing Unaudited) power Cash flows from operating activities: Net income for the period......................... Ps 209,628 Ps (5,532,189) $ (2,586) Ps (3,623,658) $ (1,694) Adjustments to reconcile net income with net cash Provided by operations: Depreciation................................... 2,462,103 2,604,851 1,218 1,175,426 549 Amortization................................... 6,729,430 6,773,904 3,167 1,446,872 676 Deferred income taxes.......................... (1,006,012) 0 0 0 0 Allowance for property plant and equipment..... 43,181 479,529 224 231,808 108 Allowance for doubtful accounts................ 1,271,711 0 0 0 0 Accretion of Interest on discount Senior notes. 2,881,041 6,239,465 2,917 4,453,389 2,082 Minority interest.............................. 9,222,116 5,935,206 2,775 2,030,335 949 Net inflation adjustment from balance Sheet Accounts................................. (13,267,714) (15,983,181) (7,472) (5,456,896) (2,551) Deferred monetary correction, net.............. (790,292) (3,098,615) (1,449) (1,321,076) (618) Changes in operating assets and liabilities: Accounts receivable............................ (29,250,862) (17,428,146) (8,147) (8,801,822) (4,115) Inventories.................................... 280,019 672,807 315 196,796 92 Prepaid expenses............................... 116,025 (2,014,532) (942) (1,971,015) (921) Deferred costs................................. (5,149,252) (5,053) (2) (4,297) (2) Other assets................................... 1,300,671 1,518,148 710 859,355 402 Accounts payable............................... 5,595,344 22,397,740 10,471 (6,612,416) (3,091) Labor liabilities.............................. (797,656) 1,441,993 674 2,241,795 1,048 Tax liabilities................................ 9,385,617 (6,164,661) (2,882) (4,241,811) (1,983) Accrued pension obligations.................... (334) 24,055 11 45,786 21 Other liabilities.............................. (2,673,636) (1,138,380) (534) 680,402 320 ------------- ------------- --------- -------------- --------- Net cash (used for) provided by operating activities..................... (13,438,872) (3,277,059) (1,532) (18,671,027) (8,728) ------------- ------------- --------- -------------- --------- Cash flows from investing activities: Purchases of properties, plant and equipment...... (30,614,550) (70,584,954) (32,997) (43,445,926) (20,310) Advances on properties plant and equipmen......... (14,115,520) (182,852) (85) 369,978 173 Purchases of investments.......................... (3,833,446) (2,325,672) (1,087) 222,330 104 Proceeds from sale of temporary investments....... (2,482,189) (1,160) Proceeds from sale/maturity of short-term investments........................... 47,343,563 5,408,662 2,527 5,408,662 2,528 ------------- ------------- --------- -------------- --------- Net cash (used for) provided by investing activities..................... (1,219,953) (67,684,816) (31,642) (39,927,145) (18,665) ------------- ------------- --------- -------------- --------- Cash flows from financing activities: Senior Notes...................................... 19,114,579 8,936 19,114,579 8,936 Issuance of other debt............................ (26,099,141) 20,537,080 9,601 14,850,225 6,942 Repayments of debt................................ 20,288,353 (7,835,207) (3,663) (3,174,965) (1,484) Dividend paid to minority interest................ (2,380,532) 0 0 0 0 Repayments of capital lease obligations........... (3,246,261) 14,496,916 6,777 16,968,797 7,932 ------------- ------------- --------- -------------- --------- Net cash provided by (used for) financing activities..................... (11,437,581) 46,313,368 21,651 47,758,636 22,326 ------------- ------------- --------- -------------- --------- Effect of revaluing to constant pesos............... 34,571,670 24,517,469 11,462 10,474,112 4,896 ------------- ------------- --------- -------------- --------- Net (decrease) increase in cash................... 8,475,264 (131,038) (61) (365,424) (171) Cash at beginning of period ...................... 3,914,082 5,629,836 2,632 5,864,222 2,742 ------------- ------------- --------- -------------- --------- Cash at end of period............................. Ps 12,389,346 Ps 5,498,798 $ 2,571 Ps 5,498,798 $ 2,571 ============= ============== --------- -------------- --------- Supplemental disclosure of cash flows inform: Cash paid during the period for: Interest....................................... Ps 2,885,976 Ps 20,439,592 $ 9,555 Ps 19,886,305 $ 9,297 ============= ============= ========== ============= ========= Income taxes................................... Ps 3,613,000 Ps 7,769,099 $ 3,632 Ps 5,676,195 $ 2,654 ============= ============= ========== ============= =========

Date Date commercial Percent Primary Incorporated operations Owned by Subsidiary Area served by Transtel began Transtel --------------------------------------------------- ----------- ----------- ----- -------- Empresa de Telefonos de Jamundi S.A., E.S.P. ("TeleJamundi").................................. Jamundi 9/29/93 6/1/97 99.8% Unitel S.A. E.S.P. ("Unitel")...................... Yumbo 3/11/94 6/1/97 95 Empresa de Telefonos de Palmira S.A., E.S.P. Palmira and (''TelePalmira'')................................ Candelaria 5/31/95 9/1/95 60 Telefonos de Cartago S.A., E.S.P. ("TeleCartago").................................. Cartago 1/3/97 4/1/97 65 Caucatel S.A., E.S.P. ("Caucatel")................. Popayan 4/30/97 5/1/97 51 Bugatel S.A., E.S.P. ("Bugatel")................... Buga 6/16/97 7/1/97 60 Empresa de Telecomunicaciones de Girardot S.A., E.S.P. ("TeleGirardot").......................... Girardot 12/31/97 1/1/98 60 Suscripciones Audiovisuales E.U................... Cali 1/31/98 100 Cablevision E.U.................................... Cali 1/31/98 100

1999 2000 ---- ---- Payable to Siemens AG for Transtel Siemens Purchase Agreement...................................................... Ps 4,028,235 Ps 4,249,612 (1) Payable to Siemens AG for TeleGirardot Siemens Purchase Agreement...................................................... 3,264,395 4,249,612 (2) Payable to IBM................................................... 794,150 873,791 (3) Unearned interest income......................................... 189,025 0 Cable television fees paid advances.............................. 595,390 0 Accrued litigation loss......................................... 2,409,167 2,200,000 Deferred Income Taxes............................................ Negative goodwill................................................ 301,555 0 Other............................................................ 1,175,063 2,644,745 ------------- ------------- Ps 12,756,980 Ps 14,217,760 ============= =============

1999 2000 ---- ---- Consolidated net income under Colombian GAAP Ps 209,628 Ps (5,532,189) (i) Deferred income taxes.................................. 2,852,603 267,219 (ii) Surplus from reappraisal of assets..................... - - (iii) Depreciation........................................... (5,438,069) (5,452,097) (iv) Capitalized interest................................... 765,325 3,677,925 (v) Deferred costs......................................... (187,134) 2,262,970 (vi) Capital leases......................................... (60,976) (429,725) (vii) Revenue recognition.................................... (11,707,656) 247,133 (viii) Reversal of deferred monetary correction............... 742,471 4,409,382 (ix) Effect of the above differences on minority interest... 4,409,758 (121,397) (x) Distribution to shareholder............................ - - (xi) Depreciation of Cablevision assets..................... (348,601) (317,971) (xii) Inflation adjustment on inventories.................... 183,610 - -------------- ------------- Consolidated net income (loss) under U.S. GAAP Ps ( 8,579,041) Ps (988,750) ============== =============

1999 2000 ---- ---- Consolidated shareholders' equity under Colombian GAAP............... Ps 89,038,655 Ps 91,303,357 (i) Deferred income taxes.................................. 12,924,776 16,298,795 (ii) Surplus from reappraisal of assets..................... (15,865,902) (19,394,069) (iii) Depreciation........................................... (16,068,149) (27,131,503) (iv) Capitalized interest................................... 4,225,974 10,558,504 (v) Deferred costs......................................... (31,796,336) (22,670,746) (vi) Capital leases......................................... 1,786,672 1,286,724 (vii) Revenue recognition.................................... (16,918,093) (34,056,308) (viii) Reversal of deferred monetary correction............... 1,724,218 6,155,544 (ix) Effect of the above differences on minority interest... 10,321,082 14,652,832 (x) Distribution to shareholder............................ (456,065) (456,065) (xi) Depreciation of Cablevision assets..................... (522,042) (840,187) (xii) Inflation adjustment on inventories.................... 183,610 - -------------- ------------- Consolidated shareholders' equity under U.S. GAAP Ps 38,578,400 Ps 35,706,878 ============== =============

1999 2000 ---- ---- Balance at beginning of period.................................. Ps 47,157,442 Ps 36,695,628 Net (loss) income............................................... (8,579,042) (988,750) -------------- ------------- Balance at end of period........................................ Ps 38,578,400 Ps 35,706,878 ============== =============

1999 2000 ---- ---- External telephony networks....................................... Ps 5,027,360 Ps 4,992,759 Computer equipment................................................ 399,220 339,757 Transport fleet and equipment..................................... 2,245,252 1,910,011 Generator......................................................... 99,458 94,387 ------------- -------------- Total......................................................... 7,771,290 7,336,914 Less--Accumulated depreciation.................................... (2,948,311) (3,612,305) ------------- -------------- Ps 4,822,979 Ps 3,724,609 ============= ==============

Payable in twelve months ------------------------ ended June 30, -------------- 2000........................................................... Ps 1,552,626 2001........................................................... 1,716,917 2002........................................................... 81,996 ------------- Total minimum lease payments...................................... Ps 3,351,539 =============

1999 2000 ---- ---- Increase in interest expense...................................... Ps 294,408 Ps 713,431 Increase in depreciation expense.................................. 587,622 369,808 Amortization of gain from sale of Properties, plant and equipment on leaseback..................... (7,872) (7,181) Increase in inflation adjustment income on capital lease obligations................................................ (225,196) 77,251 ------------- -------------- Total........................................................ 648,962 1,153,309 ------------- -------------- Rent expense Decrease in rent expense recorded under Colombian GAAP.......................................................... (587,986) (723,584) Decrease in rent recorded as deferred costs under Colombian GAAP and reversed for U.S. GAAP Purposes...................................................... - ------------- -------------- Net decrease in expenses.......................................... Ps 60,976 Ps 429,725 ============= ==============

IBM DIAN Global Leases Arrangement Financing Total --------------- ------------- -------------- --------------- Total minimum lease or tax and Duty payments.................... Ps 191,902,529 Ps 1,039,928 Ps 28,636,266 Ps 221,578,723 Less--Imputed interest.............. (55,541,435) (76,366) (55,617,801) --------------- ------------- -------------- --------------- Present value of minimum lease Payments......................... 136,361,094 963,562 28,636,266 165,960,922 Less--Current portion............... (31,056,105) (126,606) (3,511,782) (34,694,493) --------------- ------------- -------------- --------------- Long--term portion.................. Ps 105,304,989 Ps 836,956 Ps 25,124,484 Ps 131,266,429 =============== ============= ============== ===============

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