A. History and Development of the Company The Company’s legal name is Millicom International Cellular S.A. ("MIC S.A." or "the Company"). The Company uses the Tigo brand in all of the countries in which we do business. MIC S.A. is a public limited liability company (société anonyme), organized and established under the laws of the Grand Duchy of Luxembourg on June 16, 1992. The Company’s address is: 2, Rue du Fort Bourbon, L-1249 Luxembourg, Grand Duchy of Luxembourg. The Company’s telephone number for the Head of Financial Reporting is: +352 27 759 018. The Company’s U.S. agent is: C T Corporation, 28 Liberty Street, 42nd Floor, New York, New York 10005, United States. MIC S.A. was formed in December 1990 when Kinnevik AB ("Kinnevik"), formerly named Industriförvaltnings AB Kinnevik, a company established in Sweden, and Millicom Incorporated, a corporation established in the United States, contributed their respective interests in international mobile joint ventures to form MIC S.A. See “Item 4. Information on the Company—B. Business Overview” for historical information regarding the development of our principal business segments in our geographic markets. See “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital expenditures” for a description of our capital expenditures. The SEC maintains an Internet website that contains reports and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov. The Company’s website address is www.millicom.com. The information contained on, or that can be accessed through, the Company’s website is not part of, and is not incorporated into, this Annual Report. B. Business Overview Introduction We are a leading provider of cable and mobile services dedicated to emerging markets. Through our main brands Tigo® and Tigo Business™, we provide a wide range of digital services in nine countries in Latin America, including high-speed data, cable TV, direct-to-home satellite TV (“DTH” and when we refer to DTH together with cable TV, we use the term “pay-TV”), mobile voice, mobile data, SMS, MFS, fixed voice, and business solutions including value-added services (“VAS”). We provide services on both a business-to-consumer (“B2C”) and a business-to-business (“B2B”) basis, and we have used the Tigo brand in all our markets since 2004. We offer the following principal categories of services: •Mobile, including mobile data, mobile voice, and MFS to consumer, business and government customers; •Cable and other fixed services, including broadband, pay-TV, content, and fixed voice services for residential (Home) customers, as well as voice, data and VAS and solutions to business and government customers. We provide both mobile and cable services in eight countries: Bolivia, Colombia, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Paraguay. In addition, we provide cable services in Costa Rica. In Africa, we previously provided mobile services in Tanzania, which we disposed of in April 2022. In 2021, we also completed the disposal of our Ghana joint venture with Bharti Airtel. These divestitures were part of our strategy to exit Africa to better invest capital in Latin America, and as a result of these transactions, we no longer have any operations in Africa. Additionally, we have a large portfolio of infrastructure across Latin America, including in our Honduras joint venture, which includes 10,900 towers, 12 Tier III data centers and 193,000 kilometers of fiber. We also have an MFS business, Tigo Money, which is currently operating in Paraguay, Guatemala, El Salvador, Bolivia and Honduras. In 2022, we also began preparations for the introduction of our MFS business in Panama. We conduct our operations through local holding and operating entities in various countries, which are either our subsidiaries (in which we are the sole shareholder or the controlling shareholder) or joint ventures with our local partners. For further details, see note A to our consolidated financial statements. In this Annual Report, our description of our operations includes the operations of all of these subsidiaries and joint ventures. 41 As of December 31, 2022, we provided services to 40.6 million mobile customers (45.7 including our Honduras joint venture), including 20.9 million 4G customers, which we define as customers who have a data plan and use a smartphone to access our 4G network. As of that date, we also had 4.8 million customer relationships with a subscription to at least one of our fixed services. This includes 4.1 million customer relationships on our HFC and FTTH networks and 0.5 million DTH subscribers. The majority of the remaining customer relationships are served by our legacy copper network. For the year ended December 31, 2022, our revenue was $5,624 million and our net profit was $129 million. We had approximately 20,000 employees, including our Honduras joint venture. Our strategy Underpinning our strategy is management’s assessment that penetration rates for both mobile and fixed broadband services in our markets are low relative to penetration rates in other markets globally, and that these have potential to increase over time. Based on our own subscriber data of mobile broadband penetration rates, as measured by the number of subscribers who use a smartphone to access mobile data services on 4G networks, were approximately 66% in Bolivia, 57% in Panama, 56% in Colombia, 55% in Paraguay, 53% in El Salvador, 51% in Honduras, 44% in Guatemala, and 38% in Nicaragua as of December 31, 2022. Based on our own customer data and market intelligence, fixed broadband penetration rates, as measured by the number of residential broadband customers as a percentage of households in the country, were approximately 62% in Costa Rica, 55% in Colombia, 47% in Panama, 44% in El Salvador, 42% in Paraguay, 35% in Bolivia, 27% in Guatemala, 25% in Honduras , and 20% in Nicaragua as of December 31, 2022. Pay-TV penetration rates, as measured by the number of pay-TV customers, including DTH, as a percentage of households in the country, were approximately 49% in Costa Rica, 44% in Guatemala, 43% in El Salvador, 42% in Panama, 41% in Colombia, 38% in Paraguay, 34% in Honduras, 22% in Bolivia, and 20% in Nicaragua as of December 31, 2022. Based on the expectation that mobile and fixed broadband penetration rates in our markets will gradually rise over time, management has defined an operational strategy based on the following six principal pillars. Expand Broadband We are moving quickly to meet the growing demand for high-speed data from residential and business customers alike in our Latin American markets. We are doing this by: • Expanding our HFC and FTTH networks: We are rapidly deploying our fixed broadband networks, and we complement our organic network build-out with small, targeted acquisitions. • Increasing our commercial efforts to fill the broadband networks: As we expand the networks, we also deploy commercial resources necessary to begin monetizing our investment by marketing our services to new potential customers. In addition, our fixed broadband networks allow us to sell additional services to existing customers that drive ARPU growth over time. • Product innovation: We drive customer adoption by expanding our range of digital services and aggregating third-party content, as well as some exclusive local and international content, enabling us to differentiate ourselves from our competitors. For example, we have agreements with local soccer teams, leagues and sports channels in Bolivia, Costa Rica, El Salvador, Guatemala, Honduras, Paraguay and Panama to air matches on our pay-TV channels. We are committed to bringing the best content to our customers, and for that we partner with various players in the ecosystem, from studios to Over-the-Top providers (“OTTs”) and sports industry players. Our cable network deployment is also critical to help prepare the company for convergence of fixed and mobile networks and services, a trend we expect will accelerate with the deployment of 5G technology in the future. Monetize Mobile Our mobile networks continue to experience rapid data traffic growth, and we are very focused on making sure that incremental traffic translates into additional revenues. Our mobile monetization strategy is built around several key drivers: • 4G/LTE network expansion: Our 4G networks enable us to deliver high volumes of data at faster speeds in a more cost-efficient manner than with 3G networks. As of December 31, 2022, our 4G networks covered approximately 80% of the population in our markets, an increase from coverage of approximately 73% as of December 31, 2020. 42 • Smartphone adoption: More data-capable smartphone devices, particularly 4G/LTE, with a strong device portfolio and strategy to enable our customers to use data services on the move. • Stimulating data usage: More compelling data-centric products and services to encourage our consumers to consume more data, while maintaining price discipline. Accelerate B2B The expansion of our fixed broadband networks as well as the development of state-of-the-art data centers, analytics, cloud and cybersecurity services is also creating new opportunities for us to target business customers by offering a more complete suite of information and communications technology (“ICT”) services. As of December 31, 2022, we had a total of 12 Tier III data centers across our Latin America footprint, 9 of which are certified according to international standards. Our strategy is to selectively evolve our portfolio into ICT-managed services to avoid excessive fragmentation and operational risk, while building the Tigo Business brand and differentiating ourselves through our service model and frontline execution. We believe that the small and medium-size business (“SMB”) segment represents a particularly attractive opportunity for growth, as SMBs digitize their business and operations using digital communications, and implement cloud and data center solutions in line with what we see in more developed markets. Drive Convergence Millicom has evolved from a traditional mobile operator to a provider of a comprehensive range of services through fixed line, mobile and MFS platforms. Convergence allows us to leverage our existing tangible and intangible assets, such as our network, our brand, and our local talent and market knowledge, to capture business synergies, generate new revenue streams from existing customers, attract new customers and reduce overall churn. Our focus on convergence also reflects our expectation that future network deployments, such as 5G, will require significant fiber network capacity and capillarity, as well as the spectrum, radio and other components of today's mobile network. Go Digital We are focusing on transforming and evolving our customer experience and operations through the digital innovation of products and channels to empower our customers to do everything digital first with the variety of offerings that is available in our digital ecosystem: Mi Tigo, Tigo Money, Mi Tienda, eCare, ONEtv, TigoSports and others. Through Tigo ONEtv, our next-generation user experience platform, we provide an advanced pay-TV entertainment experience for our customers, with sophisticated personalization options and recommendations, seamless integration of content across linear and on-demand offerings, and robust multi-screen capabilities. We also provide a valuable digital user experience through our Mi Tigo App for prepaid, postpaid and home customers, and our Tigo Money app for mobile financial services. Our focus remains firmly set on not only driving the adoption and enjoyment of these digital channels by our customers, but also developing and empowering our customers with Mi Tienda and eCare to increase productivity and customer satisfaction through a user-friendly experience. We are evolving our commercial distribution network to operate digitally, which we believe will improve both customer experience and operational efficiency. To enable a seamless and integrated experience across sales and care touchpoints, we are implementing a business transformation that interlinks user experience, digital innovation, business processes, and our back-end ICT systems. Customer Centricity We are committed to providing the best customer service and experience possible in all of our markets. We have placed customer experience at the center of our decision-making as we continue to innovate across business lines and countries. Our focus has been simplifying how customers interact with us by implementing integrated, digital-first customer service channels. To ensure we continue to improve our service quality, and being mindful of evolving customer demands, we use a variety of tools including customer engagement, local and regional trends, and consumption patterns to identify and improve access channels. 43 We have also adopted and deployed a net promoter score (“NPS”) program, designed to strengthen our customer-centric culture, and NPS is one of the metrics used to measure management performance under our incentive compensation plan. Our services Our services are organized into two principal categories: Mobile and Cable and other fixed services. In addition, we sell telephone and other equipment, comprised mostly of mobile handsets. Mobile In our Mobile category, we provide mobile services, including mobile data, mobile voice, SMS and MFS, to consumers, business, and government. Mobile is the largest part of our business and generated 57% of consolidated service revenue (and 59% of our Group Segment service revenue) for the year ended December 31, 2022 and 50% of our consolidated service revenue (and 59% of our Group Segment service revenue) for the year ended December 31, 2021. We provide Mobile services in every country where we operate, except Costa Rica. As of December 31, 2022, the Group had a total of 40.6 million Mobile customers, and 45.7 million Mobile customers including our Honduras joint venture. Mobile data, mobile voice and SMS We provide our mobile data, mobile voice and SMS services through 2G, 3G and 4G networks in all our mobile markets. 4G is the fourth generation of mobile technology, succeeding 3G, and it is based on Internet Protocol (IP) technology, as opposed to prior generations of mobile communications which were based on and supported circuit-switched telephone service. Our 4G networks enable us to offer services to our customers such as video calls and mobile broadband data with richer mobile content, such as live video streaming. The mobile market has been evolving, with consumption shifting significantly in recent years from voice and SMS to data. Our ongoing deployment of 4G networks, the launch of our 5G network in parts of Guatemala City, Guatemala in 2022, and industry planning for the future deployment of 5G further support this evolution to more data-centric usage. We provide our mobile data, mobile voice and SMS services on both prepaid and postpaid bases. In prepaid, customers pay for service in advance through the purchase of limited-duration data packages, and they do not sign service contracts. Among various options that our customers can choose from, we offer packages that typically begin with a data allowance, and include a combination of voice minutes and SMS, with expiration dates varying in length from one or more days, up to a few weeks or months. In postpaid, customers pay recurring monthly fees for the right to consume up to a predetermined maximum amount of monthly data, voice usage and SMS. In most cases, new postpaid customers sign a service contract with a typical length of one year. MFS We provide a broad range of mobile financial services such as payments, money transfers, international remittances, savings, real-time loans and micro-insurance for critical needs through our MFS App, Tigo Money. Tigo Money allows our customers to send and receive money, without the need for a bank account. As of December 31, 2022, we provided MFS to 5.7 million Tigo and non-Tigo customers, including our Honduras joint venture. 9.8% of our mobile customer base were Tigo Money users as of December 31, 2022. It complements our Mobile and Cable product offering and increases customer satisfaction and loyalty, increasing ARPU and reducing customer churn. We are currently in the process of separating our Tigo Money business from our core telecommunications service operations in order to facilitate the development of new financial and strategic partnerships aimed at accelerating Tigo Money's growth and enhancing its value creation potential. Cable and other fixed services In our Cable and other fixed services category, we provide fixed services, including broadband, fixed voice and pay-TV, to residential (Home) consumers and to government and business (B2B) customers. Cable and other fixed services generated 41% of our consolidated service revenue for the year ended December 31, 2022 and 48% of our consolidated service revenue for the year ended December 31, 2021. Home 44 Our fixed-service residential customers (a “customer relationship”) generate revenue for us by purchasing one or more of our three fixed services, pay-TV, fixed broadband, and fixed telephony. We refer to each service that a customer purchases as a revenue generating unit (“RGU”), such that a single customer relationship can have up to three RGUs in countries where we are permitted to sell all three services. We provide Home services mainly over our HFC and FTTH networks, but we also offer pay-TV services via our DTH platform and broadband services using FWA and copper-based technologies in some markets. Although most of our customers currently choose to receive broadband speeds on average of 100 Mbps, the HFC networks we are rolling out are based on DOCSIS 3.0 and allow us to offer speeds of up to 400 Mbps on our current infrastructure, which gives us scope to significantly raise our customers’ broadband speeds over time. As we retire analog channels over time, our HFC network infrastructure allows us to offer faster speeds. We have rolled out DOCSIS 3.1 in some markets, which allows us to offer speeds of up to 1 Gbps. We have also begun to deploy FTTH in some markets as part of our greenfield fixed-network expansion, and we include FTTH network and customer metrics as a subset of our HFC network and customer metrics. We provide Home services in every country where we operate. As of December 31, 2022, the Group had 4.8 million customer relationships, of which 4.1 million were connected to our HFC and FTTH networks, and we had 9.5 million RGUs, including 3.8 million broadband RGUs on our networks. We provide our Home services on a postpaid basis, with customers paying recurring monthly subscription fees. In most markets, we offer bundled fixed services, such as our triple-play offering of pay-TV, broadband internet and, where possible, fixed telephone. On average, our Home customers typically contract more than one fixed service from us. In some markets, we also market our services on a convergent basis, bundling both fixed and mobile services, to a very small portion of our total customer base. B2B fixed We offer fixed-voice and data telecommunications services, managed services and cloud and security solutions to small, medium and large businesses and governmental entities. We offer B2B fixed services in all of the markets in which we operate. We believe that B2B fixed provides a significant growth opportunity for Millicom driven by the changes in working habits and business models. These changes are creating additional growth opportunities through the adoption of cloud information technology, security and new software defined networks. We expect that the ongoing expansion of our fixed broadband networks will help to make us more competitive and increase our share of the B2B fixed market over time. In addition, as we expand our fixed networks throughout our markets, we can better compete for large enterprise and government contracts that typically require a national presence, and we will be better placed to offer fixed, mobile and other value-added services, such as cloud-based services and data center capacity. We already see evidence of this in Colombia and Panama, where we have more extensive fixed networks than in our other markets, and where the proportion of revenue we generate from B2B fixed is significantly larger than in our other countries. We have already deployed approximately 193,000 kilometers of fiber in our markets, including our Honduras joint venture, and we are expanding our product portfolio to deliver more VAS and business solutions, such as cloud-based services and ICT managed services. In 2019, we inaugurated a Tier 3 certified data center in Honduras, which further strengthened our ability to better serve SMBs and large enterprise customers that require robust infrastructure and redundancy to achieve their own operational efficiency goals and meet business continuity needs. We have also established partnerships in the area of hypercloud, virtualization and Internet of Things, to capture the growth in the adoption of these technologies and help our customers accelerate their digital transformations. Our markets Overview The Millicom Group’s risks and rates of return for its operations are predominantly affected by operating in different geographical regions. Until the divestiture of our Tanzania business in April 2022, the Millicom Group had businesses in two main regions, Latin America and Africa, which constituted our two reportable segments. As a result of the sale of the Tanzania business and its reclassification as discontinued operations, we no longer report an Africa segment in our financial statements included elsewhere in this Report. The Group now only operates in a single region, Latin America. See “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Our segments.” 45 The markets we serve are Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Paraguay. We provide Cable and other fixed services in each of these markets, and we provide Mobile services in each market except for Costa Rica. Millicom Group For the years ended December 31, 2022 and 2021, we generated revenue of $5,624 million and $4,261 million , respectively. We provide mobile services in seven countries in Latin America. As of December 31, 2022, we had a total of 40.6 million Mobile customers, a 1.9% increase from December 31, 2021 mainly due to new postpaid customers, mostly in Colombia where we have recently upgraded our network. As of December 31, 2022, our Cable business had a network that passed 12.9 million homes and had 4.8 million customer relationships, a 2.3% increase from December 31, 2021 mainly due to increased demand for broadband services. An important recent trend in the Latin American telecommunications market has been the growth in fixed broadband penetration. We have significantly increased the coverage of our fixed networks largely in response to demand for high-speed fixed broadband services. As of December 31, 2022, our HFC and FTTH networks passed 12.6 million homes, a 7.0% increase from December 31, 2021 (11.8 million), and had 4.1 million customer relationships, a 3.8% increase from December 31, 2021. The following chart shows the relative revenue generation of each country in our Group for 2022: 46 Millicom's Mobile, Broadband, and Pay-TV Operations(1) (1) The data presented here is based on subscriber numbers as of December 31, 2022 and reflects the Millicom's experience and our investigation of market conditions. In Panama, the data presented does not reflect the impact of Liberty Latin America's acquisition of América Móvil, as the companies had not merged as of December 31, 2022. The number of market players in each country reflects only large national network operators and excludes smaller players, and Millicom's position is based on total market share by subscribers. Millicom has minority partners in Colombia (50%) and a joint venture partner in Honduras (33%), with the latter accounted for in the Group's consolidated financial statements using the equity method. Bolivia We provide Mobile and Cable and other fixed services through Telefónica Celular de Bolivia S.A., which is wholly owned by the Millicom Group. We have operated in Bolivia since 1991. Mobile: As of December 31, 2022, we served 3.7 million subscribers and were the second largest provider of Mobile services in Bolivia, as measured by total subscribers. Cable and other fixed: As of December 31, 2022, we were the largest provider of broadband and pay-TV services in Bolivia, as measured by subscribers, and we had 720,000 customer relationships. We offer broadband services through HFC and FTTH, and we provide pay-TV primarily through HFC, FTTH, and DTH in Bolivia. Colombia We provide Mobile and Cable and other fixed services in Colombia through UNE, in which we own a 50% plus one voting share interest and Colombia Móvil S.A., which is a wholly owned subsidiary of UNE. We have operated in Colombia through Colombia Móvil S.A. since 2006 and acquired our interest in UNE, with which we had previously 47 co-owned Colombia Móvil S.A., via a merger in 2014. On May 25, 2021, our minority partner in Colombia, EPM, announced that it intends to pursue a potential sale of its stake in our Colombian operations. If approved by the Medellin town council, the sale process would begin, following the rules prescribed under Colombia's Law 226 and as dictated by our shareholder agreement. Mobile As of December 31, 2022, we served 11.5 million subscribers and were the third largest provider of Mobile services in Colombia, as measured by subscribers. Cable and other fixed services: Tigo is one of the principal digital cable operators in Colombia. As of December 31, 2022, we were the second largest provider of pay-TV and broadband internet services in Colombia, as measured by subscribers, with 1.8 million customer relationships. We have been investing to expand the reach of our fixed network and to upgrade our copper network to HFC and FTTH. By extending the reach of our HFC and FTTH networks in areas historically served by our copper network, we can gradually migrate our copper customers onto these new networks, thus significantly enhancing the customer experience by expanding the range of products and services they can choose from, including the availability of faster broadband speeds. In July 2022, we announced wholesale network access agreements with Empresa de Telecomunicaciones de Bogota ("ETB") and Ufinet, giving Tigo customers access to their FTTH networks in Bogota. In Colombia, we also use DTH to provide pay-TV services to customers located outside of our HFC and FTTH network coverage area. Costa Rica We provide Cable and other fixed services in Costa Rica through Millicom Cable Costa Rica S.A. ("Millicom Costa Rica"), which is wholly owned by the Millicom Group. We have operated in Costa Rica since our acquisition of Amnet in 2008. Amnet and its predecessor companies began operating in Costa Rica in 1982, and the company was the first to provide pay-TV services in the country. Cable and other fixed services: As of December 31, 2022, we had 247,000 customer relationships through our HFC network and DTH services, and we were the second largest provider of pay-TV and the fourth largest provider of broadband internet services in Costa Rica, as measured by subscribers. El Salvador We provide Mobile and Cable and other fixed services in El Salvador through Telemóvil El Salvador, S.A. de C.V. (“Telemóvil”), which is wholly owned by the Millicom Group. We have operated in El Salvador since 1993. Mobile: As of December 31, 2022, we served 3.0 million subscribers and were the largest provider of Mobile services in El Salvador as measured by subscribers. Cable and other fixed services: Telemóvil is a leading cable operator in El Salvador. As of December 31, 2022, we were the second largest provider of pay-TV and the second largest provider of broadband internet services, as measured by subscribers, with a total of 299,000 customer relationships on our HFC network and DTH services. Guatemala We provide Mobile and Cable and other fixed services in Guatemala, principally through Comunicaciones Celulares S.A. ("Comcel"). On November 12, 2021, we signed and closed an agreement to acquire the remaining 45% equity interest in Comcel and the other entities that operate our Guatemala business from our local partner. As a result, Millicom owns a 100% equity interest in the entities that operate our Guatemala business and fully consolidates them since that date (see note A.1.2. to our audited consolidated financial statements for additional details). We have operated in Guatemala since 1990. Mobile: As of December 31, 2022, we provided Mobile services to 11.8 million customers and were the largest provider of mobile services in Guatemala, as measured by subscribers. In 2022, we became the first mobile operator in the country to launch 5G services. Cable and other fixed services: As of December 31, 2022, we were the largest provider of pay-TV and broadband internet services in Guatemala, as measured by subscribers, and we served 723,000 customer relationships with both HFC and FTTH networks, as well as DTH services. Honduras 48 We provide Mobile and Cable and other fixed services in Honduras through Telefónica Celular S.A. de C.V. (“Celtel”), a joint venture in which the Millicom Group holds a 66.67% equity interest. The remaining 33.33% of Celtel is owned by our local partner. See “Item 5. Operating and Financial Review and Prospects—A. Operating Results— Guatemala and Honduras joint ventures” for details regarding the accounting treatment of our Honduras operations. We have operated in Honduras since 1996. Mobile: As of December 31, 2022, we served 5.2 million Mobile subscribers, and we were the largest provider of Mobile services, as measured by subscribers. Cable and other fixed services: As of December 31, 2022, we were the second largest provider of Pay TV and the largest provider of broadband internet services, as measured by subscribers, with 196,000 customer relationships. We offer triple-play services (cable TV, internet and fixed telephone) using our HFC network in Honduras, and we also offer DTH, expanding the reach of our pay-TV offering to areas not covered by our HFC network. We continue to invest to expand and upgrade the capacity of our HFC network in Honduras. Nicaragua In 2019, we purchased Telefonía Celular de Nicaragua, S.A., the leading provider of Mobile services in the country, based on the number of subscribers. As of December 31, 2022, we served 3.9 million mobile subscribers. Prior to 2019, we had a very small presence in Nicaragua, where we provided mostly B2B fixed services using our HFC and FTTH network. We have also provided Cable services to a small but rapidly growing customer base since 2018, and we are the third largest provider of pay-TV and the second largest provider of broadband services, as measured by subscribers. Panama We provide Mobile and Cable and other fixed services in Panama through Telecomunicaciones Digitales, S.A., formerly known as Cable Onda S.A. ("Tigo Panama"). We have operated in Panama since our acquisition of an 80% stake in Tigo Panama in December 2018. In June 2022, we acquired the remaining 20% stake and now own 100% of Tigo Panama. Tigo Panama and its predecessor companies began operating in Panama in 1982, and the company was the first to provide pay-TV services in the country. In 2019, Tigo Panama acquired Grupo de Comunicaciones Digitales S.A. (formerly Telefónica Móviles Panamá, S.A.) and started to provide Mobile services. Mobile: As of December 31, 2022, we had 2.4 million Mobile subscribers, and we were the largest provider of Mobile services in Panama, as measured by total mobile subscribers. Cable and other fixed services: As of December 31, 2022, we had 467,000 customer relationships on our HFC and FTTH network as well as through DTH services, and we were the largest provider of pay-TV and the largest provider of broadband internet services in Panama, as measured by subscribers. Paraguay We provide Mobile and Cable and other fixed services in Paraguay through various subsidiaries which are all wholly owned by the Millicom Group. Our largest subsidiary in Paraguay is Telefónica Celular del Paraguay S.A. ("Telecel"). We have operated in Paraguay since 1992. Mobile: As of December 31, 2022, we had 4.3 million Mobile subscribers, and we were the largest provider of Mobile services in Paraguay, as measured by total mobile subscribers. Cable and other fixed services: We are the largest provider of pay-TV and broadband internet services in Paraguay as measured by subscribers. As of December 31, 2022, we had 497,000 customer relationships with our HFC and FTTH networks, DTH, and, to a much lesser extent, other technologies. We offer pay-TV services primarily using our HFC network, and we use our DTH license to offer pay-TV in areas not reached by our HFC and FTTH networks. We offer residential broadband internet services mostly using our HFC and FTTH networks, but we also employ fixed wireless technology to provide service beyond the reach of our HFC and FTTH networks. We have exclusive rights to broadcast Paraguay’s national league championship games through 2023, and we have exclusive sponsorship rights in telecommunications for the Paraguayan National Soccer Team through 2023. Regulation 49 The licensing, construction, ownership and operation of cable TV and mobile telecommunications networks and the grant, maintenance and renewal of cable TV and mobile telecommunications licenses, as well as radio frequency allocations and interconnection arrangements, are regulated by different governmental authorities in each of the markets that Millicom serves. The regulatory regimes in the markets in which Millicom operates are less developed than in other countries such as the United States and countries in the European Union, and can therefore change quickly. See “Item 3. Key Information—D. Risk Factors—2. Risks related to Millicom's business in the markets in which it operates—F. Legal and regulatory—Developing legal systems in the countries in which we operate create a number of uncertainties for our businesses.” Typically, Millicom’s cable and mobile operations are regulated by the government (e.g., a ministry of communications), an independent regulatory body or a combination of both. In all of the markets in which Millicom operates, there are ongoing discussions and consultation processes involving other operators and the governing authorities regarding issues such as mobile termination rates and other interconnection rates, universal service obligations, interconnection obligations, spectrum allocations, universal service funds and other industry levies and number portability. This list is not exhaustive; such ongoing discussions are a typical part of operating in a regulated environment. Changes in regulation can sometimes impose new burdens on the telecommunications industry and have a material impact on our business and on our financial results. For example, regulators in our markets periodically require that we reduce the interconnection fees that we charge other telecom operators to terminate voice traffic on our network. At times, such measures can have a material adverse effect on our overall results of operation. For example, in light of the outbreak of the COVID-19 pandemic in 2020, governments in several of our markets prohibited the disconnection of customers with past due accounts for an extended period, which impacted our revenues and collections. The mobile services we provide require the use of spectrum, for which we have various licenses in each country where we provide mobile services. Spectrum licenses have expiration dates that typically range from 10 to 20 years. Historically, we have been able to renew our licenses upon expiration by agreeing to pay additional fees. We generally expect to continue to renew most of our current licenses as they expire, and we expect to acquire new spectrum licenses as they become available in the future. The table below summarizes our most important current spectrum holdings by country: 50 Country Spectrum Blocks Expiration date Bolivia 700MHz 2x12MHz 2028 Bolivia 850MHz 2x12.5MHz 2030 Bolivia AWS 2x15MHz 2028 Bolivia 1900MHz 2x10MHz 2028 Bolivia 27GHz 575Mhz 2031 Colombia 700MHz 2x20MHz 2040 Colombia AWS 2x15MHz 2023 Colombia 1900MHz 2x5MHz 2029 Colombia 1900MHz 2x20MHz 2023 El Salvador 850MHz 2x12.5MHz 2038 El Salvador AWS 2x25MHz 2040 El Salvador 1900MHz 2x5MHz 2041 El Salvador 1900MHz 2x5MHz 2028 Guatemala 850MHz 2x24MHz 2032 Guatemala 700MHz 2x5MHz 2033 Guatemala 700MHz 1x20MHz 2033 Guatemala 2600MHz 2x10MHz 2032 Guatemala 2600MHz 1x25MHz 2033 Guatemala 2600MHz 1x3.3MHz 2034 Guatemala 3500MHz 1x75MHz 2033 Guatemala 3500MHz 1x50MHz 2033 Honduras 850MHz 2x25MHz 2028 Honduras AWS 2x20MHz 2028 Nicaragua 700MHz 2x20MHz 2033 Nicaragua 850MHz 2x12.5MHz 2033 Nicaragua 1900MHz 2x30MHz 2033 Nicaragua AWS 2x20MHz 2033 Panama 700MHz 2x10MHz 2036 Panama 850MHz 2x12.5MHz 2036 Panama 1900MHz 2x10MHz 2036 Panama AWS 2x20MHz 2036 Paraguay 850MHz 2x12.5MHz 2026 Paraguay 700MHz 2x15MHz 2023 Paraguay AWS 2x15Mz 2026 Paraguay 1900MHz 2x15MHz 2027 Paraguay 3500MHz 2x50MHz 2024 Below, we provide further regulatory details in respect of certain of our countries of operation. Bolivia: We hold a license to provide telecommunication services in Bolivia until 2051, mobile service authorization and spectrum licenses until 2030, and cable, VOIP and internet authorizations until 2028. Colombia: Colombia Móvil has two separate nationwide spectrum licenses in the 1900 MHz band. In June 2013, Colombia Móvil, acquired spectrum in the AWS (1700/2100 MHz) band, which we use to offer 4G services. In order to reduce the cost and accelerate the deployment of the 4G network, we entered into a network sharing agreement 51 with our competitor, Telefónica Colombia. Colombia Móvil also has an indefinite license (Habilitación General) that allows the company to offer several nationwide telecommunication services. In August 2019, the President of Colombia sanctioned the Law of Modernization of the Information Technology and Communications Sector which, among other changes, changed the duration of spectrum permits from 10 to 20 years. The Colombian government auctioned 700 MHz spectrum in 2019, and we obtained 2x20 MHz in this band, which was key for our business to compete effectively in the market. In 2023, our AWS and 1900 MHz spectrum licenses expire, and we and the broader industry are jointly discussing renewal terms with the government. In 2019, our cable TV license was successfully migrated to the indefinite license (Habilitación General) to provide telecommunication services in Colombia, in accordance with the new law. Costa Rica: We hold a general license to provide telecommunication services which expires in 2024, and a spectrum permit to download content for cable TV services which expires in 2029. El Salvador: In 2017 and 2018, Telemóvil successfully renewed all of its spectrum licenses. In December 2019, the regulator completed an auction for AWS spectrum in which we acquired 5 blocks totaling 2x25MHz of bandwidth. Guatemala: Comcel operates a nationwide mobile network, and it holds spectrum licenses that begin to expire in 2032. In recent years, the regulator has discussed the possibility of auctioning additional spectrum and the government announced its intent to move forward with an auction in the 700MHz band during 2021, but the process has been delayed due to legal challenges. Honduras: Celtel has spectrum licenses in the 850 MHz and AWS bands, which expire in 2028. The Honduran government has been planning an auction of multiband frequency spectrum in the 700 MHz and 3,500 MHz bands. The auction has been delayed several times since its approval in 2016, most recently due to the COVID-19 pandemic and now as result of the change of authorities given the introduction of a new government. Panama: We hold two cable TV licenses that expire in 2024, a radio license that expires in 2025 and two commercial data transmission licenses and an Internet for public access license that expire in 2038. We own 2x32.5 MHz in line with the rest of market competitors in 700MHz, 850MHz and 1900MHz bands. During the onset of the COVID-19 pandemic, temporary spectrum licenses were assigned at no cost for all mobile operators. We acquired this spectrum permanently in the AWS band in 2022. Paraguay: We own licenses in four bands of spectrum in Paraguay to provide mobile services, and these give us access to low, mid, and high frequencies, which provide an optimal mix to allow us to offer high-quality network coverage and give us the ability to increase network capacity to meet growing traffic demand needs. We also own spectrum in the 3.5GHz band to provide FWA services. Trademarks and licenses We own or have rights to some registered trademarks in our business, including Tigo®, Tigo Business®, Tigo Sports®, Mi Tigo®, Tigo Shop®, Tigo Money®, Tigo OneTv ®, Millicom® and The Digital Lifestyle®, among others. Under a number of trademark license agreements and letters of consent, certain operating subsidiaries are authorized to use the Tigo and Millicom trademarks under the applicable terms and conditions. 52 C. Organizational Structure The parent company, Millicom International Cellular S.A. ("MIC S.A."), is a Luxembourg public limited liability company (société anonyme). The following table identifies MIC S.A.’s main subsidiaries as of December 31, 2022: Entity Country Activity Ownership Interest* (%) Telemóvil El Salvador S.A. de C.V. El Salvador Mobile, MFS, Cable, DTH 100 Millicom Cable Costa Rica S.A. Costa Rica Cable, DTH 100 Telefónica Celular de Bolivia S.A. Bolivia Mobile, DTH, MFS, Cable 100 Telefónica Celular del Paraguay S.A. Paraguay Mobile, MFS, Cable, Pay-TV 100 Telecomunicaciones Digitales, S.A. (formerly Cable Onda S.A.) Panama Cable, Pay-TV, Internet, DTH, Fixed-line 100 Grupo de Comunicaciones Digitales, S.A. (formerly Telefónica Móviles Panamá, S.A.) Panama Mobile 100 Telefonía Celular de Nicaragua, S.A. Nicaragua Mobile 100 Colombia Móvil S.A. E.S.P. Colombia Mobile 50-1 share UNE EPM Telecomunicaciones S.A. Colombia Fixed-line, Internet, Pay-TV, Mobile 50-1 share Edatel S.A. E.S.P. Colombia Fixed-line, Internet, Pay-TV, Cable 50-1 share Comunicaciones Celulares S.A. Guatemala Mobile, MFS 100 Navega.com S.A. Guatemala Cable, DTH 100 Millicom International Operations S.A. Luxembourg Holding Company 100 Millicom International Operations B.V. Netherlands Holding Company 100 Millicom Telecommunications S.A. Luxembourg Holding Company 100 InfraCo S.A. Luxembourg Holding Company 100 Millicom LIH S.A. Luxembourg Holding Company 100 MIC Latin America B.V. Netherlands Holding Company 100 Millicom Holding B.V. Netherlands Holding Company 100 Millicom International Services LLC USA Services Company 100 Millicom Services UK Ltd UK Services Company 100 Millicom Spain S.L. Spain Holding Company 100 * Also reflects the voting interest, except in Colombia where voting interest is 50% + 1 share for each of the three entities. In addition, we provide services in Honduras through Celtel, a joint venture in which MIC S.A. indirectly holds a 66.67% equity interest. We entered into our joint venture in Honduras at the inception of this business in the 1990s. At that time, Millicom had limited sources of capital and was investing heavily to deploy mobile operations in many countries around the world; this partner provided local market expertise and reduced Millicom’s overall capital needs. Despite the fact that Millicom owns more than 50% of the shares of this entity and has the right to nominate a majority of the directors, all decisions taken by the board or the shareholders in Honduras must be taken by a super-majority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over our joint venture in Honduras. 53 D. Property, Plant and Equipment Overview We own, or have the right to access and use through long-term leases, telecommunications sites and related infrastructure and equipment in all of our markets. In addition, we own, or have the right to access and use through long-term leases, tower space, warehouses, office buildings and related telecommunications facilities in all of our markets. We are also party to several site sharing agreements whereby we share our owned telecommunications sites and related infrastructure and equipment, or lease such property from our counterparties in an effort to maximize the use of telecommunications sites globally. Our leased properties are owned by private individuals, corporations and sovereign states. Assets used for the provision of cable TV and mobile telephone services include, without limitation: • switching, transmission and receiving equipment; • connecting lines (cables, wires, poles and other support structures, conduits and similar items); • diesel generator sets and air conditioners; • real property and infrastructure, including telecommunications towers, office buildings and warehouses; • easements and other rights to use or access real property; • access roads; and • other miscellaneous assets (work equipment, furniture, etc.). Tower infrastructure In some of our markets, we have determined that owning passive infrastructure, such as mobile telecommunications towers, no longer confers a competitive advantage. As a result, we completed a number of sale and lease-back transactions involving some of our tower assets. These transactions have allowed us to focus our capital investment on other fixed assets, such as network equipment, thereby increasing our network coverage, capacity and the overall quality of our service, while also improving our return on invested capital. We continue to own a significant number of towers in some of our markets, especially in Central America, Bolivia, Colombia and Paraguay, and we continuously assess the merits of entering into new sale and lease-back agreements, based in part on the competitive dynamics in our markets, but also on demand and investment appetite by tower companies. There were no sale and leaseback transactions in 2022, 2021 or 2020. We are currently in the process of creating one or more legal entities to separate our towers, and possibly other infrastructure assets such as data centers and fiber optic networks, from our core telecom service operations, with the goal of optimizing both the utilization and capital structure for these fixed assets. In the future, we may choose to sell a minority equity interest or pursue a complete divestiture of these assets. For additional information, see note E.3. to our audited consolidated financial statements included elsewhere in this Annual Report.