Telefonos de Mexico (Telmex)

active

Telefonos de Mexico (Telmex) was the state owned company of Mexico which provided local, national, and international long distance services in the whole country. The privatization of Telmex started in 1990 when a 20.4% stake was sold for US$ 1,757 million to a consortium integrated by Grupo Carso (Mexico), France Telecom, and Southwestern Bell International Holdings, a subsidiary of SBC. In a second transaction, a 15.7% stake was sold through domestic and international public offerings for some US$ 2,170 million in 1991. That year, SBC also exercised its option to buy 5.1% stake for US$ 467 million. The Mexican government sold an additional 4.7% stake for US$ 1,500 million through domestic and international public offerings in 1992. The government sold 3.3% stake for US$ 1,000 million in 1993 and the remaining 1.5% stake for US$ 550 million in January 1994. By 1998, Grupo Carso controlled the company. France Telecom had 6 percent of Telmex, SBC Communications had 10 percent. In 2005 the ownership structure comprised Carsco Telecom (49.1 percent), SBC Communications (8.6 percent), other Mexican investors (1.5 percent) and minority shareholder (40.8 percent). Telmex received a six year exclusivity period to operate basic local, national and international phone services. In exchange, Telmex committed to increase by 10% the installed lines during the period of exclusivity. Telmex also committed to install a public phone in any rural town inhabitants of 500 or more. In addition, Telmex was obliged to dramatically improve service quality in aspects such as completion for calls, repair response time, operation response time, waiting time for obtaining a new line, among other aspects. Telmex also agreed with the government to progressively eliminate the cross-subsides from long distance to local services. The company obtained one of the two bands to provide cellular phone services to the whole country. Telmex, under the trademark Telcel, competes with different regional companies in the cellular market since early 1990s. Telmex was also awarded, through a competitive bidding process, one band of 1990 MHz in all nine regions for personal communications services and for two bands of 3.4 and 3.7 GHz in all regions for wireless local loop services in 1998. Telmex increased the number of installed fixed phone lines from 790,000 to 12 million between 1990 and 2000. The company dramatically increased its cellular phone service, which had 10.5 million subscribers by February 2001. In 2005, Siemens AG's Siemens Communications, Inc. was chosen by Telmex, to deploy its Surpass Next Generation Networks solution and Ciena Corp. for the provision of fiber optic telecommunications equipment. As of December 31, 2011, America Movil controlled 97.2% of Telmex through direct and indirect ownership. breadband is not included in connections By 2005, Telmex owned 28400 km of fiber optic for long distance services.