Telmex

Teléfonos de México (), better known as Telmex, is a Mexico telecommunications company that provides telecommunication products and services in Mexico and in many parts of Latin America, such as Argentina, Brazil, Chile, Colombia, and Peru, and in North America to the United States. In addition to traditional fixed-line telephone service, Telmex also offers Internet access.

=History=

Telmex was founded in 1947 when a group of Mexican investors bought Swedish Ericsson s Mexican branch. In 1950 the same investors bought the Mexican branch of the International Telephone and Telegraph Company, thus becoming the only telephone provider in the country. In 1972 the Mexican government bought the company, turning it into a government monopoly. From 1972 to until its privatization in 1990, Telmex invested little in the country s infrastructure. As a result, it was all but impossible to procure a phone line to one s home.

In 1990, president Carlos Salinas de Gortari decided to sell many state owned companies, with a view towards improving infrastructure and services. Telmex was sold to a group of investors formed principaly by Carlos Slim, France Télécom, SBC Communications. Their tender was the largest. However, controversially, the payment itself took place over the course of the next several years, using money earned by the phone service.

After privatization, Telmex began investing in new, modern infrastucture, creating a nationwide optic fiber network, and offering service in most of the country.

In 1991, the Mexican government sold its remaining stock in Telmex.

=Telmex Cellphone Mobile Unit=

In the 1990s mobile telephones were becoming popular among the general population. The early market leader was Iusacell, and Telmex had no presence in the market. This prompted Telmex to form a subsidiary to provide mobile communications. The subsidiary was Radio Móvil Dipsa, and offered service under the brand Telcel. Telcel started out in a distant second place in its mobile market, but in 1995 everything changed, when the Mexican Currency Crisis hit many Mexicans hard. Iusacell decided to stay with rich customers, offering expensive plans, whereas Telcel began to offer the first prepaid mobile phone plans. Although, in effect, just as expensive as the contracts offered by Iusacell, the success of its prepaid plans ultimately provided Telcel the growth needed to become the leader in the mobile market within two years.

=Internet=

In the mid 1990s Telemex started providing internet access as an Internet Service Provider with the brand Uninet. A year later, they changed the brand to Telmex Internet Directo y Personal (Telmex Direct Personal Internet). In 1996, Telmex owner, Carlos Slim, bought Prodigy (ISP) and took the brand to Mexico, renaming the service Prodigy Internet de Telmex. Thanks to their national coverage, Telmex rapidly became the leading national ISP. As of 2005, Telmex holds more than 80% of the market as ISP, and is also the leader in broadband access with its brand Prodigy Infinitum (DSL).

In 2001, Telmex sold the US branch Prodigy Communications to SBC, which was dubbed SBC Prodigy. However, Telmex continues to own and operate Prodigy in Mexico.

In 2004 Telmex claimed that the number of users of Prodigy Internet grew by 190%.

=Long Distance Competition=

In the mid 1990s, AT&T and Worldcomm (MCI), among others, began operating in Mexico, representing for the first time serious competition to Telmex. However, due to Telmex incumbent monopoly position and well-developed infrastructure and coverage, none of them were believed to pose much threat to Telmex.

=América Móvil was Born=

In 2000, Telmex spun off their mobile unit, creating América Móvil, which controls Telcel and would be free to develop as its own business as an independent entity. It started with 80% of the mobile market. Many people incorrectly continue to believe that América Móvil is part of Telmex. Instead, both are sister companies under parent Carso Global Telecom, which is part of Grupo Carso.

=Expansion=

After spinning off América Móvil, Telmex started an expansion plan, which started with the purchase of Guatemala s Telgua. Later, Telmex bought former state owned phone companies in Central America, and began operations in the USA with Telmex USA.

In 2004, Telmex bought then bankrupt AT&T Latin America, giving it presence in Colombia, Peru, Chile, Argentina, Brazil, and Uruguay, and increased reach in the United States. In the same year, Telmex bought Brazil s largest and most important long distance operator, Embratel. In the USA, Telmex bought 13.4% of bankrupt MCI.

In Brazil, Telmex operations expand beyond Embratel, due to its acquisition of BCP, a cellular service operator. Telmex continues to operate BCP under the Claro brand.

In 2005, Telmex sold its holdings in MCI to Verizon.

As of August 2005, Telmex continues buying assets in Latin America and in the USA.

=External links=

*[http://www.telmex.com Official Site]