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.............................. Telmex Telefonos de Mexico
Logo and Trademark..............................
Teléfonos de México S.A.B. de C.V. (NYSE: TMX), better known as Telmex, is a Mexican telecommunications company that provides telecommunication products and services in Mexico and in many parts of Latin America, such as Argentina, Brazil, Chile, Colombia, Peru and even in the United States. In addition to traditional fixed-line telephone service, Telmex also offers Internet access, data and hosted services. 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 ITT Corporation 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 principally by Carlos Slim, France Télécom, & Southwestern Bell Corporation. Their (SBC's) 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 infrastructure, 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. Although Telmex is now a private company it stills remains as a quasi-monopoly. There are few other telephone companies in Mexico, AT&T - Alestra, Axtel and Maxcom. Telmex is the 2nd most complained-about provider in PROFECO (Mexico's Consumer Commission).
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.
In 2000, Telmex spun off their mobile unit, creating América Móvil, which controls Radio Móvil Dipsa 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. Carso Global Telecom is itself a sister conglomerate of Grupo Carso.
In the mid-1990s Telmex began providing Internet access as an Internet Service Provider with the brand Uninet. A year later, they changed the brand to Telmex Internet Directory Personal (Telmex Direct Personal Internet). In 1996, Telmex' owner, Carlos Slim, bought Prodigy Communications 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 (ADSL).
In 2001, Telmex sold the U.S. 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%.
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