Innocents abroad: U.S. phone giants find Telmex can be a bruising competitor; Mexican carrier exploits cultural political edge to stymie AT&T, MCI; new accounts in Tucson
Article Abstract:
AT&T and MCI had high hopes when they began to compete for business in Mexico in 1997, but so far, Telefonos de Mexico has beaten them out at every turn. Telmex, formerly a state-owned monopoly, has been transformed since the start of the decade. The company was privatized in 1991, and billions have been spent to overhaul its once-antiquated infrastructure, which is now 90% digital. AT&T and MCI WorldCom have invested about $2 billion in joint ventures, hoping to use Mexico as a showcase example for pushes into other developing countries. Telmex has responded by pricing its services aggressively and making skillful use of Mexican legal and regulatory arrangements. Moreover, despite opposition from AT&T and MCI WorldCom, Telmex has won FCC approval to offer services in the US through a joint venture with Sprint Corp. In 1997, Telmex earned $159 billion on revenue of $7.53 billion.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Taking on Telmex; foreign companies are poised to enter the Mexican market. First, they want to know the rules
Article Abstract:
Domestic and foreign telecommunications companies are positioning themselves to enter the Mexican market as the monopoly of Telefonos de Mexico SA reaches its expiration date. Mexico's telephone system, which has been a drain on the whole economy, is expected to boom as deregulation takes effect. However, those wishing to enter the market are still unsure about the rules and fees that will be imposed by the government. Mexican government officials are looking to the licensing sales as a way to bring in millions, or even billions, of dollars. Although officials claim the licensing fees will not be cheap, they also want to avoid scaring away foreign investors by making the fees too high. The Mexican market is especially attractive because of the enormous amount of telephone traffic between Mexico and the US, and because there is plenty of room for development.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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MCI, British Telecom plan expansion of corporate Internet services globally
Article Abstract:
MCI Communications and British Telecommunications PLC (BT) are planning to supply corporate Internet services for the international market. The plan includes the creation of network facilities that will allow business customers to access the Internet directly via local computer centers run MCI and BT, its 20% owner and international-services partner. The MCI-BT partnership will create new offerings and service guarantees for business clients. As part of a push into the Asian market, MCI-BT executives are working with a major Japanese distributor of the Internet services, NTT Data. While the two companies are likely to face increasing pressure from other phone rivals interested in serving multinational clients, MCI and BT's early service offerings place them at the forefront of the international telecom effort.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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