Telefonos de Mexico makes promising start on a daunting task: rewiring a nation

Article Abstract:

The newly privatized Mexican telephone monopoly Telefonos de Mexico (Telmex) is implementing new technology and reorganizing managerial ranks while continuing to make money, despite relatively inadequate service and availability. Carlos Slim, the man in control of the utility, is the main force behind the renovations, which include the replacement of analog lines with digital lines, construction of an 8,000-mile fiber optic line connecting 54 cities, integration of computerized systems, construction of new garages that have multiple exits and the building of phones inside stores where fewer vandals can tamper with the phones. Telmex still has many problems including long waits for phone replacement, repair delays and crossed lines. Nonetheless, the company stock climbed 237 percent in 1991; Telmex is expected to report a 60 percent rise in profit to $1.8 billion.

Radiotelephone communications, Telecommunications systems, TFONY, Telephone systems, Telephone System, Reorganization

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Mexico to privatize its telephone system: sale of 54% could bring as much as $6 billion

Article Abstract:

Mexico is developing the operating concession and other guidelines for the privatization of Telefonos de Mexico S.A. (Telmex). The Mexican government plans to divest 54% of the state telephone company either by securities transfers through public offerings or a 'debt-for-equity swap.' The preference is for a consortium consisting of at least one foreign operator and Mexican investors, which must retain majority control. The Bell Regional Holding Companies are likely to consider the Telmex investment attractive but may be barred from participating by the terms of the agreement that broke up AT&T. Other interested foreign companies include GTE Corp. and Cable & Wireless PLC. The attractiveness of the sale may be affected by the competition posed by similar privatization procedures being undertaken by other governments.

Laws, regulations and rules, Economic policy, Telecommunications Industry, Securities Transfer

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Winner of Mexico's phone firm signals new style of capitalism

Article Abstract:

Southwestern Bell Corp, Grupo Carso and France Telecom Inc together paid $1.76 billion to acquire a 20.4 percent controlling stake in Mexican telephone company Telefonos de Mexico SA (Telmex). The group is led by Carlos Slim, a Mexican businessman. The decision by the Mexican government to sell off the state-owned telephone company represents a new style of capitalism. Telmex is the largest company to be privatized in Latin America, and its exposure to market forces will require it to become efficient and profitable. Mexican businesses have long been protected from competition but the erosion of that protection between 1985 and 1990 dawns a new age.

Services, Corporations, SBC, Southwestern Bell Corp., Acquisition, Corporations, Mexican, Grupo Cuervo S.A. de C.V., France Telecom Inc.

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