Telmex

Telmex, short for Teléfonos de México, is a Mexican telecommunications company and brand headquartered in Mexico City. Its principal business has historically been the operation of fixed-line telephone infrastructure and related communications services in Mexico. The company also provides broadband internet, data connectivity, hosted services, information-technology services and Wi-Fi access through the Infinitum brand. Telmex has long occupied a central position in Mexico's telecommunications system and, according to the referenced account, remained the dominant fixed-line carrier in the country in 2014, controlling approximately 80 percent of telephone lines nationally and about 90 percent in Mexico City. The company was established on January 1, 1947, after Mexican investors acquired the Mexican branch of Swedish telephone-equipment and services company Ericsson. In 1950, the same investor group acquired the Mexican branch of ITT, making Telmex the country's sole telephone provider. The Mexican government acquired the company in 1972, after which Telmex operated as a state-owned telecommunications provider for almost two decades. In 1990, the government privatized the company through a sale to an investor consortium principally associated with Carlos Slim Helú, France Télécom and Southwestern Bell Corporation. The government sold its remaining shares in 1991. Privatization began a major infrastructure modernization program. Telmex invested in switching systems and a nationwide, though initially partial, fiber-optic network. The company also expanded beyond traditional voice service. During the 1990s it entered internet access through Uninet, later rebranding the service as Telmex Internet Directo Personal. Telmex acquired Prodigy Communications in 1996 and introduced the Prodigy internet brand in Mexico. Prodigy became one of the country's leading internet services, particularly after the development of ADSL broadband under the Prodigy Infinitum name. In 2009, Telmex shifted its consumer advertising toward the Infinitum brand, although the Prodigy name continued to have limited use in Mexico. Telmex also developed a mobile communications business through Radio Móvil Dipsa, which operated under the Telcel brand. That mobile unit was separated from Telmex in 2000 to form América Móvil. The newly independent América Móvil subsequently became a major Latin American mobile operator. In 2010, América Móvil acquired 60 percent of Telmex and later acquired the remaining 40 percent in 2011. The transaction reunited the fixed-line company with the mobile business that had originated within it. América Móvil began the process of taking Telmex off the Mexican Stock Exchange in 2012. Before and during the consolidation with América Móvil, Telmex pursued an ambitious international expansion strategy. It acquired or invested in telecommunications, cable and enterprise-service businesses in Central and South America, including Telgua in Guatemala, Embratel in Brazil, Chilesat in Chile, Techtel and Metrored in Argentina, and other operations in Colombia, Ecuador, Peru, Venezuela, Paraguay, Uruguay and the United States. Some of these assets were later transferred, sold or reorganized, including the separation of Latin American and yellow-pages businesses into Telmex Internacional in 2007. Telmex also explored television and multimedia services, including TV UNO and Claro Sports, and launched initiatives intended to support bundled communications offerings. Today, Telmex is principally understood as América Móvil's Mexican fixed-line and enterprise telecommunications brand, serving residential, business and institutional customers across Mexico.

Telmex was created on January 1, 1947, when Mexican investors acquired Ericsson's Mexican branch. Three years later, the same group acquired ITT's Mexican operation. The two transactions consolidated the country's telephone infrastructure under one provider and established the institutional foundation of Telmex. The Mexican government bought Telmex in 1972. Under state ownership, the company remained the principal provider of fixed-line communications in Mexico. Its position changed after the government initiated privatization in 1990. The winning consortium was principally linked to Carlos Slim Helú, France Télécom and Southwestern Bell Corporation. The sale was controversial because payment was made over several years using revenues generated by the telephone business. The government completed the sale of its remaining shares in 1991. Following privatization, Telmex undertook a broad modernization program. It upgraded switching and transmission infrastructure and built a partial national fiber-optic network. The company also entered internet access during the mid-1990s under the Uninet name, later using Telmex Internet Directo Personal. In 1996, Telmex acquired Prodigy Communications and introduced Prodigy Internet de Telmex in Mexico. Its national network helped the service become a leading internet provider. By the mid-2000s, Prodigy Infinitum was a major broadband offering based on ADSL technology. Telmex subsequently moved its main consumer internet marketing to Infinitum in 2009. Telmex's mobile operation, Radio Móvil Dipsa, operated under the Telcel brand and was separated in 2000 to create América Móvil. The new company initially inherited a large mobile-market position and expanded rapidly throughout Latin America. The separation produced two related but independent businesses: Telmex remained focused primarily on fixed-line and enterprise communications, while América Móvil concentrated on mobile services and international expansion. Telmex itself expanded outside Mexico during the 2000s. It acquired Guatemala's Telgua and pursued state-owned or incumbent telecommunications assets across Central and South America. In 2004, it bought or took significant positions in several operators, including Embratel in Brazil, Chilesat in Chile, Techtel and Metrored in Argentina, and other businesses connected with Colombia, Venezuela, Peru, Paraguay, Uruguay and the United States. In 2005, it sold its interest in MCI to Verizon. In 2007, it announced or completed additional Colombian and Ecuadorian transactions and transferred its Latin American and yellow-pages activities into Telmex Internacional. The relationship between Telmex and América Móvil was restructured again in 2010. América Móvil acquired 60 percent of Telmex after receiving approval from Mexico's competition authority, then purchased the remaining 40 percent in 2011. Telmex began a delisting process in 2012 and became a wholly owned subsidiary of América Móvil. Its later identity has therefore been that of the group's Mexican fixed-line, broadband and enterprise-services operation. The company has also pursued multimedia and bundled-service initiatives, including television-related offerings and Wi-Fi access, while continuing to operate a major national communications network.

• 2012

  Delisting process begins

  [1]Telmexen.wikipedia.org

  América Móvil initiated the process of removing Telmex from the Mexican Stock Exchange.

• 2011

  Full acquisition by América Móvil

  [1]Telmexen.wikipedia.org

  América Móvil purchased the remaining 40 percent of Telmex.

• 2010

  América Móvil takes control

  [1]Telmexen.wikipedia.org

  América Móvil acquired 60 percent of Telmex after approval from Mexico's competition authority.

• 2007

  Latin American businesses are separated

  [1]Telmexen.wikipedia.org

  Telmex transferred its Latin American and yellow-pages directory activities to Telmex Internacional.

• 2000

  América Móvil is spun off

  [1]Telmexen.wikipedia.org

  Telmex separated its mobile subsidiary Radio Móvil Dipsa, which operated under the Telcel brand, to form América Móvil.

• 1996

  Prodigy enters Mexico

  [1]Telmexen.wikipedia.org

  Telmex acquired Prodigy Communications and introduced Prodigy Internet de Telmex as a national internet service.

• 1990

  Privatization

  [1]Telmexen.wikipedia.org

  An investor consortium led principally by Carlos Slim Helú, France Télécom and Southwestern Bell Corporation acquired Telmex.

• 1972

  Government ownership begins

  [1]Telmexen.wikipedia.org

  The Mexican government purchased Telmex and operated it as a state-owned telecommunications company.

• 1950

  ITT's Mexican branch is acquired

  [1]Telmexen.wikipedia.org

  The same investor group acquired ITT's Mexican operation, making Telmex the country's sole telephone provider.

• 1947

  Telmex is established

  [1]Telmexen.wikipedia.org

  Mexican investors acquired Ericsson's Mexican branch, creating the company that became Teléfonos de México.

A nationwide Mexican communications infrastructure provider whose historic strength is fixed-line telephony and whose portfolio extends into broadband, Wi-Fi, enterprise connectivity, hosting and information technology. Its scale, legacy network and relationship with América Móvil position it as an incumbent operator serving both households and organizations.

• Telephony · 1947

  Fixed-line telephone service

  Telmex's historic core offering is fixed-line voice service delivered over its national telecommunications network. The service supported the company's long-standing position as Mexico's incumbent telephone operator and remains part of its residential and business communications portfolio.

• Broadband internet

  Infinitum

  Infinitum is Telmex's principal consumer internet brand. It developed from the company's earlier Prodigy broadband service and has been used for internet access and associated Wi-Fi connectivity. The service historically relied heavily on ADSL and Telmex's nationwide fixed network.

• Internet service · 1996

  Prodigy Internet de Telmex

  Prodigy Internet de Telmex was the Mexican internet service created after Telmex acquired Prodigy Communications in 1996. It became a leading national ISP before Telmex shifted mainstream advertising to the Infinitum name in 2009.

• Enterprise telecommunications

  Business data and IT services

  Telmex provides business-oriented connectivity, data transport, hosted services and information-technology solutions. These offerings extend the company beyond household telephony and support corporate and institutional communications requirements.

• Television and media

  TV UNO and Claro Sports

  Telmex has been associated with television and sports-media offerings including TV UNO and Claro Sports. These initiatives formed part of the company's broader attempt to participate in bundled and multimedia communications services.

• 2009Infinitum brand transition

  Mexico

  Telmex changed its principal consumer advertising from Prodigy toward Infinitum, emphasizing a unified identity for its internet and Wi-Fi services.

  Outcome. Infinitum became the primary consumer-facing internet brand, while Prodigy remained in limited local usage.

  Source

• 2010

  Accept América Móvil's takeoverM&A

  Background

  América Móvil sought to combine its mobile capabilities with Telmex's fixed-line and broadband operations.

  Action taken

  América Móvil acquired 60 percent of Telmex after Mexican competition-authority approval.

  Aftermath

  América Móvil bought the remaining stake in 2011 and moved Telmex toward wholly owned subsidiary status.

  Source

• 2004

  Accelerate international expansionM&A

  Background

  Telmex sought growth beyond Mexico and targeted established or undervalued telecommunications operators in Latin America.

  Action taken

  The company acquired or invested in businesses including Embratel, Chilesat, Techtel and Metrored, alongside other regional assets.

  Aftermath

  Telmex gained a broader regional footprint, although several international activities were later sold, transferred or reorganized.

  Source

• 2000

  Separate the mobile businessStrategy

  Background

  Telmex's mobile operation had become a substantial business operating through Radio Móvil Dipsa and the Telcel brand.

  Action taken

  Telmex spun off the mobile unit to create América Móvil.

  Aftermath

  América Móvil became a major independent mobile operator and ultimately reacquired Telmex more than a decade later.

  Source

• 1996

  Launch Prodigy Internet de TelmexProduct launch

  Background

  Telmex sought to extend its fixed-line network into the emerging internet-access market.

  Action taken

  The company acquired Prodigy Communications and introduced the Prodigy internet brand in Mexico.

  Aftermath

  Prodigy became a leading Mexican ISP and later evolved into the Infinitum broadband identity.

  Source

• 1990

  Proceed with privatization and infrastructure modernizationStrategy

  Background

  After the Mexican government decided to privatize Telmex, the new investor group inherited a nationwide incumbent network requiring modernization and expansion.

  Action taken

  The company pursued network upgrades and began building a partial national fiber-optic infrastructure.

  Aftermath

  Telmex expanded its capacity and retained a dominant position in Mexican fixed-line communications, although its market power later attracted monopoly-related criticism and regulatory attention.

  Source

1. 1Telmexen.wikipedia.org