Slim’s Telmex moves toward Internet
Fixed-line phone provider Telefonos de Mexico was an old, rusty government-run mammoth when businessman Carlos Slim bought it two decades ago. In a matter of a few years, and with the help of billions of dollars to deploy a nation-wide, state-of-the-art network, Telmex became Slim’s cash cow.
But times change fast. The expansion of cell phone services across Latin America, led by sister company America Movil, has dented Telmex’s domestic revenue in recent years. The arrival of new technologies, which allow international calls at very low prices, hit Telmex’s long-distance sales too.
And let’s not forget the new players in the market.
The company bets Internet services will help it keep business charging ahead. Chief Financial Officer Adolfo Cerezo told the Reuters Latin American Investment Summit that in five years Telmex could become a mostly-web focused company.
The one thing holding back even faster growth is that only a quarter of Mexican families own a computer.