Teléfonos de México, S.A. de C.V. (English:Telephones of Mexico, Limited Company of Variable Capital) (Stock: NYSE: TMX), commonly known as Telmex, is a telecommunications conglomerate headquartered in Mexico City that provides telecommunication products and services in Mexico and in many parts of Latin America, such as Argentina, Brazil, Chile, Colombia, Ecuador, Peru and even in the United States. In addition to traditional fixed-line telephone service, Telmex also offers Internet access, data, hosted services and IPTV.

History

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, whose 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 fiber optic network, thus offering service to 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, Alestra (formerly AT&T), Axtel, Maxcom, Megacable and Cablecom. Telmex is the 2nd most complained-about provider in PROFECO (Mexico's Consumer Commission).

Telmex Cellphone Mobile Unit

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.

Internet

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 Directo 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.