Telefonos de Mexico (TMX or Telmex), headquartered in Mexico City, operates in Mexico, the U.S., Puerto Rico, Brazil, Chile, Argentina, Peru, and Columbia. Most of the South American operations were acquired through the company's purchase of AT&T Latin America. The company, along with its subsidiaries, offers a wide range of telecommunications, data and video services, Internet access, and integrated telecom solutions to corporate customers. Apart from basic fixed-line telephone services, TMX provides Internet access services telecom and telecom-related services, such as directory, data transmission, and paging and interconnection services to other carriers in Mexico. Approximately 40% of the company's infrastructure and telephony lines are in Mexico City, Monterrey, and Guadalajara metropolitan areas. Over 73% of TMX's revenue continues to be derived from its subscribers in Mexico. The company earned P. $119 million in revenue and P. 19.8 million in net income in 2009.
TELMEX has kept basic rates fixed over the last 9 years because it has been able to pass along the benefits of its technology and efficicency.The company is the price leader in providing computers largely because of their installment plans and multi-service packages
TELMEX has 83% of the fixed line market with 15.8 million local fixed billed lines in service in Mexico.
Telefonos de Mexico met the “Acuerdo de Convergencia” (Convergence Agreement) requirements: Interconnection, Network Interoperability and Number Portability set out over 3 years ago. It is focused on providing competitive pricing for telecommunications services. Overall strategy has been to continue the previously laid out plans and promote the penetration of broad band services.
Subsidiary companies: Integracion de Servicios TMX S.A. de C.V., Alquiladora de Casas S.A. de C.V., Compania de Telefonos y Bienes Raices S.A. de C.V., Consorcio Red Uno S.A. de C.V., Telefonos del Noroeste S.A. de C.V., Uninet S.A. de C.V., and Telmex USA LLC.
The “Ley Federal de Telecomunicaciones” in Mexico establishes that if a company gains substantial market control, the Communications and Transport Ministry has the right to impose regulations regarding fees, service quality and information release. Further, the Federal Competition Commission has begun 7 investigations to determine companies that have gained substantial market control and has the right to begin new ones at any point in time.
Carso Global Telecom (TELECOMA1-MX) owns 71.5% of all outstanding shares and has the capacity of naming most of the Board Members and can sway shareholder votes.
Worldwide Trend towards fewer fixed lines in service is apparent in Mexico because of cellular telephony competition and the economic situation.
Broadband demand continues to show the growth of the previous five years increasing both the customer base as well as market share. Annual Average growth rate of 70.5%
Mexico is the only country in the OECD that does not have technical convergence despite having set out the requirements required for it over 3 years ago.
Competition derives from VoIP providers, cellular telephony, over 28 cable companies acting through over 60 subsidiaries, and wireless data plan providers. The competition can be summarized by the following companies: