Telmex: This is how Carlos Slim managed to take over the telephone service

On December 9, 1990, Grupo Carso, together with its partners South Western Bell, France Telecom and some Mexican investors, won the tender for privatize Telephones of Mexico (later TELMEX).

Grupo Carso, of which he is president Mexican businessman Carlos Slim, acquired 5.8% of the companythe other Mexican investors 4.6%; Southwestern Bell acquired 5%, with an option to acquire another 5%; and France Telecom 5 percent.

All shareholders had the limitation that the controlling shares, 20.4%, could not be sold in 10 years.

At that time, Telefónica de México had been in operation for 25 years and more than 23 national and foreign companies.

Before the privatization of Telephones of Mexico (Telmex), the company operated with electromechanical, analog and obsolete equipment for operation, transportation, external plant and maintenance, as well as manual records and a 360-kilometer fiber optic network.

This is how, since the privatization of Telephones of Mexico in 1990, the company has been modernized and now it has a fiber optic network of more than 194 thousand 322 kilometers installed throughout the country.

From 1990 to 2014, Telmex invested more than 35.4 billion dollars in its expansion, modernization and transformationas well as in the change of the digital culture of the company.

Currently, Mexican businessman Carlos Slim and América Móvil own TELMEX and América Móvil. INSTAGRAM/ @oficialcarlosslim

Today, Telmex and its subsidiaries operate the most complete local basic telephony network and long distance.

In addition, it offers other services in addition to telephony, such as connectivity, internet access, co-location, lodging and interconnection services with other telecommunications operators.

America Movil is founded

On September 25, 2000, Telmex divided its cellular businesses and most of its international investments to create the new company América Móvil.

Since February 7, 2001, when the shares of América Móvil on the Mexican, New York and Madrid Stock Exchanges, the new company ranked as the largest cellular company in Latin America and one of the largest in the world.

In 2020, América Móvil registered a 40% year-on-year increase in its net income for the second quarter of the year. TWITTER/@nbaldeon13

Currently, América Móvil together with Telmex has presence in much of Latin America, in countries such as Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, and Uruguay.

Since November 2012, América Móvil owns 97.54% of Telmex’s capital stock.

Its presence in Latin America

While Telmex Internacional operates in Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay, offering a regional and local support structure. Also operates in the United States and Mexico through Yellow Section.

América Móvil is also owner of 97.10% of the capital stock of Telmex Internacional.

The auction to privatize Telmex, in December 1990, occurred 18 years after the Federal Government had acquired 51% of its capital in 1972, keeping the remaining 49% between investors and clients, the latter forced to finance Telmex as a condition for having a poor quality telephone servicedeficient and with obsolete infrastructure, and with up to 2 years of waiting to get a telephone line.

In 1990, the year of the call to privatize Telmex, the government had around 56% of the capital, of which it tendered 25.4% of the company, 20.4% that made up the controlling shares and an option to acquire 5% limited voting shares.


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