Telmex: Encyclopedia II - Telmex - History

Telmex - History

Telmex was founded in 1947 when a group of Mexican investors bought Swedish Ericsson's Mexican branch. In 1950 the same investors bought the Mexican branch of the International Telephone and Telegraph Company, thus becoming the only telephone provider in the country. In 1972 the Mexican government bought the company, turning it into a government monopoly. From 1972 to until its privatization in 1990, Telmex invested little in the country's infrastructure. As a result, it was all but impossible to procure a phone line to one's home.

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, SBC. Their 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 optic fiber network, and offering service in most of the country.

In 1991, the Mexican government sold its remaining stock in Telmex.

Adapted from the Wikipedia article "History", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki