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Global Telecoms Business
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TELMEX targets regional growth opportunities

01 July 1999

At the beginning of 1997 Telefonos de Mexico (TELMEX) lost its monopoly in the long-distance market. After initially surrendering significant market share, TELMEX may now gain ground and recover some revenue losses. It is also acquiring companies, as it expands regionally. TELMEX's CEO Jaime Chico Pardo talks to Mark Holmes about the operator's high-growth strategy.

At the beginning of 1997 Telefonos de Mexico (TELMEX) had to relinquish its monopoly on long distance. This was followed by liberalization of the local market in 1998. Many of the world's biggest global players have entered the market, such as MCI WorldCom, Bell Atlantic, AT&T, Qwest and Korea Telecom. TELMEX has lost less market share than anticipated and, as prices stabilize, may well recover some revenue losses.
TELMEX is benefiting from a favourable economic climate, with expected GDP growth of 2.8% in 1999. This is likely to lead to an increase in the number of lines and a rise in cellular subscribers of over 70%. TELMEX has invested in PCS licences and cellular companies such as TOPP Telecom. Telmex plans to use the experience it has gained through its wireless subsidiary in Mexico, Telcel, to enter other wireless markets in Latin America.

According to Oliver...