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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...
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