Teléfonos de México SA (Telmex) announced Wednesday that it will spin off its local cellular business and most of its cellular businesses abroad in order to improve its financial management and better its operations throughout Latin America.
Telmex's management considered that with the creation of the new cellular phone carrier, to be called América Móvil, the company would be able to offer faster and more efficient service to its Latin American customers, according a Telmex statement issued Wednesday.
With América Móvil, Telmex will also be able to leverage opportunities for investment in the region's telecommunication market, Telmex said.
"With the split, América Móvil will have more flexibility to continue its expansion through partnerships, mergers, alliances, and through international financial markets," Carlos Slim, chairman of the board of Telmex, said in the press release.
Through its alliances in Latin America, Telmex has been the wireless service provider for more than 9 million mobile users, including Mexican customers, Telmex said.
Telmex's cellular phone subsidiary in México, Telcel, reported an increase of mobile subscribers to 7.64 million, or a 134.9 percent hike, for the second quarter. [See "Telmex's Q2 Net Income Declines, Revenue Grows, " July 19.]Telmex is Mexico's dominant carrier and a major telecom player in Latin America, with shares in companies in Guatemala, Ecuador, Argentina, the U.S., Brazil, Puerto Rico and the U.S. Virgin Islands. Early this year the carrier joined with Microsoft Corp. to launch a Spanish-language Web portal in Latin America.
Telmex, in Mexico City, México, can be reached at +525-222-56-28 or at http://www.telmex.com.mx.