REVENUE STRATEGY - TELMEX

1. Telefonos de Mexico SAB, or Telmex, the largest fixed-line telephone company in Mexico, plans to spin off the faster-growing operations it has elsewhere in Latin America to unlock the value of the faster-growing part of his company. The new company, called Telmex International, will include carriers in Brazil, Colombia, Argentina, Chile, Ecuador and Peru

[The plan mimics a 2000 move to turn Telmex's mobile-phone operations into America Movil SAB whose $105 billion market value is more than three times Telmex's. The plan also may insulate the non-Mexican part of the business from increasing antitrust pressure (Telmex has about 90 percent of Mexico's phone lines, and regulators in Mexico want to curb its dominance). ]

2. Telmex will also split the Mexican business into a unit that serves higher-income consumers and faces competition, and one that serves rural areas and faces no competition.

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