Mexico’s largest phone company, Telefonos de Mexico SAB (Telmex) has announced its plans to split into two different companies.
Telmex largest shareholder is the world’s richest man Carlos Slim Helu, who has faced a lot of criticism about the near-monopoly Telmex enjoys in Mexico.
When the company splits in two, one portion will maintain the name Telmex and the other will be called Telmex Social. Telmex Social will serve underserved rural areas that have largely gone ignored by competitors. The company currently has 15.6 million lines in operation throughout Mexico.
The Mexican government said it remains committed to promoting competition and refutes allegations it ignored complaints from Telmex’ competitors and welcomes the company’s decision to split in two.