With Carlos Slim's consolidation of his Telmex Internacional (NYSE: TII) and America Movil (NYSE: AMX) holdings now complete, Telmex is going to turn its attention to upgrading its wireline broadband network with up to 20 Mbps speed capabilities to more effectively compete with cable competitors.
To make this speed jump, Telmex will leverage the majority of its 2010 $765 million investment budget to bring fiber closer to homes.
Telmex may have a monopoly on the traditional telecom wireline market, but savvy cable competitors such as Megacable Holdings SAB (Mexico: MEGACPO.MX) that offer triple play voice, video and data service packages continue to lure away more of the incumbent's customers. By the end of 2010, Telmex plans to offer 10 Mbps, which is Megacable's fastest speed. Right now, Telmex is conducting tests on the 20 Mbps speeds in three cities.
"We're positioning ourselves perfectly well to compete with the cable carriers," said Andres Vazquez del Mercado, residential markets director for Telmex, in a Bloomberg article.
- Bloomberg has this story
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