Telmex Profit Drops

Telmex posted its latest earnings this week and the results were not so great - a 21.5% drop in third quarter profits.  Telmex, owned by Carlos Slim (the world's richest man), is Mexico's largest fixed-line company.  In some parts of Mexico, your choice for a new phone line is either Telmex...or Telmex.  Telmex control's nearly 80% of Mexico's land lines.

So if Telmex is virtually a monopoly, what is going on to cut their profits so drastically? 

The cable companies.

All over Mexico, cable companies have started to offer "triple play" packages which is a bundle that includes TV, internet, and phone service all for one low price.  Cablevision, Megacable, Telecable, Cablecom, are just a few of the companies that are offering these packages.

Let's look at a comparision:

Telmex monthly phone service (the cheapest plan) $346.49 MXN
Cablevision triple play (internet, TV, phone)          $525.00 MXN
Megacable triple play (internet, TV, phone)            $549.00 MXN

In Mexico, price is king, so it won't be long before Telmex comes up with something to compete with the cable companies.

One of Telmex's latest packages (which I love) is a package that allows you unlimited calls throughout Mexico and the United States for $1,099 MXN/month.  If you call the United States often and live in Mexico, I highly recommend this package.  It also includes internet service.

PS- Did anyone else notice the Telmex logos on the Chilean miners rescue jumpsuits?  This guy is everywhere!!!

Carlos Slim's Monthly Salary

As many of you know, Carlos Slim has overtaken both Bill Gates and Warren Buffet as the world's richest man (according to Forbes annual list).  I came across an article recently in El Universal that I thought was interesting.  Slim has a biography coming out this month, written by Jose Martinez

His monthly "salary"?  $24,000 USD a month or the equivalent of $300,000 MXN/month at today's rates.  What was most interesting to me was to read the comments below the article from readers. 
Never have I seen people so divided over one person.  Many people complained that it was "outrageous" that he would take such a salary when millions of people in Mexico are barely making it.  Others applauded his business saavy and thought that he had earned it. 



Some of Carlos Slim's businesses:

Telmex (which includes Prodigy Internet)
Telcel
America Movil
Banco Inbursa
Sanborn's
Sears
Mixup
Saks Fifth Avenue (only one in Mexico)
Cigatam
Condumex
Percentage of stock in the New York Times (largest shareholder that is not a family member)
Carso Construction
....and many more!

Love him or hate him, you cannot deny his ability to run profitable businesses!