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Maybe privatizing TELMEX was not a very good idea.

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I think this privatization was a good idea!

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In 20 years it has been in the hands of Carlos Slim, Telmex has invested over 32,000 million dollars, this phone handles very high rates compared to other countries.

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The rates arose by 61% and allowed the company once privatized, credit against payment of excise duty telephone service, up to 65% of their investments, which reduced the facts effective tax rate from 29% to 10% of turnover

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It is noted that Telmex is responsible for the poor service penetration and Mexico occupies the last places of the OECD.

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But the story was not very happy as it seemed...there were some disadvantages of this action.

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TELMEX was privatized.

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n Mexico in 1990, the State no longer had access to any kind of external or internal voluntary funding, the privatizations were the only instrument available to avoid this economic problems to be repeated.

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If public assets were exchanged for cash dollars the government had liquidity to temporarily close internal and external gaps.

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It also improved with the expansion and modernization of its network.

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Before 1990 there was only one company that offered telephone services (Telmex), there are now several: Alestra, Axtel, Iusacell and Movistar, among others, that every day have a greater market penetration and fight for repeal of barriers to improve competition.

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This privatization brought many advantages, like:  When TELMEX was from the government, it took almost two years to install a line and in many cases they had to give a "mordida"; currently it takes 14 days on average.

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Telmex was auctioned and Grupo Carso was the winner.

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In Mexico in 1990, the State no longer had access to any kind of external or internal voluntary funding, the privatizations were the only instrument available to avoid this economic problems to be repeated.