Carlos SlimBefore getting into particulars, it bears mentioning that regular telephone service is what amounts to a private monopoly of one of the world's richest men and the richest man in all of Latin America, Mr. Carlos Slim. He's, as of this writing, Señor #64 on Forbes 2004 list with a net worth of 13.9 billion.
Telmex was privatized in 1992 under what many describe as dubious circumstances during the presidency of another disgustingly wealthy individual, Carlos Salinas de Gortarri (who probably remains to this day among the common folk Mexico's most disliked person).
As Forbes tells it: "Latin America's richest man [Carlos Slim] is $5.5 billion richer this year, thanks to windfall profits and stock surges from his flagship Teléfonos de México and América Msvil telcos. The former, a virtual land line monopoly, is notorious for undercutting the competition. On the political front, Slim, as he's known, has become a vocal opponent of free trade and free markets prescriptions for developing Latin economies. His argument: After 20 years of clinging to that advice, the Mexicans have nothing to show for it." Well, most Mexicans anyway. Then again, it's no wonder when it's not uncommon for people making $600 a month to get hit with a $300 phone bill.
[Upadate 2005, Forbes just published a new list, and Slim is the FOURTH richest man in the world, behind Bill Gates, Warren Buffet, and some Indian dude].
I don't consider myself a big free trader, but if there was one industry in one nation on this planet that would benefit from competition whether it be foreign or domestic or from outer space, that would be Mexico's telcoms.
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