14. What has been the evolution of Telmex's stock value after the privatization?
As you can see, many of the companies I mentioned at the beginning and which I mention now, are no longer part of Carso.
Let’s move on to the following page; it is still part of the history; this is Telmex. Here, I believe that in this part we have made several innovations in the group. One of the interesting things that is different from what other companies do, if you follow me, is that a company that has a group of stockholders, dilutes with time.
Then, if a stockholder has three per cent, and the company is listed in the Stock Exchange, then it has gone down to 1.5 per cent; it merges with god knows who and it is down to 0.5; etc., or who has 20 per cent, merges and drops to 10, and the stock percentage continues to dilute.
I have to say that in the case of Telmex, instead of dissolving it has concentrated. Why? For several reasons: instead of distributing cash dividends from the beginning, we reinvested them, and thus cash dividends represented a very low percentage of the cash flow generated. If my memory does not fail me, approximately 12, 15 per cent. . Right? . This means that out of 100 pesos generated 15 per cent was distributed as dividends. Therefore what was done specially in the first three years was to follow the three-year plan, that is, to invest heavily in upgrading the network, upgrading everything in order to grow, in order to be able to meet the demand.
When I speak of modernization, I am saying that there were many records kept manually, because I do not know who, did not authorize the purchase of computers. Vehicles were constantly in the repair shop because they had been in service 15 years or more -- 17 years -- I believe there were 17 year old vehicles and they spent the entire day in the workshop. Then the entire vehicle fleet was modernized. And of course, also the network, was in very poor conditions. There were only non digital switches, only a minority were digital; there were some analog and there were still electromechanical switches; they belong to a museum, they were switches, and I do not remember if 350 thousand lines were in those conditions.
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