16. How are the public finances of the company kept sound?

The policy followed by Telmex and that we have followed, is a careful, conservative, growing dividend policy, but that rewards the investor through the buyback of company shares. Telmex has maintained a combined program and so has America Móvil, as they distributing moderate, low dividends but buyback company shares.  This means that the buyback can be adjusted depending on the financial conditions of the company in order to maintain sound company public finances, or of the investment or acquisition programs implemented.

Thus, in both Companies we have been able to maintain a growing dividend policy with significant company investments in their modernization and growth, in new services, but also in acquisitions with the same funds without having to merge or dilute the stock.  Do you follow me?

For example, we have the companies Telmex has acquired, and it has bought large companies such as Embratel, AT&T Latinoamericana; well this was a bargain but it also bought it, and subsequently it acquired the yellow pages companies in the United States, Cobalt Publishing; and it has also bought cable companies in Brazil, Colombia and Peru and a concession in Ecuador.

Then, it has been important, because it has continued to maintain significant buyback levels, and it has also been able to grow.

I was telling you that we had approximately 3.5 per cent of Telmex when it was privatized.  We have also invested the dividends generated and therefore today we own approximately 30 percent.  That means that instead of diluting the company, it has concentrated because of the reinvestments and buybacks.

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