23. Sometimes it is said that Telmex charges the highest rates in the world, what do you think about this?

This is another highly criticized factor:  the rates.  It is a good thing that they published that data in Reforma today (March 2007); that we are the most expensive ones, or one of the most expensive … why don’t they mention the true dollar parity?

Well, there is an important thing here.  When they compare our prices, we believe that they should compare the sales price, without adjustments because that puts us at a disadvantage, , and thus we shall never be comparable to any one.

As you know, underdeveloped or developing countries such as ours, have smaller per capita revenues, less purchasing power and if adjustments are made based on that factor, we are never going to be comparable to anything.

The article published in the paper and that some government officials and some publications have also used, is based on comparing by purchasing power and by purchasing power we will never be able to be compared to anyone.

There is the purchasing power. To adjust it  in this table they use a 7.19 exchange rate instead of today’s which is 11.15.  So then they compare us at a 7.19 per dollar parity, and thus we are going to be the most expensive ones in everything.

Now, neither equipment nor systems are sold to us at lower prices, and our customers do not have the capacity to generate revenues per line as high as their customers; the famous ARPUs (Average Revenue Per User).

In the United States the ARPU is 50 dollars, here it is 15, that is 70 per cent lower, then we not only have the unfavorable factor of having a lower purchasing power and thus a smaller market and less buyers and a smaller dimension for the same investment, but we are also punished because of that, that is the 7.19 parity.

When you think that the dollar is worth 7.19 pesos, Telmex is number 26 in the low consumption rate, 24 in the middle, 24 in the high, 27 and 28, then we are one of the last ones.  Let’s see the nominal price, the true price.  What is the price to the customer with an 11.15 to the dollar parity?  There we are number 3 in the high consumption, 5 in the middle and 8 in the low and 11 and 15 in the commercial.  Well, then it is different to say that we are the last ones of the OECD member countries as some officials and the newspaper today have stated, than that at nominal prices where we are number four, six or 11, or whatever it is.

I would like to insist on the prices because not only have they said it, they will continue to say it and for non-sanctum reasons.  , They will continue to repeat and repeat that we are the most expensive ones for all, etc., that is what the OECD published.

If you wish let us move on to another price comparison table, the América Móvil, the Telcel table.  Here too, when data is published one should also check to see if it is  based on purchasing power.

The United States is at 5 cents, Finland at 11 and we at 11. Two things should be discussed here:  One that in the United States the incoming and outgoing calls are charged and the subsidy on the equipment is not so big; but the discussion would not be on all that.

Also in the comparison with the United States, one should consider that in Mexico it is basically pre-payment, 93 per cent pre-payment and in the United States it is basically post-payment.

Then the other rate, the calling party pays rate.  As you know, it was 2.50 ten years ago, obviously it has dropped in real terms and today it is 1.80 and 1.84.  Calling party pays, how much is it? How much in dollars?  It is 18 cents.  There is a reduction process there.

Then, in Mexico 12 US dollar cents, Argentina, 9 cents, it is cheaper, Colombia 14, Brazil is more expensive, Chile is more expensive and Peru is more expensive.  Almost everywhere thoughout Europe it is  more expensive.

Documentary Support

<<back next>>

Official Site. Copyright © 2014.