Telmex has set up a unit that will serve its customers in rural and low-income areas. Dubbed Telmex Social, the unit will provide service in the 46 percent of the country where competitors have not entered.

Telmex is currently analyzing whether the split will be a spinoff or will create two units of a holding company, a spokeswoman told Bloomberg. The split will divide assets, debt and capital between both companies. According to Telmex, rural and low-income lines require “significant investments” and “great costs” for expansion and maintenance.
The phone lines to be included under Telmex Social are operated with small profits or with losses, Telmex said. Telmex’s restructuring plans require approval from the communications ministry and other regulators.

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