Mexican phone utility Telmex (TMX) is a major player in Mexico's fixed-line communications markets, with more than 80% of the country's customer base. But the fast adaptation of cellular phones in Mexico has lead to customer attrition levels that have pushed the company's short ratio to 10.56.
While the pressure from wireless operators has affected Telmex's business, the company has made back ground by focusing on its packaging Internet deals for customers, a higher-margin product. That strategic decision has had a palpable impact on Mexico's Internet users, since until recently relatively low numbers of computer users have left the market under-saturated.
Telmex also benefits from a strong management team, thanks in part to billionaire investor Carlos Slim Helu, who owns a sizable stake in the company though his Carso Global Telecom. Carlos Slim Helu also has positions in America Movil (AMX - Get Report) and Altria (MO - Get Report).