Will Telmex Be Left On Hold?

The television ad shows a young woman boarding a rickety bus in a Mexican desert town. Distraught because her boyfriend has failed to see her off, she crumples up his photograph. But as the bus wheezes into motion, he suddenly appears outside her window. As he gestures that he'll telephone her, she smoothes out the photo.

So goes a fledgling effort by Mexico's private telephone monopoly, Telefonos de Mexico, to improve its unsympathetic image. Long known for spotty service and surly operators, Telmex has a long way to go before it wins over its customers. But it doesn't have much time. The Mexican government sent legislation to Congress on Apr. 24 laying out the framework for licensing competitors in the fast-growing local and long-distance telephone markets. Legislators are expected to pass the law shortly, setting the stage for a rush of new rivals, including AT&T, MCI, and GTE, ready to invest billions (table).