Telmex to Launch Online Video Games with Microsoft

MEXICO CITY (Reuters) – Mexico’s leading telephone company, Telmex, said on Friday it plans to launch an online video game service with Microsoft as it seeks to diversify its revenue sources and boost broadband usage.
“As we speak we are also moving soon into one of these (broadband) services, we are launching soon together with Microsoft gaming online,” Chief Executive Jaime Chico Pardo told analysts during a conference call.

Microsoft Corp. (MSFT.O: Quote, Profile, Research) said on Wednesday that its Xbox Live online video game service was set for launches in several countries, including Mexico, next week. Xbox Live has over 750,000 subscribers throughout the United States, Europe and parts of Asia.

A Telmex (TELMEXL.MX: Quote, Profile, Research) (TMX.N: Quote, Profile, Research) spokeswoman declined to comment further on the company’s new service. Microsoft wasn’t immediately available for comment.

During the call, Chief Financial Officer Adolfo Cerezo also said that Telmex had paid $113.5 million for Argentine data company Techtel. The acquisition was announced on Thursday when the company presented its first-quarter results.

Telmex posted a 6 percent rise in net profit helped by lower financing costs, although a rate freeze kept a lid on revenues.

Techtel is expected to help the company to beef up data services, like Internet and broadband, for big corporations in South America.

In February Telmex spent $207 million for the assets of AT&T Latin America in a move outside its Mexican base to tap the markets in Argentina, Brazil, Chile, Colombia and Peru.

Telmex shares inched down 0.15 percent to 20.09 pesos in the local market. Its New York-traded shares were flat at $35.37.
News source: Reuters

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