TELMEX:FOURTH QUARTER 2006 FEB 12,2007

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of February 2007

Commission File Number: 333-13580

Teléfonos de México, S.A. de C.V.

(Exact Name of the Registrant as Specified in the Charter)

Telephones of Mexico

(Translation of Registrant's Name into English)

Parque Vía 190

Colonia Cuauhtémoc

México City 06599, México, D.F.

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F....Ö .....Form 40-F.........

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ..... No...Ö ..

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

 

 

 

TELÉFONOS DE MÉXICO, S.A. DE C.V.

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

 I N D E X

FS-01 CONSOLIDATED BALANCE SHEETS, AT DECEMBER 31, 2006 & 2005

FS-02 CONSOLIDATED BALANCE SHEETS - BREAKDOWN OF MAIN CONCEPTS -

FS-03 CONSOLIDATED BALANCE SHEETS - OTHER CONCEPTS -

FS-04 CONSOLIDATED STATEMENTS OF INCOME FROM JANUARY 01 TO DECEMBER 31, 2006 & 2005

FS-05 CONSOLIDATED STATEMENTS OF INCOME - BREAKDOWN OF MAIN CONCEPTS -

FS-06 CONSOLIDATED STATEMENTS OF INCOME - OTHER CONCEPTS -

FS-07 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME FROM OCTOBER 01 TO DECEMBER 31, 2006 & 2005

FS-08 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME - BREAKDOWN OF MAIN CONCEPTS -

FS-09 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME - OTHER CONCEPTS -

FS-10 CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION FROM JANUARY 01 TO DECEMBER 31, 2006 & 2005

FS-11 CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION - BREAKDOWN OF MAIN CONCEPTS -

FI-01 DATA PER SHARE - CONSOLIDATED INFORMATION

FI-02 RATIOS - CONSOLIDATED INFORMATION

ANNEX 1.- CHIEF EXECUTIVE OFFICER REPORT

ANNEX 2.- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ANNEX 3a.- SHARE INVESTMENTS -SUBSIDIARIES-

ANNEX 3b.- SHARE INVESTMENTS -AFFILATES-

ANNEX 5.- CREDITS BREAKDOWN

ANNEX 6.- FOREING EXCHANGE MONETARY POSITION

ANNEX 7.- CALCULATION AND RESULT FROM MONETARY POSITION

ANNEX 8.- DEBT INSTRUMENTS

ANNEX 9.- PLANTS, - COMMERCIAL, DISTRIBUTION AND/OR SERVICE CENTERS-

ANNEX 10.- RAW MATERIALS

ANNEX 11a.- SALES DISTRIBUTION PRODUCT - SALES -

ANNEX 11b.- SALES DISTRIBUTION PRODUCT - FOREIGN SALES -

ANALYSIS OF PAID CAPITAL STOCK

ANNEX 13.- PROJECT INFORMATION

ANNEX 14.- TRANSACTIONS IN FOREIGN CURRENCY AND EXCHANGE OF FINANCIAL STATEMENTS FROM FOREIGN OPERATIONS

GENERAL INFORMATION

BOARD OF DIRECTORS

 

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-01

CONSOLIDATED BALANCE SHEETS

AT DECEMBER 31, 2006 & 2005

(Thousands of Mexican Pesos)

Final printing

--- 

REF

S

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

%

Amount

%

s01

TOTAL ASSETS

264,031,695

100

266,202,762

100

s02

CURRENT ASSETS

60,656,391

23

59,036,621

22

s03

CASH AND SHORT-TERM INVESTMENTS

16,151,244

6

24,715,138

9

s04

ACCOUNTS AND NOTES RECEIVABLE (NET)

28,732,527

11

26,602,435

10

s05

OTHER ACCOUNTS AND NOTES RECEIVABLE (NET)

7,862,752

3

4,381,383

2

s06

INVENTORIES

1,738,761

1

1,209,678

0

s07

OTHER CURRENT ASSETS

6,171,107

2

2,127,987

1

s08

LONG - TERM

3,006,436

1

856,208

0

s09

ACCOUNTS AND NOTES RECEIVABLE (NET)

0

0

0

0

s10

INVESTMENT IN SHARES OF NON-CONSOLIDATED SUBSIDIARIES AND AFFILIATES

2,999,860

1

848,893

0

s11

OTHER INVESTMENTS

6,576

0

7,315

0

s12

PROPERTY, PLANT AND EQUIPMENT (NET)

156,902,853

59

160,334,146

60

s13

LAND AND BUILDINGS

0

0

0

0

s14

MACHINERY AND INDUSTRIAL EQUIPMENT

472,640,746

179

456,253,533

171

s15

OTHER EQUIPMENT

0

0

0

0

s16

ACCUMULATED DEPRECIATION

323,917,451

123

305,089,100

115

s17

CONSTRUCTIONS IN PROGRESS

8,179,558

3

9,169,713

3

s18

OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET)

14,877,395

6

13,480,374

5

s19

OTHER ASSETS

28,588,620

11

32,495,413

12

s20

TOTAL LIABILITIES

158,075,765

100

147,639,769

100

s21

CURRENT LIABILITIES

50,487,259

32

47,694,442

32

s22

SUPPLIERS

0

0

0

0

s23

BANK LOANS

6,651,272

4

3,355,975

2

s24

STOCK MARKET LOANS

5,900,000

4

12,184,986

8

s25

TAXES PAYABLE

1,809,700

1

1,793,372

1

s26

OTHER CURRENT LIABILITIES

36,126,287

23

30,360,109

21

s27

LONG - TERM LIABILITIES

88,192,065

56

81,311,856

55

s28

BANK LOANS

52,584,440

33

42,920,519

29

s29

STOCK MARKET LOANS

35,607,625

23

38,391,337

26

s30

OTHER LOANS

0

0

0

0

s31

DEFERRED LIABILITIES

0

0

0

0

s32

OTHER NON CURRENT LIABILITIES

19,396,441

12

18,633,471

13

s33

CONSOLIDATED STOCKHOLDERS' EQUITY

105,955,930

100

118,562,993

100

s34

MINORITY INTEREST

2,743,625

3

10,580,327

9

s35

MAJORITY INTEREST

103,212,305

97

107,982,666

91

s36

CONTRIBUTED CAPITAL

47,157,412

45

49,952,263

42

s79

CAPITAL STOCK (NOMINAL)

26,996,274

25

29,320,278

25

s39

PREMIUM ON SALES OF SHARES

20,161,138

19

20,631,985

17

s40

CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES

0

0

0

0

s41

CAPITAL INCREASE (DECREASE)

56,054,893

53

58,030,403

49

s42

RETAINED EARNINGS AND CAPITAL RESERVE

128,605,333

121

133,258,080

112

s44

OTHER ACCUMULATED COMPREHENSIVE RESULT

(72,550,440)

(68)

(75,227,677)

(63)

s80

SHARES REPURCHASED

0

0

0

0

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-02

CONSOLIDATED BALANCE SHEETS

- BREAKDOWN OF MAIN CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

--- 

REF

S

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

%

Amount

%

s03

CASH AND SHORT-TERM INVESTMENTS

16,151,244

100

24,715,138

100

s46

CASH

3,003,620

19

2,615,262

11

s47

SHORT-TERM INVESTMENTS

13,147,624

81

22,099,876

89

s07

OTHER CURRENT ASSETS

6,171,107

100

2,127,987

100

s81

DERIVATIVE FINANCIAL INSTRUMENTS

0

0

0

0

s82

DISCONTINUED OPERATIONS

0

0

0

0

s83

OTHER

6,171,107

100

2,127,987

100

s18

OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET)

14,877,395

100

13,480,374

100

s48

AMORTIZED OR REDEEMED EXPENSES

4,600,018

31

4,764,822

35

s49

GOODWILL

9,142,434

61

8,715,552

65

s51

OTHERS

1,134,943

8

0

0

s19

OTHER ASSETS

28,588,620

100

32,495,413

100

s84

INTANGIBLE ASSET FROM LABOR OBLIGATIONS

19,173,478

67

23,933,925

74

s85

DERIVATIVE FINANCIAL INSTRUMENTS

0

0

0

0

s50

DEFERRED TAXES

6,616,527

23

6,163,043

19

s86

DISCONTINUED OPERATIONS

0

0

0

0

s87

OTHER

2,798,615

10

2,398,445

7

s21

CURRENT LIABILITIES

50,487,259

100

47,694,442

100

s52

FOREIGN CURRENCY LIABILITIES

5,351,272

11

15,540,962

33

s53

MEXICAN PESOS LIABILITIES

45,135,987

89

32,153,480

67

s26

OTHER CURRENT LIABITIES

36,126,287

100

30,360,109

100

s88

DERIVATIVE FINANCIAL INSTRUMENTS

1,925,111

5

1,679,952

6

s89

INTEREST LIABILITIES

2,053,977

6

1,579,160

5

s68

PROVISIONS

0

0

0

0

s90

DISCONTINUED OPERATIONS

0

0

0

0

s58

OTHER CURRENT LIABILITIES

32,147,199

89

27,100,997

89

s27

LONG-TERM LIABILITIES

88,192,065

100

81,311,856

100

s59

FOREIGN CURRENCY LIABILITIES

82,492,065

94

72,899,937

90

s60

MEXICAN PESOS LIABILITIES

5,700,000

6

8,411,919

10

s31

DEFERRED LIABILITIES

0

0

0

0

s65

GOODWILL

0

0

0

0

s67

OTHERS

0

0

0

0

s32

OTHER NON CURRENT LIABILITIES

19,396,441

100

18,633,471

100

s66

DEFERRED TAXES

17,123,621

88

16,509,620

89

s91

OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE

2,272,820

12

2,123,851

11

s92

DISCONTINUED OPERATIONS

0

0

0

0

s69

OTHER LIABILITIES

0

0

0

0

s79

CAPITAL STOCK

26,996,274

100

29,320,278

100

s37

CAPITAL STOCK (NOMINAL)

252,539

1

275,564

1

s38

RESTATEMENT OF CAPITAL STOCK

26,743,735

99

29,044,714

99

s42

RETAINED EARNINGS AND CAPITAL RESERVES

128,605,333

100

133,258,080

100

s93

LEGAL RESERVE

21,047,527

16

20,471,844

15

s43

RESERVE FOR REPURCHASE OF SHARES

0

0

0

0

s94

OTHER RESERVES

0

0

0

0

s95

RETAINED EARNINGS

79,023,841

61

82,780,312

62

s45

NET INCOME FOR THE YEAR

28,533,965

22

30,005,924

23

s44

OTHER ACCUMULATED COMPREHENSIVE RESULT

(72,550,440)

100

(75,227,677)

100.00

s70

ACCUMULATED MONETARY RESULT

(14,613,110)

20

(14,954,387)

20

s71

RESULT FROM HOLDING NON-MONETARY ASSETS

(63,500,766)

88

(62,540,989)

83

s96

CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION

3,854,540

(5)

450,319

(1)

s97

CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS

55,736

0

222,011

0

s98

CUMULTATIVE EFFECT OF DEFERRED INCOME TAXES

825,983

(1)

1,595,369

(2)

s99

LABOR OBLIGATION ADJUSTMENT

0

0

0

0

s100

OTHERS

827,177

(1)

0

0

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-03

CONSOLIDATED BALANCE SHEETS

- OTHER CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

S

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

Amount

s57

OTHER CURRENT LIABILITIES WITH COST (s26)

s63

OTHER LOANS WITH COST (s32)

0

0

s72

WORKING CAPITAL

10,169,132

11,342,179

s73

PENSIONS FUND AND SENIORITY PREMIUMS

0

0

s74

EXECUTIVES (*)

124

119

s75

EMPLOYEES (*)

25,589

24,217

s76

WORKERS (*)

50,682

51,148

s77

OUTSTANDING SHARES (*)

20,203,118,170

22,045,082,270

s78

REPURCHASE OF OWN SHARER(*)

1,841,964,100

1,583,822,040

s101

RESTRICTED CASH

0

0

s102

DEBT WITH COST OF AFFILIATES NON CONSOLIDATED

0

0

(*) THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS.

  1. This item shall be filled in when there have been granted guarantees that affects cash and cash equivalents (s03)

 

NOTE:

In references s57 and s63 it is only included the amount corresponding to the debts of the accounts s26 and s32 respectively.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-04

CONSOLIDATED STATEMENTS OF INCOME

- FROM JANUARY 01 TO DECEMBER 31, 2006 & 2005 -

(Thousands of Mexican Pesos)

Final printing

---

REF

R

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

%

Amount

%

r01

OPERATING REVENUES

175,006,123

100

173,504,716

100

r02

COST OF SALES AND SERVICES

91,680,113

52

92,484,363

53

r03

GROSS INCOME

83,326,010

48

81,020,353

47

r04

OPERATING EXPENSES

35,035,378

20

29,172,748

17

r05

OPERATING INCOME

48,290,632

28

51,847,605

30

r06

COMPREHENSIVE FINANCING COST

3,626,086

2

5,653,512

3

r07

INCOME AFTER COMPREHENSIVE FINANCING COST

44,664,546

26

46,194,093

27

r08

OTHER EXPENSES AND INCOMES (NET)

0

0

0

0

r44

SPECIAL ITEMS

0

0

0

0

r09

INCOME BEFORE INCOME TAX AND EMPLOYEE PROFIT SHARING

44,664,546

26

46,194,093

27

r10

PROVISIONS FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

16,060,590

9

15,359,031

9

r11

NET INCOME AFTER INCOME TAX AND EMPLYEE PROFIT SHARING

28,603,956

16

30,835,062

18

r12

EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND AFFILIATES

457,876

0

69,056

0

r13

CONSOLIDATED NET INCOME OF CONTINUING OPERATIONS

29,061,832

17

30,904,118

18

r14

INCOME FROM DISCONTINUED OPERATIONS (NET)

0

0

0

0

r15

CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS

29,061,832

17

30,904,118

18

r16

EXTRAORDINARY ITEMS, NET EXPENSE (INCOME)

0

0

0

0

r17

NET EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES

0

0

0

0

r18

NET INCOME

29,061,832

17

30,904,118

18

r19

NET INCOME OF MINORITY INTEREST

527,867

0

898,194

1

r20

NET INCOME OF MAYORITY INTEREST

28,533,965

16

30,005,924

17

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-05

CONSOLIDATED STATEMENTS OF INCOME

- BREAKDOWN OF MAIN CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

R

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

%

Amount

%

r01

OPERATING REVENUES

175,006,123

100

173,504,716

100

r21

DOMESTIC

124,692,540

71

129,533,263

75

r22

FOREIGN

50,313,583

29

43,971,453

25

r23

TRANSLATION INTO DOLLARS (***)

4,626,324

3

3,855,465

2

r06

COMPREHENSIVE FINANCING COST

3,626,086

100

5,653,512

100

r24

INTEREST EXPENSE

8,088,002

223

8,060,066

143

r42

LOSS (GAIN) ON RESTATEMENT OF UDI'S

0

0

0

0

r45

OTHER FINANCIAL COSTS

0

0

0

0

r26

INTEREST INCOME

3,647,768

101

4,059,624

72

r46

OTHER FINANCIAL PRODUCTS

0

0

r25

FOREIGN EXCHANGE LOSS (GAIN) (NET)

1,639,144

45

3,761,792

67

r28

RESULT FROM MONETARY POSITION

(2,453,292)

(68)

(2,108,722)

(37)

r10

PROVISION FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

16,060,590

100

15,359,031

100

r32

INCOME TAX

12,672,171

79

14,879,944

97

r33

DEFERRED INCOME TAX

386,727

2

(2,570,165)

(17)

r34

EMPLOYEE PROFIT SHARING

3,001,692

19

3,049,252

20

r35

DEFERRED EMPLOYEE PROFIT SHARING

0

0

0

0

(***) THOUSAND DOLLARS

--- 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-06

CONSOLIDATED STATEMENTS OF INCOME

- OTHER CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

R

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

Amount

r36

TOTAL REVENUES

175,006,123

173,504,716

r37

TAX RESULT FOR THE YEAR

0

0

r38

OPERATING REVENUES (**)

175,006,123

173,504,716

r39

OPERATING INCOME (**)

48,290,632

51,847,605

r40

NET INCOME OF MAJORITY INTEREST (**)

28,533,965

30,005,924

r41

NET INCOME (**)

29,061,832

30,904,118

r47

OPERATIVE DEPRECIATION AND ACCUMULATED

22,210,762

23,871,487

(**)

INFORMATION OF THE PAST TWELVE MONTHS

---

   MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-07

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

- FROM OCTOBER 01 TO DECEMBER 31, 2006 & 2005 -

(Thousands of Mexican Pesos)

Final printing

---

REF

RT

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

%

Amount

%

rt01

OPERATING REVENUES

44,750,364

100

43,987,905

100

rt02

COST OF SALES AND SERVICES

23,507,208

53

22,986,582

52

rt03

GROSS INCOME

21,243,156

47

21,001,323

48

rt04

OPERATING EXPENSES

9,640,645

22

7,301,876

17

rt05

OPERATING INCOME

11,602,511

26

13,699,447

31

rt06

COMPREHENSIVE FINANCING COST

(223,888)

(1)

2,224,188

5

rt07

INCOME AFTER COMPREHENSIVE FINANCING COST

11,826,399

26

11,475,259

26

rt08

OTHER EXPENSES AND INCOMES (NET)

0

0

0

0

rt44

SPECIAL ITEMS

0

0

0

0

rt09

INCOME BEFORE INCOME TAX AND EMPLOYEE PROFIT SHARING

11,826,399

26

11,475,259

26

rt10

PROVISIONS FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

4,330,758

10

2,921,848

7

rt11

NET INCOME AFTER INCOME TAX AND EMPLYEE PROFIT SHARING

7,495,641

17

8,553,411

19

rt12

EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND AFFILIATES

137,023

0

132,471

0

rt13

CONSOLIDATED NET INCOME OF CONTINUING OPERATIONS

7,632,664

17

8,685,882

20

rt14

INCOME FROM DISCONTINUED OPERATIONS (NET)

0

0

0

0

rt15

CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS

7,632,664

17

8,685,882

20

rt16

EXTRAORDINARY ITEMS, NET EXPENSE (INCOME)

0

0

0

0

rt17

NET EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES

0

0

0

0

rt18

NET INCOME

7,632,664

17

8,685,882

20

rt19

NET INCOME OF MINORITY INTEREST

231,870

1

100,523

0

rt20

NET INCOME OF MAYORITY INTEREST

7,400,794

17

8,585,359

20

--- 

    MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-08

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

- BREAKDOWN OF MAIN CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

RT

CONCEPTS

QUARTER OF PRESENT

QUARTER OF PREVIOUS

FINANCIAL YEAR

FINANCIAL YEAR

Amount

%

Amount

%

rt01

OPERATING REVENUES

44,750,364

100

43,987,905

100

rt21

DOMESTIC

32,168,145

72

34,567,057

79

rt22

FOREIGN

12,582,219

28

9,420,848

21

rt23

TRANSLATION INTO DOLLARS (***)

1,268,529

3

863,044

2

rt06

COMPREHENSIVE FINANCING COST

(223,888)

100

2,224,188

100

rt24

INTEREST EXPENSE

2,701,242

(1,207)

2,109,952

95

rt42

LOSS (GAIN) ON RESTATEMENT OF UDI'S

0

0

0

0

rt45

OTHER FINANCIAL COSTS

0

0

0

0

rt26

INTEREST INCOME

2,033,706

(908)

729,810

33

rt46

OTHER FINANCIAL PRODUCTS

0

0

0

0

rt25

FOREIGN EXCHANGE LOSS (GAIN) (NET)

144,890

(65)

1,776,320

80

rt28

RESULT FROM MONETARY POSITION

(1,036,314)

463

(932,274)

(42)

rt10

PROVISION FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

4,330,758

100

2,921,848

100

rt32

INCOME TAX

1,827,507

42

2,597,595

89

rt33

DEFERRED INCOME TAX

1,752,780

40

(330,228)

(11)

rt34

EMPLOYEE PROFIT SHARING

750,471

17

654,481

22

rt35

DEFERRED EMPLOYEE PROFIT SHARING

0

0

0

0

(***) THOUSAND DOLLARS

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-09

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

- OTHER CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

RT

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

rt47

OPERATIVE DEPRECIATION AND ACCUMULATED IMPAIRMENT LOSSES

5,169,332

5,592,386

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-10

CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

- FROM JANUARY 01 TO DECEMBER 31, 2006 & 2005 -

(Thousands of Mexican Pesos)

Final printing

---

REF

C

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

c01

NET INCOME

29,061,832

30,904,118

c02

(+)(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING RESOURCES

29,682,083

28,540,897

c03

CASH FLOW FROM NET INCOME FOR THE YEAR

58,743,915

59,445,015

c04

CASH FLOW FROM CHANGES IN WORKING CAPITAL

(5,819,805)

(4,889,906)

c05

RESOURCES PROVIDED BY (USED FOR) OPERATING ACTIVITIES

52,924,110

54,555,109

c06

RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES

3,480,853

(1,149,152)

c07

RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES

(32,314,916)

(27,777,660)

c08

RESOURCES PROVIEDED BY (USED FOR) FINANCING ACTIVITIES

(28,834,063)

(28,926,812)

c09

RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES

(32,653,941)

(23,467,348)

c10

NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS

(8,563,894)

2,160,949

c11

CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNIG OF PERIOD

24,715,138

22,554,189

c12

CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD

16,151,244

24,715,138

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FS-11

CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

- BREAKDOWN OF MAIN CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

C

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

c02

+(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING RESOURCES

29,682,083

28,540,897

c13

DEPRECIATION AND AMORTIZATION FOR THE YEAR

24,563,262

25,998,692

c41

+(-) OTHER ITEMS

5,118,821

2,542,205

c04

CASH FLOW FROM CHANGES IN WORKING CAPITAL

(5,819,805)

(4,889,906)

c18

+(-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLE

(3,227,374)

1,373,129

c19

+(-) DECREASE (INCREASE) IN INVENTORIES

(1,315,076)

(866,038)

c20

+(-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLE AND OTHER ASSETS

(5,743,705)

1,850,776

c21

+(-) INCREASE (DECREASE) IN SUPPLIERS ACCOUNT

0

0

c22

+(-) INCREASE (DECREASE) IN OTHER LIABILITIES

4,466,350

(7,247,773)

c06

RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES

3,480,853

(1,149,152)

c23

+ BANK FNANCING

23,520,841

26,135,760

c24

+ STOCK MARKET FINANCING

646,443

328,202

c25

+ DIVIDEND RECEIVED

0

0

c26

+ OTHER FINANCING

0

1,076,552

c27

(-) BANK FINANCING AMORTIZATION

(14,945,688)

(18,784,900)

c28

(-) STOCK MARKET FINANCING AMORTIZATION

(513,045)

(1,892,897)

c29

(-) OTHER FINANCING AMORTIZATION

(4,819,639)

0

c42

+ (-) OTHER ITEMS

(408,059)

(8,011,869)

c07

RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES

(32,314,916)

(27,777,660)

c30

+ (-) INCREASE (DECREASE) IN CAPITAL STOCK

(1,654,878)

(1,488,943)

c31

(-) DIVIDENDS PAID

(8,525,608)

(9,110,551)

c32

+ PREMIUM ON SALE OF SHARES

0

0

c33

+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES

(22,134,430)

0

c43

+ (-) OTHER ITEMS

0

(17,178,166)

c09

RESOURCES PROVIDED BY (USED FOR ) INVESTMENT ACTIVITIES

(32,653,941)

(23,467,348)

c34

+(-) DECREASE (INCREASE) IN STOCK INVESTMENTS OF PERMANENT NATURE

(11,273,741)

(5,600,756)

c35

(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT

(22,331,558)

(24,954,473)

c36

(-) INCREASE IN CONSTRUCTIONS IN PROGRESS

0

0

c37

+ SALE OF OTHER PERMANENT INVESTMENT

0

148,940

c38

+ SALE OF TANGIBLE FIXED ASSETS

0

0

c39

+ (-) OTHER ITEMS

951,358

6,938,941

--- 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FI-01

DATA PER SHARE

- CONSOLIDATED INFORMATION -

(Thousands of Mexican Pesos)

Final printing

---

REF

D

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

d01

BASIC INCOME PER ORDINARY SHARE (**)

$1.41

$1.36

d02

BASIC INCOME PER PREFERENT SHARE (**)

$0.00

$0.00

d03

DILUTED INCOME PER ORDINARY SHARE (**)

$0.00

$0.00

d04

INCOME FROM CONTINUOUS OPERATIONS PER ORDINARY SHARE (**)

$1.41

$1.36

d05

EFFECT OF DISCONTINUOUS OPERATIONS ON INCOME FROM CONTINUOS OPERATIONS PER ORDINARY SHARE (**)

$0.00

$0.00

d06

EFFECT OF EXTRAORDINARY INCOME ON INCOME FROM CONTINOUS OPERATIONS PER ORDINARY SHARE (**)

$0.00

$0.00

d07

EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES ON INCOME FROM CONTINOUS OPERATIONS PER ORDINARY SHARE (**)

$0.00

$0.00

d08

CARRYING VALUE PER SHARE

$5.11

$4.90

d09

ACUMULATED CASH DIVIDEND PER SHARE

$0.42

$0.41

d10

SHARE DIVIDENDS PER SHARE

0.00

shares

0.00

shares

d11

MARKET PRICE TO CARRYING VALUE

3.00

times

2.86

times

d12

MARKET PRICE TO BASIC INCOME PER ORDINARY SHARE (**)

10.87

times

10.30

times

d13

MARKET PRICE TO BASIC INCOME PER PREFERENT SHARE (**)

0.00

times

0.00

times

(**) INFORMATION OF THE PAST TWELVE MONTHS

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

FI-02

RATIOS

- CONSOLIDATED INFORMATION -

(Thousands of Mexican Pesos)

Final printing

---

REF

P

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

YIELD

p01

NET INCOME TO OPERATING REVENUES

16.60%

17.81%

p02

NET INCOME TO STOCKHOLDERS' EQUITY (**)

27.64%

27.78%

p03

NET INCOME TO TOTAL ASSETS ( **)

11.00%

11.60%

p04

CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME

28.41%

30.31%

p05

INCOME DUE TO MONETARY POSITION TO NET INCOME

8.44%

6.82%

ACTIVITY

p06

OPERATING REVENUES TO TOTAL ASSETS (**)

0.66

times

0.65

times

p07

OPERATING REVENUES TO FIXED ASSETS (**)

1.11

times

1.08

times

p08

INVENTORIES ROTATION (**)

52.72

times

76.45

times

p09

ACCOUNTS RECEIVABLE IN DAYS OF SALES

51.39

days

47.99

days

p10

INTEREST PAID TO TOTAL LIABILITIES WITH COST (**)

7.61%

8.32%

LEVERAGE

p11

TOTAL LIABILITIES TO TOTAL ASSETS

59.86%

55.46%

p12

TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY

1.49

times

1.24

times

p13

FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES

55.57%

59.90%

p14

LONG-TERM LIABILITIES TO FIXED ASSETS

56.20%

50.71%

p15

OPERATING INCOME TO INTEREST PAID

5.97

times

6.43

times

p16

OPERATING REVENUES TO TOTAL LIABILITIES (**)

1.10

times

1.17

times

LIQUIDITY

p17

CURRENT ASSETS TO CURRENT LIABILITIES

1.20

times

1.23

times

p18

CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES

1.16

times

1.21

times

p19

CURRENT ASSETS TO TOTAL LIABILITIES

0.38

times

0.39

times

p20

AVAILABLE ASSETS TO CURRENT LIABILITIES

31.99%

51.81%

STATEMENT OF CHANGES IN FINANCIAL POSITION

p21

CASH FLOW FROM NET INCOME TO OPERATING REVENUES

33.56%

34.26%

p22

CASH FLOW FROM CHANGES IN WORKING CAPITAL TO OPERATING REVENUES

-3.32%

-2.81%

p23

RESOURCES PROVIDED BY OPERATING ACTIVITIES TO INTEREST PAID

6.54

times

6.76

times

p24

EXTERNAL FINANCING TO RESOURCES PROVIDED BY (USED FOR) FINANCING

-12.07%

3.97%

p25

INTERNAL FINANCING TO RESOURCES PROVIDED BY (USED FOR) FINANCING

112.07%

96.02%

p26

ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES

68.38%

106.33%

(**) INFORMATION OF THE PAST TWELVE MONTHS

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 1

CHIEF EXECUTIVE OFFICER REPORT

Consolidated

Final printing

---

Highlights

4th Quarter 2006

 

 

 

 

 

 

(3) Net debt is defined as short-term liabilities plus long-term debt less cash and equivalents.

Recent Events

 

Cash tender offer for shares of Embratel

 

On November 6, 2006, the initial period for the cash tender offer for common and preferred shares of Embratel Partiçpacoes ("Embratel Holdings") expired. As a result of the tender offer, TELMEX acquired 90.3% of the preferred shares (including 79% of the preferred shares represented by ADSs) and 26.5% of the common shares of Embratel Holdings. Through its subsidiaries, at year-end 2006 TELMEX owned 95.9% of all preferred shares, 98.0% of all common shares and 97.0% of all common and preferred shares, taken as a whole, of Embratel Holdings. As of February 12, 2007, as a result of purchases during the initial offering period and subsequent purchases, TELMEX increased its ownership in Embratel Holdings to approximately 96.8% of the preferred shares, 98.0% of the common shares and 97.4% of the total number of common and preferred shares, taken as a whole.

Acquisition of TV Cable and Cable Pacífico in Colombia

On December 4, 2006, TELMEX announced agreements with the controlling partners of TV Cable and the controlling partners of Cable Pacífico for TELMEX to acquire 100% of TV Cable S.A. and TV Cable Comunicaciones S.A. E.S.P. ("TV Cable") and 97.5% of TV Cable del Pacífico S.A. E.S.P. ("Cable Pacífico").

TV Cable offers cable TV, Internet and voice over IP services and has been in operation for 20 years. The company operates in Bogota and Cali. Cable Pacífico operates in nine states, and its main operation is in Medellin. Both transactions are subject to regulatory approvals and other conditions established in the agreements.

Acquisition of Boga

Further applying the regional growth strategy while staying within our strategic range of products and services, TELMEX is in the process of acquiring Boga, a cable TV company in Peru. This company mainly operates in the cities of Lima and Chiclayo.

Amendments to TELMEX's Bylaws

 

On December 5, 2006, TELMEX announced that at its Extraordinary Shareholders' Meeting, held in accordance with requirements established in the current Mexican Securities Law, shareholders approved amendments to its bylaws that adjust the integration, organization and operation of its corporate bodies. The amended bylaws are available in www.telmex.com in the Investor Relations section.

 

Consolidated Income Statements

 

Revenues: In the fourth quarter, consolidated revenues increased 1.7%, mainly due to the increases in domestic long distance, Internet and corporate networks revenues of 8.2%, 8.9% and 10.9%, respectively, as well as the 17.6% increase in other revenues, comprised primarily of Yellow Pages and Tiendas TELMEX (TELMEX stores). In contrast, local service revenues and international long distance revenues decreased 7.9% and 5.7%, respectively. For the twelve months, revenues totaled 175 billion pesos, an increase of 0.9% compared with 2005.

 

Costs and expenses: Costs and expenses increased 9.4%, mainly due to the increase in interconnection charges in Mexico from the introduction of domestic and international calling party pays but also reflecting the fourth-quarter 2005 agreement with a data operator that decreased uncollectables by 201 million pesos as well as the recognition of 222 million reais of income tax contingencies related to incoming international long distance traffic and for additional payments related to ICMS (Imposto Sobre Circulação de Mercadoria e Prestação de Serviços) tax at Embratel. For the full year, costs and expenses totaled 126.7 billion pesos, 4.2% higher than in 2005.

 

EBITDA (1) and operating income: EBITDA (1) totaled 17.7 billion pesos in the fourth quarter, a decrease of 11.5% compared with the same period of 2005. The EBITDA margin was 39.5%. Operating income totaled 11.6 billion pesos, 15.3% lower than the fourth quarter of 2005. For the twelve months, EBITDA (1) totaled 72.9 billion pesos and operating income totaled 48.3 billion pesos.

 

Comprehensive financing cost: Comprehensive financing cost generated a credit of 224 million pesos in the quarter, this resulted from: i) a net interest charge of 667 million pesos due to a non-recurring gain of 603 million reais due to a favorable resolution from Brazil's Supreme Court regarding Embratel's income tax, offset by a recognized provision related to income tax from incoming international long distance traffic of 306 million reais, and a recognition of an impairment in Chile of 27 million dollars, ii) a net exchange loss of 145 million pesos from the fourth-quarter's exchange rate appreciation of 0.1747 pesos per dollar, partially offset by the 6.5 billion dollars in dollar-peso hedges (weighted average exchange rate: 11.08 pesos per dollar) and the 272 million dollars in dollar-reais hedges (weighted average exchange rate: 2.4944 reais per dollar), and iii) a gain in the monetary position of 1 billion pesos.

 

Majority net income: Majority net income in the fourth quarter totaled 7.401 billion pesos, 13.8% lower than the same period of the previous year. Earnings per share were 37 Mexican cents, and earnings per ADR were 67 US cents. For the twelve months, majority net income totaled 28.534 billion pesos, a decrease of 4.9% compared with the same period of last year.

 

Free cash flow: At December 31, resources provided by operating activities totaled 55.785 billion pesos, of which 23.789 billion pesos were used in share repurchases, 8.948 billion pesos in dividend payments and the rest in several investments.

 

Investments: In 2006, consolidated capital expenditures (capex) was the equivalent of 2.009 billion dollars, of which 78.4% was used for growth projects in the voice, data and transport infrastructure, 18.1% for operational support projects and operating needs, and 3.5% for social telephony.

 

Debt: Gross total debt at December 31 was the equivalent of 9.263 billion dollars, an increase of 771 million dollars from a year ago. Consolidated net debt (3) increased in the year to the equivalent of approximately 1.199 billion dollars, totaling 7.519 billion dollars.

(3) Net debt is defined as short-term liabilities plus long-term debt, less cash and equivalents.

 

Repurchase of shares: For the twelve months, the company used 23.789 billion pesos to repurchase its own shares. During the quarter 1.976 billion pesos were used to repurchase 134 million 489 thousand shares.

 

 

Mexico Operating Results

Lines in service

The capacity to generate economic resources has allowed TELMEX to grow in Mexico and expand internationally. The commitment of the Company is reflected in our investment levels, customer service and ongoing pursuit of operating efficiency improvement. In the last 16 years, TELMEX has applied technological modernization to increase domestic coverage and further penetrate the market with better telecommunications services. In this period, we have invested the equivalent of 27.692 billion dollars in telecommunications infrastructure in Mexico. This investment generates a multiplying effect in the Mexican economy as it provides telecommunications services to 22 thousand 801 communities that comprise 90.6% of the population.

In Mexico, there are hundreds of concessionaires and/or licenses to provide telecommunications services, and in the case of local service, as it publicly known, the applied mechanism results in not charging interconnection fees. In the fixed line business, we compete with operators that are mainly focused on high-income segments A and B. In these segments our market share is approximately 66%. At the same time, we have made a commitment to provide telecommunications services nationwide. As a result, we are the only fixed line operator in the country with a presence in socio-economic segments C-, D and E. At December 31, 2006, TELMEX had 18 million 251 thousand lines in service with a market share of 24% in Mexico, where there are more than 76 million fixed and mobile customers.

At TELMEX, we continue enhancing our service offerings and modernizing the telecommunications platform. Our efforts extend to rural areas. The initiatives optimize the required investment and reduce operating expenses. This allows us to offer voice, data and Internet services to more than 21 thousand 341 communities, benefiting more than 21 million inhabitants.

Another positive step for consumers in 2006 was the further reduction in the number of local calling areas. In Mexico the number of calling areas is now 397, below the total of 2 thousand 200 that existed in 1998. The average size of each local area now is 4 thousand 948 Km2, with more than 260 thousand inhabitants. That compares with the United States of America, where there are 25 thousand local calling areas that average 375 Km2 and fewer than 12 thousand inhabitants.

Based on the strategy to assure line profitability, in the quarter, TELMEX disconnected 377 thousand prepaid lines, bringing the total to 864 thousand prepaid disconnections for the full year that had payment problems or were not producing revenues. The application of this strategy along with the disconnection of lines that pay rent resulted in a reduction of 351 thousand in the quarter and 124 thousand for the full year. At December 31, 2006, there were 18 million 251 thousand lines in service.

Local traffic

During the fourth quarter, local traffic decreased 2.2% compared with the same period in 2005, with a total of 6.491 billion local calls. Local traffic volume has been affected by competition from local and wireless telephony and by the migration of our switched traffic to corporate networks, a trend that strengthens the data business although it adversely affects local traffic. For the twelve months, total local traffic was 26.575 billion calls, 0.4% lower than the same period of the previous year.

 

On the other hand, the measured service packages "Línea Más Negocio," launched in February 2005, reached 536 thousand services and "Línea Hogar," launched a year later, totaled 361 thousand services at year-end. These packages have allowed evolving the mix of revenues from single voice and data services to multi-service packages with monthly fixed revenues.

Long distance traffic

Domestic long distance (DLD) decreased 1.2% compared with the fourth quarter of 2005, totaling 4.424 billion minutes. A significant factor was the introduction of domestic calling party pays, which reached 136.9 million minutes in the quarter. If this effect were eliminated, domestic long distance would have increased 1.9%.

 

In the quarter, outgoing and incoming international long distance (ILD) traffic maintained its growth trend due to the introduction of packages. Increases of 1.5% and 15.8% compared with the same period a year earlier brought total minutes to 455 million and 1.809 billion, respectively. The incoming-outgoing ratio was 4. For the full year, international outgoing traffic totaled 1.876 billion minutes and incoming international traffic totaled 7.037 billion minutes, for increases of 4.8% and 31.8%, respectively.

 

Domestic and international long distance packages totaled 1.6 million customers at year-end, 32.4% more than in 2005.

Interconnection

In the fourth quarter, interconnection traffic increased 17.4%, totaling 10.339 billion minutes. Calling party pays traffic increased 19.9% due to the introduction of domestic and international calling party pays in November 2006. If we eliminate this effect, calling party pays traffic would have increased 6.9%. Traffic from local and international operators increased 12.9%. Traffic generated by cellular companies that is terminated in TELMEX's network increased 32.5%. For the full year, interconnection traffic totaled 39 billion minutes, an increase of 12.1%.

Internet and Corporate networks

In Mexico during the fourth quarter, we added 231 thousand broadband Prodigy Infinitum (ADSL) customers, bringing the total at year-end to 1.8 million services, an increase of 76.5% compared with 2005. The growth of Internet services has been supported by the sale of PC's that has made TELMEX the number one retailer of PC's in Mexico for two consecutive quarters. During 2006, we doubled the speed for Infinitum, integrated new multi-service packages with preferred rates and improved service levels by extending the capabilities of our world-class technological platform. These high-speed services now can be offered on 93.7% of TELMEX's network.

Billed line equivalents of 64 Kbps to corporate customers increased 15.9% compared with the previous year, reaching 2.3 million. In particular, penetration of these services has increased through the offer of VPNs (Virtual Private Networks), allowing our customers to optimize their operating costs and management of their data networks by having access to higher quality service levels.

Mexico Financial Results

 

Revenues: Revenues in the fourth quarter totaled 33.1 billion pesos, a level similar to that in the same period of the previous year, due the increases of 12.7% in revenues of Internet access, 11% in interconnection revenues because of the introduction of domestic and international calling party pays, and 25.1% in other revenues, mainly comprised by Yellow Pages and Tiendas TELMEX (TELMEX Stores), partially offset by the rate reduction in real terms of local and long distance, as well as the introduction of packages that decreased the revenue per unit but increased traffic. For the twelve months, total revenues were 128.3 billion pesos, 1.1% lower than the same period of 2005.

 

 

 

 

 

 

Costs and expenses: In the fourth quarter, total costs and expenses were 21 billion pesos, an increase of 1.4%. This increase was due to higher interconnection costs (domestic and international calling party pays). If this effect were eliminated, costs and expenses would have decreased 1.5% as a result of cost control initiatives, as well as lower depreciation and amortization charges. For the twelve months, total costs and expenses were 80.5 billion pesos, 2.2% lower than the same period of 2005.

 

 

 

 

 

EBITDA (1) and operating income: EBITDA (1) totaled 16.7 billion pesos in the fourth quarter, a decrease of 3.3% compared with the same period of last year. The EBITDA margin was 50.4%, a decrease of 1.6 percentage points compared with the fourth quarter of 2005. Operating income totaled 12.3 billion pesos, 3% lower than the fourth quarter of 2005, and the operating margin was 37.1%. For the twelve months, EBITDA (1) totaled 65.8 billion pesos with a margin of 51.3%, and operating income totaled 47.8 billion pesos with a margin of 37.2%.

Investments: In Mexico, total capital expenditures (capex) were 1.166 billion dollars, of which 74.9% was used for growth and modernization projects for the voice, data and transport infrastructure, 19.3% for operational support projects and operating needs, and 5.8% for social telephony.

Debt: At December 31, total debt was the equivalent of 8.013 billion dollars, an increase of 213 million dollars compared with last year. Net debt (3) in Mexico increased the equivalent of 697 million dollars to a total of 6.603 billion dollars.

(3) Net debt is defined as short-term liabilities plus long-term debt less cash and equivalents.

 

Latin America Financial Results

Brazil

In Brazil, efforts have been focused on consolidating Embratel's position in the data business for the commercial segment and increase local service offerings for the residential segment, resulted in an increase of 34.5% of billed line equivalents and an increase in local customers of 31.6% compared with the fourth quarter of 2005. At December 31, the company provided Net Fone services through Net's infrastructure to 181.9 thousand customers. Local and domestic long distance traffic showed increases of 27.1% and 20.2% in the quarter, respectively, compared with the same period of 2005. For the full year, local traffic and domestic long distance traffic increased 39.4% and 16.2%, respectively.

 

In the fourth quarter, revenues from the operations in Brazil totaled 2.082 billion reais, 6.9% higher than the same quarter of the previous year. Higher revenues were mainly due to the 10.4% increase in the data business, to the 19.2% increase in local services, and the 5.5% increase in domestic long distance. For the twelve months, revenues totaled 8.220 billion reais, 6.9 % higher than last year.

 

During the quarter, Embratel recognized income tax contingencies related to incoming international long distance for 222 million reais, as well as an additional charge regarding ICMS tax (Imposto Sobre Circulação de Mercadoria e Prestação de Serviços), that reduced the impact of the fiscal contingency related to this tax that the company had for many years. The amount of the non-recurring charge related to the ICMS tax was approximately 632 million reais for the full year. This effect, along with higher costs related to an increase in sales and charges related to the Telecommunications Service Universal Fund (FUST), generated costs and expenses in the quarter of 2.210 billion reais, an increase of 17.7% compared with the fourth quarter of the previous year.

 

EBITDA (1) totaled 154 million reais in the fourth quarter and 1.155 billion reais for the twelve months. Operating income had losses of 62 million reais in the quarter and for the full year, operating income totaled 57 million reais. If the non-recurring effects were eliminated, EBITDA (1) and operating income would have been 468 million reais and 252 million reais, respectively in the quarter.

Argentina

 

In the quarter, revenues from the operations in Argentina totaled 91.6 million Argentinean pesos, an increase of 8.5% compared with the same period of the previous year due to increases in revenues of 19.4% in the corporate and Internet businesses, 5.3% in long distance and 25% in the local services, offset by the decrease in interconnection revenues with other operators. Operating costs and expenses totaled 99.7 million Argentinean pesos in the quarter, an increase of 9.8% due to the increase in network maintenance costs and advertising expenses to expand the customer base. In the quarter, EBITDA (1) totaled 7 million Argentinean pesos with a margin of 7.7%. The operating loss was 8.1 million Argentinean pesos in the quarter.

Colombia

In Colombia, revenues totaled 54.511 billion Colombian pesos in the fourth quarter, 52.4% higher than the same period of 2005. Higher revenues were mainly due to the integration of sites of several corporate customers and the integration of Superview (a cable TV company) since November 2006 that contributed with 7.876 billion Colombian pesos. Costs and expenses increased 62.8%, totaling 43.186 billion Colombian pesos, mainly due to the incorporation of Superview that contributed with 8.245 billion Colombian pesos and to the 17.2% increase in transport and interconnection expenses for additional services. Operating income totaled 11.325 billion Colombian pesos compared with operating income of 9.239 billion Colombian pesos in the year-ago fourth quarter, an increase of 22.6%. The operating margin was 20.8%. EBITDA (1) totaled 20.570 billion Colombian pesos with a margin of 37.7%, compared with EBITDA (1) of 16.053 billion Colombian pesos in the same period of the previous year.

Chile

 

In the fourth quarter, revenues totaled 16.625 billion Chilean pesos, an increase of 0.5% compared with the same period of 2005. Revenues from the corporate networks and Internet and local service businesses increased 15% and 42.6%, respectively, compared with the same quarter of 2005. The Chilean long distance market continues to decrease due to the migration to mobile services and private networks, which caused a decline in long distance revenues of 5.7%, compared with the fourth quarter of the previous year.

 

Costs and expenses in the fourth quarter totaled 18.277 billion Chilean pesos, an increase of 13.3% compared with the same period of 2005. Costs of sales and services increased 27.8% due to the increase in network maintenance costs related to growth in local services and to the 6.1% increase in transport and interconnection costs. In the quarter, there was an operating loss of 1.652 billion Chilean pesos compared with operating income of 413 million Chilean pesos in the same period of the previous year. EBITDA (1) in the quarter totaled 1.817 billion Chilean pesos with a margin of 10.9%.

Peru

 

From October to December, total revenues were 55.3 million New Soles, an increase of 7.4% compared with the same period of 2005. The data business, which represents 34.3% of revenues, increased 22.6%. Voice business revenues were flat compared with the previous year since the 27.9% increase in lines in service offset the decrease in interconnection revenues with other operators. In the quarter, costs and expenses grew 8.8% due to the increase of 7.9% in transport and interconnection costs compared with 2005. Operating income in the quarter totaled 0.9 million New Soles compared with 1.5 million New Soles in the same period of 2005. EBITDA (1) in the fourth quarter totaled 13 million New Soles with a margin of 23.5% compared with EBITDA (1) of 13.9 million New Soles in the same period of 2005.

Mexico Local and Long Distance Accounting Separation

Based on Condition 7-5 of the Amendments of the Concession Title of Teléfonos de México, the

commitment to present the accounting of the local and long distance services is presented

below for the fourth quarter of 2006 and 2005.

Mexico Local Service Business

Income Statements

[ millions of Mexican constant pesos as of December, 2006 ]

%

12 months

12 months

%

4Q 2006

4Q 2005

Inc.

2006

2005

Inc.

Revenues

Access, rent and measured service

Ps.

13,474

Ps.

14,218

(5.2)

Ps.

55,595

Ps.

57,779

(3.8)

LADA interconnection

1,053

1,102

(4.4)

4,463

4,395

1.5

Interconnection with operators

469

255

83.9

1,619

1,481

9.3

Interconnection with cellular

3,784

4,042

(6.4)

15,117

16,561

(8.7)

Other

2,301

2,629

(12.5)

9,342

9,256

0.9

Total

21,081

22,246

(5.2)

86,136

89,472

(3.7)

Costs and expenses

Cost of sales and services

5,850

5,576

4.9

21,843

22,672

(3.7)

Commercial, administrative and general

4,231

3,841

10.2

16,791

15,808

6.2

Interconnection

2,834

3,174

(10.7)

11,360

12,503

(9.1)

Depreciation and amortization

2,680

3,121

(14.1)

11,974

13,101

(8.6)

Total

15,595

15,712

(0.7)

61,968

64,084

(3.3)

Operating income

Ps.

5,486

Ps.

6,534

(16.0)

Ps.

24,168

Ps.

25,388

(4.8)

EBITDA (1)

Ps.

8,166

Ps.

9,655

(15.4)

Ps.

36,142

Ps.

38,489

(6.1)

EBITDA margin (%)

38.7

43.4

(4.7)

42.0

43.0

(1.0)

Operating margin (%)

26.0

29.4

(3.4)

28.1

28.4

(0.3)

Mexico Long Distance Service Business

Income Statements

[ millions of Mexican constant pesos as of December, 2006 ]

%

12 months

12 months

%

4Q 2006

4Q 2005

Inc.

2006

2005

Inc.

Revenues

Domestic long distance

Ps.

4,952

Ps.

4,309

14.9

Ps.

17,678

Ps.

17,335

2.0

International long distance

2,239

2,184

2.5

8,927

8,902

0.3

Total

7,191

6,493

10.8

26,605

26,237

1.4

Costs and expenses

Cost of sales and services

1,350

1,394

(3.2)

5,367

5,635

(4.8)

Commercial, administrative and general

1,287

1,426

(9.7)

5,423

5,390

0.6

Interconnection to the local network

1,803

968

86.3

4,800

3,870

24.0

Depreciation and amortization

529

655

(19.2)

2,381

2,687

(11.4)

Total

4,969

4,443

11.8

17,971

17,582

2.2

Operating income

Ps.

2,222

Ps.

2,050

8.4

Ps.

8,634

Ps.

8,655

(0.2)

EBITDA (1)

Ps.

2,751

Ps.

2,705

1.7

Ps.

11,015

Ps.

11,342

(2.9)

EBITDA margin (%)

38.3

41.7

(3.4)

41.4

43.2

(1.8)

Operating margin (%)

30.9

31.6

(0.7)

32.5

33.0

(0.5)

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Thousands of Mexican Pesos)

Consolidated

Final printing

---

S 87 OTHERS

 

In this item there are included the inventories for telephone plant operation that at December 31, 2006 and 2005 rose $2,798,615 and $2,398,445, respectively which are valued by the average cost method and are updated based on the specific index method, without exceeding their market value.

 

S 84 INTANGIBLE ASSETS FOR LABOR OBLIGATIONS

 

In this item it is included the projected net asset accordingly with Bulletin D-3 Labor Obligations issued by the Mexican Institute of Public Accountants.

PROJECTED NET ASSETS (D-3)

 

At December 31, 2006 and 2005, the market value of the established pensions and seniority premium fund was greater than the accumulated benefit obligation (ABO) in Mexico, and pursuant to Bulletin D-3, it is not recognized neither any additional liability nor the related intangible asset and effect of labor obligation on stockholders' equity. As a result of the foregoing, the balance sheet presents a projected net asset.

 

S 23 AND S 28 BANK LOANS

 

In this item, there are included the banks' credits related to purchase programs to suppliers that have been traditionally reported in the suppliers' credits item of the Balance Sheet because long-term opening to suppliers does not exist in EMISNET.

On October 20, 2005, TELMEX signed an agreement to restructure the syndicated bank loan issued on July 15, 2004 for 2.425 billion dollars to improve the credit conditions and increase the total amount to 2.5 billion dollars in two tranches, the first one for 1.5 billion dollars due in four years and the second one for 1 billion dollars due in six years. On August 11, 2006 the loan was restructured again in order to improve the credit conditions and increase the total amount to 3 billion dollars divided in three tranches, the first one for 1.3 billion dollars due in three years, the second one for 1 billion dollars due in five years and the third one for 700 million dollars due in seven years.

On June 30, 2006 Telmex signed a syndicated loan agreement in the amount of 500 million dollars divided into two tranches of 250 million dollars each one, due in four and six years, respectively.

 

 

S 24 AND S 29 STOCK MARKET LOANS

 

During 2001, TELMEX issued senior notes for U.S.$1.5 billion, maturing in 2006 and bearing 8.25% annual, interest payable semi-annually. From January to December, 2005, TELMEX repurchased in the market a portion of these senior notes in the amount of U.S. $431.6 million (nominal value). The difference between the repurchase price and the nominal value of the bonds is U.S.$ 15.6 million. On January 26, 2006, Telmex paid the outstanding balance that amounted U.S.$1,068.4 million.

 

 

On November 19, 2003, TELMEX issued a bond for U.S.$ 1.0 billion due 2008, with an annual; interest of 4.5%. Interest will be paid every six months.

On January 27, 2005, TELMEX placed senior notes in aggregate principal amount of U.S.$1.3 billion in two issuances of U.S.$650 million each, the first one maturing in 2010 and bearing interest at 4.75% annual and the second one maturing in 2015 and bearing interest at 5.50% annual. Interest will be paid every six months. On February 22, 2005, there was a reopening of this transaction and the amounts of such issuances increased to U.S. $950 million and U.S. $800 million, respectively.

On January 31, 2006, TELMEX placed abroad a senior note in the amount of Ps. 4.5 billion, maturing in 2016 and bearing interest at 8.75%. Interest will be paid semi-annually.

 

On July 2006, cross currency swaps were carried out to cover the exchange rate and interest rate risks related to the issuance of bonds with maturity in 2010 and 2015 for a total of 1.750 billion dollars (with interest rates of 4.75% and 5.50%, respectively). This transaction allowed TELMEX to hedge the 2010 and 2015 bonds at a strike price of 10.9275 pesos with fixed rates of 7.52% and 8.57%, respectively.

 

 

 

S 29 STOCK MARKET LOANS (LONG-TERM)

 

At December 31, 2006 and 2005, this item rose to $ 35,607,625 and $ 38,391,337, respectively and is comprised by the following:

 

2006

2005

Domestic Senior Notes

Ps 1,200,000

Ps. 7,027,680

Bonds

29,907,625

31,363,657

Global peso Senior Notes

Ps 4,500,000

0

 

S 32 OTHER LIABILITIES

 

At December 31, 2006 and 2005, this item rose to Ps 2,037,605 and Ps. 1,975,290, respectively, that corresponds to Embratel's labor obligations, as well as the actuarial obligations for labor termination in Mexico in the amount of Ps. 235,215 and 148,561 at December 31, 2006 and 2005 respectively, based on the requirements of Bulletin D-3.

 

 

S 42 RETAINED EARNINGS AND CAPITAL RESERVES

 

In October 9, 2006 the Ordinary Shareholders Meeting approved to increase in Ps. 15 billion (face value), the amount authorized to acquire its own shares, bringing the total maximum amount to be used for this purpose to Ps. $ 15,931,293 (face value).

 

 

From January to Decembre 2006, the Company acquired 1.838 billion Series L shares for Ps 23,737,186 (historical cost of Ps. 23,092,355) and 3.9 million Series A shares for Ps. 52,122 (historical cost of Ps. 50,682).

 

From January to December 2005, the Company acquired 1,577.6 million Series L shares for Ps. 18,329,752 (historical cost of Ps. 16,926,983) and 6.2 million Series A shares for Ps. 71,372 (historical cost of Ps. 65,761).

 

For comparative purposes, there was applied retroactively a two-for-one stock split effect, as approved by the Extraordinary Shareholders Meeting as of April 28, 2005 and effective as of May 25, 2005, to the shares acquired from January 1, 2005 to May 20, 2005.

 

The Company's repurchased shares are applied to unappropiated retained earnings in the amount the corresponding shares purchased exceeded capital stock.

 

 

S 58 OTHER CURRENT LIABILITIES

 

At December 31, 2006 and 2005, this item rose to Ps. 32,147,199 and Ps. 27,100,997 respectively and is comprised by the following concepts:

 

2006

2005

Accounts payable

Ps. 18,885,308

Ps 16,040,295

Accrued liabilities

11,103,072

8,993,061

Deferred credits

2,158,819

2,067,641

 

 

S 73 PENSION FUND AND SENIORITY PREMIUMS

 

The Company has pensions plans and seniority benefit premiums that are established in defined pension plans that cover substantially all employees in Mexico.

 

Pension benefits are determined on the basis of compensation to employees in their final year employment, their seniority, and their age at the time of retirement.

The Company established an irrevocable trust fund to cover the payment of these obligations and has the policy of making annual contributions to such fund. These contributions are deductible for Mexican corporate income tax purposes. During the period comprised from January to December 2006, there were not contributions to the trust fund.

 

The transition liability, past services and variations in assumptions are being amortized over a period of twelve years, that is the estimated average remaining working-life of the Company's employees.

 

S 49 GOODWILL

The increase of Ps. 426,882 is mainly due to: (i) increase of Ps. 2,331,467 for the following acquisitions: 13% of 2wire, Inc., 2.8% of additional interest in the affiliate Net Serviços de Comunicaçao, S.A., 99.2% of Superview Telecomunicaciones, S.A. and 80% of Sección Amarilla U.S.A., LLC (formerly Cobalt Publishing, LLC); (ii) decrease due to purchase adjustments in the amount of Ps. 1,794,645; (ii) decrease due to impairment to income in the amount of Ps. 294,241 and; (iv) increase due to effect of translation of foreign entities of Ps. 184,301.

 

 

 

COMPREHENSIVE INCOME

 

In 2006 and 2005, the components of comprehensive income are presented as follows:

 

 

2006

2005

Net income for the period

Ps. 29,061,832

Ps. 30,904,118

Deficit from holding non-monetary assets, net of deferred taxes

(3,365,237)

(5,999,915)

Effect of market value of Swaps, net of deferred taxes

(121,475)

(175,999)

Effect of securities available for sale:

Gain for the year

1,749,490

Gain on sale recognized in income

0

(533,842)

Effect of translation of foreign entities, net

4,545,281

768,117

Gain on dilution in investment in affiliate

853,081

Comprehensive Income

30,973,482

26,711,969

 

 

NOTES TO CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

 

C 39 OTHER ITEMS

 

Includes inventories for operation of the telephone plant, marketable securities and instruments available for sale, deferred assets, as well as decreases of fixed assets.

 

RATIOS

 

P 08 INVENTORY TURNOVER RATE-COST

 

EMISNET automatically calculates the inventory turnover rate-cost by dividing the cost of sales and services (Ref. R 2) by the inventory of goods for sale (Ref. S 6), fact that affects the actual turnover.

 

RECLASIFICATIONS

 

Some of the figures of the 2005 financial statements have been reclassified to conform the presentation with the same used in the 2006 year.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 3a

SHARE INVESTMENTS SUBSIDIARIES

Consolidated

Final printing

---

COMPANY NAME

MAIN ACTIVITIES

NUMBER OF

SHARES

OWNERSHIP

%

Consertel, S.A. de C.V.

Investments in all types of businesses

106,419,052,434

100.00

Cía. de Teléfonos y Bienes Raíces, S.A. de C.V.

Real estate acquisition & leasing

1,034,000,000

100.00

Alquiladora de Casas, S.A. de C.V.

Real estate acquisition & leasing

686,001,490

100.00

Construcciones y Canalizaciones, S.A. de C.V.

Construction & maint. of telephone network

28,369,000

100.00

Empresa de Limpieza Mexicana, S.A. de C.V.

Cleaning Service Company

50,000

100.00

Renta de Equipo, S.A. de C.V.

Equipment, vehicles & real estate leasing

769,595,000

100.00

Multicomunicación Integral, S.A. de C.V.

Trunking, installation & sales services

662,482

100.00

Teleconstructora, S.A. de C.V.

Construction & maint. of telephone network

19,400,000

100.00

Anuncios en Directorios, S.A. de C.V.

Sale of advertising space in yellow pages

1,081,750

100.00

Operadora Mercantil, S.A. de C.V.

Marketing services

50,000

100.00

Impulsora Mexicana de Telecomunicaciones, S.A.

Network projects

4,602,225

100.00

Fuerza y Clima, S.A de C.V.

Air conditioning installation & maint.

4,925,000

100.00

Teléfonos del Noroeste, S.A. de C.V.

Telecommunications services

110,000,000

100.00

Aerocomunicaciones, S.A. de C.V.

Aeronautic radiocom. mobile serv.

89,034,600

99.99

Tecmarketing, S.A. de C.V.

Telemarketing services

6,850,000

100.00

Comertel Argos, S.A. de C.V.

Personnel services

6,000

100.00

Telmex International, Inc.

Holding Company in the U S A.

1,000

100.00

Instituto Tecnológico de Teléfonos de México, S.C

Trainning & research services

1,000

100.00

Buscatel, S.A. de C.V.

Paging services

142,445

100.00

Consorcio Red Uno, S.A. de C.V.

Design & integrated telecom. Services

167,691,377

100.00

Uninet, S.A. de C.V.

Data transmission services

67,559,615

100.00

Aerofrisco, S.A. de C.V.

Air Taxi services

6,360,624,600

100.00

Grupo Técnico de Administración, S.A. de C.V.

Management, consulting & org. Services

50,000

100.00

Teninver, S.A. de C.V.

Investments in all types of businesses

5,052,476

100.00

Telcoser, S.A. de C.V.

Investments in all types of businesses

17,230,931

100.00

Fintel Holdings, L.L.C.

Investments in all types of businesses

1,490

100.00

Servicios Administrativos Tecmarketing, S.A. de C.V.

Software development, sales & management

60,687,728

100.00

Metrored Holdings S. R. L.

Telecommunications services

364,172,289

100.00

Arrendadora de Servicios de Telecomunicaciones S.A.

Equipment leasing

50,000

100.00

Telmex Chile Holding S.A.

Telecommunications services

158,829,369,072

100.00

Telmex Colombia S. A.

Telecommunications services

176,669,199

100.00

Superview Telecomunicaciones, S.A.

Cable TV operator

57,447,495

99.15

Telmex Perú S. A.

Telecommunications services

4,187,416

100.00

Creo Sistemas S.A.C.

Software development, sales & management

10

100.00

Embratel Participações, S.A.

Telecommunications services

958,734,701,175

96.96

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 3b

SHARE INVESTMENTS AFFILATES

Consolidated

Final printing

---

COMPANY NAME

MAIN ACTIVITIES

NUMBER OF

SHARES

OWNERSHIP

%

TOTAL AMOUNT

(Thousands of

Mexican Pesos)

ACQUISITION

COST

PRESENT

VALUE

Grupo Telvista, S.A. de C.V.

Telemarketing in Mexico and USA

450

45.00

510,138

432,208

Centro Histórico de la Ciudad de México, SA de CV

Real estate services

80,020,000

21.77

80,020

109,551

TM and MS, LLC

Internet portal (T1MSN)

1

50.00

29,621

62,463

Net Serviços de Comunicação, S.A.

Cable TV operator

116,548,220

39.87

5,341,855

2,177,845

Eidon Software, S.A. de C.V.

Software development

35,567,911

22.74

35,568

51,183

2Wire, Inc.

Broadband Services

8,619,242

13.00

648,400

166,610

TOTAL INVESTMENT IN ASSOCIATES

6,645,602

2,999,860

OTHER PERMANENT INVESTMENTS

6,576

T O T A L

6,645,602

3,006,436

NOTES:

The 39.87 % corresponds to the percentage held directly and indirectly by Embratel Participações, S.A. in Net Serviços de Comunicação, S.A., therefore, the TELMEX's indirect effective holding in Net is 38.58%.

---

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 5

CREDITS BREAKDOWN

(Thousands of Mexican Pesos)

Consolidated

Final printing

---

Credit Type / Institution

Amortization Date

Interest Rate

Amortization of Credits Denominated in Pesos

Amortization of Credits in Foreign Currency

Time Interval

Time Interval

Current

Year

Until 1

Year

Until 2

Year

Until 3

Year

Until 4

Year

Until 5

Years or

more

Current

Year

Until 1

Year

Until 2

Year

Until 3

Year

Until 4

Year

Until 5

Years or

more

BANKS

FOREIGN TRADE

BBV ARGENTARIA S.A. (1)

22/12/2007

6.12

0

0

0

0

0

0

0

174,945

0

0

0

0

BCO SANTANDER CH NY (1)

22/12/2009

5.57

0

0

0

0

0

0

0

30,730

6,030

2,960

0

0

DEXIA BANK (1)

31/12/2014

6.37

0

0

0

0

0

0

0

269,117

192,995

192,995

138,916

106,009

EXPORT DEVELOPMENT C. (1)

22/04/2009

5.92

0

0

0

0

0

0

0

51,284

21,805

5,695

0

0

EXPORT DEVELOPMENT C. (1)

22/07/2011

5.67

0

0

0

0

0

0

0

33,714

33,714

33,713

33,713

33,713

JAPAN BANK INT. COOP. (1)

10/10/2011

6.25

0

0

0

0

0

0

0

932,205

932,204

932,204

932,204

932,074

NATEXIS BANQUE (2)

31/03/2022

2.00

0

0

0

0

0

0

0

21,195

21,195

21,195

21,195

160,956

SOCIETE GENERALE PARIS (1)

14/05/2007

6.12

0

0

0

0

0

0

0

15

0

0

0

0

VARIAS INSTITUCIONES (1) Y (6)

30/11/2013

6.49

0

0

0

0

0

0

0

839,247

982,026

938,749

1,107,070

1,282,465

VARIAS INSTITUCIONES (2)

01/07/2027

7.67

0

0

0

0

0

0

0

2,998,820

2,797,630

686,702

601,113

1,368,950

0

00/01/1900

0.00

0

0

0

0

0

0

0

0

0

0

0

0

SECURED DEBT

COMMERCIAL BANK

BBVA BANCOMER (3)

26/02/2007

7.37

0

800,000

0

0

0

0

0

0

0

0

0

0

BBVA BANCOMER (4)

21/05/2007

7.74

0

500,000

0

0

0

0

0

0

0

0

0

0

BBVA BANCOMER (1)

07/07/2010

5.57

0

0

0

0

0

0

0

0

0

0

2,718,875

0

BBVA BANCOMER (1)

07/07/2012

5.62

0

0

0

0

0

0

0

0

0

0

0

2,718,875

CITIBANK, N.A. (1)

20/10/2009

5.57

0

0

0

0

0

0

0

0

0

14,138,150

0

0

CITIBANK, N.A. (1)

20/10/2011

5.62

0

0

0

0

0

0

0

0

0

0

0

10,875,500

CITIBANK, N.A. (1)

11/08/2013

5.70

0

0

0

0

0

0

0

0

0

0

0

7,612,850

OTHER

TOTAL BANKS

0

1,300,000

0

0

0

0

0

5,351,272

4,987,599

16,952,363

5,553,086

25,091,392

STOCK MARKET

LISTED STOCK EXCHANGE

UNSECURED DEBT

CERT. BURSAT TLMX 02 (5)

09/02/2007

8.00

0

1,650,000

0

0

0

0

0

0

0

0

0

0

CERT. BURSAT TLMX 01, 02-3-4(2)

31/05/2012

11.05

0

1,000,000

0

400,000

0

300,000

0

0

0

0

0

0

CERT. BURSAT TLMX 01-2(5)

26/10/2007

8.10

0

3,250,000

0

0

0

0

0

0

0

0

0

0

CERT. BURSAT TLMX 06 (4)

15/09/2011

7.64

0

0

0

0

0

500,000

0

0

0

0

0

0

4 1/2 SENIOR NOTES (2)

19/11/2008

4.50

0

0

0

0

0

0

0

0

10,875,500

0

0

0

5 1/2 SENIOR NOTES (2)

27/01/2015

5.50

0

0

0

0

0

0

0

0

0

0

0

8,700,400

4 3/4 SENIOR NOTES (2)

27/01/2010

4.75

0

0

0

0

0

0

0

0

0

0

10,331,725

0

8 3/4 SENIOR NOTES PESOS (2)

31/01/2016

8.75

0

0

0

0

0

4,500,000

0

0

0

0

0

0

SECURED DEBT

PRIVATE PLACEMENTS

UNSECURED DEBT

SECURED DEBT

TOTAL STOCK EXCHANGE

0

5,900,000

0

400,000

0

5,300,000

0

0

10,875,500

0

10,331,725

8,700,400

SUPPLIERS

TOTAL SUPPLIERS

OTHER CURRENT LIABILITIES AND OTHER CREDITS

S58 OTHER CURRENT LIABILITIES

0

32,147,199

0

0

0

0

0

0

0

0

0

0

TOTAL

0

39,347,199

0

400,000

0

5,300,000

0

5,351,272

15,863,099

16,952,363

15,884,811

33,791,792

NOTES:

A.- Interest rates:

The credits breakown is presented with an integrated rate as follows:

  1. Libor plus margin
  2. Fixed Rate
  3. TIIE
  4. TIIE plus margin
  5. CETES plus margin
  6. Local rate plus margin

B.- The following rates were considered:

  1. Libor at 6 months in U S dollars is equivalent to 5.3700 at December 29, 2006
  2. TIIE at 28 days is equivalent to 7.3675 at December 29, 2006
  3. TIIE at 91 days is equivalent to 7.6600 at December 28, 2006
  4. CETES at 182 days is equivalent to 7.2000 at December 28, 2006

C.- The suppliers' Credits are reclasified to Bank Loans because in this document, Emisnet, Long-Term opening to Suppliers' does not exist.

D.- Liabilities in foreign currency were exchanged at the prevailing exchange rate at the end of the reporting period, which at December 31, 2006 were as follows:

CURRENCY

AMOUNT

E.R.

DOLLAR (USD)

7,964,048

10.88

EURO (EUR)

31,812

14.32

E.- There are other liabilities in foreign currency for an equivalent amount of P. 774,860 thousand pesos.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 6

FOREIGN EXCHANGE MONETARY POSITION

(Thousands of Mexican Pesos)

Consolidated

Final printing

---

FOREIGN CURRENCY POSITION

DOLLARS

OTHER CURRENCIES

TOTAL

THOUSAND

DOLLARS

THOUSAND

PESOS

THOUSAND

DOLLARS

THOUSAND

PESOS

THOUSAND

PESOS

MONETARY ASSETS

674,220

7,332,479

1,732,606

18,842,951

26,175,430

LIABILITIES

8,196,595

89,142,069

1,723,640

18,745,460

107,887,529

SHORT-TERM LIABILITIES

668,924

7,274,883

1,666,183

18,120,581

25,395,464

LONG-TERM LIABILITIES

7,527,671

81,867,186

57,457

624,879

82,492,065

NET BALANCE

(7,522,375)

(81,809,590)

8,966

97,491

(81,712,099)

NOTES:

Assets and Liabilities in foreign currency were exchanged at the prevailing exchange rate at the end of the reporting period.

At the end of the quarter the exchange rates were as follows:

CURRENCY

E.R.

DOLLAR (USD)

10.88

EURO

14.33

CHILEAN PESO

0.02

ARGENTINEAN PESO

3.55

BRAZILIAN REAL

5.09

PERUVIAN SOL

3.40

COLOMBIAN PESO

0.0049

--

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 7

CALCULATION AND RESULT FROM MONETARY POSITION

(Thousands of Mexican Pesos)

Consolidated

Final printing

--- 

MONTH

MONETARY

ASSETS

MONETARY

LIABILITIES

ASSETS (LIABILITIES)

MONETARY

POSITION

MONTHLY

INFLATION

MONTHLY

EFFECT

ASSET (LIABILITIES)

JANUARY

42,457,783

101,967,712

(59,509,929)

0.59

(351,109)

FEBRUARY

32,989,353

92,593,835

(59,604,482)

0.25

(149,011)

MARCH

35,394,769

93,820,697

(58,425,928)

0.10

(58,426)

APRIL

33,795,432

93,845,126

(60,049,694)

0.13

(78,065)

MAY

35,118,558

93,703,248

(58,584,690)

(0.44)

257,773

JUNE

35,595,556

94,566,926

(58,971,370)

0.16

(94,354)

JULY

35,511,288

95,266,029

(59,754,741)

0.12

(71,706)

AUGUST

42,091,723

101,712,741

(59,621,018)

0.42

(250,408)

SEPTEMBER

46,269,250

106,383,370

(60,114,120)

0.92

(553,050)

OCTOBER

47,753,627

108,986,891

(61,233,264)

0.78

(477,619)

NOVEMBER

47,996,528

107,765,570

(59,769,042)

0.47

(280,914)

DECEMBER

42,254,684

105,503,602

(63,248,918)

0.49

(309,920)

RESTATEMENT

0

0

0

0.00

(39,849)

CAPITALIZATION

0

0

0

0.00

0

FOREIGN CORP.

0

0

0

0.00

(120,805)

OTHER

0

0

0

0.00

124,171

TOTAL

(2,453,292)

NOTE:

Telmex's policy applies Mexican National Consumer Prices Index (NCPI) estimated from January to November, and real for December.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 8

DEBT INSTRUMENTS

Consolidated

Final printing

---

FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE

Part of the long-term debt is subject to certain restrictive covenants with respect to maintaining certain financial ratios and the sale of assets, among others.

A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of change of control of the Company, as defined in the related instruments. The definition of change of control varies from instrument to instrument; however, no change in control shall be considered to have ocurred as long as Carso Global Telecom, S.A. de C.V. (TELMEX' controlling company) or its current stockholders continue to hold the majority of the Company's voting shares.

CURRENT SITUATION OF FINANCIAL LIMITED

At December 31, 2006, the Company has complied with such restrictive covenants.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 9

PLANTS, - COMMERCIAL, DISTRUBUTION AND/OR SERVICE CENTERS -

Consolidated

Final printing

---

PLANT OR CENTER

ECONOMIC ACTIVITY

PLANT CAPACITY

UTILIZATION

(%)

NOT AVAILABLE

NOTES:

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 10

RAW MATERIALS

Consolidated

Final printing

---

DOMESTIC

MAIN SUPPLIERS

IMPORT

MAIN SUPPLIERS

DOM.

SUBST.

PRODUCTION COST (%)

NOT AVAILABLE

NOTES :

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 11a

SALES DISTRIBUTION BY PRODUCT

SALES

(Thousands of Mexican Pesos)

 Consolidated

Final printing

---

MAIN PRODUCTS

NET SALES

MARKET

PART.

(%)

MAIN

VOLUME

AMOUNT

TRADEMARKS

CUSTOMERS

DOMESTIC SALES

LOCAL SERVICE

0

56,140,123

0.0

LONG DISTANCE SERVICE

0

23,904,503

0.0

INTERCONNECTION

0

17,533,658

0.0

CORPORATE NETWORKS

0

10,650,175

0.0

INTERNET

0

9,570,868

0.0

OTHERS

0

6,893,213

0.0

FOREIGN SALES

NET SETTLEMENT

0

3,919,997

0

LOCAL SERVICE

0

4,288,354

0

LONG DISTANCE SERVICE

0

25,614,594

0

INTERCONNECTION

0

830,929

0

CORPORATE NETWORKS

0

12,043,311

0

INTERNET

0

2,724,691

0

OTHERS

0

891,707

0

TOTAL

175,006,123

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 11b

SALES DISTRIBUTION BY PRODUCT

FOREIGN SALES

(Thousands of Mexican Pesos)

Consolidated

Final printing

---

MAIN PRODUCTS

NET SALES

DESTINATION

MAIN

VOLUME

AMOUNT

TRADEMARKS

CUSTOMERS

EXPORT

NET SETTLEMENT

0

3,752,669

CORPORATE NETWORKS

0

7,416

FOREIGN SUBSIDIARIES

NET SETTLEMENT

0

167,328

LOCAL SERVICE

0

4,288,354

LONG DISTANCE SERVICE

0

25,614,594

INTERCONNECTION

0

830,929

CORPORATE NETWORKS

0

12,035,895

INTERNET

0

2,724,691

OTHERS

0

891,707

TOTAL

50,313,583

NOTES:

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANALYSIS OF PAID CAPITAL STOCK

Consolidated

Final printing

--- 

SERIES

NOMINAL

VALUE

VALID

COUPON

NUMBER OF SHARES

CAPITAL STOCK

(Thousand pesos)

FIXED

PORTION

VARIABLE

PORTION

MEXICAN

PUBLIC

SUSCRIPTION

FIXED

VARIABLE

A

0.01250

0

445,991,548

0

0

445,991,548

5,575

0

AA

0.01250

0

8,114,596,082

0

8,114,596,082

0

101,432

0

L

0.01250

0

11,642,530,540

0

0

11,642,530,540

145,532

0

TOTAL

20,203,118,170

0

8,114,596,082

12,088,522,088

252,539

0

TOTAL NUMBER OF SHARES REPRESENTING CAPITAL STOCK ON THE REPORTING DATE OF THE INFORMATION:

20,203,118,170

NOTES:

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 13

PROJECT INFORMATION

(Thousands of Mexican Pesos)

Consolidated

Final printing

---

ITEM

Thousand of Mexican Pesos

4th. Quarter 06

Oct-Dec

% of

Advance

Amount used

2006

Budget

2006

% of

Advance

DATA

1,102,266

25.7

3,333,328

4,285,501

77.8

INTERNAL PLANT

542,368

34.4

1,161,001

1,576,684

73.6

OUTSIDE PLANT

813,940

26.6

2,721,756

3,065,241

88.8

TRANSMISSION NETWORK

965,132

40.6

2,022,987

2,378,910

85.0

SYSTEMS

311,737

30.8

457,407

1,011,387

45.2

OTHERS

1,414,709

34.3

3,316,251

4,121,301

80.5

TOTAL INVESTMENT TELMEX MEXICO

5,150,152

31.3

13,012,730

16,439,024

79.2

LATINOAMERICA

621,485

31.8

1,869,054

1,951,421

95.8

EMBRATEL

2,040,291

30.5

7,449,774

6,680,507

111.5

TOTAL INVESTMENT

7,811,928

31.2

22,331,558

25,070,952

89.1

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

ANNEX 14

TRANSACTIONS IN FOREIGN CURRENCY AND EXCHANGE OF FINANCIAL STATEMENTS FROM FOREIGN OPERATIONS

Consolidated

Final printing

---

Basis of translation of financial statements of foreign subsidiaries

 

The financial statements of the subsidiaries located abroad were translated into Mexican pesos, as follows:

The financial statements as reported by the subsidiaries abroad were adjusted to conform to accounting principles generally accepted in Mexico.

All balance sheet amounts, except for stockholders' equity, were translated at the prevailing exchange rate at the end of the fiscal year; stockholders' equity accounts were translated at the prevailing exchange rate at the time capital contributions were made and earnings were generated. The statement of income amounts were translated at the prevailing exchange rate at the end of the reporting period. The translation into Mexican pesos is carried out after the related balances or transactions have been restated based on the inflation rate of the country in which the subsidiary operates.

Exchange differences and the monetary position effect derived from intercompany monetary items were not eliminated from the consolidated statements of income.

Translation differences are included in the caption Effect of translation of foreign entities and are included in stockholders' equity as part of the caption Other comprehensive income items.

---

 

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

GENERAL INFORMATION

Consolidated

Final printing

---

ISSUER GENERAL INFORMATION

COMPANY:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

INTERNET PAGE:

TELEFONOS DE MEXICO, S.A. DE C.V.

PARQUE VIA 198, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 12 12

 

 

www.telmex.com

 

ISSUER FISCAL INFORMATION

TAX PAYER FEDERAL ID: FISCAL ADDRESS:

ZIP:

CITY:

TME 840315KT6

PARQUE VIA 198, COL. CUAUHTEMOC

06599

MEXICO, D.F.

OFFICERS INFORMATION

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

CHAIRMAN OF THE BOARD

CHAIRMAN OF THE BOARD

ING. JAIME CHICO PARDO

PARQUE VIA 190 - 10TH. FLOOR OFFICE 1001, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 51 52

55 45 55 50

jchico@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

CHIEF EXECUTIVE OFFICER

CHIEF EXECUTIVE OFFICER

LIC. HECTOR SLIM SEADE

PARQUE VIA 190 - 10TH. FLOOR OFFICE 1004, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 15 86

55 45 55 50

hslim@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

CHIEF FINANCIAL OFFICER

CHIEF FINANCIAL OFFICER

ING. ADOLFO CEREZO PEREZ

PARQUE VIA 190 - 10TH. FLOOR OFFICE 1016, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 57 80

52 55 15 76

acerezo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

DISTRIBUTION OF CORPORATE INFORMATION DELEGATE

SUBDIRECTOR OF FINANCE

C.P. EDUARDO ROSENDO GIRARD

PARQUE VIA 198 - 5TH. FLOOR OFFICE 501, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 95

52 50 80 54

erosendo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

DISTRIBUTION OF BUYBACK INFORMATION DELEGATE

SHAREHOLDER SERVICES MANAGER

LIC. MIGUEL ANGEL PINEDA CATALAN

PARQUE VIA 198 - 2ND. FLOOR OFFICE 202, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 22

55 46 21 11

mpineda@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

IN-HOUSE LEGAL COUNSEL

LEGAL DIRECTOR

LIC. SERGIO F. MEDINA NORIEGA

PARQUE VIA 190 - 2ND. FLOOR OFFICE 202, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 14 25

55 46 43 74

smedinan@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

DISTRIBUTION OF FINANCIAL INFORMATION DELEGATE

SUBDIRECTOR OF FINANCE

C.P. EDUARDO ROSENDO GIRARD

PARQUE VIA 198 - 5TH. FLOOR OFFICE 501, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 95

52 50 80 54

erosendo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

DISTRIBUTION OF MATERIAL FACTS DELEGATE

INVESTORS RELATIONS MANAGER

ING. RUY ECHAVARRIA AYUSO

PARQUE VIA 198 - 7TH. FLOOR OFFICE 701, COL. CUAUHTEMOC

06599

MEXICO, D.F.

57 03 39 90

55 45 55 50

rechavar@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

INVESTOR INFORMATION RESPONSIBLE

INVESTORS RELATIONS MANAGER

ING. RUY ECHAVARRIA AYUSO

PARQUE VIA 198 - 7TH. FLOOR OFFICE 701, COL. CUAUHTEMOC

06599

MEXICO, D.F.

57 03 39 90

55 45 55 50

ri@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

SECRETARY OF THE BOARD OF DIRECTORS

LEGAL DIRECTOR

LIC. SERGIO F. MEDINA NORIEGA

PARQUE VIA 190 - 2ND. FLOOR OFFICE 202, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 14 25

55 46 43 74

smedinan@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

PAYMENT RESPONSIBLE

SUBDIRECTOR OF FINANCE

C.P. EDUARDO ROSENDO GIRARD

PARQUE VIA 198 - 5TH. FLOOR OFFICE 501, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 53 95

52 50 80 54

erosendo@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

FIDUCIARY DELEGATE

 

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

OTHER

CHAIRMAN OF THE BOARD

LIC. CARLOS SLIM DOMIT

CALVARIO NUM 100 COL. TLALPAN

14000

MEXICO, D.F.

53 25 98 01

55 73 31 77

slimc@sanborns.com

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 4 YEAR: 2006

TELÉFONOS DE MÉXICO, S.A. DE C.V.

BOARD OF DIRECTORS

Consolidated

Final printing

---

POSITION

NAME

CHAIRMAN OF THE BOARD

ING.

JAIME

CHICO

PARDO

VICEPRESIDENT

LIC.

CARLOS

SLIM

DOMIT

VICEPRESIDENT (INDEPENDENT)

C.P.

JUAN ANTONIO

PEREZ

SIMON

HONORARY BOARD MEMBER

ING.

CARLOS

SLIM

HELU

BOARD PROPIETORS (INDEPENDENT)

SR.

EMILIO

AZCARRAGA

JEAN

BOARD PROPIETORS (INDEPENDENT)

ING.

ANTONIO

COSIO

ARIÑO

BOARD PROPIETORS (INDEPENDENT)

SRA.

LAURA

DIEZ BARROSO

DE LAVIADA

BOARD PROPIETORS (INDEPENDENT)

MTRA.

AMPARO

ESPINOSA

RUGARCIA

BOARD PROPIETORS (INDEPENDENT)

ING.

ELMER

FRANCO

MACIAS

BOARD PROPIETORS (INDEPENDENT)

LIC.

ANGEL

LOSADA

MORENO

BOARD PROPIETORS (INDEPENDENT)

SR.

ROMULO

O FARRIL JR.

(deceased in May 2006)

BOARD PROPIETORS (INDEPENDENT)

LIC.

FERNANDO

SENDEROS

MESTRE

BOARD PROPIETORS

LIC.

MARCO ANTONIO

SLIM

DOMIT

BOARD PROPIETORS

SR.

RAYFORD

WILKINS JR.

BOARD PROPIETORS

SR.

RICHARD

P.

RESNICK

BOARD PROPIETORS

SR.

LARRY

I.

BOYLE

BOARD PROPIETORS (INDEPENDENT)

C.P.

RAFAEL

KALACH

MIZRAHI

BOARD PROPIETORS (INDEPENDENT)

LIC.

RICARDO

MARTIN

BRINGAS

BOARD ALTERNATES

LIC.

PATRICK

SLIM

DOMIT

BOARD ALTERNATES

LIC.

ARTURO

ELIAS

AYUB

BOARD ALTERNATES

C.P.

JOSÉ HUMBERTO

GUTIERREZ-OLVERA

ZUBIZARRETA

BOARD ALTERNATES (INDEPENDENT)

LIC.

JORGE C.

ESTEVE

RECOLONS

BOARD ALTERNATES (INDEPENDENT)

ING.

ANTONIO

COSIO

PANDO

BOARD ALTERNATES (INDEPENDENT)

SR.

EDUARDO

TRICIO

HARO

BOARD ALTERNATES (INDEPENDENT)

SRA.

ANGELES

ESPINOSA

YGLESIAS

BOARD ALTERNATES (INDEPENDENT)

ING.

AGUSTIN

FRANCO

MACIAS

BOARD ALTERNATES (INDEPENDENT)

SR.

JAIME

ALVERDE

GOYA

BOARD ALTERNATES (INDEPENDENT)

C.P.

ANTONIO

DEL VALLE

RUIZ

BOARD ALTERNATES (INDEPENDENT)

LIC.

JOSE

KURI

HARFUSH

BOARD ALTERNATES (INDEPENDENT)

LIC.

FERNANDO

SOLANA

MORALES

BOARD ALTERNATES

LIC.

EDUARDO

VALDES

ACRA

BOARD ALTERNATES (INDEPENDENT)

LIC.

CARLOS

BERNAL

VEREA

BOARD ALTERNATES (INDEPENDENT)

LIC.

FEDERICO

LAFFAN

FANO

BOARD ALTERNATES

SR.

JORGE A.

CHAPA

SALAZAR

BOARD ALTERNATES (INDEPENDENT)

ING.

BERNARDO

QUINTANA

ISAAC

BOARD ALTERNATES (INDEPENDENT)

C.P.

FRANCISCO

MEDINA

CHAVEZ

SECRETARY OF THE BOARD OF DIRECTORS

LIC.

SERGIO

MEDINA

NORIEGA

ASSISTANT SECRETARY

LIC.

RAFAEL

ROBLES

MIAJA

---

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 12, 2007.

TELÉFONOS DE MÉXICO, S.A. DE C.V.

By: /s/__________________          

Name: Adolfo Cerezo Pérez
Title: Chief Financial Officer

 

Ref: Teléfonos de México, S.A. de C.V. - Fourth Quarter 2006.