The name change marks a significant milestone for the two companies, as
well as an important extension of the Prodigy Internet access brand name
into one of the fastest growing international markets in the world.
“This name affirms the power of the Prodigy brand and the strength of our
technical innovation,” said Samer Salameh, Prodigy chairman and chief
“With Prodigy Internet de Telmex, Prodigy has established a beachhead to
expand south of the border; plus, it fits perfectly within our business
strategy to be the number one provider to the U.S. Latino market.”
As part of its overall plan to provide Prodigy Internet de Telmex customers
with new services, Prodigy will make roaming technology available sometime
in the second quarter of this year. Roaming services will allow subscribers
in both Mexico and the U.S. to dial into the Prodigy network via a local
“Telmex can now draw upon the power of the Prodigy brand name,” said Telmex
President and CEO Ing. Jaime Chico Pardo. “Unifying our respective
marketing and technology strengths, Prodigy Internet de Telmex is able to
create a complete, one-stop shopping Internet experience for Latinos in
both Mexico and the U.S.”
Currently, Prodigy assists Telmex in the negotiation of agreements
pertaining to web hosting, customer care, billing and marketing services.
Under the terms of the revised agreement, Prodigy will receive a monthly
management fee equal to 15% of the net subscriber revenue on the first
200,000 subscribers and 10% of the net subscriber revenue on additional
subscribers in exchange for its services.
Telmex reportedly serviced more than 150,000 billable subscribers as of
March 31, 1999.
Since Prodigy manages these subscribers, the company expects to have a
positive impact on Prodigy’s 1999 revenue.