TELEFONOS DE MEXICO, S.A.B. DE C.V. - THIRD QUARTER 2009. OCTOBER 21, 2008

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 October 2009

Commission File Number: 333-13580

TELÉFONOS DE MÉXICO, S.A.B. 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.B. DE C.V.

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

I N D E X

FS-01 CONSOLIDATED BALANCE SHEETS, AT SEPTEMBER 30, 2009 & 2008

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 SEPTEMBER 30, 2009 & 2008

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 JULY 01 TO SEPTEMBER 30, 2009 & 2008

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

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

FS-12 DATA PER SHARE - CONSOLIDATED INFORMATION

FS-13 RATIOS - CONSOLIDATED INFORMATION

FS-14 STATE OF CASH FLOW (INDIRECT METHOD)

FS-15 STATE OF CASH FLOW (INDERECT METHOD) - BREAKDOWN OF MAIN CONCEPTS

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

COMPLIANCE WITH THE REQUIREMENT ISSUED BY THE COMISION BANCARIA Y DE VALORES (BANKING AND SECURITIES COMMISSION)

GENERAL INFORMATION

BOARD OF DIRECTORS

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-01

CONSOLIDATED BALANCE SHEETS

AT SEPTEMBER 30, 2009 & 2008

(Thousands of Mexican Pesos)

Final printing

---



REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

s01

TOTAL ASSETS

179,325,174

100

175,880,989

100







s02

CURRENT ASSETS

48,832,919

27

43,759,427

25

s03

CASH AND SHORT-TERM INVESTMENTS

7,827,247

4

15,522,811

9

s04

ACCOUNTS AND NOTES RECEIVABLE (NET)

18,782,464

10

17,199,394

10

s05

OTHER ACCOUNTS AND NOTES RECEIVABLE (NET)

4,072,219

2

4,793,811

3

s06

INVENTORIES

1,414,257

1

1,420,737

1

s07

OTHER CURRENT ASSETS

16,736,732

9

4,822,674

3

s08

LONG - TERM

1,702,200

1

1,525,555

1

s09

ACCOUNTS AND NOTES RECEIVABLE (NET)

0

0

0

0

s10

INVESTMENT IN SHARES OF NON-CONSOLIDATED SUBSIDIARIES AND AFFILIATES

1,577,599

1

1,401,368

1

s11

OTHER INVESTMENTS

124,601

0

124,187

0

s12

PROPERTY, PLANT AND EQUIPMENT (NET)

107,217,471

60

113,435,892

64

s13

LAND AND BUILDINGS

0

0

0

0

s14

MACHINERY AND INDUSTRIAL EQUIPMENT

403,347,280

225

393,292,817

224

s15

OTHER EQUIPMENT

0

0

0

0

s16

ACCUMULATED DEPRECIATION

297,011,064

166

280,697,248

160

s17

CONSTRUCTIONS IN PROGRESS

881,255

0

840,323

0

s18

OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET)

2,421,842

1

2,509,866

1

s19

OTHER ASSETS

19,150,742

11

14,650,249

8







s20

TOTAL LIABILITIES

135,385,131

100

137,730,517

100







s21

CURRENT LIABILITIES

43,179,386

32

31,161,893

23

s22

SUPPLIERS

0

0

0

0

s23

BANK LOANS

8,017,083

6

1,789,067

1

s24

STOCK MARKET LOANS

15,328,990

11

11,191,900

8

s103

OTHER LOANS WITH COST

0

0

0

0

s25

TAXES PAYABLE

1,937,718

1

1,139,962

1

s26

OTHER CURRENT LIABILITIES

17,895,595

13

17,040,964

12

s27

LONG - TERM LIABILITIES

72,039,391

53

84,633,485

61

s28

BANK LOANS

36,857,638

27

49,347,660

36

s29

STOCK MARKET LOANS

35,181,753

26

35,285,825

26

s30

OTHER LOANS WITH COST

0

0

0

0

s31

DEFERRED LIABILITIES

360,684

0

427,700

0

s32

OTHER NON CURRENT LIABILITIES

19,805,670

15

21,507,439

16







s33

CONSOLIDATED STOCKHOLDERS' EQUITY

43,940,043

100

38,150,472

100







s34

NON-CONTROLLING INTEREST

42,136

0

39,381

0

s35

CONTROLLING INTEREST

43,897,907

100

38,111,091

100

s36

CONTRIBUTED CAPITAL

9,050,320

21

9,189,363

24

s79

CAPITAL STOCK (NOMINAL)

9,050,320

21

9,189,363

24

s39

PREMIUM ON SALES OF SHARES

0

0

0

0

s40

CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES

0

0

0

0

s41

CAPITAL INCREASE (DECREASE)

34,847,587

79

28,921,728

76

s42

RETAINED EARNINGS AND CAPITAL RESERVE

33,771,815

77

28,153,808

74

s44

OTHER ACCUMULATED COMPREHENSIVE RESULT

1,075,772

2

767,920

2

s80

SHARES REPURCHASED

0

0

0

0



---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-02

CONSOLIDATED BALANCE SHEETS

- BREAKDOWN OF MAIN CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

s03

CASH AND AVAILABLE INVESTMENTS

7,827,247

100

15,522,811

100

s46

CASH

1,081,946

14

1,432,489

9

s47

AVAILABLE INVESTMENTS

6,745,301

86

14,090,322

91







s07

OTHER CURRENT ASSETS

16,736,732

100

4,822,674

100

s81

DERIVATIVE FINANCIAL INSTRUMENTS

13,375,869

80

2,124,917

44

s82

DISCONTINUED OPERATIONS

0

0

0

0

s83

OTHER

3,360,863

20

2,697,757

56







s18

OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET)

2,421,842

100

2,509,866

100

s48

AMORTIZED OR REDEEMED EXPENSES

1,485,884

61

1,502,929

60

s49

GOODWILL

0

0

0

0

s51

OTHERS

935,958

39

1,006,937

40







s19

OTHER ASSETS

19,150,742

100

14,650,249

100

s85

DERIVATIVE FINANCIAL INSTRUMENTS

0

0

0

0

s50

DEFERRED TAXES

0

0

0

0

s104

BENEFITS FOR EMPLOYEES

17,301,225

90

12,287,660

84

s86

DISCONTINUED OPERATIONS

0

0

0

0

s87

OTHER

1,849,517

10

2,362,589

16







s21

CURRENT LIABILITIES

43,179,386

100

31,161,893

100

s52

FOREIGN CURRENCY LIABILITIES

19,432,337

45

14,058,981

45

s53

MEXICAN PESOS LIABILITIES

23,747,049

55

17,102,912

55







s26

OTHER CURRENT LIABITIES

17,895,595

100

17,040,964

100

s88

DERIVATIVE FINANCIAL INSTRUMENTS

0

0

0

0

s89

INTEREST LIABILITIES

670,735

4

948,641

6

s68

PROVISIONS

0

0

0

0

s90

DISCONTINUED OPERATIONS

0

0

0

0

s58

OTHER CURRENT LIABILITIES

8,678,749

48

7,885,923

46

s105

BENEFITS FOR EMPLOYEES

8,546,111

48

8,206,400

48







s27

LONG-TERM LIABILITIES

72,039,391

100

84,633,485

100

s59

FOREIGN CURRENCY LIABILITIES

47,639,391

66

63,410,550

75

s60

MEXICAN PESOS LIABILITIES

24,400,000

34

21,222,935

25







s31

DEFERRED LIABILITIES

360,684

100

427,700

100

s65

GOODWILL

0

0

0

0

s67

OTHERS

360,684

100

427,700

100







s32

OTHER NON CURRENT LIABILITIES

19,805,670

100

21,507,439

100

s66

DEFERRED TAXES

15,417,159

78

16,149,652

75

s91

OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE

4,388,511

22

5,357,787

25

s92

DISCONTINUED OPERATIONS

0

0

0

0

s69

OTHER LIABILITIES

0

0

0

0







s79

CAPITAL STOCK

9,050,320

100

9,189,363

100

s37

CAPITAL STOCK (NOMINAL)

78,942

1

80,747

1

s38

RESTATEMENT OF CAPITAL STOCK

8,971,378

99

9,108,616

99







s42

RETAINED EARNINGS AND CAPITAL RESERVES

33,771,815

100

28,153,808

100

s93

LEGAL RESERVE

1,880,513

6

1,880,513

7

s43

RESERVE FOR REPURCHASE OF SHARES

0

0

0

0

s94

OTHER RESERVES

0

0

0

0

s95

RETAINED EARNINGS

16,416,872

49

9,074,220

32

s45

NET INCOME FOR THE YEAR

15,474,430

46

17,199,075

61







s44

OTHER ACCUMULATED COMPREHENSIVE RESULT

1,075,772

100

767,920

100

s70

ACCUMULATED MONETARY RESULT

0

0

0

0

s71

RESULT FROM HOLDING NON-MONETARY ASSETS

0

0

0

0

s96

CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION

224,253

21

66,360

9

s97

CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS

1,314,073

122

1,094,585

143

s98

CUMULATIVE EFFECT OF DEFERRED INCOME TAXES

(462,554)

(43)

(393,025)

(51)

s100

OTHERS

0

0

0

0

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-03

CONSOLIDATED BALANCE SHEETS

- OTHER CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

---

REF

S

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

s72

WORKING CAPITAL

5,653,533

12,597,534

s73

PENSIONS FUND AND SENIORITY PREMIUMS

0

0

s74

EXECUTIVES (*)

88

99

s75

EMPLOYEES (*)

9,344

9,651

s76

WORKERS (*)

43,772

44,877

s77

OUTSTANDING SHARES (*)

18,283,861,660

18,701,913,860

s78

REPURCHASE OF OWN SHARER(*)

271,191,700

658,483,610

s101

RESTRICTED CASH

0

0

s102

DEBT WITH COST OF AFFILIATES NON CONSOLIDATED

0

0


(*) THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS



---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-04

CONSOLIDATED STATEMENTS OF INCOME

- FROM JANUARY 01 TO SEPTEMBER 30, 2009 & 2008 -

(Thousands of Mexican Pesos)

Final printing

---

REF

R

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

r01

OPERATING REVENUES

89,353,359

100

93,137,914

100

r02

COST OF SALES AND SERVICES

47,267,905

53

48,012,331

52

r03

GROSS INCOME

42,085,454

47

45,125,583

48

r04

OPERATING EXPENSES

15,496,899

17

14,634,543

16

r05

OPERATING INCOME

26,588,555

30

30,491,040

33

r08

OTHER EXPENSES AND INCOMES (NET)

(1,212,821)

(1)

(891,765)

(1)

r06

COMPREHENSIVE FINANCING COST

(3,093,454)

(3)

(5,424,299)

(6)

r12

EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES, JOINT BUSINESSES AND AFFILIATES

162,962

0

69,506

0

r48

NON-ORDINARY ITEMS

0

0

0

0

r09

INCOME BEFORE INCOME TAX AND EMPLOYEE PROFIT SHARING

22,445,242

25

24,244,482

26

r10

PROVISIONS FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

6,969,863

8

7,047,243

8

r11

NET INCOME AFTER INCOME TAX AND EMPLYEE PROFIT SHARING

15,475,379

17

17,197,239

18

r14

INCOME FROM DISCONTINUED OPERATIONS (NET)

0

0

0

0

r18

NET INCOME

15,475,379

17

17,197,239

18

r19

NET INCOME OF NON-CONTROLLING INTEREST

949

0

(1,836)

0

r20

NET INCOME OF CONTROLLING INTEREST

15,474,430

17

17,199,075

18







---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. 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

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

r01

OPERATING REVENUES

89,353,359

100

93,137,914

100

r21

DOMESTIC

86,147,898

96

90,460,739

97

r22

FOREIGN

3,205,461

4

2,677,175

3

r23

TRANSLATION INTO DOLLARS (***)

232,226

0

248,073

0







r08

OTHER EXPENSES AND INCOMES (NET)

(1,212,821)

100

(891,765)

100

r49

OTHER EXPENSES AND INCOMES (NET)

188,924

(16)

433,713

(49)

r34

EMPLOYEE PROFIT SHARING

1,754,218

(145)

2,058,803

(231)

r35

DEFERRED EMPLOYEE PROFIT SHARING

(352,473)

29

(733,325)

82







r06

COMPREHENSIVE FINANCING COST

(3,093,454)

100

(5,424,299)

100

r24

INTEREST EXPENSE

4,696,428

(152)

5,171,412

(95)

r42

LOSS (GAIN) ON RESTATEMENT OF UDI'S

0

0

0

0

r45

OTHER FINANCIAL COSTS

0

0

0

0

r26

INTEREST INCOME

561,840

(18)

603,360

(11)

r46

OTHER FINANCIAL PRODUCTS

0

0

0

0

r25

FOREIGN EXCHANGE LOSS (GAIN) (NET)

1,041,134

(34)

(856,247)

16

r28

RESULT FROM MONETARY POSITION

0

0

0

0







r10

PROVISION FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

6,969,863

100

7,047,243

100

r32

INCOME TAX

7,675,094

110

7,854,932

111

r33

DEFERRED INCOME TAX

(705,231)

(10)

(807,689)

(11)







(***) THOUSAND DOLLARS AT THE PREVAILING EXCHANGE RATE AT THE END OF THE REPORTING PERIOD.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-06

CONSOLIDATED STATEMENTS OF INCOME

- OTHER CONCEPTS -

(Thousands of Mexican Pesos)

Final printing

--

REF

R

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

r36

TOTAL REVENUES

89,353,359

93,137,914

r37

TAX RESULT FOR THE YEAR

0

0

r38

OPERATING REVENUES (**)

120,320,680

124,970,960

r39

OPERATING INCOME (**)

35,840,484

39,927,996

r40

NET INCOME OF CONTROLLING INTEREST (**)

18,452,291

25,572,237

r41

NET INCOME (**)

18,455,051

25,842,591

r47

OPERATIVE DEPRECIATION AND ACCUMULATED

12,870,123

12,710,963





(**)

INFORMATION OF THE PAST TWELVE MONTHS


---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-07

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

- FROM JULY 01 TO SEPTEMBER 30, 2009 & 2008 -

(Thousands of Mexican Pesos)

Final printing

---

REF

RT

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

rt01

OPERATING REVENUES

29,543,589

100

31,090,528

100

rt02

COST OF SALES AND SERVICES

15,755,230

53

16,211,223

52

rt03

GROSS INCOME

13,788,359

47

14,879,305

48

rt04

OPERATING EXPENSES

5,310,125

18

4,930,151

16

rt05

OPERATING INCOME

8,478,234

29

9,949,154

32

rt08

OTHER EXPENSES AND INCOMES (NET)

(355,086)

(1)

(7,903)

(0)

rt06

COMPREHENSIVE FINANCING COST

(1,289,111)

(4)

(2,259,422)

(7)

rt12

EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES, JOINT BUSINESSES AND AFFILIATES

83,253

0

47,524

(0)

rt48

NON-ORDINARY ITEMS

0

0

0

0

rt09

INCOME BEFORE INCOME TAX AND EMPLOYEE PROFIT SHARING

6,917,290

23

7,729,353

25

rt10

PROVISIONS FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

2,126,152

7

2,292,244

7

rt11

NET INCOME AFTER INCOME TAX AND EMPLYEE PROFIT SHARING

4,791,138

16

5,437,109

17

rt14

INCOME FROM DISCONTINUED OPERATIONS (NET)

0

0

0

0

rt18

NET INCOME

4,791,138

16

5,437,109

17

rt19

NET INCOME OF NON-CONTROLLING INTEREST

(56)

(0)

(641)

(0)

rt20

NET INCOME OF CONTROLLING INTEREST

4,791,194

16

5,437,750

17







---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. 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

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

%

Amount

%

rt01

OPERATING REVENUES

29,543,589

100

31,090,528

100

rt21

DOMESTIC

28,552,592

97

30,071,146

97

rt22

FOREIGN

990,997

3

1,019,382

3

rt23

TRANSLATION INTO DOLLARS (***)

74,231

0

86,873

0







rt08

OTHER REVENUES AND (EXPENSES), NET

(355,086)

100

(7,903)

100

rt49

OTHER REVENUES AND (EXPENSES), NET

(14,158)

4

293,185

(3,710)

rt34

EMPLOYEE PROFIT SHARING

485,457

(137)

647,361

(8,191)

rt35

DEFERRED EMPLOYEE PROFIT SHARING

(144,529)

41

(346,273)

4,382







rt06

COMPREHENSIVE FINANCING COST

(1,289,111)

100

(2,259,422)

100

rt24

INTEREST EXPENSE

1,393,837

(108)

2,212,675

(98)

rt42

LOSS (GAIN) ON RESTATEMENT OF UDI'S

0

0

0

0

rt45

OTHER FINANCIAL COSTS

0

0

0

0

rt26

INTEREST INCOME

162,406

(13)

274,720

(12)

rt46

OTHER FINANCIAL PRODUCTS

0

0

0

0

rt25

FOREIGN EXCHANGE LOSS (GAIN) (NET)

(57,680)

4

(321,467)

14

rt28

RESULT FROM MONETARY POSITION

0

0

0

0







rt10

PROVISION FOR INCOME TAX AND EMPLOYEE PROFIT SHARING

2,126,152

100

2,292,244

100

rt32

INCOME TAX

2,328,293

110

2,461,652

107

rt33

DEFERRED INCOME TAX

(202,141)

(10)

(169,408)

(7)







(***) THOUSAND DOLLARS AT THE PREVAILING EXCHANGE RATE AT THE END OF THE REPORTING PERIOD.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. 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

4,285,899

4,133,321





---



MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-12

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 (**)

$1.00


$1.35


d02

BASIC INCOME PER PREFERENT SHARE (**)

$0.00


$0.00


d03

DILUTED INCOME PER ORDINARY SHARE (**)

$0.00


$0.00


d04

INCOME (LOSS) FROM CONTINUOUS OPERATIONS PER ORDINARY SHARE (**)

$1.00


$1.35


d05

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

$0.00


$0.00


d08

CARRYING VALUE PER SHARE

$2.40


$2.04


d09

ACUMULATED CASH DIVIDEND PER SHARE

$0.32


$0.31


d10

SHARE DIVIDENDS PER SHARE

0.00

shares

0.00

shares

d11

MARKET PRICE TO CARRYING VALUE

4.93

times

6.84

times

d12

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

11.82

times

10.33

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: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-13

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 (LOSS) TO OPERATING REVENUES

17.32

%

18.46

%

p02

NET INCOME TO STOCKHOLDERS' EQUITY (**)

42.00

%

67.74

%

p03

NET INCOME TO TOTAL ASSETS ( **)

10.29

%

14.69

%

p04

CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME

29.45


16.32

%

p05

INCOME DUE TO MONETARY POSITION TO NET INCOME

0.00

%

0.00

%


ACTIVITY





p06

OPERATING REVENUES TO TOTAL ASSETS (**)

0.67

times

0.71

times

p07

OPERATING REVENUES TO FIXED ASSETS (**)

1.12

times

1.10

times

p08

INVENTORIES ROTATION (**)

45.10

times

45.82

times

p09

ACCOUNTS RECEIVABLE IN DAYS OF SALES

49

days

43

days

p10

INTEREST PAID TO TOTAL LIABILITIES WITH COST (**)

7.52

%

6.86

%


LEVERAGE





p11

TOTAL LIABILITIES TO TOTAL ASSETS

75.50

%

78.31

%

p12

TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY

3.08

times

3.61

times

p13

FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES

49.54

%

56.25

%

p14

LONG-TERM LIABILITIES TO FIXED ASSETS

67.19

%

74.61

%

p15

OPERATING INCOME (LOSS) TO INTEREST PAID

5.66

times

5.90

times

p16

OPERATING REVENUES TO TOTAL LIABILITIES (**)

0.89

times

0.91

times


LIQUIDITY





p17

CURRENT ASSETS TO CURRENT LIABILITIES

1.13

times

1.40

times

p18

CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES

1.10

times

1.36

times

p19

CURRENT ASSETS TO TOTAL LIABILITIES

0.36

times

0.32

times

p20

AVAILABLE ASSETS TO CURRENT LIABILITIES

18.13

%

49.81

%

(**) INFORMATION OF THE PAST TWELVE MONTHS



---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-14

STATE OF CASH FLOW (INDIRECT METHOD)

MAIN CONCEPTS

- CONSOLIDATED INFORMATION -

(Thousands of Mexican Pesos)

Final printing

---

REF

E

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount


OPERATION ACTIVITIES



e01

INCOME (LOST) BEFORE INCOME TAXES

22,445,242

24,244,482

e02

+(-) ITEMS NOT REQUIRING CASH

5,389,976

4,751,148

e03

+(-) ITEMS RELATED TO INVESTING ACTIVITIES

13,317,679

13,354,432

e04

+(-) ITEMS RELATED TO FINANCING ACTIVITIES

4,333,760

6,046,517

e05

CASH FLOWS BEFORE INCOME TAX

45,486,657

48,396,579

e06

CASH FLOW PROVIDED OR USED IN OPERATION

(14,511,285)

(10,210,057)

e07

NET CASH FLOWS PROVIDED OF OPERATING ACTIVITIES

30,975,372

38,186,522


INVESTMENT ACTIVITIES



e08

NET CASH FLOW FROM INVESTING ACTIVITIES

(8,188,241)

(9,792,650)

e09

CASH IN EXCESS (REQUIRED) TO BE APPLIED IN FINANCING ACTIVITIES

22,787,131

28,393,872






FINANCING ACTIVITIES



e10

NET CASH FROM FINANCING ACTIVITIES

(21,096,447)

(17,568,813)

e11

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

1,690,684

10,825,059

e12

TRANSLATION DIFFERENCES IN CASH AND CASH EQUIVALENTS

0

0

e13

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD

6,136,563

4,697,752

e14

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

7,827,247

15,522,811





---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

FS-15

STATE OF CASH FLOW (INDIRECT METHOD)

BREAKDOWN OF MAIN CONCEPTS

- CONSOLIDATED INFORMATION -

(Thousands of Mexican Pesos)

Final printing

---

REF

E

CONCEPTS

QUARTER OF PRESENT

FINANCIAL YEAR

QUARTER OF PREVIOUS

FINANCIAL YEAR

Amount

Amount

e02

+(-) ITEMS NOT REQUIRING CASH

5,389,976

4,751,148

e15

+ESTIMATES FOR THE PERIOD

44,688

10,353

e16

+PROVISIONS FOR THE PERIOD

5,345,288

4,782,730

e17

+(-) OTHER UNREALIZED ITEMS

0

(41,935)





e03

+(-) ITEMS RELATED TO INVESTING ACTIVITIES

13,317,679

13,354,432

e18

+DEPRECIATION AND AMORTIZATION FOR THE PERIOD (*)

13,480,639

13,423,937

e19

(-)+GAIN OR LOSS ON SALE OF PROPERTY, PLANT AND EQUIPMENT

0

0

e20

+IMPAIRMENT LOSS

0

0

e21

(-)+EQUITY RESULTS OF ASSOCIATES AND JOINT VENTURES

(162,960)

(69,505)

e22

(-)DIVIDENDS RECEIVED

0

0

e23

(-)INTEREST INCOME

0

0

e24

(-)+ OTHER ITEMS

0

0





e04

+(-) ITEMS RELATED TO FINANCING ACTIVITIES

4,333,760

6,046,517

e25

+ACCRUED INTERESTS

4,696,428

5,171,412

e26

+(-) OTHER ITEMS

(362,668)

875,105





e06

CASH FLOW PROVIDED OR USED IN OPERATION

(14,511,285)

(10,210,057)

e27

+(-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE

(2,832,022)

(1,073,489)

e28

+(-) DECREASE (INCREASE) IN INVENTORIES

500,049

770,373

e29

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

(5,352,174)

(1,017,529)

e30

+(-) INCREASE (DECREASE) IN SUPPLIERS

(1,673,962)

(1,544,087)

e31

+(-) INCREASE (DECREASE) IN OTHER LIABILITIES

2,752,150

635,708

e32

+(-) INCOME TAXES PAID OR RETURNED

(7,905,326)

(7,981,033)





e08

NET CASH FLOWS OF INVESTING ACTIVITIES

(8,188,241)

(9,792,650)

e33

- PERMANENT INVESTMENT IN SHARES

(87,891)

(18,501)

e34

+DISPOSITION OF PERMANENT INVESTMENT IN SHARES

0

95,376

e35

- INVESTMENTS IN PROPERTY, PLANT AND EQUIPMENT

(8,894,118)

(9,173,103)

e36

+ SALE OF PROPERTY, PLANT AND EQUIPMENT

0

0

e37

- INVESTMENT IN INTANGIBLE ASSETS

(3,344)

(84,687)

e38

+ DISPOSITION OF INTANGIBLE ASSETS

0

0

e39

- OTHER PERMANENT INVESTMENTS

0

0

e40

+ DISPOSITION OF OTHER PERMANENT INVESTMENTS

0

0

e41

+ DIVIDENDS RECEIVED

0

0

e42

+ INTERESTS RECEIVED

0

0

e43

+(-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS

0

0

e44

+(-) OTHER ITEMS

797,112

(611,735)





e10

NET CASH FLOWS OF FINANCING ACTIVITIES

(21,096,447)

(17,568,813)

e45

+ BANK FINANCING

10,667,296

8,562,492

e46

+ STOCK MARKET FINANCING

0

0

e47

+ OTHER FINANCING

0

0

e48

(-) BANK FINANCING AMORTIZATION

(21,379,950)

(2,050,383)

e49

(-) STOCK MARKET FINANCING AMORTIZATION

0

0

e50

(-) OTHER FINANCING AMORTIZATION

0

0

e51

+ (-) INCREASE (DECREASE) IN CAPITAL STOCK

0

0

e52

(-) DIVIDENDS PAID

(5,942,027)

(5,789,843)

e53

+ PREMIUM ON ISSUANCE OF SHARES

0

0

e54

+ CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES

0

0

e55

- INTEREST EXPENSE

(3,481,441)

(3,771,645)

e56

(-) REPURCHASE OF SHARES

(3,050,230)

(11,080,498)

e57

+(-) OTHER ITEMS

2,089,905

(3,438,936)





* IN CASE THAT THIS AMOUNT IS DIFFERENT FROM ACCOUNT R47 IT SHALL BE EXPLAINED IN NOTES

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

ANNEX 1

CHIEF EXECUTIVE OFFICER REPORT

Consolidated

Final printing

--- Highlights

Third Quarter 2009

           In the third quarter, lines in service decreased by 69 thousand mainly due to competition from cellular telephony, a global trend, and to the economic situation, which has affected our customers’ payment capacity. The decrease in lines compares favorably with previous quarters. Including cellular telephony services and of other fixed operators, TELMEX now has 17.2% of total lines in service and 83.0% of fixed lines, similar to the average of 85.3%* for the 35 countries identified as having  high levels of telecommunications competition.

          In broadband services, continuing the trends of the last 5 years, we have maintained growth in the number of customers and increased market share. These positive developments reflect our substantial investments and the quality of our services, which include the same speed throughout the day and progressively increasing speed to customers by passing along the benefits of our world-class technological platform. This has been achieved in spite of the fact that Mexico is the only country belonging to the OECD and one of the few in the world that do not have technological convergence, which has generated a lag in investments and in the development of the sector. Convergence, in the countries where it exists, is a proven contributor to broadband growth and to increasing the market penetration of Information Technology tools and applications that benefit the population, competitiveness and economic development.

          The commercial agreement with Dish Mexico has allowed significant growth of Pay TV services in the country because the offering has attracted many customers who previously did not have this service. As a result, older established Pay TV monopolies have had to reduce their prices, benefiting consumers in the market segments that Dish Mexico serves.

          Broadband: Broadband services in the country have grown substantially from 428 thousand in December 2003 to approximately 9.2 million in September 2009, including cellular telephony services. That increase results in an annual average growth rate of 70.5%, making Mexico one of the countries with the highest broadband growth rates in the world. Broadband growth has been driven by installment sales of more than 2.3 million computers since 1999. The lack of computers in Mexican homes is the main limitation for higher broadband growth. In order to increase computer penetration, in July we launched a laptop offering of well recognized brands, with payments starting at 100 pesos per month (VAT included), installments up to 48 months, and a down payment depending on the customer’s PC choice.

          The October 3, 2006, “Acuerdo de Convergencia” (Convergence Agreement), which was issued by the Federal Government through the Secretaría de Comunicaciones y Transportes (Communications and Transportation Ministry), established the basis for the convergence of telecommunications networks more than 3 years ago. TELMEX has met its requirements to provide interconnection, network interoperability and number portability. Nevertheless, to date, the authorities have not issued the corresponding resolutions.

         All of our Infinitum customers have free access in Mexico to the Prodigy Móvil network (wireless Internet access) in public sites, which include airports, restaurants, hospitals, public parks, education centers and shopping malls, among others, and through several commercial agreements, our customers have Internet access at more than 120 thousand sites worldwide along with the most advanced telecommunications network in the country.

         TELMEX continues to deploy its “Programa de Educación y Cultura Digital” (Education and Digital Culture Program), which provides educational workshops and information technology tools to children, teenagers, parents and teachers nationwide. TELMEX equips digital libraries, TELMEX homes and computer halls and provides digital scholarships. These initiatives benefit more than 1.5 million people. 

         In the third quarter, total revenues were 29.5 billion pesos, 5.0% lower than the same period of the previous year. These results reflected increases of 18.0% in Internet access revenues and 13.4% in corporate networks and decreases of 7.5%, 15.2% and 12.8% in local, long distance and interconnection revenues, respectively.

         From July to September 2009, EBITDA (1) totaled 13.0 billion pesos, producing a margin of 43.9%. Operating income totaled 8.5 billion pesos, with a margin of 28.7%.

           Net income in the quarter totaled 4.8 billion pesos, 11.9% lower than the third quarter of last year. For the third quarter, earnings per share were 26 Mexican cents, 10.3% lower than the same period of last year, and earnings per ADR (2) were 39 US cents, a decrease of 30.4% compared with the third quarter of 2008.

          TELMEX’s total debt at September 30, 2009, was the equivalent of 7.063 billion dollars. Total net debt (3) was equivalent to 6.484 billion dollars, 1.122 billion dollars less than September 30, 2008. 

           In the third quarter, capital expenditures (Capex) were the equivalent of 147 million dollars and for the nine months, Capex was the equivalent of 537 million dollars. From July to September, the company used 1.355 billion pesos to repurchase 119 million 416 thousand of its own shares.

 * Bank of America / Merrill Lynch, Global Wireline Matrix 2009, page 31.

 (1) EBITDA: defined as operating income plus depreciation and amortization. Go to www.telmex.com in the Investor Relations section where you will find the reconciliation of EBITDA to operating income.

(2) One ADR represents 20 shares.

(3) Net debt is defined as total debt less cash and cash equivalents and marketable securities.

 Operating Results

 The October 3, 2006, “Acuerdo de Convergencia” (Convergence Agreement) established the basis for the convergence of telecommunications networks more than 3 years ago. The requirements stated in the Agreement in order for TELMEX to be able to provide Pay TV services include:

1.       Interconnection and Interoperability. All requests from operators to be connected with the TELMEX network have been met.  Today, we have 91 agreements with fixed local, long distance, local mobile operators and cable TV companies.

2.       Portability. Began July 5, 2008, which can be verified in COFETEL’s documents  

3.       Fulfilling Title of Concession obligations. TELMEX has complied with its Title of Concession obligations.

In all of the above, TELMEX has complied with all the requirements and is waiting for the corresponding resolutions.

 

Lines in service and local traffic

At the end of the third quarter, the number of lines in service was 17 million 346 thousand, 69 thousand lower than the second quarter of 2009. The number of disconnections is occurring mainly as a result of competition from fixed, mobile and pay TV companies and also because our packages enable some of our customers to cancel additional lines.

 Of our lines in service, approximately 10.3 million are in areas that interest competitors and where they also have presence. However, 7.0 million lines are in areas that hold no interest to competitors. In the nine months, these lines generated revenues of approximately 13.921 billion pesos and an operating loss of 2.739 billion pesos.

 During the third quarter, local traffic decreased 6.4% compared with the same period of 2008, totaling 5.333 billion local calls. Local traffic volume continues to be affected mainly by the increase in penetration of cellular telephony, which is changing customers’ consumption habits, by the reduction in the number of lines in service and by competition from local and pay TV operators. 

 Long distance

In the third quarter, domestic long distance (DLD) traffic increased 1.8% compared with last year’s third quarter, totaling 5.033 billion minutes, due to growth of multi-service package offerings that include DLD minutes and to the increase in termination traffic from other long distance operators, partially offset by the decrease in termination traffic with cellular telephony operators.

 From July to September, outgoing international long distance (ILD) traffic decreased 34.1% compared with last year’s third quarter, totaling 324 million minutes. The decline reflected a decrease in traffic from mobile operators and the slowdown of economic activity in the country. Incoming international long distance traffic decreased 11.3% compared with the same period of the previous year, totaling 1.567 billion minutes.  The incoming-outgoing ratio was 4.8x.

 Interconnection

In the third quarter, interconnection traffic totaled 11.137 billion minutes, 4.8% lower than the same quarter of 2008, mainly due to the decrease of 12.7% in calling party pays traffic. Interconnection traffic with local, long distance and cellular telephony operators decreased 2.4%.

 Internet access

During the third quarter, TELMEX maintained its commitment to promote penetration of broadband services to enhance the deployment of digital culture and technological development in Mexico.  In the quarter there was a gain of 403 thousand Infinitum (ADSL) broadband services, bringing the total to 6.3 million customers, an increase of 44.5% compared with the number of customers in September 2008.

 Broadband growth has been driven by installment sales of more than 2.3 million computers since 1999. The lack of computers in Mexican homes is the main limitation for higher broadband growth. In order to increase computer penetration, in July we launched a laptop offering of well recognized brands, with payments starting at 100 pesos per month (VAT included), installments up to 48 months, and a down payment depending on the customer’s PC choice.

 The increase in broadband services has been driven by our multi-service packages, which offer broadband access and various voice services and provide discounts of up to 42%.  In the quarter, we launched the “Mi Negocio” (My business) package, a product for micro and small businesses, which for 549 pesos per month (VAT included) includes monthly line rent, broadband Infinitum (ADSL) service of up to 1Mbps of speed, 125 local calls, 50 DLD minutes and digital services.

 

Financial Results

The following financial information for 2009 and 2008 is presented in nominal pesos, according to Mexican Financial Reporting Standards.

 Revenues:  In the third quarter, revenues totaled 29.544 billion pesos, a decrease of 5.0% compared with the same period of the previous year, as a result of increases of 18.0% in Internet access revenues and 13.4% in corporate networks revenues, as well as decreases of 7.5% in local service revenues, 15.2% in long distance revenues and 12.8% in interconnection revenues.   

Interconnection: In the quarter, interconnection revenues decreased 12.8% to 4.201 billion pesos compared with the third quarter of 2008, due to the 12.7% decline in calling party pays services and the decrease of 4.9% in average revenue of these services.  

Corporate Networks: Due to the increase in services from VPN (Virtual Private Networks) and the integration of value-added services to our portfolio of products and services for the corporate market, the corresponding revenues increased 13.4% compared with the same period of the previous year, totaling 3.483 billion pesos.    

Costs and expenses: In the third quarter, total costs and expenses were 21.066 billion pesos, similar to the same period of 2008, mainly due to the initiatives that were carried out to optimize resource use. Other factors included lower interconnection costs resulting from the decrease of 9.9% in the calling party pays rate, partially offset by higher commissions related to growth in broadband services, charges related to labor costs and a higher reserve for uncollectables.  

      Cost of sales and services: In the third quarter, cost of sales and services increased 2.9% compared with the same period of 2008, totaling 8.337 billion pesos, due to higher costs related to services for corporate customers, computer sales and charges related to labor costs. 

Interconnection: Interconnection costs totaled 2.937 billion pesos, a decrease of 20.5% compared with the third quarter of 2008 due to the 9.9% decrease in the amount paid to cellular telephony operators for calling party pays services and the decrease of 12.7% in calling party pays traffic.

Depreciation and amortization: In the third quarter, depreciation and amortization increased 1.5% compared with the same period of 2008, to 4.481 billion pesos.

 EBITDA (1) and operating income: EBITDA (1) totaled 12.959 billion pesos in the third quarter, a decrease of 9.8% compared with the same period of last year. The EBITDA margin was 43.9%. Operating income totaled 8.478 billion pesos in the third quarter and the operating margin was 28.7%.

 Financing cost: In the third quarter, financing cost produced a charge of 1.289 billion pesos. This resulted from: i) a net interest charge of 1.231 billion pesos, which includes the recognition of the market value of interest rate swaps, partially offset by the decrease in interest paid due to lower debt and ii) a net exchange loss of 58 million pesos from the third-quarter exchange rate depreciation of 0.3019 pesos per dollar and 4.586 billion dollars in dollar-peso hedges.

 Net income: In the third quarter, net income totaled 4.791 billion pesos, 11.9% lower than the same period of the previous year. Earnings per share were 26 Mexican cents, 10.3% lower than the same quarter of 2008, and earnings per ADR (2) were 39 US cents, a decrease of 30.4% compared with the same period of last year.

 Investments and other uses of cash:  In the third quarter, capital expenditures (Capex) were the equivalent of 147 million dollars and for the nine months, Capex was the equivalent of 537 million dollars, of which 71.5% was used for projects in the data, connectivity and transmission platforms and the rest for other projects providing operational support.

 Additionally, based on actuarial estimates, a contribution of 5.6 billion pesos was made to the pension fund in the third quarter.

 Debt: Total debt at September 30, 2009 was the equivalent of 7.063 billion dollars, of which 75.5% is long-term, 49.8% has fixed rates considering interest rate swaps, and 68.9% is in foreign currency, equivalent to 4.864 billion dollars. To minimize risks from variations in the exchange rate, at the end of September we had dollar-peso hedges for 4.586 billion dollars. Total net debt (3) decreased during the last twelve months the equivalent of 1.122 billion dollars, bringing the total to 6.484 billion dollars.

 On August 17, 2009, TELMEX prepaid 1.3 billion dollars associated with tranche A of the syndicated loan entered into on August 11, 2006.   The original maturity was scheduled for October 20, 2009.

 Repurchase of shares: During the third quarter, the company used 1.355 billion pesos to repurchase 119 million 416 thousand of its own shares.

 On October 7, 2009, COFECO (Comisión Federal de Competencia) Mexico’s Antitrust Commission, notified TELMEX of a resolution in which it declares the company has substantial power in wholesale markets in origination of public switched voice traffic through public telecommunications networks which provide local fixed service that are rendered to concessionaries of public telecommunications networks who are authorized to offer long distance services.

 TELMEX, as the case may be, will act on its rights to a review process as provided in the Federal Economic Competition Law (Ley Federal de Competencia Económica) in the time frame and under the conditions set by law. The resolutions put forth by COFECO will not take effect while that process is under way. TELMEX believes that its arguments are well founded; nevertheless, there is no certainty of the outcome in this matter.

 

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 separation of the local and long distance services is presented


below for the third quarter of 2009 and 2008.




















Mexico Local Service Business











Income Statements











[ In millions of Mexican pesos ]
















%





%



3Q2009


3Q2008

Inc.


9 months 09

9 months 08

Inc.

Revenues











Access, rent and measured service

P.

11,144

P.

12,032

(7.4)

P.

33,917

P.

36,670

(7.5)

LADA interconnection


1,289


1,012

27.4


3,910


2,895

35.1

Interconnection with operators


440


376

17.0


1,377


1,123

22.6

Interconnection with cellular operators

2,827


3,126

(9.6)


8,436


9,375

(10.0)

Other


3,660


3,983

(8.1)


11,046


11,402

(3.1)

Total


19,360


20,529

(5.7)


58,686


61,465

(4.5)












Costs and expenses











Cost of sales and services


5,855


5,895

(0.7)


17,953


17,253

4.1

Commercial, administrative and general

4,648


4,810

(3.4)


13,547


13,665

(0.9)

Interconnection


1,835


2,204

(16.7)


5,518


6,561

(15.9)

Depreciation and amortization


2,447


2,787

(12.2)


7,406


8,520

(13.1)

Total


14,785


15,696

(5.8)


44,424


45,999

(3.4)












Operating income

P.

4,575

P.

4,833

(5.3)

P.

14,262

P.

15,466

(7.8)












EBITDA (1)

P.

7,022

P.

7,620

(7.8)

P.

21,668

P.

23,986

(9.7)












EBITDA margin (%)


36.3


37.1

(0.8)


36.9


39.0

(2.1)

Operating margin (%)


23.6


23.5

0.1


24.3


25.2

(0.9)



Mexico Long Distance Service Business









Income Statements











[ In millions of Mexican pesos ]
















%





%



3Q2009


3Q2008

Inc.


9 months 09

9 months 08

Inc.

Revenues











Domestic long distance

P.

4,096

P.

4,485

(8.7)

P.

12,435

P.

14,155

(12.2)

International long distance


1,494


2,294

(34.9)


4,887


6,599

(25.9)

Total


5,590


6,779

(17.5)


17,322


20,754

(16.5)












Costs and expenses











Cost of sales and services


1,168


1,204

(3.0)


3,908


3,926

(0.5)

Commercial, administrative and general

1,541


1,628

(5.3)


4,199


4,363

(3.8)

Interconnection to the local network

1,858


2,046

(9.2)


5,681


5,799

(2.0)

Depreciation and amortization


430


546

(21.2)


1,357


1,658

(18.2)

Total


4,997


5,424

(7.9)


15,145


15,746

(3.8)












Operating income

P.

593

P.

1,355

(56.2)

P.

2,177

P.

5,008

(56.5)












EBITDA (1)

P.

1,023

P.

1,901

(46.2)

P.

3,534

P.

6,666

(47.0)












EBITDA margin (%)


18.3


28.0

(9.7)


20.4


32.1

(11.7)

Operating margin (%)


10.6


20.0

(9.4)


12.6


24.1

(11.5)

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

ANNEX 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Thousands of Mexican Pesos)

Consolidated

Final printing

---(Figures in thousands of Mexican pesos)

 

RECOGNITION OF THE EFFECTS OF INFLATION

 

From January 1, 2008, Mexican FRS B-10 “Effects of Inflation”, replaced Mexican accounting Bulletin B-10 “Accounting Recognition of the Effects of Inflation on Financial Information”. Based on Mexican FRS B-10, the economic environments in Mexico in 2009 and 2008 have been qualified as non-inflationary, due to inflation in the preceding three fiscal years was 15.01% and 11.56%, respectively. Therefore, during 2009 and 2008 the effects of inflation on financial information of this period were not recognized, keeping the effects of inflation recognized up to December 31, 2007.

BALANCE SHEET

S 23 AND S 28  BANK LOANS

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

                TELMEX entered into a syndicated loan agreement in 2004, which was restructured in 2005 and 2006 to improve the credit conditions and increase the total loan amount to 3 billion dollars divided in three tranches, the first one for 1.3 billion dollars with a three-year maturity, the second one for 1 billion dollars with a five-year maturity years and the third one for 700 million dollars with a seven- year maturity. In August 2009, TELMEX prepaid the total amount of the first tranche, which original maturity was scheduled for October 2009.

 On June 30, 2006 Telmex entered into a syndicated loan agreement in the amount for 500 million dollars divided into two tranches of 250 million dollars each, with a four-year and six-year maturity, respectively.

 S 24  AND S 29 SENIOR NOTES

  On November 19, 2003, TELMEX issued a bond for U.S.$ 1.0 billion due November 2008, with an annual interest of 4.5%.  Interests were payable semiannually. In November 2008, the Company repaid the outstanding balance of this bond.

  On January 27, 2005 and with a reopening on February 22, 2005, TELMEX placed senior notes in the total amount of U.S.$1.75 billions divided into two issuances of U.S.$ 950 million and U.S.$ 800 million, respectively, 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. Interests are payable semiannually.

  On January 26, 2006, TELMEX placed abroad a senior note in the amount of Ps. 4,500,000 (nominal value), maturing in 2016 and bearing interest at 8.75% annual. Interests are payable semiannually.

             On September 30, 2005, TELMEX obtained approval for a long-term domestic senior notes program in the amount of Ps.10,000,000 (nominal value). As of April 30, 2007, domestic senior notes had been issued for the total amount authorized under this program.

             In December 2007, TELMEX obtained approval for a long-term domestic senior notes program in the amount of Ps.10,000,000 (nominal value). In April 2008, domestic senior notes were placed in the amount of Ps.1,600,000. On July 8, 2009, two issuances of domestic senior notes were made under this program for a total amount of Ps.8,000,000.

             In September 2009, TELMEX obtained approval for a dual program to issue short and long-term domestic senior notes in the total amount of P. 15,000,000 (nominal amount).

 S 29  SENIOR NOTES (LONG-TERM)

  As of September 30, 2009 and 2008, this item rose to $ 35,181,753 and $ 35,285,825, respectively, and is comprised as follows:

 

 

2009

2008

Domestic Senior Notes

Ps.  19,900,000

Ps. 11,900,000

Bonds

       10,781,753

      18,885,825

Global peso Senior Notes

 

Ps  4,500,000

 

4,500,000

   

 S 42  RETAINED EARNINGS AND CAPITAL RESERVES

  On March 3, 2009 the Annual Ordinary Shareholders' Meeting approved to increase in Ps. 10,000,000 (nominal value), the funds authorized to repurchase its own shares, bringing the total maximum amount to Ps. $ 10,340,868 (nominal value).

  From January through September 2009, the Company acquired 269.8 million L shares for Ps. 3,034,953 and 1.4 million A shares for Ps. 15,277.

  From January through September 2008, the Company acquired 656.8 million L shares for Ps 11,051,622 and 1.7 million A shares for Ps. 28,876.

 The Company's repurchased shares are applied to unappropiated retained earnings, in the amount exceeding the portion of the capital stock, corresponding to the repurchased shares.

 S 104 EMPLOYEES BENEFITS

            This item includes the projected net assets as of September 30, 2009 and 2008 pursuant to Mexican FRS D-3 “Employees Benefits”.

 S 87 OTHERS

           In this item there are included the inventories for telephone plant operation, which are valued by the average cost method and up to December 31, 2007 were updated based on the specific index method which is similar to its replacement value, without exceeding their market value.

 S 58 OTHER CURRENT LIABILITIES

 As of September 30, 2009 and 2008, this item rose to Ps. 8,678,749 and Ps. 7,885,923 respectively and is comprised as follows:

 

 

2009

2008

Accounts payable

Ps.    5,289,112

Ps  5,749,437

Other accrued liabilities

1,794,772

1,143,757

Deferred credits

1,594,865

    992,729

 

S 91 EMPLOYEE BENEFITS

           This item includes liabilities for deferred employee profit sharing and actuarial obligations for labor termination as of September 2009 and 2008, pursuant to Mexican FRS D-3 and Bulletin D-3, respectively.

 RATIOS

 P 08  INVENTORY TURNOVER RATE-COST

EMISNET automatically calculates the inventory turnover rate by dividing the cost of sales and services (Ref. R 02) by the inventories for sale (Ref. S 06), affecting the actual inventory turnover rate.

 RECLASIFICATIONS

  Certain 2008 financial statements have been reclassified to conform with the presentation used for the year 2009.

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

ANNEX 3a

SHARE INVESTMENTS SUBSIDIARIES

Consolidated

Final printing

---

COMPANY NAME

MAIN ACTIVITIES

NUMBER OF

SHARES

OWNERSHIP

%

Integración de Servicios TMX, S.A. de C.V.

Investments in all types of businesses

106,419,052,434

100.00

Aerocomunicaciones, S.A. de C.V.

Aeronautic radiocom. mobile serv.

128,234,600

100.00

Aerofrisco, S.A. de C.V.

Air Taxi services

7,230,624,600

100.00

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

Real estate acquisition & leasing

686,001,490

100.00

Buscatel, S.A. de C.V.

Paging services

142,445

100.00

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

Real estate acquisition & leasing

1,034,000,000

100.00

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

Personnel services

6,000

100.00

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

Design & integrated telecom. Services

279,634,377

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

100.00

Fintel Holdings, L.L.C.

Investments in all types of businesses

1,490

100.00

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

Air conditioning installation & maint.

4,925,000

100.00

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

Management, consulting & org. Services

50,000

100.00

Impulsora Mexicana de Telecomunicaciones, S.A.

Network projects

4,602,225

100.00

Instituto Tecnológico de Teléfonos de México, S.C

Trainning & research services

1,000

100.00

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

Trunking, installation & sales services

665,759

100.00

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

Marketing services

50,000

100.00

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

Equipment, vehicles & real estate leasing

15,377,595,000

100.00

Servicios Administrativos Tecmarketing, SA de CV

Software development, sales & management

140,687,728

100.00

Tecmarketing, S.A. de C.V.

Telemarketing services

6,850,000

100.00

Telecomunicaciones Controladora de Servicios, S.A.

Investments in all types of businesses

138,839

100.00

Teleconstructora, S.A. de C.V.

Construction & maintenance of telephone network

19,400,000

100.00

Teléfonos del Noroeste, S.A. de C.V.

Telecommunication services

110,000,000

100.00

Telmex Holdings, Inc.

Telecommunication services

1,000

100.00

Teninver, S.A. de C.V.

Investments in all types of businesses

120,296,722

100.00

Uninet, S.A. de C.V.

Data transmission services

65,837,647

100.00

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. 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

510,138,000

45.00

510,138

897,113

Centro Histórico de la Ciudad de México, SA de CV

Real estate services

16,004,000

12.79

80,020

103,382

2Wire, Inc.

Broadband Services

8,619,242

13.00

648,400

246,395

TM and MS, L.L.C.

Internet portal (Prodigy MSN)

1

50.00

29,621

175,513

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

Software development

76,629,615

49.00

155,737

155,196

TOTAL INVESTMENT IN ASSOCIATES




1,423,916

1,577,599

OTHER PERMANENT INVESTMENTS





124,601

T O T A L




1,423,916

1,702,200

---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

ANNEX 5

CREDITS BREAKDOWN

(Thousands of Mexican Pesos)

Consolidated

Final printing

---



Credit Type / Institution

Foreign

Institution

Signature date

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

















EXPORT DEVELOPMENT C. (1)

Y

16/03/2006

22/01/2014

0.97

0

0

0

0

0

0

0

188,711

188,711

146,849

146,849

48,610

JAPAN BANK INT. COOP. (1)

Y

27/03/2003

10/10/2009

1.50

0

0

0

0

0

0

578,763

0

0

0

0

0

MIZUHO CORPORATE BANK LTD(1)

Y

15/01/2007

10/03/2018

0.98

0

0

0

0

0

0

0

855,276

855,275

855,275

855,275

2,948,358

NATIXIS (3)

Y

28/02/1986

31/03/2022

2.00

0

0

0

0

0

0

3,818

25,407

29,225

29,225

29,225

138,076


















SECURED DEBT

















COMMERCIAL BANK

















BANAMEX, S.A. (4)

N/A

21/02/2007

22/02/2010

4.84

0

1,500,000

0

0

0

0

0

0

0

0

0

0

BANK OF AMERICA, N.A. (2)

Y

13/06/2008

13/06/2014

0.64

0

0

0

0

0

0

0

0

0

0

135,042

540,168

BBV ARGENTARIA (6)

Y

12/02/2008

18/02/2014

0.68

0

0

0

0

0

0

0

0

0

0

0

2,997,604

BBVA BANCOMER (4)

N/A

26/02/2007

26/02/2010

4.88

0

1,300,000

0

0

0

0

0

0

0

0

0

0

BBVA BANCOMER (2)

Y

30/06/2006

30/06/2010

0.49

0

0

0

0

0

0

0

3,376,050

0

0

0

0

BBVA BANCOMER (2)

Y

30/06/2006

30/06/2012

0.54

0

0

0

0

0

0

0

0

0

3,376,050

0

0

CITIBANK, N.A. (2)

Y

11/08/2006

20/10/2011

0.54

0

0

0

0

0

0

0

0

0

13,504,200

0

0

CITIBANK, N.A. (2)

Y

11/08/2006

11/08/2013

0.61

0

0

0

0

0

0

0

0

0

3,150,980

6,301,960

0

CISCO SYSTEMS (3)

Y

25/04/2007

19/11/2013

4.50

0

0

0

0

0

0

94,529

94,529

189,059

189,059

135,042

67,521

0

N/A

00/01/1900

00/01/1900

0.00

0

0

0

0

0

0

0

0

0

0

0

0

OTHER

















TOTAL BANKS





0

2,800,000

0

0

0

0

677,110

4,539,973

1,262,270

21,251,638

7,603,393

6,740,337


















STOCK MARKET

















LISTED STOCK EXCHANGE

















UNSECURED DEBT

















CERT. BURSAT TELMEX 02-4(3)

N/A

31/05/2002

31/05/2012

10.20

0

0

0

300,000

0

0

0

0

0

0

0

0

CERT. BURSAT TELMEX 06 (5)

N/A

21/09/2006

15/09/2011

5.01

0

0

500,000

0

0

0

0

0

0

0

0

0

CERT. BURSAT TELMEX 07 (3)

N/A

23/04/2007

16/03/2037

8.36

0

0

0

0

0

5,000,000

0

0

0

0

0

0

CERT. BURSAT TELMEX 07-2 (4)

N/A

23/04/2007

16/04/2012

4.83

0

0

0

4,500,000

0

0

0

0

0

0

0

0

CERT. BURSAT TELMEX 08 (3)

N/A

21/04/2008

05/04/2018

8.27

0

0

0

0

0

1,600,000

0

0

0

0

0

0

CERT. BURSAT TELMEX 09 (4)

N/A

10/07/2009

07/07/2011

5.67

0

0

4,000,000

0

0

0

0

0

0

0

0

0

CERT. BURSAT TELMEX 09-2 (4)

N/A

10/07/2009

04/07/2013

5.88

0

0

0

0

4,000,000

0

0

0

0

0

0

0

CERT. BURSAT TELMEX 08 (3)

N/A

13/08/2009

11/11/2009

4.99

2,500,000

0

0

0

0

0

0

0

0

0

0

0

5 1/2 SENIOR NOTES (3)

Y

27/01/2005

27/01/2015

5.50

0

0

0

0

0

0

0

0

0

0

0

10,781,753

4 3/4 SENIOR NOTES (3)

Y

27/01/2005

27/01/2010

4.75

0

0

0

0

0

0

0

12,828,990

0

0

0

0

8 3/4 SENIOR NOTES PESOS (3)

N/A

31/01/2006

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





2,500,000

0

4,500,000

4,800,000

4,000,000

11,100,000

0

12,828,990

0

0

0

10,781,753


















SUPPLIERS

















TOTAL SUPPLIERS


































OTHER LONG AND SHORT TERM LOANS WITH COST (S103) AND (S30)










OTHER LOANS WITH COST

N/A




0

0

0

0

0

0

0

0

0

0

0

0

TOTAL OTHER LONG AND SHORT TERM LOANS WITH COST (S103) AND (S30)

0

0

0

0

0

0

0

0

0

0

0

0


















OTHER CURRENT LIABILITIES WITHOUT COST (S26)












OTHER LIABILITIES WITHOUT COST (S26)

0

0

0

17,895,595

0

0

0

0

0

0

0

0

0

0

0

TOTAL OTHER CURRENT LIABILITIES WITHOUT COST

17,895,595

0

0

0

0

0

0

0

0

0

0

0


















TOTAL





20,395,595

2,800,000

4,500,000

4,800,000

4,000,000

11,100,000

677,110

17,368,963

1,262,270

21,251,638

7,603,393

17,522,090



Notes:

A.- Interest rates:

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

(1)     6 months USD Libor rate plus margin

(2)     3 months USD Libor rate plus margin

(3)     Fixed Rate

(4)     28 days TIIE rate plus margin

(5)     91 days TIIE rate plus margin

(6)     3 months JPY LIBOR plus margin

B.- The following rates were considered:

- Libor at 6 months in US dollars is equivalent to 0.6288 at September 30, 2009

- Libor at 3 months in US dollars is equivalent to 0.2869 at September 30, 2009

- TIIE at 28 days is equivalent to 4.9300 at September 30, 2009

- TIIE at 91 days is equivalent to 5.0300 at September 30, 2009

- Libor at 3 months in JPY is equivalent to 0.3513 at September 30, 2009

 

C.- The suppliers' Credits are reclassified 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 September 30, 2009 were as follows:

CURRENCY

AMOUNT

E.R.

DOLLAR (USD)

4,623,220

13.50

EURO (EUR)

12,915

19.74

JAPANNESE YEN (JPY)

19,891,200

0.15



    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. 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

    160,663

    2,169,628

    0

    0

    2,169,628







    LIABILITIES

    4,725,875

    63,819,159

    240,856

    3,252,569

    67,071,728

    SHORT-TERM LIABILITIES

    1,436,821

    19,403,119

    2,164

    29,218

    19,432,337

    LONG-TERM LIABILITIES

    3,289,054

    44,416,040

    238,692

    3,223,351

    47,639,391







    NET BALANCE

    (4,565,212)

    (61,649,531)

    (240,856)

    (3,252,569)

    (64,902,100)

    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)

13.50

EURO

19.74

JAPANESE YEN

0.15

    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. 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

0

0

0

0.00

0

FEBRUARY

0

0

0

0.00

0

MARCH

0

0

0

0.00

0

RESTATEMENT

0

0

0

0.00

0

CAPITALIZATION

0

0

0

0.00

0

FOREIGN CORP.

0

0

0

0.00

0

OTHER

0

0

0

0.00

0

TOTAL





0







FIGURES FOR INFORMATION PURPOSES:




CAPITALIZED MONETARY GAIN





    Notes:

    Not applicable

    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

    ANNEX 8

    DEBT INSTRUMENTS

    Consolidated

    Final printing

    ---

    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 occurred as long as Carso Global Telecom, S.A.B. de C.V. (TELMEX's controlling company) or its current stockholders continue to hold the majority of the Company's voting shares.


    CURRENT SITUATION OF FINANCIAL LIMITED

    At September 30, 2009, the Company has complied with such restrictive covenants.

    ----

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. 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




    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

    ANNEX 10

    RAW MATERIALS

    Consolidated

    Final printing

    ---

    DOMESTIC

    MAIN SUPPLIERS

    IMPORT

    MAIN SUPPLIERS

    DOM.

    SUBST.

    PRODUCTION COST (%)

    NOT AVAILABLE






    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. 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

    34,228,439

    0.0



    LONG DISTANCE SERVICE

    0

    13,513,777

    0.0



    INTERCONNECTION

    0

    12,598,605

    0.0



    CORPORATE NETWORKS

    0

    10,096,428

    0.0



    INTERNET

    0

    11,703,250

    0.0



    OTHERS

    0

    4,007,399

    0.0



    FOREIGN SALES






    NET SETTLEMENT

    0

    2,045,170

    0



    LONG DISTANCE SERVICE

    0

    511,813

    0



    INTERNET

    0

    202,659

    0



    OTHERS

    0

    445,819

    0



    TOTAL


    89,353,359




    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. 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

    2,045,170




    CORPORATE NETWORKS

    0

    143,674




    OTHERS

    0

    439




    FOREIGN SUBSIDIARIES






    LONG DISTANCE SERVICE

    0

    511,813




    INTERNET

    0

    58,985




    OTHERS

    0

    445,380




    TOTAL


    3,205,461




    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. 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

    VALUE

    A

    0.0043

    0

    398,990,651

    0

    0

    398,990,651

    1,723

    0

    AA

    0.0043

    0

    8,114,596,082

    0

    8,114,596,082

    0

    35,035

    0

    L

    0.0043

    0

    9,770,274,927

    0

    0

    9,770,274,927

    42,184

    0

    TOTAL



    18,283,861,660

    0

    8,114,596,082

    10,169,265,578

    78,942

    0


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

    18,283,861,660


    NOTES:

    The nominal value per share is $0.0043175625 MXN

    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

    ANNEX 13

    PROJECT INFORMATION

    (Thousands of Mexican Pesos)

    Consolidated

    Final printing

    ---

    ITEM

    Thousand of Mexican Pesos

    3rd. Quarter 09 Jul-Sep

    % of

    Advance

    Amount used

    2009

    Budget

    2009

    % of

    Advance







    DATA

    1,175,139

    30.7

    3,867,041

    3,826,413

    101.1

    INTERNAL PLANT

    4,064

    1.2

    322,707

    352,963

    91.4

    NETWORKS

    244,116

    47.0

    585,560

    519,920

    112.6

    TRANSMISSION NETWORK

    187,081

    10.0

    1,414,091

    1,861,949

    75.9

    SYSTEMS

    48,924

    25.2

    109,754

    194,076

    56.6

    OTHERS

    282,504

    23.2

    1,072,513

    1,218,385

    88.0

    TELMEX USA

    11,335

    43.1

    14,580

    26,294

    55.4







    TOTAL INVESTMENT TELMEX MEXICO

    1,953,163

    24.4

    7,386,246

    8,000,000

    92.3

    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

    ANNEX 14

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

    Consolidated

    Final printing

    ---

    Exchange rate variations


Transactions in foreign currencies are recorded at the exchange rate applicable at the time of its occurrence. The assets and liabilities in foreign currencies are valued at the exchange rate of the balance sheet date. The exchange rate differences between the execution date and the payment date, as well as those arising from the conversion of balances denominated in foreign currencies at the date of the financial statements, are applied to results.



Translation of financial statements of foreign companies



The financial statements of subsidiaries and associated companies located abroad are consolidated or the method of participation is recognized, as appropriate, after the financial statements are translated into the Mexican financial reporting standards in the relevant local currency, and conversion to the report currency. The conversion of monetary assets and liabilities in the financial statements of our associate and subsidiary, were translated into Mexican pesos at the exchange rate prevailing at year-end, stockholders' equity accounts at the exchange rate prevailing on the date the capital contributions were made and profits were generated; revenues, costs and expenses to the historical exchange rate and the difference resulting from the conversion process is recognized in the "Effect of conversion of foreign entities" which is included in the stockholders' equity, "other items of income earned" section.

    ---

    MEXICAN STOCK EXCHANGE

    Index

    SIFIC/ICS

    STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

    TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

    COMPLIANCE WITH THE REQUIREMENT ISSUED BY THE COMISION BANCARIA Y DE VALORES (BANKING AND SECURITIES COMMISSION OF MEXICO)

    Consolidated

    Final printing

    ---

Derivative Instruments

  As of September 30, 2009, Teléfonos de México, S.A.B. de C.V. (the “Company”) had cross currency swap agreements in the equivalent of U.S.$4,216 million, which have hedged the exchange rate and interest rate risks related to the bonds with maturity in 2010 and 2015 for a total amount of U.S.$1,495 million and bank loans with maturity from 2009 to 2018 for a total amount of U.S.$2,721 millon. During this quarter, cross currency swaps agreements early matured in  the amount of U.S.$ 440 million which were entered into to cover the tranche A of the U.S.$ 1,300 million syndicated loan. These hedges allowed us to fix the exchange rate of our debt on a weighted average exchange rate of $10.5704 Mexican pesos per US dollar, as well as to partially set a fixed rate with a range between 7.52% for bonds maturing in 2010 and 8.57% for bonds maturing in 2015 and for other cases, an average interest rate of 28-day TIIE less 26 basis points.

At the end of the third quarter, the Company had forward agreements for U.S.$370 million at a weighted average exchange rate of $13.5311 per dollar. These agreements hedge bank loans with maturities until January 2010.

Additionally, the Company had interest rate swaps in Mexican pesos for Ps.$23,752 million to hedge the floating rate risk in local currency fixing it at an average of 8.19%. During the quarter interest rate swap agreements in U.S. dollars matured in an amount of U.S.$100 million which were used to hedge our floating rate U.S. dollar debt, fixing it at 4.47%.

These transactions have been carried out based on the Company’s policies, strategies and guidelines that are explained below.

 I. Qualitative and quantitative Information

 i. Policies for using of derivative instruments

 Objective to enter into derivative transactions and selected instruments

 With the purpose of reducing the risks related to the variations of exchange rate and interest rate, the Company uses derivative instruments connecting the hedges to the contracted debt. The derivative instruments that have been selected are mainly:

  (a)    instruments for purchasing US dollars at a specified future time (forwards);

(b)    instruments that involve the exchange of principal and interest from one currency to another (cross currency swaps); and

(c)    instruments to fix the floating interest rates of the debt (interest rate swaps).

 Hedge strategies

 When the market conditions are favorable, the Company’s Management determines the amounts and objective parameters considered in the hedging agreements. This strategy seeks to reduce the risk exposure of abnormal fluctuations in the market of the main variables that affect our debt, including exchange rate and interest rate, to maintain a solid and healthy financial structure.

 These strategies of hedging financial risks are included in the Corporate Governance Guidelines adopted by the Company, and its application is authorized by the Audit Committee.

Trading markets and eligible counterparts

The financial institutions and counterparts with which the Company enters into such derivative instruments are considered to have a proven reputation and solvency in the market, which allows us to balance our risk positions with the counterparts. Also, the Company only uses derivative instruments that are of common use in the markets, and therefore, can be quoted by two or more financial institutions to assure the best conditions in the negotiation.

Policies for the appointment of calculation and valuation agents

Given that the Company uses derivative instruments of common use in the market, it appoints a third party that is responsible to provide the market price of such instruments. These prices are compared by the Company with the ones provided by the financial intermediaries, also, in certain transactions the counterpart is able to act as valuation agent under the applicable documentation, when it is a financial institution with a proven reputation.

Main terms and conditions of the agreements

It is a policy of the Company that the amount, date and interest rate conditions of the debt to be hedged, if possible, have to coincide with the terms of the hedges, that is usual for this type of transactions in the different markets where it operates. All the transactions with derivative instruments are made under the ISDA Master Agreement (International Swap Dealers Association) standardized and duly executed by the legal representatives of the Company and the financial institutions, and in the case of counterparts in México, pursuant to the uses and practices of the market in our country.

Margin policies, collaterals and lines of credit

In some cases, the Company has entered into an accessory agreement to the ISDA Master Agreement with the financial institutions, the Credit Support Annex, which sets forth an obligation to grant collaterals for margin calls in case the mark-to market value exceeds certain established credit limits (threshold amount). The Company has the policy to keep a close watch of the volume of the transactions entered with each financial institution in order to avoid, if possible, any margin call.

Processes of levels of authorization required by type of negotiation

The strategy for hedging financial risks is discussed and approved by the Audit Committee. Subsequently, the Board of Directors is informed for its knowledge and ratification. The Treasury is in charge of its implementation and is supervised by the Company’s Chief Financial Officer.

Existence of a independent third party that reviews such processes

Both, the fulfillment of the Corporate Governance Guidelines and the measurement of effectiveness of the derivative instruments, to comply with the international financial reporting standards, are discussed with the external auditors that validate the correct accounting application of the effect of such instruments in the income statement and the balance sheet.

ii. Generic description of the valuation techniques

 As previously stated, derivative instruments are carried out by the Company only for hedging purposes. The measurement of the effectiveness of the hedges is made in a prospective and retrospective manner. For the prospective valuation, we use statistic techniques that allow us to measure in what proportion the change in the value of the hedged debt (primary position) is compensated by the change in the value of the derivative instrument. The retrospective valuation is made by comparing the historic results of the debt flows with the flows of the respective hedges.

iii. Internal and external liquidity sources to meet the requirements related to derivative instruments

 It is estimated that the Company’s cash generation has been enough to service debt and the established derivative instruments to hedge the risks associated with such debt.

  iv. Changes in the exposure to the main identified risks and its management

 The identified risks are those related to the variations of the exchange rate and interest rate. Given the direct relationship between the hedged debt and the derivative instruments and that they do not have any variables that could affect or terminate the hedge in advance, the Company does not foresee any risk that such hedges could differ from the original purpose for which the hedges were established.

 In the third quarter of 2009, it was recognized in the statements of income a net credit of Ps.1,346 million for the exchange rate hedges and an accrued net credit at the end of September of Ps.141 million. Furthermore, it was recognized in the statements of income a net charge of Ps.424 million and an accrued net charge at the end of September of Ps.1,636 million for interest rate hedges.

 During the third quarter, there have not been any margin calls.

  To date, there has not been any breach in the terms and conditions of the respective agreements.

  v. Quantitative information

  See TABLE 1 attached.

 II. SENSITIVITY ANALYSIS

In the case of the Company, the sensitivity analysis does not apply for the derivative instruments, since they are only carried out for hedging purposes.



Derivative Instruments Summary

Figures in thousands of Mexican pesos and US dollars


Type of

Derivative

Purpose of

Hedging,

Negotiation

or Others

Notional Amount

Value of the Underlying Asset

Variable of Reference

Reasonable Value

Maturity

Amounts

per year

Collateral/Lines

of Credit

(*)

Current

Quarter

Previous

Quarter

Current

Quarter

Previous

Quarter

Current

Quarter

Previous

Quarter


Exchange Rate Hedges

(principal and interests)



USD

USD

TIIE

TIIE

MXN

MXN



Cross Currency Swap

Hedging

3,994,024

4,460,168

4.9300

5.0850

13,100,448

13,059,462

(1)




EXCHANGE RATE

EXCHANGE RATE





13.5042

13.2023


Subtotal


3,994,024

4,460,168



13,100,448

13,059,462






USD

USD

EXCHANGE RATE

EXCHANGE RATE





Forwards

Hedging

370,000

685,000

13.5042

13.2023

7,380

(182,729)

(2)



Total


4,364,024

5,145,168



13,107,828

12,876,733






YEN

YEN

TIIE

TIIE





Cross Currency Swap

Hedging

19,891,200

19,891,200

4.9300

5.0850

1,040,420

757,702

(3)




EXCHANGE RATE

EXCHANGE RATE





0.1507

0.1369


Exchange Rate Hedges

(interests only)



USD

USD

TIIE

TIIE





Cross Currency Coupon Swap

Hedging

350,000

350,000

4.9300

5.0850

(7,346)

(12,568)

(4)





EXCHANGE RATE

EXCHANGE RATE





13.5042

13.2023


Interest Rate Hedges

(floating rate to fixed rate)



MXN

MXN

TIIE

TIIE

MXN

MXN



Interest Rate Swap

Hedging

23,752,125

23,752,125

4.9300

5.0850

(765,033)

(899,354)

(5)





USD

USD

LIBOR

LIBOR





Interest Rate Swap

Hedging

-

100,000

-

0.6563

-

(12,032)

(6)




TOTAL

13,375,869

12,710,482




(*) Of our hedge agreements, 60.9% of the total hedged amount include margin calls when the market value exceeds the amounts of the lines of credit that we have for the amount of USD$290 millon.

  1. These swaps hedge the debt position in US dollars, with the obligation of paying floating rate in Mexican pesos at an average of TIIE less a margin and with an average life of 5 years.

  2. This forward position mainly hedges debt position in US dollars with maturity in January 2010.

  3. These swaps hedge debt position in Yens, with the obligation of paying in Mexican pesos $2,000 million (equivalent to USD$222 million) at a floating rate and mature in February 2014.

  4. These swaps hedge the interest payment of debt in US dollars, with the obligation of paying floating rate in Mexican pesos at an average of TIIE less a margin and with maturities up to 2010.

  5. These agreements hedge debt position in Mexican pesos at a floating rate, fixing it at an average of 8.19% and with an average life of 7 years.

  6. These agreements hedged debt position in US dollars at a floating rate, fixing it at an average of 4.47% and matured in August 2009.

 ---

MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. 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.B. 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

AV. PASEO DE LAS PALMAS No. 750 - 7TH. FLOOR, COL. LOMAS DE CHAPULTEPEC

11000

MEXICO, D.F.

56 26 37 04

52 82 82

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

COMPTROLLER

LIC. ROLANDO REYNIER VALDES

PARQUE VIA 198 - 5TH. FLOOR OFFICE 502, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 92 92

57 05 62 31

rreynier@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

COMPTROLLER

LIC. ROLANDO REYNIER VALDES

PARQUE VIA 198 - 5TH. FLOOR OFFICE 502, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 92 92

57 05 62 31

rreynier@telmex.com

POSITION BMV:

POSITION:

NAME:

ADDRESS:

ZIP:

CITY:

TELEPHONE:

FAX:

E-MAIL:

DISTRIBUTION OF MATERIAL FACTS 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:

INVESTOR INFORMATION RESPONSIBLE

INVESTORS RELATIONS MANAGER

LIC. ANNA DOMINGUEZ GONZALEZ

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:

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LIC. ROLANDO REYNIER VALDES

PARQUE VIA 198 - 5TH. FLOOR OFFICE 502, COL. CUAUHTEMOC

06599

MEXICO, D.F.

52 22 92 92

57 05 62 31

rreynier@telmex.com

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MEXICAN STOCK EXCHANGE

Index

SIFIC/ICS

STOCK EXCHANGE CODE: TELMEX QUARTER: 3 YEAR: 2009

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

BOARD OF DIRECTORS

Consolidated

Final printing

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POSITION

NAME

CHAIRMAN OF THE BOARD

LIC.

CARLOS

SLIM

DOMIT

CO-CHAIRMAN

ING.

JAIME

CHICO

PARDO

VICE CHAIRMAN (INDEPENDENT)

C.P.

JUAN ANTONIO

PEREZ

SIMON

BOARD PROPIETORS (INDEPENDENT)

ING.

ANTONIO

COSIO

ARIÑO

BOARD PROPIETORS (INDEPENDENT)

DRA.

AMPARO

ESPINOSA

RUGARCIA

BOARD PROPIETORS (INDEPENDENT)

ING.

ELMER

FRANCO

MACIAS

BOARD PROPIETORS (INDEPENDENT)

LIC.

ANGEL

LOSADA

MORENO

BOARD PROPIETORS (INDEPENDENT)

LIC.

JOSE

KURI

HARFUSH

BOARD PROPIETORS

LIC.

MARCO ANTONIO

SLIM

DOMIT

BOARD PROPIETORS (INDEPENDENT)

SR.

MICHAEL

J.

VIOLA

BOARD PROPIETORS

LIC.

HECTOR

SLIM

SEADE

BOARD PROPIETORS (INDEPENDENT)

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

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)

ING.

MARCOS

FRANCO

HENAIZ

BOARD ALTERNATES (INDEPENDENT)

LIC.

JAIME

ALVERDE

GOYA

BOARD ALTERNATES

LIC.

EDUARDO

VALDES

ACRA

BOARD ALTERNATES

SR.

JORGE A.

CHAPA

SALAZAR

SECRETARY OF THE BOARD OF DIRECTORS

LIC.

SERGIO

MEDINA

NORIEGA

ASSISTANT SECRETARY

LIC.

RAFAEL

ROBLES

MIAJA

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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: October 21, 2009.

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.

By: /s/__________________

Name: Adolfo Cerezo Pérez
Title: Chief Financial Officer

Ref: TELÉFONOS DE MÉXICO, S.A.B. DE C.V. - THIRD QUARTER 2009.