Telmex has reported fourth quarter net income of MXN3 billion (USD206 million), a 55% fall year-on-year. Revenue slipped 2.7% to MXN31 billion as sales declined from local services (down 9%), long-distance telephony (down 6.7%) and interconnection (down 11.6%), outweighing a 27.8% hike in internet revenues. In the wake of the results, CEO Adolfo Cerezo said that the company would cut CAPEX in 2009 by one-third to MXN8 billion. According to BNamericas, Cerezo also criticised the approval by regulators of new interconnection legislation known as PTFII. Telmex disagrees with the part of the proposal that obliges the incumbent to unbundle its networks for use by third parties at reasonable prices, saying that the regulations would freeze investment and employment during a critical year.