FORM 6-KSECURITIES AND EXCHANGE
  COMMISSIONWashington, 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 March 2004
  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
  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...X.....

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



---

This current report on
  Form 6-K is hereby incorporated by reference into the registration statement
  on Form F-4 (File No. 333-111103) of Teléfonos de México, S.A. de
  C.V.

---

# Report dated
  March 22, 2004




Teléfonos
  de México, S.A. de C.V.

TABLE OF CONTENTS

|                                           |  | 
|------------------------------------------ |  | 
|RECENT
      DEVELOPMENTS                  |  | 
|FOURTH
      QUARTER 2003 EARNINGS RELEASE |  | 
|EXHIBITS                                   |  | 

---

# Recent Developments

# Acquisition
  of Majority Voting Interest in Embratel

On
  March 12, 2004, we entered into a definitive agreement with WorldCom, Inc. and
  certain of its subsidiaries to purchase their entire indirect interest in Embratel
  Participações S.A., or Embratel. Embratel is a Brazilian telecommunications
  services provider with leading positions in domestic and international long
  distance and data services. The purchase price is U.S.$360 million in cash.
  The agreement is subject to conditions precedent, including the receipt of required
  regulatory approvals in Brazil, the approval of the transaction by the U.S.
  bankruptcy court supervising the reorganization of WorldCom, and other, customary
  conditions precedent. Under certain circumstances, if the stock purchase agreement
  is terminated without our having received required regulatory approvals, WorldCom
  would be entitled to retain certain deposits made by us against the purchase
  price for the shares.

WorldComs
  interest in Embratel represents approximately 51.7% of the voting stock (ordinary
  shares) and approximately 19.2% of the total capital stock of Embratel. The
  remaining ordinary shares are publicly traded on the São Paulo Stock
  Exchange, and the non-voting stock (preferred shares) is traded on the São
  Paulo Stock Exchange and in ADR form on the New York Stock Exchange. Pursuant
  to requirements of Brazilian law, after the closing of its purchase of WorldComs
  interest in Embratel, we expect to make a cash tender offer to purchase any
  and all of the remaining ordinary shares at a price per share equal to 80% of
  the price per share paid to WorldCom. The additional cost to us if all ordinary
  shares are tendered would be approximately U.S.$270 million.

# Acquisition
  of AT&T Latin America

On
  February 24, 2004, we announced that our acquisition of substantially all of
  the assets of AT&T Latin America Corp. had been consummated and that all
  necessary regulatory approvals for the acquisition had been obtained. Pursuant
  to the transaction, we acquired AT&T Latin Americas operating subsidiaries
  in Argentina, Brazil, Chile, Colombia and Peru.

# World Trade
  Organization Dispute Brought by the United States Against Mexico

In
  August 2000, the United States initiated World Trade Organization dispute settlement
  against Mexico regarding alleged illegal barriers to competition in the Mexican
  telecommunications market. The United States and Mexican governments recently
  have reported that the WTO panel has reached a decision that is, at least in
  part, adverse to Mexico. An adverse decision by the WTO could lead to trade
  sanctions against Mexico and could prompt changes in regulation affecting our
  business. Mexican officials have stated that the WTOs resolution is expected
  to become publicly available in April 2004.

---

4th Quarter 2003



Results





Operating

- Total lines in service, line equivalents and Internet access accounts
  increased 10.2% compared with the previous year
- Lines in service increased 8.6% compared with 2002

- In the data transmission business, line equivalents in operation increased
  13.4%
- Internet access accounts increased 24.6% in 2003
- Local traffic increased 3.2% during the year
- DLD traffic had an annual increase of 7.2%
- ILD traffic decreased 8.3% in 2003





Financial

- Operating revenues totaled 116,848 million pesos, 0.3% lower than in 2002
- Operating margin was 33.8% and the EBITDA margin was 51.6%
- Net income rose to 22,450 million pesos for the full year, 10.3% higher
  than last year
- Earnings per share were 0.46 pesos and 0.82 dollars per ADR in the quarter
  and 1.85 pesos per share and 3.30 dollars per ADR for the full year
- Total debt in dollars decreased 4.7% compared with 2002
- Debt-to-capitalization ratio was 46.3% at year-end 2003





Financial

|Relevant Figures(Millions of Mexican pesos as of December
    2003) | 4Q2003  | 4Q2002  | % Increase | 12 months 2003 | 12 months 2002 | % Increase
|------------------------------------------------------------------- | ------- | ------- | ---------- | -------------- | -------------- | ----------
|Revenues                                                            | $30,183 | $30,541 | (1.2)      | $116,848       | $117,241       | (0.3)     
|EBITDA                                                              | 16,002  | 15,810  | 1.2        | 60,233         | 61,509         | (2.1)     
|Operating income                                                    | 10,523  | 11,191  | (6.0)      | 39,539         | 41,162         | (3.9)     
|Net income                                                          | 5,585   | 5,494   | 1.7        | 22,450         | 20,347         | 10.3      
|Earnings per share (pesos)*                                         | 0.46    | 0.43    | 7.0        | 1.85           | 1.59           | 16.4      
|Earnings per ADR (dollars)**                                        | 0.82    | 0.80    | 2.4        | 3.30           | 2.97           | 11.1      
|Outstanding shares (millions)                                       | 12,109  | 12,777  | (5.2)      | 12,109         | 12,777         | (5.2)     
|Equivalent ADRs (millions)                                          | 605     | 639     | (5.2)      | 605            | 639            | (5.2)     

*Considers outstanding shares at
the end of each period

**One ADR represents 20 shares





Operating results



Expansion of the telecommunications
infrastructure



The investments that TELMEX carried out in 2003 totaled 995.7
million dollars and increased its installed capacity in an important manner,
that is the case of installed lines that at the end of the year they reached 17
million 202 thousand lines. The installed Internet access services totaled 2
million 54 thousand services.





Voice Business

(Thousand units)

|                            | 4Q 2003 | 3Q 2003 | 2Q 2003 | 1Q 2002 | 4Q 2002 | % Inc. vs 4Q 2002
|--------------------------- | ------- | ------- | ------- | ------- | ------- | -----------------
|                            |         |         |         |         |         |                  
|Lines in service            | 15,683  | 15,356  | 15,065  | 14,736  | 14,446  | 8.6              
|Net line gain *             | 327     | 290     | 329     | 290     | 288     | 13.6             
|Multifon Hogar              | 639     | 513     | 416     | 250     | 213     | 199.5            
|Lines with digital services | 5,488   | 5,278   | 4,958   | 4,692   | 4,366   | 25.7             
|Penetration (%)             | 35.0%   | 34.4%   | 32.9%   | 31.8%   | 30.2%   | 4.8              
|Voice mail                  | 5,355   | 4,759   | 2,160   | 587     | -       | NA               
|Penetration (%)             | 34.2%   | 31.0%   | 14.3%   | 4.0%    | -       | NA               
|                            |         |         |         |         |         |                  

*Amounts of each quarter.



Local Traffic

(Million units)

|                        | 4Q 2003 | 3Q 2003 | 2Q 2003 | 1Q 2002 | 4Q 2002 | % Inc. vs 4Q 2002
|----------------------- | ------- | ------- | ------- | ------- | ------- | -----------------
|                        |         |         |         |         |         |                  
|Local calls             | 6,668   | 6,850   | 6,506   | 6,470   | 6,489   | 2.8              
|Interconnection minutes | 6,568   | 6,646   | 6,507   | 6,069   | 5,822   | 12.8             
|                        |         |         |         |         |         |                  





Local

At year-end 2003, TELMEX had 15,683,264 fixed lines in service,
an annual increase of 8.6% with a net addition of 327,478 lines in the fourth
quarter. This gain was 13.6% higher than the fourth quarter of 2002. During the
year, 1,236,828 lines were added, 15.1% more than in 2002. Of total lines in
service, 639,190 belong to Multifon Hogar, and this amount was three times
higher than in 2002.



In the fourth quarter, penetration of digital services was
35.0%, 4.8 percentage points higher than the same quarter of 2002. Total lines
with at least one digital service were 5,488,497.



Free voice mail was launched in the first quarter of 2003 and
at year-end, there were 5,355,128 free voice mails in operation.



During the quarter, 6,668 million local calls were made, 2.8%
higher than the same quarter of last year. For the full year, total call traffic
increased 3.2%, totaling 26,494 million calls.



Interconnection traffic totaled 6,568 million minutes during
the quarter, 12.8% more than the fourth quarter of 2002. For the full year,
interconnection traffic totaled 25,790 million minutes, 19.1% higher than in
2002.



Long Distance Traffic

(Million minutes)

|                            | 4Q 2003 | 3Q 2003 | 2Q 2003 | 1Q 2002 | 4Q 2002 | % Inc. vs 4Q 2002
|--------------------------- | ------- | ------- | ------- | ------- | ------- | -----------------
|                            |         |         |         |         |         |                  
|Domestic long distance      | 3,763   | 3,919   | 3,868   | 3,826   | 3,731   | 0.9              
|International long distance | 1,406   | 1,197   | 984     | 927     | 912     | 54.1             
|                            |         |         |         |         |         |                  





Long distance

In the fourth quarter, domestic long distance traffic totaled
3,763 million minutes, 0.9% higher than the same period of 2002. For the full
year, domestic long distance minutes rose to 15,376 million, an annual increase
of 7.2%.



International long distance traffic surged in the fourth
quarter by totaling 1,406 million minutes an increase of 54.1% compared with the
same period of the previous year. For the full year, international long distance
minutes totaled 4,513 million, 8.3% lower than in 2002.





Data Business

(Thousand units)

|                                       | 4Q 2003 | 3Q 2003 | 2Q 2003 | 1Q 2002 | 4Q 2002 | % Inc Vs 4Q 2002
|-------------------------------------- | ------- | ------- | ------- | ------- | ------- | ----------------
|                                       |         |         |         |         |         |                 
|Internet access accounts               | 1,452   | 1,373   | 1,288   | 1,234   | 1,165   | 24.6            
|Penetration (%)                        | 9.3%    | 8.9%    | 8.6%    | 8.4%    | 8.1%    | 1.2             
|Prodigy (Dial Up)                      | 1,258   | 1,205   | 1,148   | 1,119   | 1,080   | 16.5            
|Prodigy infinitum (ADSL)               | 179     | 152     | 123     | 98      | 67      | 169.3           
|Line equivalents for data transmission | 2,291   | 2,178   | 2,077   | 2,009   | 2,021   | 13.4            
|                                       |         |         |         |         |         |                 





Data

In 2003, TELMEX had 1,452,338 Internet access accounts, an
annual increase of 24.6%. The gain in accounts during the fourth quarter was
79,823. During the year, 286,937 Internet access accounts were added, an
increase of 13.7% compared with 2002.



In the fourth quarter, 27,637 users were added to broadband
service ADSL (Prodigy Infinitum), reaching 179,293 services at year-end 2003,
169.3% more than in 2002. Prodigy Infinitum accounts represented 12.4% of total
accounts in service.



At December 31, 2003 Internet service penetration including
broadband services, in respect to total lines in service was 9.3%, 1.2
percentage points more than the same period of the previous year.



In the corporate market of data transmission, TELMEX operated
2,291,111 line equivalents at the end of the fourth quarter; an increase of
13.4% compared with the same period of 2002. In the fourth quarter, the gain of
line equivalents for data transmission rose to 113,582. The annual gain was of
270,319 line equivalents.



Consolidated Financial Results



Revenues

In the fourth quarter, total revenues were 30,183 million
pesos, a decrease of 1.2%, compared with the same period of the previous year.
For the full year, revenues totaled 116,848 million pesos, a decrease in real
terms of 0.3% compared with 2002.



- Local: revenues decreased 4.0% in the fourth quarter and 2.5% for the
  full year.

- DLD: these revenues decreased 1.7% in the fourth quarter. For the full
  year, these revenues increased 1.5%.
- ILD: revenues increased 18.2% compared with the fourth quarter of 2002
  and for the full year, they decreased 8.2%. The increase in the fourth quarter
  was due to more incoming traffic.
- Data: revenues related to Internet services, rent and installation of
  line equivalents and value-added services related to data transmission
  increased 4.7% in the fourth quarter compared with the same period of 2002 and
  5.4% for the full year. These revenues were approximately 3,654 million pesos
  in the fourth quarter and 13,646 million pesos in 2003.
- Interconnection: revenues increased 2.5% compared with the fourth
  quarter of 2002 and 8.6% for the full year. This growth was the result of
  lower growth in Calling Party Pays traffic and the one originated by long
  distance operators.
- Others: these revenues are mainly comprised by advertising sales of
  yellow pages as well as for sales in Tiendas TELMEX (TELMEX Stores) that
  decreased 7.1% in the fourth quarter and 1.3% in 2003.



Costs and Expenses

Cash costs and expenses totaled 14,181 million pesos in the
fourth quarter, a decrease of 3.7% compared with the same period of the previous
year. For the full year, total cash costs and expenses rose to 56,615 million
pesos, 1.6% more than the same period of 2002.



- Cost of sales and services: increased 1.3% in the fourth quarter and 1.8%
  for the full year. Both increases were due to higher pensions and seniority
  premiums, the increase in electricity rates and higher costs for telephone
  sets and PC's.
- Commercial, administrative and general expenses: decreased 12% in the
  fourth quarter due to the control on uncollectables and advertising expenses.
  For the full year, these expenses remained flat.
- Interconnection: decreased 1.9% compared with last year's fourth quarter
  and increased 3.0% for the full year.
- Depreciation and Amortization: presented an adjustment of 18.6% in the
  fourth quarter that was mainly due to the variation of the exchange rate. For
  the full year, the increase was of 1.7%.



EBITDA and Operating Income



In the fourth quarter, EBITDA totaled 16,002 million pesos,
1.2% higher than the same period of 2002 and for the full year, EBITDA totaled
60,233 million pesos, 2.1% lower than the previous year. Operating income in the
fourth quarter totaled 10,523 million pesos, 6.0% lower than the same period of
the previous year and for the full year, operating income decreased 3.9%
totaling 39,539 million pesos.



Comprehensive Financing Cost

Comprehensive financing cost was 1,226 million pesos during the
fourth quarter due to an exchange loss of 970 million pesos resulting from the
depreciation of the peso versus the US dollar of 2.8% during the quarter. Net
Interest showed a charge of 829 million pesos and a gain of 573 million pesos
was generated in the monetary position. Comprehensive financing cost for the
full year totaled 4,070 million pesos, 39.2% lower than in 2002.



Net Income

Net income in the fourth quarter totaled 5,585 million pesos,
1.7% higher than the same period of 2002. For the full year, net income rose to
22,450 million pesos, an increase of 10.3% compared with 2002.



Repurchase of Shares

From October 1st to December 31st, TELMEX
repurchased 181,245,600 of its own shares representing 1.5% of outstanding
shares at September 30. TELMEX's earnings per share for the fourth quarter,
based on the number of shares outstanding at period end, were 0.46 pesos and
1.85 pesos for the full year.



Debt

At December 31, 2003 total debt, short-term and long-term
equaled 6.112 billion dollars a decrease of 4.7% from 6.413 billion dollars in
December 2002. Without considering hedges, 87.3% of total debt was
foreign-denominated and at the end of December, currency hedges covered 585
million dollars of the total debt. Additionally, interest rate swaps were
carried out for 12,390 million pesos producing a new fixed rate of 9.2% and 1.1
billion dollars with a fixed rate of 2.4%, with average maturities of 6 years
for swaps denominated in pesos and 5 years for swaps denominated in dollars.
After the interest rate swaps, fixed rate debt represents 93.1% of total debt.





Consolidated Income Statements

|(Millions of Mexican pesos as of
      December 2003)       | 4Q2003  | 4Q2002  | % Increase | 12 months 2003 | 12 months 2002 | % Increase
|----------------------------------------------------------- | ------- | ------- | ---------- | -------------- | -------------- | ----------
|Operating revenues                                          |         |         |            |                |                |           
|Local                                                       | $13,332 | $13,883 | (4.0)      | $53,871        | $55,228        | (2.5)     
|Domestic long distance                                      | 7,624   | 7,753   | (1.7)      | 30,514         | 30,054         | 1.5       
|International long distance                                 | 2,537   | 2,146   | 18.2       | 9,041          | 9,848          | (8.2)     
|Interconnection                                             | 4,375   | 4,268   | 2.5        | 17,565         | 16,179         | 8.6       
|Others                                                      | 2,315   | 2,491   | (7.1)      | 5,857          | 5,932          | (1.3)     
|Total                                                       | 30,183  | 30,541  | (1.2)      | 116,848        | 117,241        | (0.3)     
|                                                            |         |         |            |                |                |           
|Operating costs and expenses                                |         |         |            |                |                |           
|Cost of sales and services                                  | 6,899   | 6,811   | 1.3        | 27,069         | 26,591         | 1.8       
|Commercial, administrative and
      general                | 4,234   | 4,812   | (12.0)     | 17,246         | 17,205         | 0.2       
|Interconnection                                             | 3,048   | 3,108   | (1.9)      | 12,300         | 11,936         | 3.0       
|Depreciation and amortization                               | 5,479   | 4,619   | 18.6       | 20,694         | 20,347         | 1.7       
|Total                                                       | 19,660  | 19,350  | 1.6        | 77,309         | 76,079         | 1.6       
|                                                            |         |         |            |                |                |           
|Operating income                                            | 10,523  | 11,191  | (6.0)      | 39,539         | 41,162         | (3.9)     
|                                                            |         |         |            |                |                |           
|Comprehensive financing cost                                |         |         |            |                |                |           
|Net interest                                                | 829     | 887     | (6.5)      | 2,589          | 4,980          | (48.0)    
|Exchange loss, (gain)                                       | 970     | 654     | 48.3       | 3,133          | 4,621          | (32.2)    
|Monetary effect                                             | (573)   | (707)   | (19.0)     | (1,652)        | (2,906)        | (43.2)    
|Total                                                       | 1,226   | 834     | 47.0       | 4,070          | 6,695          | (39.2)    
|                                                            |         |         |            |                |                |           
|Income before tax and employee profit sharing               | 9,297   | 10,357  | (10.2)     | 35,469         | 34,467         | 2.9       
|                                                            |         |         |            |                |                |           
|Provisions for income tax and employee profit
      sharing | 3,673   | 4,753   | (22.7)     | 12,840         | 13,858         | (7.3)     
|                                                            |         |         |            |                |                |           
|Income before equity in results of
      affiliates         | 5,624   | 5,604   | 0.4        | 22,629         | 20,609         | 9.8       
|                                                            |         |         |            |                |                |           
|Equity in results of affiliates                             | (39)    | (110)   | (64.5)     | (179)          | (262)          | (31.7)    
|                                                            |         |         |            |                |                |           
|Net income                                                  | $5,585  | $5,494  | 1.7        | $22,450        | $20,347        | 10.3      
|                                                            |         |         |            |                |                |           
|                                                            |         |         |            |                |                |           
|EBITDA                                                      | $16,002 | $15,810 | 1.2        | $60,233        | $61,509        | (2.1)     
|EBITDA Margin (%)                                           | 53.0    | 51.8    | 1.2        | 51.6           | 52.5           | (0.9)     
|Operating Margin (%)                                        | 34.9    | 36.6    | (1.7)      | 33.8           | 35.1           | (1.3)     



|Consolidated Balance Sheets(Millions of Mexican pesos as of December 2003) | December 2003 | December 2002
|-------------------------------------------------------------------------- | ------------- | -------------
|Assets                                                                     |               |              
|Cash and short-term investments                                            | $17,544       | $14,913      
|Other current assets                                                       | 22,299        | 23,295       
|Plant, property and equipment,
    net                                     | 120,662       | 127,022      
|Inventories                                                                | 1,419         | 1,349        
|Other assets                                                               | 1,502         | 1,754        
|Intangible assets                                                          | -             | 7,177        
|Projected net asset                                                        | 22,336        | -            
|Total assets                                                               | $185,762      | $175,510     
|                                                                           |               |              
|Liabilities and stockholders' equity                                       |               |              
|Current portion of long-term
    debt                                      | $20,262       | $11,500      
|Other current liabilities                                                  | 16,980        | 21,653       
|Long-term debt                                                             | 48,416        | 57,266       
|Pensions and seniority premiums                                            | -             | 7,997        
|Deferred taxes                                                             | 20,455        | 13,496       
|                                                                           | 106,113       | 111,912      
|Total liabilities                                                          | 79,649        | 63,598       
|Stockholders' equity                                                       | $185,762      | $175,510     
|Total liabilities and stockholders'
    equity                             |               |              



Outstanding shares at December 31, 2003: 12,109,205,252

Exchange rate used at December 31, 2003: 11.2360 pesos per
dollar







Local Service Business



|Income statements(Millions of Mexican pesos as of December
      2003) | 4Q2003  | 4Q2002  | % Increase | 12 months 2003 | 12 months 2002 | % Increase
|---------------------------------------------------------------------- | ------- | ------- | ---------- | -------------- | -------------- | ----------
|Operating revenues                                                     |         |         |            |                |                |           
|Access, rent and measured
    service                                  | $13,297 | $13,761 | (3.4)      | $53,722        | $55,080        | (2.5)     
|Recovery of LADA special
    projects                                  | 505     | 460     | 9.8        | 1,816          | 1,801          | 0.8       
|LADA interconnection                                                   | 968     | 878     | 10.3       | 3,492          | 3,496          | (0.1)     
|Interconnection with operators                                         | 312     | 244     | 27.9       | 1,064          | 877            | 21.3      
|Interconnection with cellular                                          | 4,063   | 4,024   | 1.0        | 16,501         | 15,302         | 7.8       
|Other                                                                  | 2,297   | 2,428   | (5.4)      | 8,646          | 8,483          | 1.9       
|Total                                                                  | 21,442  | 21,795  | (1.6)      | 85,241         | 85,039         | 0.2       
|                                                                       |         |         |            |                |                |           
|Operating costs and expenses                                           |         |         |            |                |                |           
|Cost of sales and services                                             | 4,836   | 5,075   | (4.7)      | 18,737         | 18,631         | 0.6       
|Commercial, administrative and
      general                           | 3,307   | 3,347   | (1.2)      | 14,254         | 14,251         | 0.0       
|Interconnection                                                        | 3,041   | 3,102   | (2.0)      | 12,273         | 11,913         | 3.0       
|Depreciation and amortization                                          | 3,806   | 3,202   | 18.9       | 14,067         | 13,797         | 2.0       
|Total                                                                  | 14,990  | 14,726  | 1.8        | 59,331         | 58,592         | 1.3       
|                                                                       |         |         |            |                |                |           
|Operating income                                                       | $6,452  | $7,069  | (8.7)      | $25,910        | $26,447        | (2.0)     
|                                                                       |         |         |            |                |                |           
|EBITDA                                                                 | $10,258 | $10,271 | (0.1)      | $39,977        | $40,244        | (0.7)     
|EBITDA Margin (%)                                                      | 47.8    | 47.1    | 0.7        | 46.9           | 47.3           | (0.4)     
|Operating Margin (%)                                                   | 30.1    | 32.4    | (2.3)      | 30.4           | 31.1           | (0.7)     



Comments on local financial results

The local service income statement, prepared in accordance with
accounting separation principles, shows that revenues for the fourth quarter
decreased 1.6% compared with the same period of the previous year. This result
was due to the decrease of measured service rates in real terms, partially
offset by higher interconnection revenues. For the full year, local revenues had
an annual increase of 0.2% totaling 85,241 million pesos.



Operating costs and expenses increased 1.8% compared with the
fourth quarter of 2002. This result was due to higher depreciation derived from
the variation of the peso to the US dollar, partially offset by a decrease of
4.7% and 1.2% in cost of sales and services and commercial, administrative and
general expenses, respectively. Additionally, costs related to interconnection
decreased 2.0% in the fourth quarter. For the full year, total operating costs
and expenses increased 1.3% totaling 59,331 million pesos



In the fourth quarter, operating income decreased 8.7% totaling
6,452 million pesos and EBITDA totaled 10,258 million pesos, similar to the

amount registered in the same period of 2002. For the full year, operating
income decreased 2.0% and EBITDA decreased 0.7%, totaling 25,910 and 39,977
million pesos, respectively.







Long distance business



|Income statements(Millions of Mexican pesos as of December
      2003) | 4Q2003 | 4Q2002 | % Increase | 12 months 2003 | 12 months 2002 | % Increase
|---------------------------------------------------------------------- | ------ | ------ | ---------- | -------------- | -------------- | ----------
|Operating revenues                                                     |        |        |            |                |                |           
|Domestic long distance                                                 | $4,100 | $4,483 | (8.5)      | $17,124        | $17,412        | (1.7)     
|International long distance                                            | 2,005  | 1,654  | 21.2       | 7,389          | 8,016          | (7.8)     
|Total                                                                  | 6,105  | 6,137  | (0.5)      | 24,513         | 25,428         | (3.6)     
|                                                                       |        |        |            |                |                |           
|Operating costs and expenses                                           |        |        |            |                |                |           
|Cost of sales and services                                             | 994    | 1,287  | (22.8)     | 4,521          | 4,775          | (5.3)     
|Commercial, administrative and
      general                           | 1,391  | 1,480  | (6.0)      | 5,027          | 5,069          | (0.8)     
|Interconnection to the local
      network                             | 906    | 837    | 8.2        | 3,320          | 3,342          | (0.7)     
|Cost of LADA special projects                                          | 468    | 435    | 7.6        | 1,711          | 1,709          | 0.1       
|Depreciation and amortization                                          | 629    | 537    | 17.1       | 2,787          | 2,573          | 8.3       
|Total                                                                  | 4,388  | 4,576  | (4.1)      | 17,366         | 17,468         | (0.6)     
|                                                                       |        |        |            |                |                |           
|Operating income                                                       | $1,717 | $1,561 | 10.0       | $7,147         | $7,960         | (10.2)    
|                                                                       |        |        |            |                |                |           
|EBITDA                                                                 | $2,346 | $2,098 | 11.8       | $9,934         | $10,533        | (5.7)     
|EBITDA Margin (%)                                                      | 38.4   | 34.2   | 4.2        | 40.5           | 41.4           | (0.9)     
|Operating Margin (%)                                                   | 28.1   | 25.4   | 2.7        | 29.2           | 31.3           | (2.1)     



Comments on Long Distance Financial Results

The long distance income statement prepared in accordance with
accounting separation principles shows that long distance revenues decreased
0.5% in the fourth quarter. The decrease in revenues was due the reduction of
domestic and international long distance rates in real terms, partially offset
by a recovery in international long distance traffic. For the full year, long
distance revenues totaled 24,513 million pesos, a decrease of 3.6% compared with
the previous year.



Operating costs and expenses in the fourth quarter decreased
4.1% compared with the same period of last year. This decrease is the result of
the strict control on cost of sales and services that decreased 22.8% as well as
in commercial, administrative and general expenses that also decreased 6.0%.
Depreciation increased 17.1% because of the variation of the peso to the US
dollar. For the full year, operating costs and expenses decreased 0.6%, totaling
17,366 million pesos.



Operating income increased 10.0% and EBITDA increased 11.8% in
the fourth quarter totaling 1,717 and 2,346 million pesos, respectively. For the
full year, operating income decreased 10.2% totaling 7,147 million pesos and
EBITDA decreased 5.7% totaling 9,934 million pesos.





Definition



TELMEX, is a corporation made up of Telefonos de Mexico, S.A.
de C.V., its subsidiaries and affiliates, provides telecommunications services
throughout the country. In addition to other services, this includes operation
of the nation's most complete local, domestic and international long distance
networks. Additionally, TELMEX offers services like connectivity, Internet
access, colocation, web hosting, production and distribution of telephone
directories and interconnection services to other telecommunications
operators



---

EXHIBITS

|99.1 | Stock
      Purchase Agreement, dated as of March 12, 2004, by and among Teléfonos
      de México, S.A. de C.V., WorldCom, Inc., MCI International, Inc.,
      MCI WorldCom International, Inc. and MCI WorldCom Brazil LLC (incorporated
      by reference to the Form 8-K filed by WorldCom, Inc. with the Securities
      and Exchange Commission on March 18, 2004 (File No. 001-10415)).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



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.



|                           | TELÉFONOS
      DE MÉXICO, S.A. DE C.V.,                                                                             
|-------------------------- | ---------------------------------------------------------------------------------------------------------------------
|                           |                                                                                                                      
|Date:
      March 22, 2004 | By: /s/
      Adolfo Cerezo Pérez 
            Name: Adolfo Cerezo Pérez
            Title:   Chief Financial Officer





---

EXHIBIT INDEX

|99.1 | Stock
      Purchase Agreement, dated as of March 12, 2004, by and among Teléfonos
      de México, S.A. de C.V., WorldCom, Inc., MCI International, Inc.,
      MCI WorldCom International, Inc. and MCI WorldCom Brazil LLC (incorporated
      by reference to the Form 8-K filed by WorldCom, Inc. with the Securities
      and Exchange Commission on March 18, 2004 (File No. 001-10415)).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------