TELEFONOS DE MEXICO, S.A.B. DE C.V. FOURTH QUARTER 2011, FEBRUARY 8, 2012.

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of February 2012

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....P.....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...P...

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

Highlights

4th Quarter 2011

· At December 31, 2011, TELMEX supported 14.814 million lines, a decrease of 5.0% compared with the same period of the previous year. The lines included:

o Telmex Social: 1.496 million lines concentrated in rural communities and prepaid lines, with a reduction of 465,000 prepaid lines in the last 12 months .

o Also, 689,000 public telephony lines, which have decreased in the last 12 months by 63,000.

· Countries around the world are experiencing a continuing decrease in penetration of fixed lines. In a market of approximately 19.3 million fixed lines, TELMEX has a market share of 76.9% if public telephony, Telmex Social and prepaid lines that are mainly in rural areas are included. This market share is below the average of 85.7% for the 35 most representative countries ( Bank of America Merrill Lynch, Global Wireline Matrix 2011 ).

· Regarding our high speed Internet access service infinitum , we continue promoting and, thanks to our customer’s preference, we expanded from 67,000 accesses and a market share of 28.8% in December 2002 ( Bank of America Merrill Lynch, Global Wireline Matrix 2011 ) to 8.0 million broadband accesses and a market share of more than two thirds of Internet access services nationwide at the end of December 2011. In this period, broadband Internet accesses in Mexico increased an average of 57.5% in placing the country with the highest growth rates (OECD- Broadband portal) among the OECD country members. In this manner, infinitum is consolidated as the best connection due to its quality, service, price and high speed with by offering speed of 3 Mbps for 149 pesos (taxes included), placing infinitum with one of the most competitive prices in the world.

· infinitum’ s growth has been supported by the sa le of 3.2 m illion computers since 1999. This growth has been affected by some of the main broadband barriers, the lack of PC penetration in Mexican homes and low income per capita in a considerable part of the pop ul ation.

· In 2012, for the twelfth consecutive year, TELMEX will continue reducing the price of our services to suppo r t Mexican families and enterprises. With this commitment, TELMEX passes to our customers the benefits of high efficiency and productivity that the company has worked to achieve in recent years.

· Across TELMEX, we continue to evolve our telecommunications platform. We are making investments to keep us at the forefront of technological development with the most reliable, efficient and secure state-of-the-art technology network available in the market, in order to offer int e grated products and services, at attractive prices and with world-class quality.

· TELMEX drives education and digital culture in the country and has benefited more than 2.8 million students, teachers and parents in cooperation with institutions and the governments of all 32 Mexican states. Among important results to highlight are 3,500 Casas, Aulas , (TELMEX Computer Halls) and Bibliotecas Digitales TELMEX (TELMEX Digital Libraries) where training in information technologies is provided, Also, Inttelmex IT provides post-graduate studies in IT, with the purpose of training specialists to lead technological change in public institutions and private companies. INTTELMEX IT is recognized by the SEP (Mexico’s Education Ministry) and endorsed by MIT. Additionally, we launched the technological platform “ Académica ” Innovación Tecnológica para la Educación Superior (Technological Innovation for Higher Education), which has entered into more than 170 agreements with higher-education institutions and has several digitized historical academic resources.

· R evenues in the fourth quarter totaled 29.143 billion pesos, an increase of 4.2 % compared with the same period of 2010, mainly due to an increase of 26.0% in data revenues, which include revenues from information technology projects that offset the 6.9% decrease from voice services.

· From October to December, adjusted EBITDA (1) totaled 11.348 billion pesos, producing a margin of 38.9%. Operating income totaled 6.934 billion pesos, with a margin of 23.8%.

· Net incom e in the fourth quarter totaled 4.085 billion pesos, 21.3% higher than in the year-earlier period. In the quarter, earnings per share were 22.6 Mexican cents, 22.2% higher than the same period of the previous year, and earnings per ADR (2) were 33.0 US cents, an increase of 10.7% compared with the fourth quarter of 2010.

· At the end of December, total debt was the equivalent of 5.136 billion dollars, 895 million dollars less than December 31, 2010. Total net debt (3) was equivalent to 5.008 billion dollars.

· Capital expenditures (Capex) were the equivalent of 588 million dollars i n the fourth quarter. Of this investment, 76.1% was used for growth and infrastructure projects in the data business, connectivity and transmission networks.

(1) Adjusted EBITDA defined as operating income plus depreciation and amortization andother expenses, net. Go to www.telmex.com inthe Investor Relations section where you canfind the reconciliation of adjusted 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.


Relevant Events

Tender Offer for TELMEX’s Shares

On December 19, 2011, TELMEX’s Extraordinary Shareholders Meeting approved to delist and/or cancel its American Depositary Shares (“ADSs”) from the New York Stock Exchange (NYSE), from the NASDAQ Capital Market (NASDAQ), from the Mercado de Valores Latinoamericanos en Euros in Madrid, Spain (Latibex) and from other foreign markets, as well as to terminate its American Depositary Receipt “ADR” program.

Recently, TELMEX filed Form 25 in the NYSE and NASDAQ which will soon end trading of TELMEX’s shares in those markets. On January 31, 2012 TELMEX ended trading its shares in the Mercado de Valores Latinoamericanos en Euros in Madrid, Spain (Latibex).

It is important to highlight that TELMEX shares will continue to be traded on the Bolsa Mexicana de Valores (Mexican Stock Exchange).TELMEX and América Móvil have not yet determined whether or when they will seek to delist the shares from the Mexican Stock Exchange.


Operating Results

Lines and local traffic

At December 31, 2011, TELMEX supported 14.814 million lines, a decrease of 5.0% compared with the same period of the previous year. The lines included:

– Telmex Social: 1.496 million lines concentrated in rural communities and prepaid lines, with a reduction of 465,000 prepaid lines in the last 12 months .

– Also, 689,000 public telephony lines, which have decreased in the last 12 months by 63,000.

During the fourth quarter, local calls decreased 8.9% comp ared with the same period of 2010, totaling 4.258 billion. The decline reflected the lower nu mb er of billed lines due to the growth in cellular telephony services and competition from other operators, as well as customers’ changing consumption profiles.


Long distance

In the fourth quarter, domestic long distance (DLD) traffic decreased 2.1% compared with the same quarter of 2010, totaling 4.350 billion minutes, mainly due to, among other factors, the decrease in termination traffic with other cellular telephony operators and less traffic because of the decrease of billed lines.

In the quarter, outgoing international long distance (ILD) traffic increased 3.3% compared with the fourth quarter of 2010, totaling 381 million minutes. Among other factors contributing to this increase was higher termination traffic from cellular operators. Incoming international long distance traffic rose 29.3% compared with the fourth quarter of 2010, totaling 2.604 billion minutes. The incoming-outgoing ratio was 6.8 times .


Interconnection

In the fourth quarter, interconnection traffic totaled 10.816 billion minutes, 2.5% higher than the same quarter of 2010, due to the 9.8% increase in interconnection traffic with long distance and cellular operators, partially offset by the 3.7% decrease in traffic related to calling party pays services.


Internet access

Regarding our high speed Internet access service infinitum, we continue promoting and, thanks to our customer’s preference, we expanded from 67,000 accesses and a market share of 28.8% in December 2002 (Bank of America Merrill Lynch, Global Wireline Matrix 2011) to 8.0 million broadband accesses and a market share of more than two thirds of Internet access services nationwide at the end of December 2011. In this period, broadband Internet accesses in Mexico increased an average of 57.5% in placing the country with the highest growth rates (OECD- Broadband portal) among the OECD country members. In this manner, infinitum is consolidated as the best connection due to its quality, service, price and high speed with by offering speed of 3 Mbps for 149 pesos (taxes included), placing infinitum with one of the most competitive prices in the world.

infinitum’ s growth has been supported by the sa le of 3.2 m illion computers since 1999. This growth has been affected by some of the main broadband barriers, the lack of PC penetration in Mexican homes and low income per capita in a considerable part of the pop ul ation.


Financial Results

The following financial information for 2011 and 2010 is presented in nominal pesos, according to International Financial Reporting Standards (IFRS).

Revenues: In the fourth quarter, revenues totaled 29.143 billion pesos, an increase of 4.2% compared with the same period of the previous year. Revenues related to data services, information technologies and other revenues from Tiendas TELMEX (TELMEX Stores) increased 26.0% and 16.8%, respectively. Revenues related to voice services decreased 6.9% compared with the previous year’s fourth quarter.

Costs and expenses: In the fourth quarter of 2011, total costs and expenses were 22.209 billion pesos, 4.8% higher than the same period of the previous year, mainly due to expenses related to the security projects and information technologies. Those costs were offset bythe reduction in the amount paid to cellular telephony companies.


Adjusted EBITDA (1) and o perating income : Adjusted EBITDA (1) totaled 11.348 billion pesos in the fourth quarter of 2011, an increase of 2.9% compared with the same period of the prior year. The adjusted EBITDA margin was 38.9%. Operating income totaled 6.934 billion pesos in the fourth quarter and the operating margin was 23.8%.

Financing cost: In the fourth quarter, financing co st produced a charge of 1.066 billion pesos. This was a result of: i) a net interest charge of 928 million pesos, 11.5% higher than the same quarter of last year, related to recognition of the market value of interest rate swaps, partially offset by debt reduction, and ii) a net exchange loss of 138 million pesos because of the fourth-quarter exchange rate depre ciation of 0.557 pesos per dollar and the 2.101 billion dollars in dollar-peso hedges in effect at December 31, 2011.

Net income: In the fourth quarter, net income attributable to controlling interest was 4.085 billion pesos, 21.3% higher than the same period of the previous year. Earnings per share were 22.6 Mexican cents, 22.2% higher than the fourth quarter of 2010, and earnings per ADR (2) were 33.0 US cents, an increase of 10.7% compared with the same period of the previous year.

Investments: In the fourth quarter of 2011 , capital expenditures (Capex) were the equivalent of 588 million dollars, of which 76.1% was used for growth and infrastructure projects in the data business, connectivity and transmission networks.

Debt: Total debt at December 31, 2011, was the equivalent of 5.136 billion dollars, 895 million dollars less than in 2010. Of this total, 82.3% is long-term, 52.2% has fixed rates taking interest rate swaps into consideration, and 50.1% is in foreign currency, equivalent to 2.573 billion dollars. To minimize risks from variations in the exchange rate, at December 31, 2011, we had dollar-peso hedges for 2.101 billion dollars.

Total net debt (3) was equivalent to 5.008 billion dollars at year-end 2011, a decrease of 417 million dollars compared with year-end 2010.


Relevant Figures











( In millions of Mexican pesos, unless otherwise indicated)

























%





%



4Q2011


4Q2010

Inc.


12 months 11

12 months 10

Inc.

Revenues

P.

29.143

P.

27.958

4,2

P.

112.066

P.

113.562

(1,3)

Adjusted EBITDA (1)


11.348


11.030

2,9


45.023


46.125

(2,4)

Adjusted EBITDA margin (%)


38,9


39,5

(0,6)


40,2


40,6

(0,4)

Operating income


6.934


6.769

2,4


26.582


28.059

(5,3)

Operating margin (%)


23,8


24,2

(0,4)


23,7


24,7

(1,0)

Net income attributable to controlling interest

4.085


3.367

21,3


14.582


15.189

(4,0)

Earnings per share (pesos)


0,226


0,185

22,2


0,808


0,835

(3,2)

Earnings per ADR (dollars) (2)


0,330


0,298

10,7


1,296


1,317

(1,6)

Weighted average of outstanding shares (millions)

18.058


18.189

(0,7)


18.058


18.189

(0,7)

Equivalent ADR (millions) (2)


903


909

(0,7)


903


909

(0,7)












(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 conciliation of EBITDA to operating income.





(2) One ADR represents 20 shares.











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





















Statements of Income











[ In millions of Mexican pesos ]
















%





%



4Q2011


4Q2010

Inc.


12 months 11

12 months 10

Inc.

Revenues











Local

P.

9.412

P.

10.012

(6,0)

P.

38.532

P.

41.007

(6,0)

Domestic long distance


2.800


2.988

(6,3)


11.845


12.265

(3,4)

International long distance


1.573


1.359

15,7


5.990


5.646

6,1

Interconnection


2.951


3.622

(18,5)


12.160


15.023

(19,1)

Data


10.288


8.163

26,0


36.472


32.878

10,9

Other


2.119


1.814

16,8


7.067


6.743

4,8

Total


29.143


27.958

4,2


112.066


113.562

(1,3)












Costs and Expenses











Cost of sales and services


10.879


8.532

27,5


38.113


34.579

10,2

Commercial, administrative and general

5.571


5.805

(4,0)


22.381


22.297

0,4

Interconnection


1.345


2.591

(48,1)


6.549


10.561

(38,0)

Depreciation and amortization


4.226


4.403

(4,0)


16.936


17.500

(3,2)

Other expenses (income), net


188


(142)

NA


1.505


566

165,9

Total


22.209


21.189

4,8


85.484


85.503

(0,0)












Operating income


6.934


6.769

2,4


26.582


28.059

(5,3)












Financing cost











Interest, net


928


832

11,5


4.556


5.148

(11,5)

Exchange loss (gain), net


138


14

*


205


(394)

NA












Total


1.066


846

26,0


4.761


4.754

0,1












Equity interest in net income of affiliates

43


47

(8,5)


115


196

(41,3)












Income before income tax


5.911


5.970

(1,0)


21.936


23.501

(6,7)












Income tax


1.822


2.596

(29,8)


7.333


8.325

(11,9)












Net income


4.089


3.374

21,2


14.603


15.176

(3,8)












Noncontrolling interest


(4)


(7)

(42,9)


(21)


13

NA












Net income attributable to controlling interest

P.

4.085

P.

3.367

21,3

P.

14.582

P.

15.189

(4,0)























Adjusted EBITDA (1)

P.

11.348

P.

11.030

2,9

P.

45.023

P.

46.125

(2,4)












Adjusted EBITDA margin (%)


38,9


39,5

(0,6)


40,2


40,6

(0,4)

Operating margin (%)


23,8


24,2

(0,4)


23,7


24,7

(1,0)












Exchange rate at December 31, 2011: 13.9787 pesos per dollar.






NA not applicable.











(*) higher than 500%














Statements of Financial Position





[ In millions of Mexican pesos ]












December 31,

December 31,



2011


2010

Assets





Cash and cash equivalents

P.

1.795

P.

7.493

Other current assets


34.436


28.737

Plant, property and equipment, net


98.449


99.421

Other assets


3.753


3.800

Net projected asset


22.328


16.290

Total assets

P.

160.761

P.

155.741






Liabilities and stockholders’ equity





Current portion of long-term debt

P.

12.676

P.

11.952

Other short-term liabilities


23.110


20.192

Long-term debt


59.117


62.569

Labor obligations


15.616


14.641

Deferred revenues


1.129


612






Total liabilities


111.648


109.966

Stockholders' equity





Controlling interest


48.779


45.466

Noncontrolling interest


334


309

Total stockholders’ equity


49.113


45.775

Total liabilities and stockholders’ equity

P.

160.761

P.

155.741






Exchange rate at December 31, 2011: 13.9787 pesos per dollar.









Operating Results
























% Inc. vs.




4Q 2011

3Q 2011

2Q 2011

1Q 2011

4Q 2010

4Q 2010










Internet (thousands)

8.017

7.892

7.755

7.652

7.449

7,6



Prodigy (Dial-up)

65

69

75

84

90

(27,8)



Infinitum (ADSL)

7.952

7.823

7.680

7.568

7.359

8,1










Billed lines (thousand units)

14.814

15.127

15.254

15.562

15.591

(5,0)










Local traffic (million units)









Local calls

4.258

4.504

4.436

4.533

4.675

(8,9)



Interconnection minutes (A) (B)

10.816

10.952

10.951

10.433

10.554

2,5










Long distance traffic (million minutes)








Domestic long distance (A)

4.350

4.366

4.357

4.334

4.445

(2,1)



International long distance









(incoming and outgoing) (B)

2.985

3.044

2.665

2.492

2.384

25,2



















(A) Includes domestic long distance calling party pays traffic.




(B) Includes international long distance calling party pays traffic.















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 fourth quarter of 2011 and 2010.




















Mexico Local Service Business











Statements of Income











[ In millions of Mexican pesos ]
















%





%



4Q2011


4Q2010

Inc.


12 months 11

12 months 10

Inc.

Revenues











Access, rent and measured service

P.

9.348

P.

9.970

(6,2)

P.

38.257

P.

40.727

(6,1)

LADA interconnection


1.345


1.180

14,0


4.807


4.749

1,2

Interconnection with operators


146


339

(56,9)


883


1.491

(40,8)

Interconnection with cellular operators

2.070


2.464

(16,0)


8.400


10.059

(16,5)

Other


4.434


3.357

32,1


15.974


14.801

7,9

Total


17.343


17.310

0,2


68.321


71.827

(4,9)












Costs and expenses











Cost of sales and services


6.350


6.211

2,2


25.420


24.184

5,1

Commercial, administrative and general

3.716


4.163

(10,7)


16.450


17.374

(5,3)

Interconnection


601


1.602

(62,5)


3.420


6.483

(47,2)

Depreciation and amortization


2.210


2.311

(4,4)


9.120


9.335

(2,3)

Other expenses, net


164


160

2,5


1.086


663

63,8

Total


13.041


14.447

(9,7)


55.496


58.039

(4,4)












Operating income

P.

4.302

P.

2.863

50,3

P.

12.825

P.

13.788

(7,0)












Adjusted EBITDA (1)

P.

6.676

P.

5.334

25,2

P.

23.031

P.

23.786

(3,2)












Adjusted EBITDA margin (%)


38,5


30,8

7,7


33,7


33,1

0,6

Operating margin (%)


24,8


16,5

8,3


18,8


19,2

(0,4)












Mexico Long Distance Service Business










Statements of Income











[ In millions of Mexican pesos ]
















%





%



4Q2011


4Q2010

Inc.


12 months 11

12 months 10

Inc.

Revenues











Domestic long distance

P.

3.200

P.

3.636

(12,0)

P.

13.715

P.

14.650

(6,4)

International long distance


1.566


1.269

23,4


5.896


5.406

9,1

Total


4.766


4.905

(2,8)


19.611


20.056

(2,2)












Costs and expenses











Cost of sales and services


1.346


1.165

15,5


4.883


4.535

7,7

Commercial, administrative and general

1.213


1.232

(1,5)


4.983


4.998

(0,3)

Interconnection to the local network

1.649


1.767

(6,7)


6.559


7.203

(8,9)

Depreciation and amortization


399


421

(5,2)


1.604


1.698

(5,5)

Other expenses, net


22


23

(4,3)


149


94

58,5

Total


4.629


4.608

0,5


18.178


18.528

(1,9)












Operating income

P.

137

P.

297

(53,9)

P.

1.433

P.

1.528

(6,2)












Adjusted EBITDA (1)

P.

558

P.

741

(24,7)

P.

3.186

P.

3.320

(4,0)












Adjusted EBITDA margin (%)


11,7


15,1

(3,4)


16,2


16,6

(0,4)

Operating margin (%)


2,9


6,1

(3,2)


7,3


7,6

(0,3)












(*) Higher than 300%













Statement of Cash Flows



[ In millions of Mexican pesos )





Twelve months



ended



December 31, 2011




Operating activities






Income before income tax:

P.

21.936




Depreciation and amortization


16.936

Accrued interest expense


4.942

Other items not requiring the use of cash


7.263

Total


51.077




Cash flows used in operating activities


(23.914)

Net cash flows provided by operating activities

27.163




Investing activities



Acquisition of plant, property and equipment

(14.212)

Other investments


(12)

Net cash flows used in investing activities


(14.224)




Cash surplus to be applied to financing activities

12.939




Financing activities



New loans


18.635

Repayment of loans


(26.138)

Premium in acquisition of senior bonds


(339)

Acquisition of own shares


(1.359)

Dividends paid


(9.509)

Interest paid


(3.086)

Derivative financial instruments


3.159

Net cash flows used in financing activities


(18.637)




Net decrease in cash and cash equivalents


(5.698)

Cash and cash equivalents at beginning of period

7.493

Cash and cash equivalents at end of period

P.

1.795








SIGNATURE

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


Date: February 8, 2012.

TELÉFONOS DE MÉXICO, S.A.B. DE C.V.


By: /s/__________________________

Name: Carlos Fernando Robles Miaja
Title: Chief Financial Officer


Ref: TELÉFONOS DE MÉXICO, S.A.B. DE C.V. - Highlights Fourth Quarter 2011 .