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Mexico President Ernesto Zedillo said Wednesday that Mexico’s privatized phone company, Telefonos de Mexico, or Telmex, will staff its previously announced U.S. headquarters in San Diego with 125 employees, the first of an eventual 500 hires. Telmex is competing for part of the U.S. long-distance market by targeting Latino customers here. Telmex announced plans in February to move its offices from Houston to San Diego because of California’s greater growth potential. The U.S. undertaking was originally a joint venture with telecom giant Sprint, but Telmex recently bought out the U.S. firm. Zedillo disclosed the employment levels at an appearance in San Francisco with Gov. Gray Davis.

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