In 1998, the government is ready to proceed to the privatisation of the company, but the country is badly hit by hurricane Mitch and reviewed its priorities. Finally, by February 2000, seven companies have pre-qualified to capitalize Hondutel (including Telmex, Telefonica and France Telecom). In October 2000, the bid is launched, but only Telmex remained in the race, with a $106 million offer, which was only a third of the government's expectations.
In 1998, the government was prepared to initiate the privatisation of the company, but due to the devastating effects of hurricane Mitch, it reassessed its priorities. By February 2000, seven companies had qualified to participate in Hondutel's capitalisation, including Telmex, Telefonica, and France Telecom. In October 2000, the bidding process commenced, but only Telmex continued competing with a $106 million offer, which was significantly lower than the government's initial expectations.