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 decided to initiate the privatisation of the company, but due to the severe consequences of hurricane Mitch, it revised its priorities. By February 2000, seven companies had qualified for Hondutel's capitalisation, including Telmex, Telefonica, and France Telecom. The bidding process started in October 2000, but only Telmex continued competing with a $106 million offer, which was significantly lower than the government's initial goals.