Unassociated Document

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF OCTOBER

COMMISSION FILE NUMBER: 001-33750

MAXCOM TELECOMUNICACIONES,

S.A.B. DE

C.V.

(Exact name of Registrant as specified in its Charter)

MAXCOM TELECOMMUNICATIONS, INC.

(Translation of Registrant’s name into English)

__________________________

GUILLERMO GONZALEZ CAMARENA NO. 2000

COLONIA CENTRO DE CIUDAD DE SANTA FE

MEXICO, DF 01210

(Address of Registrant’s 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 o Form 40-F x

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):

Yes o No x

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):

Yes o No x

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

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

Third Quarter 2008 Results

MAXCOM REPORTS RESULTS FOR THE THIRD

QUARTER AND NINE MONTHS OF 2008; AND

THE APPOINTMENT OF NEW CHIEF EXECUTIVE OFFICER

Mexico City, October 23, 2008.– Maxcom Telecomunicaciones, S.A.B. de C.V. (“Maxcom”, or “the Company”) (NYSE: MXT) (BMV: MAXCOMCPO.MX), one of the leading integrated telecommunications companies in Mexico, today announced its unaudited financial and operating results for the quarter ended September 30, 2008. The company announced today that the Board of Directors has appointed Eduardo Vazquez Arroyo as acting Chief Executive Officer effective immediately.

NOTE: The monetary amounts presented in these tables have been prepared in accordance with Mexican Financial Reporting Standards (“NIF” or “Mexican GAAP”). Figures for the year 2008 are expressed in millions of historical Mexican pesos, as explained in section “Adoption of New Accounting Standards”. Figures for the year 2007 are expressed in millions of Mexican pesos of purchasing power at December 31, 2007. Monetary amounts may vary due to rounding.

Results | Third Quarter 2008

Financial Highlights:

Third quarter 2008 revenues reached Ps. 717 million and increased by Ps. 100 million or 16% in comparison to the third quarter of 2007.

EBITDA increased by 23% to reach Ps. 222 million in comparison to the third quarter of 2007.

EBITDA Margin increased by 182 basis points to 31% this reporting quarter, when compared to the same period last year.

The Company posted Net Income during the third quarter of Ps. 10 million, which compares favorably to a net loss of Ps. 8 million reported in the third quarter of 2007.

	3Q08			3Q07			D%			YTD08			YTD07			D%
Million Pesos
Revenues		717			617			16	%		2,011			1,727			16	%
EBITDA		222			180			23	%		618			488			27	%
EBITDA Margin		31	%		29	%					31	%		28	%
Adj. EBITDA		223			184			21	%		625			498			26	%
Adj. EBITDA Margin		31	%		30	%					31	%		29	%
Net Income		10			(8	)		N.A.			30			(25	)		N.A.

Pesos
Earnings per Share Basic		0.01			-			-			0.04			-			-
Earnings per Share Diluted		0.01			-			-			0.04			-			-

Operating Highlights:

Total company Revenue Generating Units or RGUs, increased to 476,216 or 38% in the third quarter of 2008 compared to the same period last year. The Company recorded RGU net adds of 36,809 in the quarter.

Total company customer base increased by 11% to reach 234,670 customers.

Voice RGUs (formerly voice lines in service) increased 15% to reach 375,191. Voice RGUs include residential voice, commercial voice, public telephony lines and wholesale lines.

Data residential RGUs increased by 109% to 25,783.

The Company added 16,210 mobile RGUs to its residential and commercial business divisions during the third quarter, which brought the mobile RGU base to 55,725.

Pay TV number of RGUs reached 16,161. The Company recorded TV net adds of 4,944 in the quarter.

2,259 public telephones were installed during the quarter bringing the number of coin operated phones to 33,551.

Residential RGU per customer increased from 1.1 in the third quarter of 2007 to 1.5 in the third quarter of 2008.

Commercial RGU per customer increased from 11.1 in the third quarter of 2007 to 14.9 in the third quarter of 2008.

Third Quarter 2008 Results

Operating Results

	3Q08		3Q07		D%
Residential Customers		228,984		204,517		12	%
Voice		223,709		203,207		10	%
Data		22,399		10,446		114	%
Mobile		52,535		N.A.		N.A.
TV		16,211		3,340		385	%

Residential RGUs		334,399		232,663		44	%
Voice		237,486		216,981		9	%
Data		25,783		12,342		109	%
Mobile		54,969		N.A.		N.A.
TV		16,161		3,340		384	%
RGU per Residential Customer		1.5		1.1

Commercial Customers		5,629		6,034		(7	)%
Voice		5,385		5,930		(9	)%
Data		1,408		1,245		13	%
Mobile		101		N.A.		N.A.
Other		165		105		57	%

Commercial RGUs		83,786		67,002		25	%
Voice		79,674		63,839		25	%
Data		3,006		2,939		2	%
Mobile		756		N.A.		N.A.
Other		350		244		43	%
RGU per Commercial Customer		14.9		11.1

Public Telephony RGUs		33,551		25,967		29	%

Wholesale RGUs		24,480		19,006		29	%

Total RGUs		476,216		344,658		38	%

Voice RGUs (voice lines in service)		375,191		325,793		15	%
Total Number of Customers		234,670		210,551		11	%

Revenues

Maxcom total revenues for the third quarter of 2008 were Ps. 717 million, an increase of 16% over revenues of Ps. 617 million, recorded in the third quarter of 2007. The following table is a breakdown of the sources of revenue for the Company.

	3Q08		Weight %			3Q07		Weight %			D%
Residential	Ps.	292		41	%	Ps.	228		37	%		28	%
Commercial		213		30	%		182		29	%		17	%
Public Telephony		113		16	%		108		18	%		5	%
Wholesale		95		13	%		92		15	%		3	%
Other Revenue		4		0	%		7		1	%		(43	)%
Total	Ps.	717		100	%	Ps.	617		100	%		16	%

Third Quarter 2008 Results

Total revenues for the nine months ended September 30, 2008 were Ps. 2,011 million, an increase of 16% over revenue of Ps. 1,727, million recorded in the same period of last year. The following table is a breakdown of the sources of revenue for the Company.

	YTD08		Weight %			YTD07		Weight %			D%
Residential	Ps.	821		41	%	Ps.	661		38	%		24	%
Commercial		605		30	%		455		26	%		33	%
Public Telephony		309		15	%		290		17	%		7	%
Wholesale		249		12	%		293		17	%		(15	)%
Other Revenue		27		2	%		28		2	%		(4	)%
Total	Ps.	2,011		100	%	Ps.	1,727		100	%		16	%

Residential

Residential revenues represented 41% of the total during the third quarter, compared with 37% in the same quarter of 2007. Revenues in the residential business segment reached Ps. 292 million, an increase of 28% in comparison to Ps. 228 million in the third quarter of 2007.

The 28% increase in revenues is directly related to the 44% increase in RGUs and was mainly driven by:

An increase in the number of mobile RGUs to reach 54,969, and an increase in the number of pay TV RGUs to reach 16,161. The Company continues to successfully up sell to its existing and new client base the products that were launched late September and December 2007 respectively;

An increase in the number of data RGUs which increased by 109% to reach 25,783. Customers that had previously declined broadband are revisiting their decision once they have decided on a double play with pay TV; and,

A 9% increase in voice RGUs (formerly voice lines in service) in the residential business segment to reach 237,486.

In addition, the increase in revenues is due to an agreement with Megacable to sell Maxcom’s share in approximately 10,000 subscribers of our Toluca and Queretaro operations, for voice termination under the original triple play agreements. The Company entered into commercial agreements with Telemedia in Queretaro and Cablenet in Toluca during 2005 in order to provide voice termination for triple-play customers now been transferred to Megacable. However, Megacable acquired these 2 companies during 2005 and 2008, respectively. Megacable and Maxcom mutually agreed to terminate the strategic alliance, and as part of the transaction, approximately 10,000 subscribers were sold to Megacable. It is important to highlight that this transaction does not include any transfer of infrastructure since it belongs in its entirety to Megacable. As part of the agreement, Maxcom will continue to provide different services in all of the cities in which it operates.

For the nine months ended September 30, 2008 revenues from the residential business totaled Ps. 821 million, and increased by 24% from Ps. 661 million recorded in the same period of 2007.

The take up of products and up selling has improved the RGU per customer in the residential business from 1.1 in the third quarter of 2007 to 1.5 RGUs per customer in the third quarter of 2008.

Commercial

Commercial revenues represented 30% of the total during the third quarter of 2008, and represented 29% in the in the third quarter of 2007. Revenues in Commercial Business reached Ps. 213 million, an increase of 17% in comparison to Ps. 182 million in the same period of 2007.

The 17% or Ps. 31 million increase in revenues during the third quarter of 2008 is mainly explained by an increase in the average revenue per customer that the company recorded and a 25% increase in the number of RGUs. The increase in RGUs was mainly driven by:

A higher number of data RGUs in the quarter to reach 3,006;

A higher number of voice RGUs (formerly voice lines in service) which have increased by 25% to 79,674; and,

The higher number of RGUs from other value added-services that the Company provides, including: firewall protection, IT outsourcing, hosting and other services.

It is important to highlight that the number of customers decreased by 7% in comparison to the third quarter of 2007. As in the previous quarter the Company continues to filter clients that had only one or two commercial voice lines. However, although the number of customers is declining the Company has been successful in increasing its voice lines per customer numbers from 10.8 lines per customer in the third quarter of 2007 to 14.8 lines per customer in the third quarter of 2008.

For the nine months ended September 30, 2008 revenues from the commercial business totaled Ps. 605 million, or a 33% increase when compared to Ps. 455 million recorded in the same period of 2007.

In addition, RGU per commercial customer increased from 11.1 in the third quarter of 2007 to 14.9 in the third quarter of 2008.

Third Quarter 2008 Results

Public Telephony

Public Telephony represented 16% of total revenues during the third quarter of 2008. Revenues in this business unit totaled Ps. 113 million, an increase of 5% when compared to Ps. 108 million in 2007. The increase in revenues is attributed to the 29% growth in the base of public telephones installed. However and partially offsetting this revenue growth, as the number of public telephones continues to grow, the average revenue per public telephone tends to decline. For the nine months ended September 30, 2008 revenues from the public telephony business totaled Ps. 309 million, an increase of 7% when compared to Ps. 290 million recorded in the same period of 2007.

Wholesale

In the third quarter of 2008, Wholesale revenues increased by 3% to reach Ps. 95 million, in comparison to the Ps. 92 million registered during the same quarter in the previous year. The increase in the Wholesale Business revenues was mainly driven by an increase in long distance termination and CPPN traffic due to better call completion through Maxcom’s network. For the nine months ended September 30, 2008 revenues from the wholesale business decreased from Ps. 293 million recorded in the nine months of 2007 to Ps. 249 million.

Other Revenue

Other revenue represented less than 1% of total revenues and reached Ps. 4 million, in comparison to Ps. 7 million or also less than 1% of total revenues in the previous quarter. Other revenues are primarily comprised of lease of microwave frequencies and CPE sales. For the nine months ended September 30, 2008 revenues from other businesses totaled Ps. 27 million, or 2% of total revenues from Ps. 28 million recorded in the same period of 2007, or 2% of total revenues.

Network Operation Cost

Network Operation Costs in the third quarter of 2008 increased 12% or Ps. 30 million to reach Ps. 284 million in comparison to Ps. 254 million in the previous year, and was mainly due to a 14% increase in network operating services and an increase in technical expenses of 4%. However and partially offsetting this increase, installation expenses decreased by 34% due to a reduction in the cost per single line installed and several promotional offers with the Company’s bundled products.

The increases in network operating services were mainly in:

The amounts paid for pay TV content and the cost of the Company’s mobile services;

The amounts paid for connection to internet services;

Higher costs in long distance interconnection;

The lease of circuits and ports; and,

The amounts paid to carriers for calling party pays.

For the nine months ended September 30, 2008 network operation costs totaled Ps. 795 million from Ps. 725 million, a 10% increase in comparison to the same period last year.

Gross margin for the third quarter of 2008 was 60%, the same as the gross margin recorded in the same period of 2007. For the nine months ended September 30, 2008 gross margin was 60%, 244 basis points higher than the 58% gross margin recorded in the same period of 2007.

SG&A

SG&A expenses were Ps. 212 million in the third quarter of 2008, 15% above Ps. 184 million in the same period of 2007. The Ps. 28 million increase was mainly driven by higher bad debt expenses as a result of the deteriorating economic environment in Mexico, higher external advisory expenses, salaries and staff related costs, wages and benefits as a result of an increasing headcount specifically in the residential and commercial sales forces which have increased as a result of the increased coverage areas. In addition, to an increase in sales commissions and marketing expenses, among others. These increases were partially offset by lower insurance costs and stock option compensation.

For the nine months ended September 30, 2008 SG&A expenses totaled Ps. 599 million, 16% above Ps. 514 million reported in the same period last year.

EBITDA and Adjusted EBITDA

EBITDA for the third quarter of 2008 was Ps. 222 million, a 23% increase from Ps. 180 million in the same period of last year. EBITDA Margin was 31% during the period, 181 basis points higher than 29% in the third quarter of 2007. For the nine months ended September 30, 2008, EBITDA amounted to Ps. 618 million, 27% higher than the Ps. 488 million registered in the same period of 2007. EBITDA margin for the nine months of 2008 was 31%, 246 basis points higher than the 28% margin recorded in the same period of 2007.

Third Quarter 2008 Results

Adjusted EBITDA for the third quarter of 2008 was Ps. 223 million, 21% higher than Ps. 184 million in the same period of last year. Adjusted EBITDA Margin was 31% during the period, 135 basis points higher than in the third quarter of 2007. For the nine months ended September 30, 2008, Adjusted EBITDA amounted to Ps. 625 million, 26% higher than the Ps. 498 million registered in the same period of 2007. Adjusted EBITDA margin for the nine month period of 2008 was 31%, 224 basis points higher than the 29% margin reported in the same period of 2007.

Operating Income

Operating Income for the third quarter of 2008 was Ps. 81 million, 10% higher than Ps. 74 million in the previous year. Operating margin for the third quarter was 11%. For the nine months ended September 30, 2008, operating income for the Company reached Ps. 231 million, 25% higher than the result registered in the same period of 2007 of Ps. 185 million.

Comprehensive Financial Result

During the quarter, the Company registered a Comprehensive Financial Result of Ps. 69 million, a Ps. 36 million increase when compared to Ps. 33 million in the same period of 2007.

	3Q08		3Q07			DPs.			D%			YTD08		YTD07			DPs.			D%
Net Interest Expense		24		52			(28	)		(54	)%		117		145			(28	)		(19	)%
Exchange Rate (Gain) Loss – Net		44		(13	)		31			N.A.			58		(6	)		64			N.A.
Monetary Position Gain (Loss)		-		(33	)		33			N.A.			-		(38	)		38			N.A.
Total		68		33			36			109	%		175		101			74			73	%

The higher Comprehensive Financial Result was due to a net exchange rate loss of Ps. 44 million in the third quarter of 2008, compared to a net exchange rate gain of Ps. 13 million recognized in the same period of last year, mainly due to the US dollar cash position of the company. At September 30, 2008 the exchange rate between the Mexican Peso and the United States Dollar was Ps. 10.7919, compared to Ps. 10.9203 at the end of September 30, 2007.

The Company recorded a decrease of Ps. 28 million on the amount of net interest expense when compared to the same quarter of 2007. While the amount of interest expense increased due to the overall amount of debt in a year over year basis (The Company reopened its Senior Notes on September 5, 2007 for an additional US$25 million), the capitalization of interest cost on telecommunications network infrastructure build out partially offset this increase.

For the nine months ended September 30, 2008, comprehensive cost of financing for the Company reached Ps. 175 million when compared to Ps. 101 million recorded in the same period of 2007.

As a result of the change in the accounting standards in Mexico (see “Adoption of New Accounting Standards”), inflationary accounting (NIF B-10) is not required in a low-inflation environment. As of the third quarter of 2008 the Company prepared its financial statements in terms of historical Mexican pesos. Therefore, the comprehensive financial result will no longer be affected by the results in monetary position. In this case the company recorded a monetary position loss of Ps. 33 million in the third quarter of 2007 which does not compare to the third quarter of 2008.

Taxes

During the first quarter of 2008 and according to the latest tax reform in Mexico, asset tax was replaced with the flat corporate tax (Impuesto Empresarial a Tasa Única). The IETU is calculated on a cash-flow basis, with the base determined by reducing taxable revenue (mainly income derived from the sale of goods, the rendering of independent services and the leasing of tangible goods) with specific deductions. Since Capex is deductible, the Company is able to minimize tax payments given the aggressive Capex plan for 2008.

The Company recorded Ps. 8 million in taxes during the third quarter 2008, compared to Ps. 43 million in the third quarter of 2007. For the nine months ended September 30, 2008, the Company recorded Ps. 15 million in taxes, which compare to Ps. 101 million recorded in the same period of 2007.

While Asset Tax, IETU and Income Tax represent cash outflows, Deferred Income Tax is a non-cash item.

Third Quarter 2008 Results

	3Q08		3Q07		YTD08			YTD07
Asset Tax		-		6		-			20
IETU		-		-		7			-
Income Tax		4		2		9			4
Deferred Income Tax		4		36		(2	)		76
Total Taxes		8		43		15			101

Net Income

The company posted net income during the third quarter of 2008 of Ps. 10 million, which compares favorably to net loss of Ps. 8 million reported in the third quarter of 2007. For the nine months ended September 30, 2008, the company registered a net income of Ps. 30 million in comparison to a net loss of Ps. 25 million, in the same period of 2007.

Liquidity and Capital Sources

Millions of Pesos	Quarter Ended September 30, 2008			Quarter Ended September 30, 2007
Resources from Operations and Working Capital		99			(1	)
CAPEX		(400	)		(274	)
Free Cash Flow		(301	)		(275	)
Financing Activities		19			365
Cash and Cash Equivalents at the Start of the Period		1,805			160
Cash and Cash Equivalents at the End of the Period		1,523			250

Millions of Pesos	For the Nine Months Ended September 30, 2008			For the Nine Months Ended September 30, 2007
Resources from Operations and Working Capital	255			185
CAPEX		(1,114	)		(939	)
Free Cash Flow		(859	)		(754	)
Financing Activities		(158	)		241
Cash and Cash Equivalents at the Start of the Period		2,540			763
Cash and Cash Equivalents at the End of the Period		1,523			250

Capital Expenditures

Capital Expenditures during the period totaled Ps. 400 million, higher than the Ps. 275 million recorded in the third quarter of 2007. Capital Expenditures were primarily used for telephone network systems, the build out of new clusters, and equipment for Maxcom’s network expansion. For the nine months ended September 30, 2008 the Company recorded Ps. 1,114 million which is greater than the Ps. 939 million recorded in the same period of last year.

Indebtedness

At September 30, 2008 the Company reported its indebtedness level at Ps. 2,237 million. The Company’s leverage ratio measured by Total Debt/EBITDA, presented a decrease, from 3.6 times in 2007 to 2.7 times in 2008. In addition, Net Debt/EBITDA ratio presented an even more important profile reduction from 3.3 times in 2007 to 0.9 times in 2008, as a result of the cash proceeds from the Company’s initial public offering.

As a reminder in May 2007, the Company entered into a currency swap transaction to minimize the exchange rate risks related to the coupon payments with respect to US$150 million aggregate principal amount of the senior secured notes due 2014, for payments during the period from June 2008 to December 2010. In addition, the Company’s cash position is almost entirely in US dollars which further reduce the risk with currency fluctuations.

Third Quarter 2008 Results

Adoption of New Accounting Standards

B-10: As of January 1, 2008, the company has adopted the changes to “Inflationary Effects”, B-10 in accordance with the Mexican Financial Standards (“NIF”) which establishes the rules for the recognition of inflationary effects in the country; furthermore, it incorporates changes such as, reclassifying accumulated results for non-monetary assets and has the possibility of choosing between the INPC (national consumer price index) and the value of UDIs. It has been determined that the country does not face an inflationary environment, and therefore the company as of January 1, 2008 will suspend the recognition of these inflationary effects in its financial information. Consequently, the financial information corresponding to the period ended September 30, 2007 is expressed in Millions of Mexican Pesos of purchasing power at December 31, 2007 (date on which bulletin B-10 was still in effect) and the financial information for September 30, 2008 is in current Mexican Pesos.

###

About MAXCOM

MAXCOM Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a “smart-build” approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. MAXCOM launched commercial operations in May 1999 and is currently offering local, long distance, data, value-added, CATV and IP-based services on a full basis in greater metropolitan Mexico City, Puebla, Tehuacan, San Luis, Queretaro and Toluca, and on a selected basis in several cities in Mexico. The information contained in this press release is the exclusive responsibility of MAXCOM Telecomunicaciones, S.A.B. de C.V. and has not been reviewed by the Mexican National Banking and Securities Commission (CNBV) or any other authority. The registration of the securities described in this press release before the National Registry of Securities (Registro Nacional de Valores) held by the CNBV, shall it be the case, does not imply a certification of the investment quality of the securities or of MAXCOM’s solvency. The trading of these securities by an investor will be made under such investor’s own responsibility.

For more information contact:

Juan-Carlos Sotomayor

Mexico City, Mexico

(52 55) 1163 1104

juan.sotomayor@maxcom.com

This document may include forward-looking statements that involve risks and uncertainties that are detailed from time to time in the U.S. Securities and Exchange Commission filings of the Company. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” and similar expressions may identify such forward-looking statements. The Company wants to caution readers that any forward-looking statements in this document or made by the company’s management involve risks and uncertainties that may change based on various important factors not under the Company’s control. These forward-looking statements represent the Company’s judgment as of the date of this document. The Company disclaims, however, any intent or obligation to update these forward-looking statements.

###

Third Quarter 2008 Results

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEET

Thousand Mexican Pesos ("Ps.") and US Dollars ("$")

	As of September 30, 2007						As of September 30, 2008
	Pesos			US Dollars			Pesos			US Dollars
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	Ps.	234,397		$	21,720		Ps.	1,523,372		$	141,159
Restricted cash		15,289			1,417			-			-
		249,686			23,137			1,523,372			141,159
Accounts receivable:
Customers, net of allowance		543,266			50,340			703,834			65,219
Value added tax refundable		193,926			17,970			187,297			17,355
Other sundry debtors		46,584			4,317			68,498			6,347
		783,776			72,627			959,629			88,921

Inventory		28,281			2,621			40,330			3,737
Prepaid expenses		31,715			2,939			51,886			4,808
Total current assets		1,093,458			101,324			2,575,217			238,625

Restricted cash long term		-			-			-			-

Frequency rights, net		82,513			7,646			75,106			6,959
Telephone network systems and equipment, net		3,971,399			367,998			4,915,424			455,473
Pre-operating expenses, net		71,093			6,588			61,201			5,671
Intangible assets, net		194,383			18,012			217,875			20,189
Financial instruments		14,645			1,357			5,995			556
Retirement obligations		-			-			-			-
Deposits		6,524			605			8,359			775
Prepaid expenses long term		22,925			2,124			17,457			1,618
Other assets		6,357			589			6,357			589

Total assets	Ps.	5,463,297		$	506,243		Ps.	7,882,991		$	730,455

LIABILITIES
CURRENT LIABILITIES:
Interest payable		74,854			6,936			72,816			6,747
Accounts payables and accrued expenses		497,345			46,087			447,852			41,500
Bank financing		-			-			-			-
Senior notes, net		-			-			-			-
Notes payables		8,397			778			4,602			426
Commercial paper		-			-			-			-
Deferred income		1,940			180			2,628			244
Payroll and other taxes payable		31,033			2,876			46,316			4,292
Total current liabilities		613,569			56,857			574,214			53,209

LONG-TERM LIABILITIES:
Senior notes, net		2,218,801			205,599			2,158,380			200,000
Bank financing		108,702			10,073			-			-
Notes payable		9,370			868			1,666			154
Other accounts payable		9,708			900			12,414			1,150
Deferred taxes		161,130			14,931			88,433			8,194
Pensions and postretirement obligations		10,812			1,002			10,824			1,003
Other long term liabilities		68,285			6,327			65,905			6,107
Financial instruments		-			-			-			-
Total liabilities	Ps.	3,200,377		$	296,557		Ps.	2,911,836		$	269,817

SHAREHOLDERS' EQUITY
Capital stock		3,328,141			308,392			5,410,244			501,325
Premium on capital stock		263,497			24,416			820,123			75,994
Accumulated deficit		(1,303,664	)		(120,800	)		(1,267,466	)		(117,446	)
Net loss for the period		(25,054	)		(2,322	)		29,735			2,755
Share repurchase program		-						(21,481	)		(1,990	)
Total shareholders' equity (deficit)	Ps.	2,262,920		$	209,686		Ps.	4,971,155		$	460,638

Total liabilities and equity	Ps.	5,463,297		$	506,243		Ps.	7,882,991		$	730,455

NOTES TO FINANCIAL STATEMENTS:

Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007

For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps. 10.7919 per US$1.00.

Third Quarter 2008 Results

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

Thousand Mexican Pesos ("Ps.") and US Dollars ("$")

	3 months ended as of September 30, 2007									3 months ended as of September 30, 2008
	Pesos			US Dollars			%			Pesos			US Dollars			%

TOTAL REVENUES	Ps.	617,302		$	57,200			100	%	Ps.	717,496		$	66,485			100	%

Network operating services		213,383			19,773			35	%		243,765			22,588			34	%
Technical expenses		35,409			3,281			6	%		36,808			3,411			5	%
Installation expenses		4,854			450			1	%		3,202			297			0	%
Cost of network operation		253,646			23,504			41	%		283,775			26,296			40	%

GROSS PROFIT		363,656			33,696			59	%		433,721			40,189			60	%

SG&A		184,063			17,056			30	%		211,975			19,642			30	%

EBITDA		179,593			16,640			29	%		221,746			20,547			31	%

Depreciation and amortization		106,070			9,829						140,967			13,062

Operating income (loss)		73,523			6,811						80,779			7,485

Comprehensive (income) cost of financing:

*Interest expense		59,376			5,502						34,490			3,196
**Interest (income), net		(7,443	)		(690	)					(10,229	)		(948	)
Exchange (income) loss, net		13,461			1,247						44,244			4,100
Gain on net monetary position		(32,646	)		(3,025	)					-			-
		32,748			3,034						68,505			6,348

Other (income) expense		5,642			523						(5,530	)		(512	)

INCOME (LOSS) BEFORE TAXES		35,132			3,254						17,804			1,649

Taxes:
Asset tax		5,591			518						-			-
Flat rate corporate tax		-			-						-			-
Income tax		1,753			162						3,767			349
Deferred income tax		35,509			3,290						4,157			385
Total tax		42,853			3,970						7,924			734

NET INCOME (LOSS)	Ps.	(7,721	)	$	(716	)				Ps.	9,880		$	915

*Adjusted EBITDA		183,863			17,037						223,373			20,698
% of revenue Adjusted EBITDA		30	%		30	%					31	%		31	%

Weighted average basic shares		560,176									789,819
Weighted average fully diluted		606,144									829,576

Earnings per share basic		(0.01	)								0.01
Earnings per share diluted		(0.01	)								0.01

NOTES TO FINANCIAL STATEMENTS:

* Interest related to Senior Notes, Banks and Vendor Financing

** Interest Income net

Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007

For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps.10.7919 per US$1.00.

Third Quarter 2008 Results

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

Thousand of Mexican Pesos ("Ps.") and US Dollars ("$")

	9 months ended on September 30, 2007									9 months ended on September 30, 2008
	Pesos			US Dollars			%			Pesos			US Dollars			%

TOTAL REVENUES	Ps.	1,726,783		$	160,007			100	%	Ps.	2,011,445		$	186,385			100	%

Network operating services		608,334			56,369			35	%		677,822			62,808			34	%
Technical expenses		102,368			9,486			6	%		102,494			9,497			5	%
Installation expenses		13,833			1,282			1	%		14,592			1,352			1	%
Cost of network operation		724,535			67,137			42	%		794,908			73,657			40	%

GROSS PROFIT		1,002,248			92,870			58	%		1,216,537			112,728			60	%

SG&A		514,491			47,674			30	%		598,961			55,501			30	%

EBITDA		487,757			45,196			28	%		617,576			57,227			31	%

Depreciation and amortization		302,428			28,024						386,618			35,825

Operating income (loss)		185,329			17,172						230,958			21,402

Comprehensive (income) cost of financing:

*Interest expense		174,851			16,202						166,590			15,437
**Interest (income), net		(29,959	)		(2,776	)					(49,636	)		(4,599	)
Exchange (income) loss, net		(5,551	)		(514	)					58,131			5,387
Gain on net monetary position		(38,144	)		(3,535	)					-			-
		101,197			9,377						175,085			16,225

Other (income) expense		8,507			788						11,510			1,067


INCOME (LOSS) BEFORE TAXES		75,625			7,007						44,363			4,110

Taxes:
Asset tax		20,409			1,891						-			-
Flat rate corporate tax		-			-						6,783			629
Income tax		3,890			360						9,485			879
Deferred income tax		76,380			7,078						(1,640	)		(152	)
Total tax		100,679			9,329						14,628			1,356

NET INCOME (LOSS)	Ps.	(25,054	)	$	(2,322	)				Ps.	29,735		$	2,754

*Adjusted EBITDA		498,025			46,148						625,123			57,925
% of revenue Adjusted EBITDA		29	%		29	%					31	%		31	%

Weighted average basic shares		560,176									789,819
Weighted average fully diluted		606,144									829,576

Earnings per share basic		(0.04	)								0.04
Earnings per share diluted		(0.04	)								0.04

NOTES TO FINANCIAL STATEMENTS:

* Interest related to Senior Notes, Banks and Vendor Financing

** Interest Income net

Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007

For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps. 10.7919 per US$1.00.

Third Quarter 2008 Results

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF CHANGES IN FINANCIAL POSITION

Thousand of Mexican Pesos ("Ps.") and US Dollars ("$")

	3 months ended as of September 30, 2007			3 months ended as of September 30, 2008		3 months ended as of September 30, 2008
	Pesos			Pesos		US Dollars
Operating activities:
Net income (loss)	Ps.	(25,054	)	Ps.	29,735	$	2,755

Depreciation and amortization		93,024			140,547		13,023
Long term obligations