The PIC is a feature of AMD's "50x15" promotion to help bring Internet and PC technology to 50 percent of the world's population by 2015.
"Bringing the Telmex Internet Box to market helps bridge the digital divide in Mexico and moves us closer to achieving our goal," said Gino Giannotti, vice president, AMD Innovation Solutions, in a statement.
The stripped-down desktop computer is expected to sell for less than $500, according to Mexican press reports. Telmex officials said the PIC will sell also to middle-class customers and will introduce many first time users to computing and the Internet.
The Telmex PIC is available in Telmex shops across Mexico and consists of a monitor, a mouse, a keyboard, and several popular software applications. Telmex, owned by Carlos Slim, is the dominant telecommunications provider in Mexico.