PREFACE

This draft concession agreement intended to set out the commercial conditions under which the CONCESSION HOLDER will exploit the concession for the provision of telecommunications services in East Timor.

The purpose of the draft is to provide the Applicants with information, as well as to elicit comment and suggestions relevant to the Build-Operate-Transfer (BOT) telecommunications project in East Timor.

AGREEMENT

THIS CONCESSION AGREEMENT has been entered into by and between the ETPA, hereinafter referred to as "the GOVERNMENT", represented by the Director of Post & Telecommunications (hereinafter referred to as the “Agency/Agent”) on the basis of the authorization of the GOVERNMENT as of INSERT_DATE

ON THE ONE PART;

and INSERT PROPONENT NAME, hereinafter referred to as "the CONCESSION HOLDER",

OF THE OTHER PART;

WITH THE PURPOSE of operating, exploiting, modernizing and expanding the national telecommunications network, including international connections, and substantially improving the provision, quality and use of telecommunications services in East Timor.

This Agreement is intended to establish and provide for a stable and enduring regulatory framework, necessary to attract private foreign and East Timorese investment in the telecommunications infrastructure of East Timor in the present environment of risk and uncertainty, and to ensure the effective and competent provision of telecommunications services in East Timor for the future.

This Agreement provides the framework for the CONCESSION HOLDER to provide telecommunications services, and exploit the telecommunications systems during the term of the Agreement, in such ways that the CONCESSION HOLDER is empowered to exercise its rights and fulfill its obligations in the appropriate and expected manner, according to the terms of this Agreement.

In any possible future modifications of the Agreement, or in the resolution of any dispute or controversy arising in the fulfillment of the Agreement, the above mentioned objectives shall form the basis from which to proceed, so that certainty and confidence may be provided to the CONCESSION HOLDER for the fulfillment of its rights and obligations under this Agreement.

1 DEFINITIONS

The Basic Services shall mean local, national and international switched fixed voice telephonic services, telex and telegraphic services, existing or to exist in accordance with technical advances, installation thereof and interconnections thereto.

Other Services are services either connected or not connected with the Basic Services (Paragraph 1 of Section 2.2 Conditions for Rendering Other Services).

The Government shall mean the Government of East Timor or a state organ of the relevant competency, appointed by the Government.

The terms used in this Agreement reference UNTAET Regulation 2001/15.