2 SCOPE OF THE AGREEMENT

2.1 Concession for Provision of Basic Services

The GOVERNMENT hereby grants the CONCESSION HOLDER a CONCESSION pursuant to the relevant section of UNTAET Regulation 2001/15.

to provide the Basic Services throughout the territory of East Timor and to own, establish, install and operate telecommunications facilities required to render the Basic Services. The Basic Services shall be rendered by the CONCESSION HOLDER in accordance with the framework established by this Agreement. The CONCESSION HOLDER shall, as far as practicable, encourage the use of the Basic Services, (e.g. use differentiated call tariffs during off-peak hours).

2.2 Conditions for Rendering Other Services

In addition to the Basic Services, the CONCESSION HOLDER shall provide other telecommunications services, which are incidental with the Basic Services or complementary thereto. The CONCESSION HOLDER shall be granted all necessary concessions, licenses or permits etc for rendering such other telecommunications services, in case such concessions, licenses or permissions, etc, may be required in the future according to applicable normative acts and the granting of which is dependent on the competency of the GOVERNMENT.

In respect to telecommunications services other than the aforementioned, the CONCESSION HOLDER'S status shall be equal to that of other providers of telecommunications services, and the CONCESSION HOLDER shall have the same rights as other service providers. The CONCESSION HOLDER shall be granted the same concessions, licenses, permits, etc, as other service providers, according to the applicable normative acts.