7 PROTECTION REGIME FOR SUBSCRIBERS AND USERS

7.1 Principle of Equal Treatment

The CONCESSION HOLDER is required to render the Basic Services on a fair and reasonable basis and shall not unreasonably discriminate among similarly situated subscribers and users, nor infringe other rights under law or regulations and provisions prescribed by this Agreement.

7.2 Privacy and security of communications

The CONCESSION HOLDER shall adopt, in accordance with the appropriate legislation, the relevant measures for preserving the privacy and security of the communications transmitted through its system, and the CONCESSION HOLDER may only authorize the disclosure of the content of the said communications with the consent of all the parties to the communication or in cases prescribed by law.

7.3 Performance monitoring/complaint response system

The CONCESSION HOLDER shall establish an efficient, fair and reasonable administrative system for receiving and dealing with complaints and for effecting repairs of failures. The CONCESSION HOLDER shall report to the GOVERNMENT the number of complaints received each year at latest by March 31 of the following year. The CONCESSION HOLDER shall maintain records of the results of repairs, the investigations and decisions regarding complaints and the compensation given as a result of complaints. The GOVERNMENT shall have the right to demand any information reasonably necessary to supervise the CONCESSION HOLDER'S claims response system.

7.4 Subscriber Assistance

The CONCESSION HOLDER shall establish and maintain an efficient assistance service for subscribers and users in accordance with the laws of East Timor and other normative acts, as well as the technical guidelines following from International and European standards.

Among others, the CONCESSION HOLDER shall provide, or procure the provisions of:

7.4.1 Emergency services

Technical capacity for rendering local public emergency services with a uniform national telephone number. This capacity shall be rendered free of charge and shall be available as soon after the Effective Date as practicably possible;

7.4.2 Directory listing services

The availability to each subscriber of a directory that lists subscribers in the respective area. The CONCESSION HOLDER may not assess any charge for publishing the name of a subscriber in the directory, but may assess a charge to subscribers that have required not to be listed in the said directory. The directory shall include, as a minimum, in respect of each listed subscriber, name, address and telephone number; a list of interurban and international area codes; and the impulse frequency table for urban and interurban calls. The directory may also contain classified advertisements and other information;

7.4.3 Directory information services for subscribers

Directory information, through which all subscribers to the switched telephone service may receive information concerning the numbers of the subscribers listed in the directory or directories for the area or areas covered. A reasonable charge may be imposed for this service.

7.4.4 Directory information for other network operators

Directory information service which handles, at a reasonable charge, information requests coming from other operators of telecommunications networks, whether domestic or foreign.

The CONCESSION HOLDER shall not unjustly or unreasonably discriminate between different categories of subscribers and users.

The CONCESSION HOLDER shall receive all applications for Basic Services, maintain an accurate record of the date the application was received and give each applicant a receipt for their own records. The processing of such applications shall be free of charge.

7.5 Basic Services Contracts

The CONCESSION HOLDER shall coordinate with the GOVERNMENT regarding the form of the service contracts used for its Basic Services and any amendments to such service contracts.

7.6 Interruption of Basic Services to Subscribers

The CONCESSION HOLDER may discontinue Basic Services to any subscriber only in case of a failure to pay, or for any other cause in accordance with the relevant service contract(s) under the applicable law, or this Agreement.

7.7 Regulation, Audit and Rate Of Return

The Communications Regulatory Authority (CRA) will audit the operator annually for adherence to allowable rate of return, and for compliance to maximum prices (price caps) for certain regulated basic services included in the agreement.