DECISION OF MANAGING DIRECTOR

On the publishing

MANAGING DIRECTOR OF VTI Co.

 -        Pursuant to the Decision of VNPT Board of Management with reference no.: 197/HDQT-TC dated 20 July 1996 on the approval for “Organization and Activity Rules of the Vietnam Telecom International company”;

-        Pursuant to the Decisions of Ministry of Posts and Telecommunications with reference nos.: 18/2004/QD-BBCVT and 19/2004/QD-BBCVT dated 9 April 2004 on publishing the VNPT’s tariff for IPLC service in general and the VNPT’s tariff  for IPLC service applied to IXPs;

-        Pursuant to the Decision of Mr. CEO of VNPT Cor.’s with reference no.: 986/QD-GCTT dated 22 April 2004 on the publishing tariff for IPLC service;

-        Following to the proposal of the Chief of Business Division and Chief of Planning Division of Vietnam Telecom International (VTI) company.

DECIDES

Article 1: The Decision publishes “Provisions on the tariff for IPLC service”. All charges in “The Provisions of the IPLC service pricing” are not included Value Added Tax.

Article 2: This Decision is effective from 01 May 2004. “Provisions on the tariff for IPLC service” has abrogated all the old provisions which conflict with current provisions.

Article 3: All head people in management section and International Telecom Centers are responsible for implementation of this Decision.

MANAGING DIRECTOR

VIETNAM TELECOM INTERNATIONAL

(Signed)

Receivers:

- As stipulated in Article 3.

- VNPT (for report).

- Deputy MDs.

- Keeping in Buz., Pln. and Adm. divisions.

Nguyen Huu Khanh

PROVISIONS ON THE TARIFF FOR

INTERNATIONAL PRIVATE LEASED CIRCUIT SERVICE

Attached to the Decision of the Managing Director of VTI with reference No. 969/2004/QD-VTI dated 28 May 2004

Article 1. Installation Charge for International Portion.

Implementation in according to the Decision of Managing Director of VTI with reference No.: 940/KH-VTI dated 26 May 2004, detailed as follows:

1. For circuits ≤ 64Kbps:                                   230 USD per time per circuit.

2. For circuits > 64Kbps up to 2Mbps:             440 USD per time per circuit.

3. For circuits > 2Mbps:                                 1,650 USD per time per circuit.

Upgrading and downgrading installation Charge = 75% of respective circuit installation charge (the new circuit)

Relocation Charge: If just in the range of customer’s premises, relocation charge = 20% installation charge of respective circuit; If changing to new premises, relocation charge = 70% installation charge of respective circuit.

For other cases such as NTU rental or purchase requirement from Customer or local loop by microwave system, etc., Director of the regional International Telecom Center will decide.

Article 2. Monthly rental charge for International Portion.

2.1.    The monthly rental charge shall be applied in according to the hereunder tariff based on the charging zone.

2.2.    Monthly Rental Charge shall not be lower than floor-rate which has stipulated by Ministry of Posts and Telecommunications at the Decision 18/2004/QD-BBCVT dated 9 April 2004.

2.3.    Tariff for IPLC service via Optical Fiber Cable System (Half-circuit from Vietnam)

Currency Unit: USD/month

Currency Unit: USD/month

Note:

* Charging Zone No.1: From Vietnam to the destinations: Japan, China, Singapore, Thailand, Hong Kong, Laos, Cambodia, Malaysia, Korea, Indonesia, Philippines and Taiwan.

** Charging Zone No.2: From Vietnam to the rest of the World.

2.4.    Monthly Rental Charge for International Portion via Satellite (Intelsat and Intersputnik systems):

- Not differed as charging zone.

- Monthly rental charge shall be applied in accordance to Charging Zone No.1 of the above tariff.

Article 3. Discount Policy.

3.1.      For the long term commitment:

- For 3-year to under 5-year contract: 3% discount of monthly rental charge is to be applied (for int’l portion).

- For 5-year and longer contract: 5% discount of monthly rental charge is to be applied (for int’l portion).

Notice: In case of contract termination prior to committed date by customer, they have to refund all amount of money that they inherited discount. If the real time of contract implementation is enough 3 years or 5 years, the customer shall be still inherited the discount percentage 3% or 5%, respectively.

3.2.      For prepaid.

- Prepaid 6 months or more: 2% discount for Int’l portion.

- Prepaid 12 months or more: 4% discount for Int’l portion.

3.3.      For customer has been using the service for 4 years, they shall be inherited 3% discount from the fifth year.

3.4.      Discount Term in contracts signed before 01 May 2004 shall be kept and continuous effective until expiry date. However, the applied rate shall not be lower that the floor rate stipulated by Ministry of Posts and Telecommunications at the Decision 18/2004/QD-BBCVT dated 9 April 2004.

Article 4. Other provisions

4.1.     Daily rental charge.

-         In first 2 days, daily rental charge = 1/10 monthly rental charge for int’l portion.

-         From third day to 10^th day, daily rental charge = 1/20 monthly rental charge for int’l portion.

-         From the 11st day, daily rental charge = 1/25 monthly rental charge for int’l portion, but sum of daily rental applied shall not be higher than monthly rental charge for int’l portion.

-         If sum of daily rental applied is higher than monthly rental charge for int’l portion, monthly rental charge shall be applied.

4.2.     In case of monthly leasing circuit, but the first month and the last month of leasing not enough a month, the rental charge for the first month and the last month shall be calculated by the following formula and it shall be provided clearly in the IPLC contract:

4.3.     Applicable Rental Charge in case of temporary non-use required by customer.

-         Temporary Stop of use rental charge = 30% monthly rental charge for Int’l Portion provided in the above tariff.

-         The time for temporary non-use is minimum of 01 (one) month and maximum of 3 (three) months. In case of the time of the temporary non-use less than one month, the temporary non-use rental charge shall be rounded up by monthly rental charge.

-         In case of customer requires temporary non-use more than 3 months, the customer has to negotiate directly with the respective International Telecom Center (ITC), but the total time of temporary non-use shall not be over 6 months. In case of more than 6 months, the respective ITC has right to unilaterally terminate contract in according to Vietnam Laws. If the customer wants to reuse the circuit, they have to begin all procedures in compliance with current regulation on provision of IPLC service.

-         In case of temporary non-use as VNPT’s and/or VTI’s requirement, the customer does not has to pay.

-         In case of temporary stop of use, ITC has to sign supplemental contract with the customer.

4.4.     Reduction and subtraction of charge for IPLC as and when the line is interrupted arising from faults on the side of VNPT and/or cause of force major.

-         The period of line interruption for each time is calculated as follows

+ Less than 30 minutes                     : not applicable.

+ From 30 minutes to 01 hour         : rounded up to 1 hour.

+ Over 1 hour                                    : on the actual time of interruption.

-         Total of interruption time in the month is calculated by each interruption time in the month with the total > 30 minutes.

-         Total time of a month is computed to be equal to the number of days in the month x 24 hours/day.

Article 5. Customers

5.1.     Customer in this Regulation is meaning users of VNPT/VTI’s IPLC service for establishing private network for their owned purpose.

5.2.     For other carriers in Vietnam who lease IPLC service from VNPT/VTI for resale telecommunications services, the prices shall be applied as floor rate provided by the Ministry of Posts and Telecommunications at the Decision No. 18/2004/QD-BBCVT dated 9 April 2004.

5.3.     For the Internet Access Providers (IXP), the pricing shall be applied as the Decision No. 19/2004/QD-BBCVT dated 9 April 2004 of the MPT. The detailed tariffs applied for IXP are provided as follows:

5.3.1.   In case of the interface connectivity at Cable Landing Station of VTI (Ba Ria - Vung Tau province, Danang City) or VTI Earth Stations (Ha Tay or Binh Duong province):

Currency Unit: USD/½ circuit/month

5.3.2.   In case of the interface connectivity at the VTI ITMC:

Currency Unit: USD/½ circuit/month