<PAGE>

                                                                    EXHIBIT 10.5

                                 EMI Translation Service Agreement

THIS AGREEMENT is made effective as of the 1st day of July, 2000(the "Effective
Date").

BETWEEN:

                       YAK Communications (Canada) Inc.,
               a corporation organized under the laws of Ontario
                                (the "Customer")

                                    - and -

                           TELUS Communications Inc.,
               a corporation organized under the laws of Alberta
                                   ("TELUS")


WHEREAS:

A.   The Customer is a telecommunications services provider,

B.   The Customer has entered into agreements with respect to the billing and
     collection of telecommunications services provided by the Customer with
     certain Canadian local exchange carriers;

C.   The Customer's billing information with respect to such telecommunications
     services requires certain validation and conversion prior to its being in a
     form that the Canadian local exchange carriers can utilize for billing and
     collection;

D.   The Customer's billing information must be distributed to the Canadian
     local exchange carriers with whom the Customer has entered into agreements
     with respect to billing and collection services;

E.   TELUS provides certain validation, correction, and translation services
     with respect to billing information that the Customer is able to provide;

F.   TELUS provides an interface with the Billing Record Analysis and Transport
     System (BRATS) which interacts with Canadian local exchange carriers for
     the validation and distribution of billing information;

G.   The Customer has requested that TELUS provide certain validation,
     correction, and translation services with respect to the Customer's billing
     information; and

H.   TELUS has agreed to provide such services.
<PAGE>

IN CONSIDERATION of the respective covenants and agreements contained in this
Agreement, the Customer and TELUS mutually agree as follows.

1.   Interpretation and Scope

(a)  "Agreement" means this written instrument together with the attached
     Schedule "A" and any amendments made in writing by the parties to such
     documents.

(b)  In the event of any conflict or inconsistency among the provisions of the
     various parts of this Agreement, such conflict or inconsistency shall be
     resolved by giving precedence, first, to the main body of this Agreement
     and, second, to the Schedules.

2.   Services

(a)  TELUS shall provide the Services to the Customer in accordance with
     Schedule "A".

(b)  TELUS shall be responsible for the manner in which the said Services are
     performed, for the method employed in doing the same, and for all acts and
     things done in the delivery of the Services outlined in Schedule "A".

3.   Term and Termination

(a)  The term for the provision of the Services shall commence on the Effective
     Date and shall continue, subject to earlier termination, for a period of
     three (3) years (the "Initial Term"). Unless TELUS receives written notice
     from the Customer to terminate the Services at least thirty (30) days prior
     to expiration of the Initial Term, TELUS shall continue to provide the
     Services on a month to month basis (each a "Renewal Term") at the same
     rates, charges and fees and on the same terms and conditions as provided
     for in this Agreement until the earlier of:

     (i)  either party receives at least thirty (30) days' prior written notice
          from the other party respecting termination of the Services effective
          the end of a Renewal Term; and

     (ii) the Services are otherwise terminated as provided for herein.

(b)  During the Initial Term either party may, upon three (3) months prior
     written notice to the other party, terminate this Agreement.

                                       2
<PAGE>

(c)  In the event of termination by the Customer pursuant to Article 3(b), the
     Customer shall pay to TELUS, as liquidated damages and not as a penalty,
     termination fees in the amount of two thousand dollars ($2000.00) per month
     for each month and partial month of the unexpired portion of the Initial
     Term.

(d)  Notwithstanding any other provision of this Agreement, TELUS shall be
     entitled, at its option, to terminate this Agreement upon written notice to
     the Customer.

     (i)  if the Customer fails to pay any amounts due and owing to TELUS under
          this Agreement; or

     (ii) if the Customer otherwise fails to comply with any of the terms and
          conditions of this Agreement;

     after having been provided with notice of such deficiency and thirty (30)
     days within which to cure such deficiency and such deficiency remains
     unremedied at the expiration of such time period.

(e)  Notwithstanding any other provision of this Agreement, TELUS shall be
     entitled, at its option, to terminate this Agreement immediately upon
     written notice to the Customer.

     (i)    where required by law, court order or regulatory order or directive;

     (ii)   upon the Customer becoming bankrupt or insolvent;

     (iii)  upon the filing by the Customer of any petition or answer seeking
            reorganization, readjustment or arrangement of the business of the
            Customer under any law relating to bankruptcy or insolvency;

     (iv)   upon the Customer ceasing to carry on business in the ordinary
            course;

     (v)    upon the appointment of a receiver or receiver-manager for all or
            substantially all of the property of the Customer;

     (vi)   upon the making by the Customer of any assignment or attempted
            assignment for the benefit of creditors; or

     (vii)  upon the institution of any proceedings for the liquidation or
            winding up of the Customer's business;

     such termination to be effective on the date specified in the notice of
     termination.

                                       3
<PAGE>

(f)  Expiration or termination of this Agreement shall not relieve the Customer
     of its obligation to pay amounts due or to become due to TELUS, nor deprive
     TELUS of any of its rights or remedies or actions against the Customer.

4.   Price and Terms of Payment

(a)  The Customer shall pay to TELUS the rates, charges and fees payable for the
     Services as specified in Schedule "A". All rates, charges and fees shall be
     payable as of and from the earlier of: (a) the Effective Date, and (b) the
     date of provision of the Services.

(b)  The Customer shall be responsible for the payment of all taxes, levies and
     duties imposed by any local, provincial, state or federal government or
     government agency in connection with the provision of the Services to the
     Customer by TELUS. Where required by law, the Customer shall pay the
     relevant tax, levy or duty directly to TELUS. The Customer's liability
     shall not include taxes, levies and duties imposed directly on TELUS in the
     nature of a property, capital or income tax.

(c)  TELUS shall invoice the Customer monthly in advance for the month fees
     specified in Schedule "A". TELUS shall invoice the Customer monthly in
     arrears for fees based on usage specified in Schedule "A". All charges
     shown on the Customer's bill are due on the due date shown on the bill. All
     charges not paid by the due date are past due and will bear interest at the
     rate of 1.5% per month compounded monthly (19.56% per year).

(d)  If the Customer terminates all or any part of the Services prior to
     expiration of the Initial Term or any Renewal Term, the Customer shall pay
     to TELUS all outstanding rates, charges and fees to the effective date of
     termination plus, as specified in this Agreement, any early termination
     charges.

5.   Title

     All work products including documentation, reports, brochures and manuals
     including, without limitation, any items deliverable under this Agreement,
     if any, developed by TELUS pursuant to this Agreement, and all copyright,
     patent and all other proprietary rights in such work products shall be the
     property of TELUS and may be used or disclosed by TELUS to anyone in its
     sole discretion. Furthermore, any and all designs, methods, processes,
     formulae, data, specialized know-how, improvements, innovations, trade
     secrets and specialized techniques that are made, prepared, developed,
     generated or produced by TELUS, its officers, employees, agents,
     representatives, and subcontractors, in connection with the performance of
     the Services under this Agreement vest in TELUS

                                       4
<PAGE>

     and shall become the sole property of TELUS. The Customer agrees to execute
     all documents prepared at the expense of TELUS which are required to give
     effect to this section.

6.   Confidentiality

(a)  Each party shall not disclose to any third party any of the details of this
     Agreement or use any information which it has acquired as a result of this
     Agreement concerning the other party's plans, business, objectives,
     customers, products, processes, work or services, without the other party's
     prior written consent. Such information shall only be used for the purposes
     of this Agreement. The receiving party shall take every reasonable
     precaution to avoid disclosing such information, data or documentation and
     such precautions shall include, but are not limited to, the safeguarding of
     documents, the making of copies only when necessary, and giving security
     instructions issued by the disclosing party to the receiving party from
     time to time.

(b)  The obligations set out in this Article 6 shall not apply to:

     (i)    information which is within the public domain at the date of its
            disclosure to the recipient party or which thereafter enters the
            public domain otherwise than through the acts or omissions of the
            recipient party, its officers, employees, agents, or representatives
            or any other person under an obligation to hold same confidential;

     (ii)   information which is already known to the recipient party at the
            time of its disclosure by the disclosing party and is not subject to
            confidential restrictions;

     (iii)  information which is developed independently by the recipient party
            prior to or following the date of its disclosure to the recipient
            party;

     (iv)   information which, following its disclosure by the disclosing party
            to the recipient party, is received by the recipient party without
            obligation of confidence from a third party who the recipient party
            had no reason to believe was not lawfully in possession of such
            information free of any obligation of confidence;

     (v)    information which the disclosing party has given its written
            approval to disclose; or

     (vi)   information which the recipient party is required by a judicial,
            administrative or governmental body to disclose.

                                       5
<PAGE>

(c)  The obligations of confidentiality in this Article 6 shall, with respect to
     any particular information, survive for a period of two (2) years following
     disclosure of that particular information by the disclosing party to the
     recipient party.

7.   Warranty and Limitation of Liability

(a)  TELUS shall not be liable for mistakes or errors in the transmission of
     billing messages received by TELUS nor for the content of such billing
     messages. TELUS does not guarantee error free or uninterrupted provision of
     the Services.  TELUS will utilize reasonable commercial efforts to provide
     the Service in accordance with Schedule "A" but does not assume any
     financial liability for the value of the billing records, real or implied,
     that TELUS is transporting on behalf of the Customer.

(b)  Other than as provided for in this Agreement, there are no other
     warranties; representations, conditions or guarantees of any kind
     whatsoever, either express or implied, whether existing by statute,
     agreement, tort, product liability or otherwise, regarding the Services
     including, but not limited to, warranties, representations and guarantees
     as to merchantability, fitness for purpose, design, condition or quality.

(c)  TELUS shall not be liable to the Customer or any other person for any
     losses, damages, injuries, or costs, notwithstanding TELUS' notice of the
     same, arising out of or caused by the Customer or its employees, agents,
     subcontractors, or those for whom at law it is responsible, in the
     performance of this Agreement including, without limiting the generality of
     the foregoing, that arising out of or caused by use of the Services by the
     Customer.

(d)  In no event will TELUS be liable to the Customer or any party claiming
     through or under the Customer for lost profits, lost revenue, failure to
     realize expected savings, loss of use or any other commercial or economic
     loss of any kind, or any punitive, exemplary, indirect, incidental,
     consequential or special damages, or any third party claims arising out of
     the use by the Customer of the Services, even if TELUS has knowledge of the
     possibility of such potential losses or damages.

8.   Indemnity.

     Notwithstanding any other provisions in this Agreement, the Customer shall:

                                       6
<PAGE>

(a)  indemnify and hold harmless TELUS, its directors, officers, employees and
     agents from and against any and all manner of liabilities, awards, claims,
     demands, suits, proceedings, actions, causes of actions or other claims
     which may be brought or made against TELUS or such persons, or which TELUS
     or such persons may become subject to;

(b)  be liable to TELUS, its directors, officers, employees and agents for any
     and all losses, costs, charges, damages and expenses whatsoever (and
     without limiting the generality of the foregoing, any direct losses, costs,
     damages and expenses of TELUS or such persons, including costs as between a
     solicitor and his own client) which TELUS or such persons may sustain, pay
     or incur,

     as a result of, arising out of, or in connection with:

(c)  the provision of the Services to the Customer,

(d)  any willful, negligent or wrongful act or omission of the Customer,
     including any employees, agents and subcontractors of the Customer,
     pursuant to this Agreement;

(e)  any alleged infringement by the Customer of any third party intellectual
     property rights; or

(f)  the improper disclosure of Confidential Information by the Customer,
     including any officers, employees, agents, representatives and
     subcontractors of the Customer.

9.   General.

(a)  Relationship. The Customer and TELUS are independent contractors. Nothing
     in this Agreement shall be construed so as to create a partnership or joint
     venture or relationship of franchisor and franchisee or principal or agent.
     Neither party shall be liable for the debts or obligations of the other
     party.

     The Customer shall not be an agent of TELUS for any purpose. The Customer
     is not granted any right or authority to assume or create any obligation,
     express or implied, on behalf of or in the name of TELUS or to bind TELUS
     in any manner whatsoever.

(b)  Conflict of Interest. The Customer represents and warrants to the best of
     its knowledge and belief that, except as a shareholder in an incorporated
     company issuing shares to the public at large, no TELUS official or
     employee has a direct or indirect interest or receives any direct or
     indirect proceeds from this Agreement.

                                       7
<PAGE>

(c)  Set Off. TELUS may, in its sole discretion, set off any and all amounts
     owed TELUS or an Affiliate thereof by the Customer for any reason
     including, but not limited to, any amounts associated with the provision by
     TELUS of telecommunications services against amounts owed the Customer by
     TELUS.

(d)  Assignment. This Agreement is personal and shall not be assigned in whole
     or in part by the Customer without the prior written consent of TELUS, such
     consent not to be unreasonably withheld. TELUS may assign this Agreement
     upon providing written notice to the Customer. TELUS may subcontract some
     or all of the Services without the prior written consent of the Customer.

(e)  Notices. Any notice or other communication pursuant to this Agreement
     required or desired by either party shall be deemed to have given on the
     date when delivered or sent by confirmed facsimile transmission, or three
     (3) days after being sent by registered mail:


     to the Customer:    YAK Communications (Canada) Inc.
                         Suite 610, 55 Town Centre
                         Scarborough, Ontario M1 P 4X4
                         Attention: Mr. C. Zwebner
                         Facsimile: (416) 279-1372

     to TELUS at:        TELUS Communications Inc.
                         Suite 900, 180 Elgin Street
                         Ottawa, Ontario K2P 2K3
                         Attention: Ms. L. Fournier
                         Facsimile: (613) 231-6814

(f)  Compliance with Law. The Customer shall properly execute and comply with
     all statutes, rules, orders, ordinances, and regulations of all
     governmental authorities in carrying out its obligations pursuant to this
     Agreement.

(g)  Waiver. Failure by either party to insist upon the strict performance of
     any of the covenants, agreements, terms, provisions or conditions contained
     in this Agreement or to exercise any election shall not be construed as a
     waiver or relinquishment of such covenant, agreement, term, provision or
     condition but the same shall continue and remain in full force. No waiver
     shall be deemed to have been made unless expressed in writing.

(h)  Entire Agreement. This Agreement constitutes the entire agreement between
     the Customer and TELUS pertaining to the subject matter and supersedes all
     prior agreements, understandings, negotiations, representations and
     discussions

                                       8
<PAGE>

     whether oral or written. This Agreement, in other than those sections under
     which TELUS has reserved to itself the right to modify or amend, shall not
     be modified, amended, rescinded or canceled except by the written agreement
     of the parties.

(i)  Severability. If any section of this Agreement is invalid or unenforceable
     in any circumstances, the remainder of this Agreement; and the application
     of such section in any other circumstances, shall not be affected.

(j)  Force Majeure. Neither party shall be responsible for any failure to comply
     with any of the terms of this Agreement where such failure is directly or
     indirectly caused by or results from events of force majeure beyond the
     control of either party. These events include, but are not limited to,
     fire, flood, earthquake, accident, civil disturbances, war, rationing,
     embargoes, strikes or labor problems, delays in transportation, acts of
     God, or acts of government. It is agreed that the time for performance by
     TELUS shall be extended by the period of such uncontrollable circumstances.

(k)  Survival. The sections titled Warranty and Limitation of Liability,
     Confidentiality, Indemnity, and General shall survive expiration or
     termination of this Agreement.

(l)  Governing Law. This Agreement shall be governed by and interpreted in
     accordance with the laws of the Province of Ontario and the laws of Canada
     applicable. The Customer and TELUS irrevocably attorn to the exclusive
     jurisdiction of the Courts of the Province of Ontario.

(m)  Headings. The headings contained in this Agreement are for convenience of
     reference only and shall not affect the interpretation or meaning of this
     Agreement.

(n)  Enurement. This Agreement shall enure to the benefit of and be binding on
     the successors and permitted assigns of TELUS and the Customer.

IN WITNESS WHEREOF the parties have caused this Agreement to be executed as of
the Effective Date.

                                       9
<PAGE>

YAK Communications (Canada) Inc.   TELUS Communications Inc.


By: /s/ Charles Zwebner            By: /s/ Mike Norris
----------------------------       ---------------------------------------
    Authorized Signature               Authorized Signature


    Charles Zwebner                    Mike Norris
----------------------------       ---------------------------------------
Name (Print or Type)               Name (Print or Type)


    President                          Director - Clearinghouse Operations
----------------------------       ---------------------------------------
Title                              Title

    August 11, 2000                    August 11, 2000
----------------------------       ---------------------------------------
Date                               Date

                                       10
<PAGE>

                                 Schedule "A"

                                    Service

TELUS shall provide an interface and translation service for "sent paid"
(originating telephone number and billing telephone number are the same) call
detail records received from the Customer. The Customer and TELUS agree to
perform the following as part of the interface and translation service provided
by TELUS.

1.   Description
     -----------

     (a)  The Customer shall deliver "send paid" call detail records to TELUS.
          The call detail records delivered by the Customer will contain, at
          minimum, the following information.

                Fields Required in Customer Call Detail Records

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Field Name             Data Type             Length          Description
------------------------------------------------------------------------------------------------------
<S>                    <C>                   <C>            <C>
from number            character              10             originating NPA NXX line # e.g.,
                                                             6044323212
------------------------------------------------------------------------------------------------------
to number              character              16             terminating NPA NXX line # e.g.,
                                                             5044142010, or overseas number up to
                                                             16 digits
------------------------------------------------------------------------------------------------------
call duration          numeric                 6             connect time (HHMMSS) e.g., 152218
------------------------------------------------------------------------------------------------------
billable time          numeric                 7             billable time (HHMMSST) e.g., 1522182
------------------------------------------------------------------------------------------------------
charge                 numeric               7.2             charge or amount of call e.g., 0015.42
------------------------------------------------------------------------------------------------------
date of record         character               8             year/month/day (YYYYMMDD) e.g., 19990226
------------------------------------------------------------------------------------------------------
Provincial tax         numeric               7.2             PST e.g., 0123.45
------------------------------------------------------------------------------------------------------
federal tax            numeric               7.2             GST or HST e.g., 0123.45
------------------------------------------------------------------------------------------------------
</TABLE>

     The Customer may provide values for additional fields in the call detail
     records such as ANI/ONI, rate period (day/evening/night), and to/from place
     name and state. If no information is specified in these fields, TELUS will
     assign default values.

                                       11
<PAGE>

(b)  The Customer shall inform TELUS electronically that a file containing call
     detail records is available for processing. The Customer shall encrypt the
     file using pretty good protection (PGP) encryption software using public
     encryption keys. The Customer shall provide TELUS with access to the
     Customer's server containing the file of encrypted call detail records.
     TELLS shall electronically access the file containing the encrypted call
     detail records on the Customer's server using File Transfer Protocol (FTP).

(c)  TELUS shall:
     (1)  decrypt the Customer's encrypted call detail records;
     (2)  perform certain validation on the call detail records; and
     (3)  convert call detail records to Exchange Message Interface (EMI)
          formatted billing records.

(d)  TELUS shall electronically deliver the Customer's call detail records that
     have been converted to EMI formatted billing records to the Billing Record
     Analysis and Transport System (BRATS).

2.   Additional Services
     -------------------

     On receipt of a written request from the Customer, TELUS shall provide the
     following additional services.

     (a)  Billing quality edits and automatic correction

          TELUS shall provide a series of validation tests to the Customer's
          call detail records. The validation tests may, in certain instances,
          include error correction capabilities which will result in correction
          of certain errors or the specification of certain data not present in
          call detail records.

     (b)  Reconciliation reports

          TELUS shall provide the Customer with reports that include detailed
          information relating to the processing and transporting of the
          Customer's call detail records. The detailed information in the
          reports provide the Customer with the capability to reconcile
          treatment of call detail records.

     (c)  Fraud monitoring

          TELUS shall provide the following monitoring capabilities with respect
          to the Customer's call detail records:

                                       12
<PAGE>

          (1)  alerts based on industry standard or Customer provided "hot
               country" lists;
          (2)  alerts based on number of calls to the same telephone number or
               calls to particular telephone numbers (Customer specified
               parameters);
          (3)  alerts based on Customer specified level of toll charges.

3.  Error Treatment
    ---------------

     (a)  Errors detected by TELUS (pre-billing return)

          If a Customer call detail record contains incorrect or incomplete
          data, TELUS will use commercially reasonable efforts to correct the
          error and/or specify information to complete the call detail record.

          If TELUS is able to correct the error and/or specify information to
          complete the call detail record, TELUS shall:

          (1)  translate the corrected call detail record into an EMI formatted
               billing record;
          (2)  electronically deliver the EMI formatted billing record to BRATS;
               and
          (3)  electronically deliver a report to the Customer describing the
               actions TELUS took to correct the error and/or complete the call
               detail record.

          If TELUS cannot correct the error and/or specify information to
          complete the call detail record, TELUS shall, within fifteen (15)
          calendar days of the processing date, electronically deliver to the
          Customer the call detail record in error and a report containing an
          explanation of the error.

     (b)  Errors detected by BRATS (pre-billing return)

          As a result of validation performed by BRATS on EMI formatted billing
          records, EMI formatted billing records maybe rejected by BRATS and
          returned to TELUS.

          In the event of such return of EMI formatted billing records, TELUS
          shall, within fifteen (15) calendar days of receiving the returned EMI
          formatted billing record from BRATS, use commercially reasonable
          efforts to correct the returned EMI formatted billing record.

          If TELUS is able to correct the returned EMI formatted billing record,
          TELUS shall return the corrected EMI formatted billing record to
          BRATS.

                                       13
<PAGE>

          If TELUS cannot correct the EMI formatted billing record, TELUS shall:

          (1)  reformat the EMI formatted billing record into the call detail
               record format; and

          (2)  electronically deliver to the Customer the billing record in call
               detail record format and a report containing an explanation of
               the error.

     (c)  Errors detected by company performing billing and collection services
          (pre-billing return)

          As a result of validation performed by the company performing billing
          and collection functions for the Customer on the EMI formatted billing
          records, EMI formatted billing records may be rejected and returned
          to. TELUS through BRATS.

          In the event of such return of EMI formatted billing records, TELUS
          shall, within fifteen (15) calendar days of receiving the returned EMI
          formatted billing record from BRATS, use commercially reasonable
          efforts to correct the returned EMI formatted billing record.

          If TELUS is able to correct the returned EMI formatted billing record,
          TELUS shall return the corrected EMI formatted billing record to
          BRATS.

          If TELUS cannot correct the EMI formatted billing record, TELUS shall:

          (1)  reformat the EMI formatted billing record into call detail record
               format; and

          (2)  electronically deliver to the Customer the billing record in call
               detail record format and a report containing an explanation of
               the error.
     (d)  Non-billable records (post-billing return)

          As a result of the company performing billing and collection services
          for the Customer through use of the EMI formatted billing records, EMI
          formatted billing records associated with calls that are non-billable
          may be returned to TELUS through BRATS.

          If TELUS receives EMI formatted billing records associated with non-
          billable calls from BRATS, TELUS shall, within fifteen (15) calendar
          days of receiving the returned EMI formatted billing record from
          BRATS:

                                       14
<PAGE>

      (1) reformat the EMI formatted billing record into call detail record
          format, and

      (2) electronically deliver to the Customer the billing record in call
          detail record format and a report containing an explanation of the
          error.

4.    Pricing
      -------

<TABLE>
<S>                                              <C>            <C>                         <C>
 (a)  monthly fee                                $4,502.00

 (b)  fees based on usage

      convert call detail records to EMI                        For each record              $ 0.005
      formatted billing records                                 above 500,000

      pre-billing returns                                       For each record              $  0.05
                                                                above 5,000

      post-billing returns                                      For each record              $  0.25
                                                                above 5,000

      Customer specified

      billing quality edits and automatic                       For each record              $  0.01
      correction                                                above 10,000

      reconciliation reports                                    Monthly fee                  $300.00

      fraud monitoring                                          Monthly fee                  $300.00

                                                                For each Customer            $150.00
                                                                initiated change
</TABLE>


All fees based on record counts relate to record counts in a calendar month.

                                       15