Exhibit 10.10


This Purchase and License Agreement for FWA Equipment (the "Agreement") is
entered by and among Nortel Networks Limited and Nortel Networks de Mexico, S.A.
de C.V. ("NN Mexico" and, collectively, "Nortel Networks"), and Axtel, S.A. de
C.V. (the "Customer" and, together with Nortel Networks, the "Parties"), is
effective from the Closing Date and shall continue in effect thereafter during
the Term. References to "days" shall mean calendar days, unless otherwise
specified.

1.   Definitions

1.1  "Concession" means any concession, license, permit or the like (including
     any additions or amendments thereto) granted and issued by the governmental
     authorities of Mexico as of the Closing Date or during the Term in favor of
     Customer that are legally required under applicable laws for operation of
     the Products sold hereunder and Customer's networks in Mexico.

1.2  "Force Majeure Event" means the occurrence of fire, casualty, explosion,
     lightning, accident, strike, lockout, labor unrest, labor dispute (whether
     or not, in respect of the foregoing labor-related matters, the affected
     party is in a position to settle the matter), war (declared or undeclared),
     armed conflict, civil disturbance, riot, Act of God, delay of common
     carrier, the enactment, issuance, or application of any law, local by-law,
     regulation, or executive, administrative, or judicial order, acts
     (including delay or failure to act) of any governmental authority, or any
     other cause or causes (whether of the foregoing, nature or not), or any
     other similar or different occurrence, which cause or occurrence is beyond
     the reasonable control of the affected party and whether or not foreseeable
     by such party.

1.3  "Furnish-only" means Products which Customer is responsible for installing.

1.4  "FWA Business" means, among other things, the know-how and licenses that
     would allow a third party to manufacture and support base station
     equipment, customer premises equipment, remote element manager, system
     software and installation toolsets, that combined provide a fixed wireless
     access solution operating in the 3.5 GHz spectrum using TDMA technology.

1.5  "Hardware" means a Nortel Networks machine, equipment or component, but not
     including the software.

1.6  "Local Nortel Networks Affiliate" means any person or entity established
     prior to or during the Term in Mexico, more than fifty percent (50%) of
     whose voting shares or outstanding capital stock is owned or controlled
     (directly or indirectly) by Nortel Networks or an affiliate of Nortel
     Networks.

1.7  "Nortel Networks Finance Agreement" means the Restructured Amended and
     Restated Finance Agreement, dated as of _____________ __, 2003, entered
     into by and between Nortel Networks Limited as Lender and Axtel, S.A. de
     C.V. as Borrower.

1.8  "Products" means any Hardware, Software or Third Party Vendor Items
     provided under this Agreement, which are further described in Annex C
     hereto.

1.9  "Replacement Agreements" means, collectively: (i) this Agreement, (ii) the
     Technical Assistance Services Agreement for FWA Equipment, dated as of the
     date hereof and entered into between Customer and NN Mexico (the "FWA TAS
     Agreement"), (iii) the Purchase and License Agreement for Non-FWA
     Equipment, dated as of the date hereof and entered into between the Parties
     hereto, and (iv) the Technical Assistance Services Agreement for Non-FWA
     Equipment, dated as of the date hereof and entered into between Customer
     and NN Mexico.

1.9.1 "Restructuring Agreement" means the Restructuring Agreement, dated as of
     __________ __, 2003, entered into among the Parties hereto.

1.10 "Senior Note" means that certain promissory note dated ____________ __,
     2003, executed by Customer and payable to Nortel Networks as per the Nortel
     Networks Finance Agreement.



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1.11 "Services" means the activities which may be undertaken by Nortel Networks
     pursuant to an Order, including but not limited to, consulting, business
     planning, network planning and analysis.

1.12 "Site" means a location designated by Customer at which the Products are to
     be installed and the Services are to be performed.

1.13 "Software" means computer programs in object code form or firmware which is
     owned or licensed by Nortel Networks, its parent or one of its subsidiaries
     or affiliates, and is copyrighted and licensed, not sold. Software consists
     of machine-readable instructions, its components, data, audio-visual
     content (such as images, text, recordings or pictures) and related licensed
     materials including all whole or partial copies.

1.14 "Software Scripts" means the high level overlay of the Radio Element
     Manager (REM) software that is either run on demand or scheduled and
     typically collects, post processes or interprets data for operational,
     installation, commissioning and maintenance purposes. The Software Scripts
     do not include REM daemons or REM Graphical User Interface screens (GUI).

1.15 "Specifications" means, with respect to Products and/or Services, the
     technical specifications set forth in Annex D hereto, which describe or
     explain the standard functional capabilities and/or requirements for such
     Products and/or Services.

1.16 "Taxes" means all federal, state, provincial, local, foreign, gross income,
     gross receipts, sales, use, value added, stamp, levies, customs duties,
     franchise, withholding, excise, real or personal property taxes,
     registration charges and all other similar taxes.

1.17 "Term" means five (5) years, commencing on the Closing Date (as defined in
     the Restructuring Agreement), provided that the Term may be extended for
     subsequent one (1) year periods, subject to the Parties agreeing on
     mutually acceptable commercially reasonable terms and conditions, where
     "commercially reasonable" shall mean terms and conditions which would be
     expected to be found in a comparable contractual arrangement between arms'
     length parties, acting without other economic constraint or influence, of
     similar size and financial situation for products and/or services similar
     or comparable to those under this Agreement, including, without limitation,
     price and gross margins, minimum orders, volume commitments and delivery
     lead times, capital investment required and credit quality of the buyer;
     and provided, further, that, solely for the period prior to any sale of the
     FWA Business by Nortel Networks to an unrelated third party, (i) twelve
     (12) months prior to the end of the Term as then in effect, the Parties
     shall enter into negotiations to determine such mutually acceptable
     commercially reasonable terms and conditions, (ii) if agreement on such
     terms and conditions is not reached by the date that is nine (9) months
     prior to the end of such Term, such determination shall be submitted to
     arbitration pursuant to the Rules of Conciliation and Arbitration of the
     International Chamber of Commerce then in force, such proceedings to take
     place in the English language in the City of Miami, Florida, before a panel
     of three (3) arbitrators appointed in accordance with the aforementioned
     rules, (iii) if such arbitration has not resulted in a determination on or
     before the end of the Term as then in effect, the terms and conditions of
     this Agreement as in effect during such Term shall be deemed to continue in
     effect until such a determination is reached, at which time such
     determination shall be applied retroactively to the end of such Term, (iv)
     if the terms and conditions determined by such arbitration are acceptable
     to Customer but are not accepted by Nortel Networks, then the arbitrators
     shall determine the price at which they believe the FWA business would be
     sold in an arms length transaction by parties acting without other economic
     constraint or influence, (v) Customer shall have the right to purchase the
     FWA Business at such price, and (vi) if the Customer elects not to purchase
     the FWA Business at such price, then Nortel Networks shall have no
     continuing obligation to Customer beyond the terms of this Agreement as
     then in effect.



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1.18 "Third Party Vendor Items" includes "Third Party Hardware" and "Third Party
     Software" and means any non-Nortel Networks hardware and/or software
     supplied to Customer under this Agreement.

2.   Orders; Initial Order; Change Orders and Delivery Times

2.1  Customer may acquire Products or Services by: (i) issuing a written
     purchase order, signed by an authorized representative, or (ii) if Customer
     is enrolled in any then current Nortel Networks electronic commerce
     program, by submitting electronic orders (collectively, "Orders").

2.2  All Orders shall reference this Agreement and shall comply with the Order
     Procedure attached as Annex E hereto. Orders are totally binding and
     non-cancelable.

2.3  All Orders will be governed by and cannot alter the terms and conditions of
     this Agreement. In order to be valid, all Orders must be accepted by Nortel
     Networks through a written or electronic communication. Nortel Networks
     shall accept such Order within the next ten (10) business days after
     delivery thereof, if such Order (i) is in compliance with this Agreement
     (prices and descriptions) and no additional terms and conditions have been
     imposed; (ii) Nortel Networks has received the applicable payment in
     accordance with Section 5 hereof; and (iii) Customer has provided the
     applicable letter of credit or other form of payment guarantee in
     accordance with Section 5 hereof. For the avoidance of doubt, the Parties
     agree that Nortel Networks shall not be obligated to start performing under
     any Order until Customer complies with the provisions of this Section 2.3.
     In the event Nortel Networks does not accept an Order in accordance with
     this Section 2.3, it shall promptly return to Customer any payments made
     and/or letters of credit provided by Customer under this Section 2.3.

2.4  The implementation schedule, responsibility matrix and any other items
     which may be necessary for the performance of Nortel Networks' obligations
     hereunder shall be mutually agreed upon between the Parties and included as
     exhibits to the Order. Such exhibits shall be deemed incorporated into this
     Agreement by this reference.

2.5  Attached hereto as Annex A is the initial Order, which Customer hereby
     delivers and shall be subject to Section 5.21 below.

2.6  The prices set forth in Annex F and reflected in each Order are based on
     anticipated delivery and performance schedules and specifications
     incorporated in such Order.

2.7  Any changes to this Agreement or an Order initiated by Customer or Nortel
     Networks after the Closing Date resulting in adjustments to process, job
     schedule, contract price or other requirements thereof may be cause for
     adjustment by Nortel Networks to the prices and to the relevant delivery
     and performance schedules set forth therein. Any such adjustment shall be
     detailed in a change order, a form of which is attached hereto as Annex B
     ("Change Order"). If the Change Order affects any Products for which Nortel
     Networks has commenced manufacturing or has shipped or any Services for
     which Nortel Networks has commenced performance, the adjustment of the
     price shall include reasonable, documented charges incurred by Nortel
     Networks related thereto. No such changes shall be performed until a Change
     Order has been executed by authorized representatives of the Parties. A
     Change Order may only be used to increase the amount of Products and/or
     Services ordered and in no event may the amount of Products and/or Services
     in an Order be cancelled or decreased, whether through a Change Order or
     otherwise.

2.8  Nortel Networks shall deliver the Products in accordance with the timing
     set forth in Annex J of this Agreement. The delivery times shall commence
     after Order acceptance as specified in Section 2.3 of this Agreement.
     Nortel Networks shall deliver the Products at the applicable Nortel
     Networks' factory, except for RSS equipment, which shall be delivered at
     Nortel Networks' North American consolidation warehouse for Mexico
     (currently in Texas, USA).



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3.   Electronic Commerce Programs

3.1  By enrolling in any Nortel Networks' electronic commerce program, Customer
     agrees to comply with the terms of such program. Customer agrees that all
     electronic Orders issued are equivalent to a written Order, are governed by
     the terms and conditions of this Agreement and that in the event of any
     conflict between this Agreement and the information contained in Customer's
     or Nortel Networks' electronic commerce website, this Agreement governs.
     Customer is responsible for the use and protection of all electronic
     commerce passcodes provided by Nortel Networks and agrees that all Orders
     submitted using such passcodes are valid and binding Orders authorized by
     Customer. Nortel Networks shall have no liability to Customer due to
     Customer's failure to access Customer's or Nortel Networks' electronic
     commerce website or errors or failures relating to its operation.

4.  Licensed Use of Software

4.1  Nortel Networks grants Customer a nonexclusive and perpetual (subject to
     Nortel Networks termination rights set forth in section 4.5 below) license
     to use a copy of the Software with the Products to the extent of the
     activation or authorized usage level.

4.2  To the extent Software is furnished for use with designated Products or
     Customer-furnished equipment ("CFE"), Customer is granted a nonexclusive
     and perpetual (subject to Nortel Networks termination rights set forth in
     section 4.5 below) license to use the Software only on such Products or
     CFE, as applicable.

4.3  Software contains trade secrets and Customer agrees to treat Software as
     Information (as defined in Section 10). Customer will ensure that anyone
     who uses the Software does so only in compliance with the terms of this
     Agreement.

4.4  Customer shall not: (a) use, copy, modify, transfer or distribute the
     Software except as expressly authorized, provided, however, that, Customer
     is hereby authorized to generate new Software Scripts or modify the
     existing ones; and provided, further, that Nortel Networks shall not be
     obligated to support such modified Software Scripts, nor shall it be
     responsible for any performance issues resulting from such modified
     Software Scripts; (b) reverse assemble, reverse compile, reverse engineer
     or otherwise translate the Software; (c) create derivative works or
     modifications unless expressly authorized; or (d) sublicense, rent or lease
     the Software. Licensors of intellectual property to Nortel Networks are
     beneficiaries of this provision.

4.5  Upon breach of the Software license by Customer as set forth in this
     Agreement or in the event the designated Product or CFE is no longer in
     use, this license terminates and Customer will promptly return the Software
     to Nortel Networks or certify its destruction.

4.6  Nortel Networks may audit by remote polling or other reasonable means to
     determine Customer's Software activation or usage levels.

4.7  With respect to Third Party Software, Customer agrees to abide by the terms
     provided by Nortel Networks with respect to any such software. Customer
     further agrees that the terms contained in any Nortel Networks or third
     party "shrink wrap" or "click" licenses shall govern the use of such
     software.

4.8  If Nortel Networks and Customer agree that delivery of Software is to be
     made electronically via File Transfer Protocol, then delivery of such
     Software by Nortel Networks shall be deemed to have taken place at such
     time as the Software is loaded onto a network server, as designated by
     Nortel Networks, and Customer has been provided with appropriate
     instructions and passwords to enable Customer to begin use of such
     Software. Notwithstanding the



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     foregoing, the Parties shall comply with all regulations applicable to
     importation of Software pursuant to applicable law.

4.9  Customer is allowed to make copies of the Software, as may be reasonably
     necessary for back up, execution or archival purposes only.

5.   Charges, Payment and Taxes

5.1  The contract price for the Products (including software) and Services is
     set forth in Annex F hereto. Unless otherwise agreed by the Parties in an
     Order, all prices are in U.S. dollars, exclusive of Taxes. All prices are
     applicable solely in Mexico.

5.2  In accordance with the terms of Annex "E", within the next five (05)
     business days after the delivery of the Order in accordance with the terms
     set forth in Sections 5.3 and 5.21 below, Nortel Networks shall deliver to
     Customer an invoice for one hundred percent (100%) of the purchase price of
     such Order.

5.3  Except for the Orders for RSSs mentioned in Section 5.21 below, all Orders
     for Products shall be accompanied by: (i) payment of seventy percent (70%)
     of the purchase price thereof upon delivery of the Order through a wire
     transfer of immediately available funds or by a letter of credit or by any
     other mutually agreed means; and (ii) within the next five (5) days after
     delivery of the respective invoice as per Section 5.2 above, a letter of
     credit or other form of payment guarantee consistent with Section 5.17
     hereof for the remaining thirty percent (30%) of the purchase price of the
     relevant Order.

5.4  Payment of this thirty percent (30%) shall be made by Customer ten (10)
     days after Delivery Date (as defined in Annex E of this Agreement) of the
     Products; provided that Customer may notify Nortel Networks in writing
     within such 10-day period if some or all of the Products delivered are not
     in compliance with the terms of the Order (the "Non-Compliant Products"),
     in which case Nortel Networks shall take, within thirty days of the date of
     Customer's notice, corrective action to resolve such Non-Compliant
     Products. Customer shall not be obligated to pay, and Nortel Networks shall
     not be entitled to draw on the letter of credit or other form of payment
     guarantee, the purchase price of the Non-Compliant Products until Nortel
     Networks corrects such non-compliance, provided, however, that prior to
     such resolution Nortel Networks shall issue a revised invoice relating to
     the portion of Products received by Customer that is in compliance with the
     terms of the Order. Partial shipments shall be allowed under this
     Agreement, subject to the terms set forth in Annex "J" of this Agreement.
     For the avoidance of doubt, the Parties agree that the purchase price of
     the compliant Products shall be paid by Customer as provided in this
     Section 5.4.

5.5  All Orders for Services shall be accompanied by a letter of credit or other
     form of payment guarantee consistent with Section 5.17 hereof for one
     hundred percent (100%) of the price of such Services. Nortel Networks shall
     invoice Customer one hundred percent (100%) of the price of Services upon
     completion, unless the Service continues beyond thirty days, in which case
     Nortel Networks shall invoice Customer at the end of each month for the
     Services performed in that month.

5.6  With respect to Services, amounts are due upon receipt of invoice and shall
     be paid by Customer within thirty (30) days of the invoice date.

5.7  Customer shall pay interest on any late payments at the rate of eighteen
     percent (18%) per annum (11/2% per month).

5.8  Charges for Software may be based on extent of use authorized as specified
     in this Agreement. Customer agrees to pay the charges applicable for any
     activation or usage beyond the authorized level.



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5.9  Customer is liable and responsible for any Taxes relating to the Products
     or Services furnished by Nortel Networks or its subcontractors pursuant to
     this Agreement (whether incurred directly or indirectly by Nortel Networks)
     and shall, at Nortel Networks' direction, promptly pay to Nortel Networks
     or pay directly to the applicable government or taxing authority, if
     requested by Nortel Networks, all such Taxes; provided, however, that in no
     event shall Customer be liable for Taxes computed upon the income or gross
     revenues of Nortel Networks or its subcontractors.

5.10 Customer shall be responsible for payment of personal property taxes for
     Products and materials from the date of shipment by Nortel Networks.
     Customer's obligations pursuant to this Section shall survive any
     termination of this Agreement.

5.11 Customer shall, within thirty (30) days of the tax payment on behalf of
     Nortel Networks, furnish to Nortel Networks all original tax receipts or
     certified copies in Nortel Networks' name showing payment of the Tax and
     such other documentation relating to the tax payment which Nortel Networks
     may reasonably request.

5.12 If Customer shall claim to be exempt from any Taxes, Customer shall furnish
     to Nortel Networks a tax exemption certificate from the relevant taxing
     authority in the form required by law or otherwise reasonably acceptable to
     Nortel Networks. If Customer shall claim any such tax exemption and
     provides Nortel Networks the required tax exemption certificate and Nortel
     Networks does not collect the Taxes in reliance thereupon, Customer shall
     hold Nortel Networks harmless from and against any and all assessments for
     such Taxes levied on Nortel Networks, including all interest, penalties and
     late charges upon any such Taxes and the cost of professional consulting
     fees incurred by Nortel Networks to settle the applicable tax matter with
     the relevant tax authorities.

5.13 If withholding of any Tax is required in respect of any payment by Customer
     to Nortel Networks hereunder, Customer shall: (i) withhold the appropriate
     amount from such payment, (ii) pay such amount to the relevant authorities
     in accordance with applicable law, and (iii) pay Nortel Networks an
     additional amount such that the net amount received by Nortel Networks is
     the amount Nortel Networks would have received in the absence of such
     withholding.

5.14 Customer shall pay all applicable customs fees, import duties, and similar
     charges directly to the appropriate governmental authorities. Each party
     agrees to ensure that it is in good standing and is appropriately
     registered, including without limitation, with respect to Taxes, in any
     country, state or other jurisdiction where legally required.

5.15 Nortel Networks reserves the right to import services or subcontractors
     when and where necessary to complete services related to this Agreement. To
     the extent the Local Nortel Networks Affiliate must import services or
     subcontractors in support of this Agreement, Nortel Networks reserves the
     right to have the Local Nortel Networks Affiliate invoice Customer an
     additional amount such that the cost of the withholding taxes for such
     imported Services are borne by Customer.

5.16 Customer consents without qualification to the sale and/or assignment of
     receivables, in whole or in part, including all or any part of any
     associated rights, remedies, and obligations, by Nortel Networks subject to
     a 30-day prior written notice, and authorizes the disclosure of this
     Agreement as necessary to facilitate such sale. Any tax impact to Customer
     resulting from such sale and/or assignment shall be borne by Nortel
     Networks.

5.17 The payments referred to in Sections 5.3(ii), 5.5 above and 5.21 below
     shall be secured by: (i) an irrevocable and unconditional letter of credit
     in favor of Nortel Networks, confirmed by a United States bank acceptable
     to Nortel Networks, or (ii) another form of payment guarantee acceptable to
     Nortel Networks in its sole discretion.

5.18 If Nortel Networks is prevented from making a shipment of Products,
     installing such Products or performing the Services due to any Force
     Majeure Event or for any other reason



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     attributable, in whole or in part, to Customer, the Customer shall
     accordingly arrange an extension of such letter of credit and reimburse
     Nortel Networks for any additional expenses arising out of any such delay;
     provided, however, that this reimbursement obligation shall apply only to
     the extent that the delay was attributable to Customer; and provided,
     further, that Customer shall promptly reimburse Nortel Networks for any
     such additional expenses, and Nortel Networks shall subsequently return to
     Customer any monies which Customer may have paid in excess once the Parties
     have reached an agreement on the actual extent of Customer's reimbursement
     obligation.

5.19 Nortel Networks reserves the right to reject an Order at Nortel Networks'
     sole discretion, or to withhold shipment of the Products or performance of
     the Services, or any portion thereof, if: (i) Customer is in default of its
     payment obligations hereunder, (ii) Customer is in breach of its
     obligations under this Agreement, or (iii) Customer falls under any of the
     situations described in Sections 16.1 (i) through (iv) hereof, and all
     relevant dates for completion shall be adjusted accordingly.

5.20 Customer hereby irrevocably waives, to the fullest extent permitted by law,
     the right to dispute any invoice submitted by Nortel Networks hereunder, if
     such invoice is not disputed within twenty one (21) days from invoice
     receipt. Such dispute must be resolved within ninety (90) days from the
     invoice date. Payment of any disputed amounts is due and payable upon
     resolution. All other amounts remain due as per this Section 5.

5.21 Notwithstanding any other provision of this Section 5 to the contrary, in
     the case of Orders for the annual minimum order amounts referred to in
     Section 19 below, Customer shall submit, on or before December 15 of each
     year, and dated as of the date of such submission, separate Orders relating
     to the minimum order commitments for the succeeding calendar year, as
     follows: (a) In the case of RSS's, the Customer shall submit four (4)
     separate Orders, each one for one fourth (1/4) of the Baseline Annual
     Minimum Commitment of RSS units set forth in Section 1(a) of Annex H of
     this Agreement, relating to the four calendar quarters of the succeeding
     calendar year, provided that the Orders for the Additional Annual Minimum
     Commitment of RSS Units set forth in such Annex H, shall be placed by
     Customer during the calendar year to which such Additional Annual Minimum
     Commitment applies, and (b) In the case of base stations, the Customer
     shall submit one (1) Order for the total annual minimum commitment for such
     calendar year. Nortel Networks shall accept such Orders within ten (10)
     business days (in the place where Nortel Networks' office which receives
     such Orders is located) after delivery thereof if such Orders are in
     compliance with this Agreement (prices and descriptions) and no additional
     terms and conditions have been imposed. In the case of Orders for RSSs, (i)
     payment of the initial seventy percent (70%) of the purchase price for the
     Order corresponding to the first calendar quarter of each calendar year
     shall be made on or before January 15th of such calendar year, together
     with a letter of credit or other form of payment guaranty consistent with
     the requirements of Section 5.17 hereof for the remaining thirty percent
     (30%) of the purchase price; and (ii) payment of the initial seventy
     percent (70%) of the purchase price for the respective Orders corresponding
     to each of the three remaining calendar quarters of such calendar year
     shall be made on or before the 15th calendar day of the month immediately
     preceding the calendar quarter to which such Order relates, together with a
     letter of credit or other form of payment guaranty consistent with the
     requirements of Section 5.17 hereof for the remaining thirty percent (30%)
     of the purchase price. Delivery of Products under each such Order shall be
     in accordance with Annex "J" and shall commence after the initial payment
     and that payment of the remaining thirty percent (30%) of the purchase
     price for each Order will be due ten (10) days after Product delivery,
     subject to the terms set forth in Section 5.4 for non-complying delivery.

5.22 Customer has the right to engage a third party financial institution to
     provide financing for the Products and/or Services supplied by Nortel
     Networks under this Agreement (provided that Customer is in compliance with
     the financial covenants set forth in the Nortel Networks Finance
     Agreement), in which case such third party financial institution will make
     the payments



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     as provided under this Agreement; provided, however, that Customer shall
     continue to be obligated to comply with all its obligations hereunder.

6.   Warranty

6.1  Nortel Networks warrants that the Hardware: (i) is free from defects in
     materials and workmanship, and (ii) substantially conforms to its
     Specifications. If Hardware does not function as warranted during the
     warranty period, Nortel Networks will determine to either: (i) make it do
     so, or (ii) replace it with substantially equivalent Hardware.

6.2  Nortel Networks provides the Software on an "AS IS" BASIS WITHOUT
     WARRANTIES OF ANY KIND.

6.3  Nortel Networks warrants that Services will be performed in a professional
     and workmanlike manner. If Services are not performed as warranted and
     Nortel Networks is notified in writing by Customer within sixty (60) days
     of the date of the non-conforming Services, Nortel Networks will re-perform
     the non-conforming Services.

6.4  The warranty period for Hardware shall be twelve (12) months from the date
     of delivery to Customer as per the terms of this Agreement. In the event
     Nortel Networks determines that repair or replacement as set forth in this
     Section 6 cannot be made using commercially reasonable efforts (which
     determination shall be made within thirty (30) days after Nortel Networks
     receives written notice from Customer) Nortel Networks will give Customer a
     credit equal to the purchase price paid by Customer for the Hardware,
     provided that Customer has returned such Hardware to Nortel Networks.

6.5  No warranty is provided for: (i) supply items normally consumed during
     Product operation; (ii) failures caused by non-Nortel Networks products;
     (iii) failures caused by a Product's inability to operate in conjunction
     with other Customer hardware or software different from the Third Party
     Vendor Items provided by Nortel Networks under this Agreement; or (iv)
     performance failures resulting from improper installation and maintenance
     or Customer's use of unauthorized parts or components. Warranty will be
     voided by misuse, accident, damage, alteration or modification, failure to
     maintain proper physical or operating environment, use of unauthorized
     parts or components or improper Customer maintenance. The performance by
     Customer, directly or indirectly, of the installation, engineering,
     commissioning, network design, support and maintenance of FWA Products by
     skilled personnel in accordance with the Nortel Procedures shall not
     invalidate the warranty provided hereunder.

6.6  Nortel Networks provides Third Party Vendor Items on an "AS IS" BASIS
     WITHOUT WARRANTIES OF ANY KIND, unless Nortel Networks specifies otherwise.
     However, such Third Party Vendor Items may carry their own warranties and
     Nortel Networks shall pass through to Customer any such warranties to the
     extent authorized. Nortel Networks shall provide to Customer the necessary
     contact information and applicable documentation, if available, for those
     third party vendors. Furthermore, Nortel Networks shall provide reasonable
     assistance to Customer so that Customer may avail itself of any such
     warranties, but only to the extent such assistance does not cause Nortel
     Networks to incur any out-of-pocket expenses or material additional costs.

6.7  Nortel Networks warrants that all Nortel Networks Products supplied
     hereunder shall have been tested at the factory to ensure that they conform
     to their Specifications and that they shall have successfully passed those
     tests.

6.8  THESE WARRANTIES AND LIMITATIONS ARE CUSTOMER'S EXCLUSIVE WARRANTIES AND
     SOLE REMEDIES, AND REPLACE ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR
     IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OR
     CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.



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7.  Services

7.1  Warranty Services: During the warranty period, Nortel Networks provides
     warranty Services without charge for Nortel Networks Hardware supplied
     under this Agreement to correct Hardware defects or to bring it up to
     conformance with the Specifications set forth in this Agreement. Warranty
     Services to be provided by Nortel Networks are further described in Annex
     "G" hereof.

7.2  Customer shall notify Nortel Networks prior to returning any Hardware and
     must reference a return material authorization number issued by Nortel
     Networks on documentation accompanying such returned Hardware. When
     Customer is required to return Hardware to Nortel Networks for warranty
     service, Customer agrees to ship it prepaid and suitably packaged to a
     location Nortel Networks designates. Nortel Networks will return the
     Hardware to Customer at Nortel Networks' expense. Nortel Networks is
     responsible for loss of, or damage to, Hardware while it is: (i) in Nortel
     Networks' possession, or (ii) in transit back to Customer. Any exchanged
     Hardware becomes Nortel Networks' property and, subject to Section 8 -
     Title and Risk of Loss, its replacement becomes the Customer's property.
     The replacement Hardware may not be new but will be in working order and
     equivalent to the item exchanged. The warranty period for the repaired or
     exchanged Hardware shall be the greater of ninety (90) days from the date
     of delivery of the Hardware back to Customer, or the remaining Hardware
     warranty period. Customer agrees to ensure that exchanged Hardware is free
     of any legal obligations or restrictions that prevent its exchange and
     represents that all returned items are genuine and unaltered. Relocation of
     Products under warranty Services may result in adjustments to the price and
     response times.

7.3  Where applicable, before Nortel Networks provides warranty services,
     Customer agrees to: (i) follow the problem determination, problem analysis,
     and warranty services request procedures that Nortel Networks provides;
     (ii) secure all program and data contained in Hardware; and (iii) inform
     Nortel Networks of changes in the Hardware's location.

7.4  Post-warranty and other Services to supplement the warranty Services,
     including advanced shipment of replacement parts, may be available at
     prices and policies to be negotiated in good faith and agreed between the
     Parties. The warranty service terms and exclusions in Section 6 above shall
     apply to post- and supplemental warranty Services.

7.5  Services in General: Customer agrees to reasonably cooperate with Nortel
     Networks in the performance by Nortel Networks of the Services, including,
     without limitation, providing Nortel Networks with sufficient and timely
     access free of charge to facilities, data, information and personnel of
     Customer in accordance with the then-current Customer policies, and a
     suitable physical environment meeting Nortel Networks' specified
     requirements to permit the timely delivery and installation of Products
     and/or performance of Services, including the recovery by Nortel Networks
     of any tools, diagnostic or test equipment, documentation or other items
     used by Nortel Networks in the performance of the Services.

7.6  In addition, Customer shall be responsible for the accuracy and
     completeness of all data and information that it provides or causes to be
     provided to Nortel Networks. In the event that there are any delays by
     Customer in fulfilling its responsibilities as stated above, there is a
     disagreement between the parties as to the cooperation required from
     Customer, or there are errors or inaccuracies in the information provided,
     Nortel Networks shall be entitled to appropriate schedule and pricing
     adjustments, including storage fees. It is understood and agreed that the
     Services provided by Nortel Networks may include the advice and
     recommendations of Nortel Networks, but all decisions in connection with
     the implementation of such advice and recommendations shall be the sole
     responsibility of, and made by, Customer, unless such advice and
     recommendations are part of consulting services purchased by Customer.



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7.7  Service Personnel: Nortel Networks and Customer are each responsible for
     the supervision, direction, compensation and control of their own employees
     and subcontractors. Nortel Networks may subcontract any portion or all of
     the Services to subcontractors selected by Nortel Networks. Neither Party
     shall knowingly solicit to hire employees of the other Party with whom it
     had contact as a result of the performance of the Services for a period
     ending twelve (12) months after completion of the Services. Neither Party
     shall be precluded from conducting generalized searches for employees (and
     hiring those employees who respond to generalized searches) either through
     the use of search firms or advertisements in the media, provided that
     searches are not specifically targeted to employees providing Services.

7.8  Intellectual Property Rights: Nortel Networks, on behalf of itself and its
     subcontractors, reserves all proprietary rights in and to: (i) all
     methodologies, designs, engineering details, and other data pertaining to
     the Services and designs, documentation and other work product prepared by
     Nortel Networks and delivered to Customer, (ii) all original works,
     computer programs and updates developed in the course of providing the
     Services (except Customer's developed programs) or as otherwise agreed in
     writing by the Parties, (iii) discoveries, inventions, patents, know-how
     and techniques arising out of the Services, and (iv) any and all products
     (including software and equipment) developed as a result of the Services.
     The performance by Nortel Networks of Services shall not be deemed work for
     hire. Nortel Networks grants to Customer a perpetual, non-exclusive,
     world-wide, paid up license to use, copy and modify the designs,
     documentation and other work product prepared by Nortel Networks and
     delivered to Customer in the performance of Services solely for Customer's
     internal business purposes. It is understood between the Parties that
     Nortel Networks will employ its know-how, techniques, concepts, experience
     and expertise, as well as all other intellectual property, including that
     to which it reserves its rights hereunder, to perform services for others
     which are the same as or similar to the Services.

8.   Title and Risk of Loss

8.1  Title and risk of loss for ordered Hardware and Third Party Hardware shall
     pass from Nortel Networks to Customer upon its delivery to Customer.

9.   Installation and Commissioning

9.1  Customer shall perform all installation, commissioning and software loading
     services with respect to the FWA Products, using skilled personnel and in
     accordance with the Nortel Procedures, with the exception of REM software
     upgrades, which shall be installed by Nortel Networks pursuant to the FWA
     TAS Agreement.

10.  Confidential Information

10.1 Confidential information ("Information") means: (i) Software and Third
     Party Software; and (ii) all business, technical, marketing and financial
     information and data that is clearly marked with a restrictive legend of
     the disclosing party ("Discloser").

10.2 The party receiving Information ("Recipient") will use the same care and
     discretion to avoid disclosure, publication or dissemination of Information
     as it uses with its own similar information that it does not wish to
     disclose, publish or disseminate. The Recipient may disclose Information
     only to: (i) its employees and employees of its parent, subsidiary
     affiliated companies or subcontractors who have a need to know for purposes
     of carrying out this Agreement; and (ii) any other party with the
     Discloser's prior written consent. Before disclosure to any of the above
     parties, the Recipient will have a written agreement with such party
     sufficient to require that party to treat Information in accordance with
     this Agreement.

10.3 The Recipient may disclose Information to the extent required by law.
     However, the Recipient must give the Discloser prompt notice and make a
     reasonable effort to obtain a protective order.



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10.4 No obligation of confidentiality applies to any Information that the
     Recipient: (i) already possesses without obligation of confidentiality;
     (ii) develops independently; or (iii) rightfully receives without
     obligations of confidentiality from a third party. No obligation of
     confidentiality applies to any Information that is, or becomes, publicly
     available without breach of this Agreement.

10.5 Each party's obligations hereunder shall survive for a period of five (5)
     years after receipt of Information hereunder from the Discloser, except as
     otherwise mutually agreed upon by the parties.

10.6 The Discloser makes no representations or warranties of any nature
     whatsoever with respect to any Information furnished to the recipient,
     including, without limitation, any warranties of merchantability or fitness
     for a particular purpose or against infringement, EXCEPT FOR THOSE SET
     FORTH IN SECTION 6 HEREOF.

10.7 The release of any advertising or other publicity relating to this
     Agreement requires the prior approval of both Parties.

11.  Patents and Copyrights

11.1 Nortel Networks shall indemnify and hold harmless Customer, its officers,
     directors, representatives, agents, employees, contractors, subcontractors,
     subsidiaries and affiliates against any actual direct loss, damage,
     liability, cost, expense, action or claim, including reasonable attorneys'
     fees, litigation costs and expenses and amounts paid in settlement, subject
     to the limitations set forth in the following paragraphs, arising out of or
     in connection with any infringement or alleged infringement of patents,
     copyrights, trademarks, trade secrets, or any other intellectual property
     right of a third party. Therefore, if a third party claims that Nortel
     Networks Hardware or Software provided to Customer under this Agreement
     infringes such third party's patent or copyright, Nortel Networks will
     defend Customer against that claim at Nortel Networks' expense and pay all
     costs and damages that a court finally awards or are agreed in settlement,
     provided that Customer: (a) promptly notifies Nortel Networks in writing of
     the claim, and (b) allows Nortel Networks to control, and cooperates with
     Nortel Networks at Nortel Networks' expense in, the defense and any related
     settlement negotiations. If such a claim is made or appears likely to be
     made, Nortel Networks agrees to secure the right for Customer to continue
     to use the Hardware or Software, or to modify it, or to replace it with
     equivalent Hardware or Software. If Nortel Networks determines that none of
     these options is reasonably available, Customer agrees to return the
     Hardware or Software to Nortel Networks on Nortel Networks' written
     request. Nortel Networks will then give Customer a credit equal to the
     purchase price paid by Customer for the Hardware or Software. Any such
     claims against the Customer or liability for infringement arising from use
     of the Hardware or Software following a request for return by Nortel
     Networks are the sole responsibility of Customer. This represents
     Customer's sole and exclusive remedy regarding any claim of infringement.

11.2 Nortel Networks has no obligation regarding any claim based on any of the
     following: (a) anything Customer provides which is incorporated into the
     Hardware or Software; (b) compliance by Nortel Networks with the Customer's
     specifications, designs or instructions; (c) the amount of revenues or
     profits earned or other value obtained by the use of a Product by Customer;
     (d) Customer's modification of Hardware or Software (subject to Section
     4.4(a) hereof); (e) the combination, operation, or use of Hardware or
     Software with other products not provided by Nortel Networks as a system,
     or the combination, operation, or use of Hardware or Software with any
     product, data, or apparatus that Nortel Networks did not provide; (f) the
     Customer's failure to install or have installed changes, revisions or
     updates as instructed by Nortel Networks; or (g) infringement by a Third
     Party Vendor Item alone, as opposed to its combination with Products Nortel
     Networks provides to Customer as a system.



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11.3 In case of any infringement caused by any Third Party Vendor Item, Nortel
     Networks shall reasonably cooperate with Customer and hereby assigns to
     Customer any of its rights to request the proper defense and
     indemnification for such claim to such Third Party Vendor. Nortel Networks
     shall provide Customer with all necessary contact information and
     applicable documentation, if available, for those third party vendors.
     Furthermore, Nortel Networks shall use its best efforts to provide
     reasonable assistance to Customer for Customer to be able to obtain from
     the Third Party Vendor the applicable defense and indemnification for such
     Third Party Vendor Item infringement, but only to the extent such
     assistance does not cause Nortel Networks to incur any out-of-pocket
     expenses or material additional costs.

12.  Limitation of Liability

12.1 In no event shall Nortel Networks or its agents or suppliers be liable to
     Customer for more than the amount of any actual direct damages up to the
     greater of U.S. $100,000 (or equivalent in local currency) or the charges
     for the Product or Services that are the subject of the claim, regardless
     of the cause and whether arising in contract, tort or otherwise. This
     limitation will not apply to claims for damages for bodily injury
     (including death) and damage to real property and tangible personal
     property for which Nortel Networks is legally liable and payments as set
     forth in Section 11 - Patents and Copyrights.

12.2 IN NO EVENT SHALL NORTEL NETWORKS OR ITS AGENTS OR SUPPLIERS BE LIABLE FOR
     ANY OF THE FOLLOWING: I) DAMAGES BASED ON ANY THIRD PARTY CLAIM, EXCEPT AS
     EXPRESSLY PROVIDED FOR HEREIN; II) LOSS OF, OR DAMAGE TO, CUSTOMER'S
     RECORDS, FILES OR DATA; OR III) INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR
     CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS OR LOST SAVINGS), EVEN IF
     NORTEL NETWORKS IS INFORMED OF THEIR POSSIBILITY.

13.  Concessions

13.1 Customer hereby warrants and represents that it and its affiliates in
     Mexico have obtained the Concessions which will permit each of them to
     legally operate all or a portion of the Products in Mexico. The Parties
     agree that Nortel Networks shall not deliver or install any Products,
     perform any Services or accept any Orders hereunder unless Customer or its
     affiliates (if applicable) have been granted a Concession in Mexico for the
     use of such Products.

14.  Changes or Substitution of Products

14.1 At any time, Nortel Networks may implement changes to the Products, modify
     the Products' designs and Specifications or substitute the Products with
     ones of similar or more recent design. The Parties shall mutually agree on
     the Price of such changed or substituted Products. Such a change to or
     substitution of the Products provided under this Agreement shall be subject
     to the following requirements: (i) shall not adversely affect the physical
     or functional interchangeability or the performance Specifications of the
     Products, except as otherwise agreed in writing by Customer; (ii) the price
     for equivalent performance shall be the same or lower than the price agreed
     hereunder, except as otherwise agreed in writing by Customer; (iii) any
     change or substitution of the Products shall be functionally equivalent and
     compatible with the changed or substituted Product, without the need for
     any other adaptations; and (iv) shall under no circumstances either reduce
     or decrease Nortel Networks' warranty obligations set forth in this
     Agreement.

15.  Delayed Shipment of the Products or the Performance of the Services

15.1 If Customer notifies Nortel Networks less than thirty (30) days prior to
     the scheduled delivery date of the Products (or if the Products have been
     manufactured per the agreed upon schedule) that Customer does not wish to
     take delivery thereof at the scheduled time or that a site is not available
     to receive such Products, or if Customer fails to take delivery of such
     Products upon their arrival at the applicable site, Nortel Networks shall
     have the right to place



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     the Products in storage and Customer shall bear all costs of demurrage,
     restocking, warehousing, reloading, transporting, off-loading, and other
     associated costs incurred by Nortel Networks. All such costs shall be paid
     in full within thirty (30) days of Customer's receipt of Nortel Networks'
     commercial invoice therefor. Customer may delay delivery or fail to take
     delivery of the Products for not more than thirty (30) days. Once such
     thirty-day term elapses, Customer shall immediately pay to Nortel Networks
     the outstanding balance of the purchase price of the Products, if any, and
     the warranty period for the affected Products shall be deemed to start upon
     expiration of such 30-day term.

15.2 If Customer notifies Nortel Networks less than thirty (30) days prior to
     the scheduled performance date of the Services that Customer does not wish
     Nortel Networks to perform such Services at the scheduled time or that the
     Site is not available for the performance of such Services, Nortel Networks
     shall have the right to delay the performance of the Services and Customer
     shall bear all associated and documented out of pocket travel and expense
     costs incurred by Nortel Networks. All such costs shall be paid in full
     within thirty (30) days of Customer's receipt of Nortel Networks'
     commercial invoice therefor.

15.3 Site facilities and physical specifications of equipment (including
     shelters, fiber cabling, power, etc.) provided by Customer for use with the
     Products sold hereunder must meet Nortel Networks' installation and
     environmental Specifications. Any testing required to verify the condition
     of Site facilities and any required upgrades will be at Customer's expense.

16.  Termination; Survival

16.1 Without prejudice to any rights and remedies provided for hereunder, either
     Party hereto may terminate this Agreement, effective immediately, upon
     written notice to any other Party, upon the occurrence of any of the
     following events or conditions (each, an "Event of Default"):

     (i)  the other Party applies for or consents to the appointment of, or the
          taking of possession by a receiver, custodian, trustee or liquidator
          of itself or of all or a substantial part of its property,

     (ii) the other Party makes a general assignment for the benefit of its
          creditors,

     (iii) the other Party commences a voluntary proceeding under the
          bankruptcy, insolvency or similar laws relating to relief from
          creditors generally,

     (iv) the other Party fails to contest in a timely or appropriate manner, or
          acquiesces in writing to, any petition filed against it in an
          involuntary proceeding under the bankruptcy, insolvency or similar
          laws relating to relief from creditors generally, or any application
          for the appointment of a receiver, custodian, trustee, or liquidator
          of itself or of all or a substantial part of its property or its
          liquidation, reorganization, dissolution or winding-up, or

     (v)  the other Party materially fails to perform any term or condition
          under this Agreement or any of its Annexes, which failure continues
          for a period of thirty (30) days after written notice has been given
          to the breaching Party; provided, however, that if any Party exercises
          its termination rights as provided in this Section 16.1 (v) after any
          sale of the FWA Business by Nortel Networks, the FWA TAS Agreement,
          shall automatically be terminated concurrently therewith; and
          provided, further, that if any Party exercises its termination rights
          as provided in this Section 16.1 (v) prior to any sale of the FWA
          Business by Nortel Networks, the three other Replacement Agreements
          shall automatically be terminated concurrently therewith. For the
          avoidance of doubt, the Parties agree that any failure by Customer to
          comply with the purchase commitment set forth in Section 19 hereof
          shall be deemed material.



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16.2 In addition, and without prejudice to any rights and remedies provided for
     hereunder, Nortel Networks may terminate all four Replacement Agreements,
     effective immediately, upon written notice to the other Party, upon the
     occurrence of any of the following events or conditions:

     (i)  Customer fails to make payment in accordance with the terms and
          conditions hereof, which failure continues for a period of ten (10)
          business days (in Mexico) after written notice to Customer,

     (ii) within eighteen (18) months from the date hereof, the identity of
          Customer's business materially changes by sale of its business,
          transfer of control of its capital stock, merger or otherwise, unless
          prior written consent therefor has been obtained from Nortel Networks;
          or

     (iii) the occurrence of an Event of Default under any one of the Senior
          Note or the other Replacement Agreements which by the terms of such
          agreements would allow Nortel Networks to declare such Senior Note due
          and payable or to terminate such Replacement Agreement, as the case
          may be.

16.3 The respective obligations of each Party pursuant to Sections 1, 4, 5, 6,
     7, 10, 11, 12, 16 and 18 hereof, and any other obligations of each Party
     pursuant to this Agreement that by their nature would continue beyond the
     termination, cancellation, or expiration hereof, shall survive such
     termination, cancellation, or expiration; provided, however, that if
     Customer fails to make payment in accordance with the terms and conditions
     hereof (subject to the cure period provided in Section 16.2 above), the
     Parties expressly agree that the following Sections hereof shall not
     survive such termination, cancellation, or expiration: Sections 6 and 7;
     and provided, further, that Section 4 hereof shall survive such
     termination, cancellation, or expiration only to the extent that Customer
     is not in default of the payment of the applicable Software license fees,
     if any.

17.  Nortel Procedures

17.1 "Nortel Procedures" will consist of documents which describe in detail the
     engineering, installation, commissioning, maintenance, troubleshooting and
     operation of Product(s). The Nortel Procedures shall be provided in the
     English language. Nortel Networks shall provide the Nortel Procedures in
     Spanish if so published. Nortel Networks shall ship electronic
     documentation containing the applicable Nortel Procedures to Customer with
     the initial delivery of a system release to Customer. During the Term,
     Nortel Networks shall, at no additional charge to Customer, deliver to
     Customer, one set of electronic files with updates, revisions and/or
     corrections of such Nortel Procedures as they become available. Customer
     may order additional copies of the Nortel Procedures at Nortel Networks'
     then applicable prices. Customer may use and reproduce the Nortel
     Procedures in paper format for the purposes of engineering, installing,
     commissioning, maintaining, troubleshooting and operating the Products,
     subject to the limitations regarding Information set forth in Section 10.
     Reproduction shall include the copyright or similar proprietary notices.
     Customer is responsible for ensuring proper versions of the Nortel
     Procedures are printed and distributed.

18.  General

18.1 Customer agrees that it will not export Products procured hereunder from
     Mexico without Nortel Networks' prior written consent. Nortel Networks
     reserves the right to assign any portion of an Order accepted under this
     Agreement, in whole or in part, provided that such assignment shall be in
     compliance with the provisions of Section 20 below if such assignment falls
     under the situation provided for in Section 20 of this Agreement. Customer
     represents and warrants that it is buying Products and/or Services for its
     own internal use and not for resale.

18.2 Customer agrees to comply with all laws applicable to it, including all
     applicable export and import laws and regulations. In the event that any
     provision of this Agreement or portions



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     thereof are held to be invalid or unenforceable, the remainder of this
     Agreement will remain in full force and effect.

18.3 The terms and conditions of this Agreement, together with the other three
     Replacement Agreements and any other agreements contemplated by the Term
     Sheet entered into between Customer and Nortel Networks Limited on October
     12, 2002, form the complete and exclusive agreement between Customer and
     Nortel Networks and replaces any prior oral or written communications and
     agreements regarding the subject matter thereof.

18.4 Any changes to this Agreement must be made by mutual agreement in writing.
     All Customer's rights and all of Nortel Networks' obligations are valid
     only in Mexico.

18.5 The laws of the State of New York, United States of America govern this
     Agreement, exclusive of its conflict of laws provisions; and nothing in
     this Agreement affects any statutory rights of consumers that cannot be
     waived or limited by contract. The United Nations Convention on the
     International Sale of Goods shall not apply.

18.6 If, within thirty (30) days from the date of any notice of dispute from a
     Party to any other Party, such Parties are unable to resolve the issue,
     then either Party may initiate the binding arbitration to resolve such
     dispute by written notice to such other Party upon expiration of such
     thirty (30) day period. Any dispute between the Parties arising in
     connection with this Agreement shall be exclusively resolved by arbitration
     pursuant to the Rules of Conciliation and Arbitration of the International
     Chamber of Commerce then in force. The arbitration proceedings pursuant to
     this Section 18(c) shall take place in the English language in the City of
     Miami, State of Florida, before a panel of three (3) arbitrators appointed
     in accordance with the aforementioned rules. The decision of the
     arbitrators shall be final and binding upon the Parties and their
     respective successors and assigns. The decision and award rendered by the
     arbitrators may be entered in any court of competent jurisdiction and any
     such court may order the enforcement of such award against the Parties and
     their respective successors and assigns.

18.7 EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
     LEGAL PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT OR THE
     TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING ANY ORDER ISSUED AND ACCEPTED
     HEREUNDER.

18.8 The following Annexes are part of this Agreement:

      Annex A - Initial Order
      Annex B - Change Order Procedures and Form of Change Order
      Annex C - Description of Products
      Annex D - Product Specifications Annex E - Order Procedure
      Annex F - Prices
      Annex G - Warranty Services
      Annex H - Purchase Commitment
      Annex I - Intentionally Left in Blank
      Annex J - Delivery Times

     In the event of any conflict or inconsistency between the provisions of the
     body of this Agreement and its Annexes, the body of this Agreement shall
     prevail.

18.9 Notwithstanding anything in this Agreement to the contrary, if the supply
     of the Products or the performance of the Services by Nortel Networks, or
     any portion thereof, or the performance of any other obligation hereunder
     by any party is prevented, delayed, interfered with, or interrupted by
     reason of a Force Majeure Event, such prevention, delay, interference, or
     interruption shall be deemed not to be a default pursuant to this Agreement
     and the time or



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     times for such performance or supply hereunder shall be extended by the
     period or periods same is so prevented, delayed, interfered with, or
     interrupted. The foregoing shall apply even though any such cause exists or
     is foreseeable as of the date hereof. Neither Party shall be required to
     change its usual business practices or methods or to assume or incur other
     than its usual costs or expenses in order to mitigate, avoid, or eliminate
     any Force Majeure Event or to reduce the period of any resulting delay.
     Each Party shall notify the other Parties of any delay or failure excused
     by this Section 18(f) and shall specify the revised performance date as
     soon as practicable. Nothing contained in this Section 18(f) shall affect
     any obligation of Customer to make any payment when due in accordance with
     this Agreement.

18.10 All notices pursuant to this Agreement will be in writing and deemed given
     when delivered in person, by certified mail or courier service, or by
     facsimile. Notices to Customer shall be sent to:

     Boulevard Gustavo Diaz Ordaz Km. 3.33 L-1
     Colonia Unidad San Pedro
     San Pedro Garza Garcia
     Nuevo Leon, Mexico
     Attention: Director de Negociaciones Estrategicas
     with a copy to the Corporate Counsel.


     Notices to Nortel Networks shall be sent to:

     Nortel Networks (CALA) Inc.
     1500 Concord Terrace
     Sunrise, Florida 33323-2815,
     Attention: Senior Counsel

     with a copy to:

     Nortel Networks de Mexico, S.A. de C.V.
     Insurgentes Sur 1605, Piso 30
     Col. San Jose Insurgentes
     03900 Mexico, D.F.
     Attn.: President

     Notices from Customer to Nortel Networks pursuant to Section 5.20, shall be
     sent to:

     Nortel Networks de Mexico, S.A. de C.V.
     Insurgentes Sur 1605, Piso 30
     Col. San Jose Insurgentes
     03900 Mexico, D.F.
     Attn.: Contract Management - Axtel Project

19.  Purchase Commitment

19.1 Customer hereby irrevocably agrees to purchase from Nortel Networks the
     minimum annual amounts of Products as further described in Annex H hereof.

20.  Assignment; Right of First Refusal

20.1 Each Party agrees not to assign or otherwise transfer this Agreement or its
     rights under it, or delegate its obligations, without the other Party's
     prior written consent, and any attempt to do so is void. Notwithstanding
     the foregoing, Nortel Networks may assign or otherwise transfer this
     Agreement or its rights under it, or delegate its obligations, to any of
     its affiliates. Nortel Networks may also assign or otherwise transfer this
     Agreement or its rights under it, or



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     delegate its obligations, to any purchaser of the FWA Business without the
     Customer's prior written consent; provided that:

     (i)  Nortel Networks shall provide to Customer the soliciting or offering
          material used in connection with any contemplated sale of the FWA
          Business (the "FWA Information") at the same time any such FWA
          Information is provided to any third party potential purchaser (the
          "Potential Purchasers"), subject to execution by the Parties of a
          non-disclosure agreement in a form and substance reasonably
          satisfactory to Nortel Networks, but no less restrictive on Customer
          than the non-disclosure agreement executed with the Potential
          Purchasers; and provided, however, that Nortel Networks may not offer,
          solicit interest in or sell the FWA Business to any company which is a
          direct competitor of Customer or does not have the necessary resources
          (human and/or technical), at Nortel Networks' reasonable judgment, to
          manufacture the Products and/or to provide the technical support
          required by Customer, including without limitation, Telefonos de
          Mexico, S.A. de C.V. or any of its affiliates (the "Restricted
          Companies");

     (ii) Nortel Networks hereby grants to Customer a right of first refusal
          ("RFR") with respect to any offer received by Nortel Networks from any
          third party which Nortel Networks proposes to accept (including any
          revised offers), allowing Customer to purchase the FWA Business on
          terms not less favorable than such offer, subject to Customer having
          made, within fourteen (14) days after Nortel Networks shall have
          delivered written notice to Customer of such offer or revised offer
          (the "Vendor's Notice"), a single deposit of US$4,500,000.00 (four
          million five hundred thousand United States dollars) (the "Deposit")
          into an interest bearing escrow account. Once Nortel Networks has
          received the Deposit, Customer shall have the right to perform a due
          diligence investigation of the FWA Business, and Nortel Networks shall
          be obligated to promptly provide all the information and access that
          Customer reasonably requires for the evaluation of the FWA Business;
          and

     (iii) in the event of any such sale to a purchaser other than Customer,
          such new vendor shall assume all of Nortel Networks' obligations under
          this Agreement.

20.2 If Customer exercises its RFR, Nortel Networks and Customer shall have
     sixty (60) days from payment of the Deposit to negotiate in good faith and
     enter into a purchase agreement pursuant to which Nortel Networks will sell
     the FWA Business to Customer, unless a longer period of time is stated in
     the offer received from the Potential Purchaser, in which case such longer
     period shall prevail (the "Offer Period"). If the Parties have entered into
     such an agreement by the end of the Offer Period, the Deposit shall be
     credited towards the purchase price of the FWA Business. If the Parties
     have not entered into such an agreement by the end of the Offer Period,
     Customer shall forfeit in favor of Nortel Networks the Deposit, and Nortel
     Networks shall have the right to sell the FWA Business to any Potential
     Purchaser other than a Restricted Company, subject to the terms and
     conditions of Section 20.3 below; provided, however, that if the terms of
     the proposed sale are more favorable to such Potential Purchaser than the
     best offer (from Nortel Networks' perspective) presented by Customer to
     Nortel Networks during the Offer Period, then the RFR shall again apply to
     such sale, but Customer shall not be obligated to provide any additional
     Deposit.

20.3 If Customer shall decline in any instance to exercise its RFR or the
     Parties fail to enter into the purchase agreement as described in Section
     20.2, Nortel Networks shall have the right for a period of one year from
     the date of such declination or failure, to sell the FWA Business to a
     Potential Purchaser (except if such Potential Purchaser is a Restricted
     Company) without prior notice to Customer, on terms which are not more
     beneficial to such Potential Purchaser than those set forth in Vendor's
     Notice. If the foregoing conditions are not met, the RFR shall again apply
     to such sale; provided, however, that the 60-day term provided in Section
     20.2 above shall be reduced to thirty (30) days and Customer shall not be
     obligated to provide any additional Deposit.




                                    Page 17
<PAGE>
Purchase and License Agreement for FWA Equipment


--------------------------------------------------------------------------------

The Parties hereto have executed this Purchase and License Agreement for FWA
Equipment as of February 14, 2003 and it shall become effective on the Closing
Date.


AXTEL, S.A. DE C.V.



By: /S/ Alberto de Villasante
    -------------------------
Name: Alberto de Villasante
Title: Legal Representative


NORTEL NETWORKS LIMITED



By: /S/ Gabriel Garcia-Mosquera
    ---------------------------
Name: Gabriel Garcia-Mosquera
Title: Attorney-in-Fact


NORTEL NETWORKS DE MEXICO, S.A. DE C.V.



By: /S/ Gabriel Garcia-Mosquera
    ---------------------------
Name: Gabriel Garcia-Mosquera
Title: Attorney-in-Fact



                                    Page 18
<PAGE>

Annex A


<TABLE>
<CAPTION>


<S>                                                           <C>
[AXTEL LOGO]                                                  Purchase Order Foreign Suppliers
                                                              Purchase Order/Date
                                                              4500046564/MAR/18/03
                                                              Buyer:   Salvador Chazaro Perez
                                                              Phone:   (52)81-8114-1769 ext.
                                                              Fax:     (52) 81-8114-1919 ext. 1769
SUPPLIER  :  100515                                           email:   schazaro@axtel.com.mx
NORTEL NETWORKS LIMITED
8200 DIXIE ROAD SUITE 100                                     NOTE:    please include PO number in invoice
L6T 5P6 BRAMPTON
Contact:  DAVID POWELL

                                                              DELIVERY DATE:  MAR/15/04
SHIP TO:
AXTEL S.A. DE C.V. C/O                                        INVOICE TO:
LASER FORWARDING INC.                                         AXTEL S.A. de C.V.
13209 SOUTH UNITEC DRIVE                                      Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
UNIROYAL INDUSTRIAL PARK                                      San Pedro Garza Garcia, N.L. CP 66215
78045 LAREDO, TX


                                                              PAYMENT TERMS:
INCOTERM                                                      0001 payment:  0 days 0.000%
CIP, NORTEL WAREHOUSE DALLAS, TX                                  payment:  0 days 0.000%

</TABLE>

PAYABLE IN:
Axtel S.A. de C.V.
Oficinas Monterrey
Blvd. Diaz Ordaz Km 3.33 No. L-1
Col. Unidad San Pedro

This Initial Purchase Order is issued by Axtel, S.A. de C.V. under the terms and
conditions set forth in Sections 2.5, 5.21 and 19.1 of the FWA Purchase and
License Agreement (the "FWA PLA"), entered by and between Axtel, S.A. de C.V.
and Nortel Networks Limited and Nortel Networks de Mexico, S.A. de C.V.

This Purchase Order is issued in accordance with the terms set forth in Section
5.21 of the FWA PLA for the first and second quarter of year 2003.

SPECIAL TERMS OF THIS PURCHASE ORDER

1.- The units described in this Purchase Order comprise a total quantity of
[10,000] complete kits of F2 RSS. Therefore, Nortel Networks shall deliver to
Axtel [10,000] complete "CUSTOMER PREMISE EQUIPMENT KIT, MODEL F2 RSS".


--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 1/5
<PAGE>

[AXTEL LOGO]

SUPPLIER:  100515                              Purchase Order/Date
NORTEL NETWORKS LIMITED                        4500046564/MAR/18/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL


Each complete kit includes:

PEC                      Description                                     Qty

NTEG17DA                 F2 RTU                                          1
NTEG12FA                 RPCU                                            1
A0636762                 RPCU Battery                                    1
NTEG12CL                 RPCU Power Cord                                 1
NTEG12FB                 RPCU Safety Booklet                             1
NTEG99JE                 Drop Cable (500m)                               0.04
NTEG99GR                 Drop Cable Connector (50 pcs)                   0.02
NTEG99CZ                 Drop Cable Connector Pins (500 pcs)             0.02

2.- The CIP Price at Nortel Networks' warehouse in Texas is USD$381.14 per F2
RSS Kit. The prices contained under the wording "We require an order
acknowledgment for the following items" of this Purchase Order, have been
assigned by Axtel for internal Axtel, order management processes and as such
have no bearing on the actual price paid by Axtel to Nortel Networks.

3.- In accordance with the foregoing, the total amount of this Purchase Order is
US$3,811,400.00 Dollars.

4.- The Payment and the Delivery Terms of the Products ordered by Axtel in this
Purchase Order, shall be in accordance with the terms and conditions set forth
in the FWA PLA: 70% upon purchase order effective day 30% 10 days after product
delivery

We require an order acknowledgment for the following items:

<TABLE>
<CAPTION>

------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

                  Material                                        Qty.
   Item          Description             Supplier              Requested         Unit    Unit Price     Total Value
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

<S>          <C>                  <C>                      <C>                 <C>        <C>             <C>
00010        50003695             NTEG17DA                 10,000              Piece      318.51          3,185,100.00
             NTEG17DA ANTENA (RTU)
CODIGO NORTEL:  NTEG17DA
---------------------------------------------------------- ------------------- --------- ------------ ----------------

</TABLE>

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 2/5
<PAGE>
[AXTEL LOGO]

SUPPLIER:  100515                              Purchase Order/Date
NORTEL NETWORKS LIMITED                        4500046564/MAR/18/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>

<S>          <C>                  <C>                      <C>                 <C>         <C>              <C>
00020        50003696             NTEG12FA                 10,000              Piece       38.01            380,100.00
             RPCU/FUENTE DE PODER NTEG12FA
RPCU/FUENTE DE PODER
CODIGO NORTEL:  NTEG12FA
---------------------------------------------------------- ------------------- --------- ------------ ----------------

00030        50003699             A0636762                 10,000              Piece       10.74            107,400.00
             BATERIA P/RPCU YUASA ENERSYS NP2.3-12
RPCU BATTERY/BATERIA RPCU 12V
CODIGO NORTEL:  A0636762
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

00040        50003512             NTEG12CL                 10,000              Piece        0.54              5,400.00
             POWER CORD/CABLE FTE-PODER NTEG12CL
POWER CORD/CABLE FTE-PODER
No. PARTE NORTEL:NTEG12CL
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

00050        50003513             UTPGRB 128SH42           10,000              Piece      242.98/50          48,596.00
             CONECTOR MILITAR P/CABLE EXTERIOR
PLUG FOR ANTENNA DROP CABLE WITH RUBBER BOOT
(ASS'Y RUBBER BOOT WITH BAYO, AND FEMALE INSERT)
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

</TABLE>
--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------


                                    Page 3/5
<PAGE>
[AXTEL LOGO]

SUPPLIER:  100515                              Purchase Order/Date
NORTEL NETWORKS LIMITED                        4500046564/MAR/18/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>

<S>          <C>                  <C>                      <C>                 <C>         <C>                <C>
00060        50003514             NTEG99CZ                 100,000             Piece       48.44/500          9,688.00
             PIN P/CONECTOR MILITAR FCI SC20ML1S6UK
PIN P/CONECTOR MILITAR
NUMERO DE PARTE:  SC20ML1S6UK
MARCA SOURIAU (FCI)
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

00070        50003511             NTEG12FB                 10,000              Piece        0.36              3,600.00
             RPCU HANDBOOK/MANUAL RPCU NTEG12FB
RPCU HANDBOOK/MANUAL RPCU
CODIGO NORTEL:  NTEG12FB
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

00080        50003515             NTEG99JE                 400                 Role       178.82             71,528.00
             CABLE EXTERIOR NEGRO NORTEL NTEG99JE
DROP CABLE 500 METER ROL
Part No. NTEG99JE

                                                 Net Value without VAT USD                                3,811,412.00
                                                 ==================================================== ================

</TABLE>

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------


                                    Page 4/5
<PAGE>
[AXTEL LOGO]

SUPPLIER:  100515                              Purchase Order/Date
NORTEL NETWORKS LIMITED                        4500046564/MAR/18/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>

------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

                  Material                                        Qty.
   Item          Description             Supplier              Requested         Unit    Unit Price     Total Value
------------ -------------------- ------------------------ ------------------- --------- ------------ ----------------

<S>              <C>                     <C>                   <C>               <C>      <C>           <C>


</TABLE>

PURCHASE ORDER CONDITIONS: 1.-The following issues: the Certificate the Origin,
the packing list and the Pro-form Invoice has to be deliver in the border to the
broker. In case that we (Axtel) pay the freight the Supplier has to send the
freight bill too.

2.-The original Invoice has to be deliver by a courier to the following address:
AXTEL S.A. de C.V.
Central Purchasing Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215

Central Account Payable Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215


--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------


                                    Page 5/5
<PAGE>


<TABLE>
<CAPTION>

<S>                                                        <C>
                                                           Purchase Order Foreign Suppliers
[AXTEL LOGO]                                               Purchase Order/Date
                                                           4500046574 / MAR/19/03
                                                           Buyer:    Salvador Chazaro Perez
                                                           Phone:    (52)81-8114-1769 ext.
                                                           Fax:      (52) 81-8114-1919 ext. 1769
SUPPLIER:  100515                                          email:    schazaro@axtel.com.mx
NORTEL NETWORKS LIMITED
8200 DIXIE ROAD SUITE 100                                  NOTE:     please include PO number invoice
L6T 5P6 BRAMPTON
Contact:  DAVID POWELL
                                                           DELIVERY DATE:  DEC/31/04
SHIP TO:
LASER FORWARDING, INC.                                     INVOICE TO:
                                                           AXTEL S.A. de C.V.
13209 SOUTH UNITEC DRIVE                                   Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
UNIROYAL INDUSTRIAL PARK                                   San Pedro Garza Garcia, N.L. CP 66215
78045 LAREDO, TX


                                                           PAYMENT TERMS:
INCOTERM                                                   0001 payment:  0 days 0.000%
CIP, NORTEL WAREHOUSE DALLAS, TX                               payment:  0 days 0.000%

PAYABLE IN:
Axtel S.A. de C.V.
Oficinas Monterrey
Blvd. Diaz Ordaz Km 3.33 No. L-1
Col. Unidad San Pedro

</TABLE>



This Initial Purchase Order is issued by Axtel, S.A. de C.V. under the terms and
conditions set forth in Sections 2.5, 5.21 and 19.1 of the FWA Purchase and
License Agreement (the "FWA PLA"), entered by and between Axtel, S.A. de C.V.
and Nortel Networks Limited and Nortel Networks de Mexico, S.A. de C.V.

This Purchase Order is issued in accordance with the terms set forth in Section
5.21 of the FWA PLA for the third quarter of year 2003.

SPECIAL TERMS OF THIS PURCHASE ORDER

1.- The units described in this Purchase Order comprise a total quantity of
[5,000] complete kits of F2 RSS. Therefore, Nortel Networks shall deliver to
Axtel [5,000] complete "CUSTOMER PREMISE EQUIPMENT KIT, MODEL F2 RSS".

Each complete kit includes:

         PEC                   Description                                Qty

         NTEG17DA              F2RTU                                      1

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 1/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046574/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL

         PEC                   Description                                Qty

         NTEG12FA             RPCU                                         1
         A0636762             RPCU Battery                                 1
         NTEG12CL             RPCU Power Cord                              1
         NTEG12FB             RPCU Safety Booklet                          1
         NTEG99JE             Drop Cable (500m)                            0.04
         NTEG99GR             Drop Cable Connector (50 pcs)                0.02
         NTEG99CZ             Drop Cable Connector Pins (500 pcs)          0.02

2.- The CIP Price at Nortel Networks' warehouse in Texas is USD$381.14 per F2
RSS Kit. The prices contained under the wording "We require an order
acknowledgment for the following items" of this Purchase Order, have been
assigned by Axtel for internal Axtel, order management processes and as such
have no bearing on the actual price paid by Axtel to Nortel Networks.

3.- In accordance with the foregoing, the total amount of this Purchase Order is
US$1,905,700 Dollars.

4.- The Payment and the Delivery Terms of the Products ordered by Axtel in this
Purchase Order, shall be in accordance with the terms and conditions set forth
in the FWA PLA: 70% upon purchase order effective day 30% 10 days after product
delivery

We require an order acknowledgment for the following items:

<TABLE>
<CAPTION>
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                               <C>        <C>        <C>             <C>
00010        50003695             NTEG17DA                          5,000      Piece      318.51          1,592,550.00
             NTEG17DA ANTENA (RTU)
CODIGO NORTEL:  NTEG17DA
--------------------------------------------------------------- -------------- --------- ------------ ------------------

</TABLE>




--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 2/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046574/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                               <C>        <C>         <C>              <C>
00020        50003696             NTEG12FA                          5,000      Piece       38.01            190,050.00
             RPCU/FUENTE DE PODER NTEG12FA
RPCU/FUENTE DE PODER
CODIGO NORTEL:  NTEG12FA
         We require an order acknowledgment for this item
--------------------------------------------------------------- -------------- --------- ------------ ------------------

00030        50003699             A0636762                          5,000      Piece       10.74             53,700.00
             BATERIA P/RPCU YUASA ENERSYS NP2.3-12
RPCU BATTERY/BATERIA RPCU 12V
CODIGO NORTEL:  A0636762
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00040        50003512             NTEG12CL                          5,000      Piece        0.54              2,700.00
             POWER CORD/CABLE FTE-PODER NTEG12CL
POWER CORD/CABLE FTE-PODER
No. PARTE NORTEL:NTEG12CL
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00050        50003513             UTPGRB 128SH42                    5,000      Piece      242.98/50          24,298.00
             CONECTOR MILITAR P/CABLE EXTERIOR
PLUG FOR ANTENNA DROP CABLE WITH RUBBER BOOT
(ASS'Y RUBBER BOOT WITH BAYO, AND FEMALE INSERT)
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

</TABLE>


--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 3/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046574/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                              <C>         <C>         <C>                <C>
00060        50003514             NTEG99CZ                         50,000      Piece       48.44/500          4,844.00
             PIN P/CONECTOR MILITAR FCI SC20ML1S6UK
PIN P/CONECTOR MILITAR
NUMERO DE PARTE:  SC20ML1S6UK
MARCA:  SOURIAU (FCI)
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00070        50003511             NTEG12FB                          5,000      Piece        0.36              1,800.00
             RPCU HANDBOOK/MANUAL RPCU NTEG12FB
RPCU HANDBOOK/MANUAL RPCU
CODIGO NORTEL:  NTEG12FB
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00080        50003515             NTEG99JE                           200       Role       178.82             35,764.00
             CABLE EXTERIOR NEGRO NORTEL NTEG99JE
DROP CABLE 500 METER ROL
Part No. NTEG99JE
         We require an order acknowledgment for this item

                                                 Net Value without VAT USD                                1,905,706.00
                                                 ==================================================== ==================
</TABLE>

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 4/5


<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046574/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>

------------ -------------------- ------------------------------ ------------- --------- ------------- -----------------

                  Material                                           Qty.
   Item          Description                Supplier              Requested      Unit     Unit Price     Total Value
------------ -------------------- ------------------------------ ------------- --------- ------------- -----------------
<S>              <C>                        <C>                   <C>            <C>      <C>            <C>

</TABLE>

PURCHASE ORDER CONDITIONS:

1.-The following issues: the Certificate the Origin, the packing list and the
Pro-form Invoice has to be deliver in the border to the broker. In case that we
(Axtel) pay the freight the Supplier has to send the freight bill too.

2.-The original Invoice has to be deliver by a courier to the following address:
AXTEL S.A. de C.V.
Central Purchasing Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215

Central Account Payable Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215


--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 5/5

<PAGE>





<TABLE>
<CAPTION>

<S>                                                           <C>
                                                              Purchase Order Foreign Suppliers
[AXTEL LOGO]                                                  Purchase Order/Date
                                                              4500046583/MAR/19/03
                                                              Buyer:    Salvador Chazaro Perez
                                                              Phone:    (52)81-8114-1769 ext.
                                                              Fax:      (52) 81-8114-1919 ext. 1769
SUPPLIER:  100515                                             email:    schazaro@axtel.com.mx
NORTEL NETWORKS LIMITED
8200 DIXIE ROAD SUITE 100                                     NOTE:     please include PO number in invoice
L6T 5P6 BRAMPTON
Contact:  DAVID POWELL

                                                              DELIVERY DATE:  SEP/22/03
SHIP TO  :
LASER FORWARDING, INC.                                        INVOICE TO:
                                                              AXTEL S.A. de C.V.
13209 SOUTH UNITEC DR.                                        Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
UNIROYAL INDUSTRIAL PARK                                      San Pedro Garza Garcia, N.L. CP 66215
78045 LAREDO


                                                              PAYMENT TERMS:
INCOTERM                                                      0001 payment:  0 days 0.000%
EXW, NORTEL CALGARY CANADA                                        payment:  0 days 0.000%

PAYABLE IN:
Axtel S.A. de C.V.
Oficinas Monterrey
Blvd. Diaz Ordaz Km 3.33 No. L-1
Col. Unidad San Pedro

</TABLE>



This Initial Purchase Order is issued by Axtel, S.A. de C.V. dated as of March
20, 2003 under the terms and conditions set forth in Sections 5.21 and 19.1 of
the FWA Purchase and License Agreement dated as of March 20, 2003 (the "FWA
PLA"), entered by and between Axtel, S.A. de C.V. and Nortel Networks Limited
and Nortel Networks de Mexico, S.A. de C.V.

SPECIAL TERMS OF THIS PURCHASE ORDER

1.- The units described in this Purchase Order comprise a total quantity of [20]
Base Station Units.

2.- The Ex-Works Price at Nortel Networks' warehouse in Calgary, Canada is
USD$40,384.62 per Base Station Unit (Cell Site Packet Data Upgrade). The prices
contained under the wording "We require an order acknowledgment for the
following items" of this Purchase Order, have been assigned by Axtel for
internal Axtel, order management processes and as such have no bearing on the
actual price paid by Axtel to Nortel Networks.

3.- In accordance with the foregoing, the total amount of this Purchase Order is
US$807,692.40 Dollars.

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 1/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                       Purchase Order/Date
NORTEL NETWORKS LIMITED                                 4500046583/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL


4.- The Payment and the Delivery Terms of the Products ordered by Axtel in this
Purchase Order, shall be in accordance with the terms and conditions set forth
in the FWA PLA: 70% upon purchase order effective day 30% 10 days after product
delivery

We require an order acknowledgment for the following items:

<TABLE>
<CAPTION>

------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                                <C>       <C>       <C>                <C>
00010        50008145             NTEG-71HA                          40        Piece     7,692.31           307,692.40
             TRANSCEIVER PROCESSOR MODULE (TPM-PD)
TRANSCEIVER PROCESSOR MODULE (TPM-PD)
PROVEEDOR NORTEL
No. PARTE:  NTEG71HA
NORTEL PART No. NTEG71HA
--------------------------------------------------------------- -------------- --------- ------------ ------------------

00020        50008144             NTEG12FA                           20        Piece     25,000.00          500,000.00
             PACKET DATA SOFTWARE ACTIVATION FEE
PACKET DATA SOFTWARE ACTIVATION FEE
         We require an order acknowledgment for this item
--------------------------------------------------------------- -------------- --------- ------------ ------------------

                                                 Net Value without VAT USD                                  807,692.40
                                                 ==================================================== ==================

</TABLE>


--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 2/5
<PAGE>



<TABLE>
<CAPTION>

------------ -------------------- ------------------------------ ------------- --------- ------------- -----------------

                  Material                                           Qty.
   Item          Description                Supplier              Requested      Unit     Unit Price     Total Value
------------ -------------------- ------------------------------ ------------- --------- ------------- -----------------
<S>              <C>                        <C>                   <C>            <C>      <C>            <C>

</TABLE>

PURCHASE ORDER CONDITIONS:

1.-The following issues: the Certificate the Origin, the packing list and the
Pro-form Invoice has to be deliver in the border to the broker. In case that we
(Axtel) pay the freight the Supplier has to send the freight bill too.

2.-The original Invoice has to be deliver by a courier to the following address:
AXTEL S.A. de C.V.
Central Purchasing Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215

Central Account Payable Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215




--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 3/5
<PAGE>


[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046575/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>

<S>                                                           <C>
                                                              Purchase Order Foreign Suppliers
[AXTEL LOGO]                                                  Purchase Order/Date
                                                              4500046575 / MAR/19/03
                                                              Buyer:      Salvador Chazaro Perez
                                                              Phone:      (52) 81-8114-1769 ext.
                                                              Fax:        (52) 81-8114-1919 ext. 1769
SUPPLIER  :  100515                                           email:   schazaro@axtel.com.mx
NORTEL NETWORKS LIMITED
8200 DIXIE ROAD SUITE 100                                     NOTE:    please include PO number in invoice
L6T 5P6 BRAMPTON
Contact:  DAVID POWELL

                                                              DELIVERY DATE:  MAY/31/04
SHIP TO:
LASER FORWARDING, INC.                                        INVOICE TO:
                                                              AXTEL S.A. de C.V.
13209 SOUTH UNITEC DR.                                        Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
UNIROYAL INDUSTRIAL PARK                                      San Pedro Garza Garcia, N.L. CP 66215
78045 LAREDO


                                                              PAYMENT TERMS:
INCOTERM                                                      0001 payment:  0 days 0.000%
CIP, NORTEL WAREHOUSE DALLAS, TX                                  payment:  0 days 0.000%

PAYABLE IN:
Axtel S.A. de C.V.
Oficinas Monterrey
Blvd. Diaz Ordaz Km 3.33 No. L-1
Col. Unidad San Pedro

</TABLE>



This Initial Purchase Order is issued by Axtel, S.A. de C.V. under the terms and
conditions set forth in Sections 2.5, 5.21 and 19.1 of the FWA Purchase and
License Agreement (the "FWA PLA"), entered by and between Axtel, S.A. de C.V.
and Nortel Networks Limited and Nortel Networks de Mexico, S.A. de C.V.

This Purchase Order is issued in accordance with the terms set forth in Section
5.21 of the FWA PLA for the fourth quarter of year 2003.

SPECIAL TERMS OF THIS PURCHASE ORDER

1.- The units described in this Purchase Order comprise a total quantity of
[5,000] complete kits of F2 RSS. Therefore, Nortel Networks shall deliver to
Axtel [5,000] complete "CUSTOMER PREMISE EQUIPMENT KIT, MODEL F2 FSS".

Each complete kit includes:

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 1/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046575/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



         PEC                 Description                                    Qty

         NTEG12FA            RPCU                                           1
         A0636762            RPCU Battery                                   1
         NTEG12CL            RPCU Power Cord                                1
         NTEG12FB            RPCU Safety Booklet                            1
         NTEG99JE            Drop Cable (500m)                              0.04
         NTEG99GR            Drop Cable Connector (50 pcs)                  0.02
         NTEG99CZ            Drop Cable Connector Pins (500 pcs)            0.02

2.- The CIP Price at Nortel Networks' warehouse in Texas is USD$381.14 per F2
RSS Kit. The prices contained under the wording "We require an order
acknowledgment for the following items" of this Purchase Order, have been
assigned by Axtel for internal Axtel, order management processes and as such
have no bearing on the actual price paid by Axtel to Nortel Networks.

3.- In accordance with the foregoing, the total amount of this Purchase Order is
US$1,905,700 Dollars.

4.- The Payment and the Delivery Terms of the Products ordered by Axtel in this
Purchase Order, shall be in accordance with the terms and conditions set forth
in the FWA PLA: 70% upon purchase order effective day 30% 10 days after product
delivery

We require an order acknowledgment for the following items:

<TABLE>
<CAPTION>

------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                               <C>        <C>        <C>             <C>
00010        50003695             NTEG17DA                          5,000      Piece      318.51          1,592,550.00
             NTEG17DA ANTENA (RTU)
CODIGO NORTEL:  NTEG17DA
--------------------------------------------------------------- -------------- --------- ------------ ------------------

</TABLE>

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 2/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046575/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL



<TABLE>
<CAPTION>

------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                               <C>        <C>        <C>             <C>

00020        50003696             NTEG12FA                          5,000      Piece       38.01            190,050.00
             RPCU/FUENTE DE PODER NTEG12FA
RPCU/FUENTE DE PODER
CODIGO NORTEL:  NTEG12FA
         We require an order acknowledgment for this item
--------------------------------------------------------------- -------------- --------- ------------ ------------------

00030        50003699             A0636762                          5,000      Piece       10.74             53,700.00
             BATERIA P/RPCU YUASA ENERSYS NP2.3-12
RPCU BATTERY/BATERIA RPCU 12V
CODIGO NORTEL:  A0636762
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00040        50003512             NTEG12CL                          5,000      Piece        0.54              2,700.00
             POWER CORD/CABLE FTE-PODER NTEG12CL
POWER CORD/CABLE FTE-PODER
No. PARTE NORTEL: NTEG12CL
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00050        50003513             UTPGRB 128SH42                    5,000      Piece      242.98/50          24,298.00
             CONECTOR MILITAR P/CABLE EXTERIOR
PLUG FOR ANTENNA DROP CABLE WITH RUBBER BOOT
(ASS'Y RUBBER BOOT WITH BAYO, AND FEMALE INSERT)
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

</TABLE>

                                    Page 3/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046575/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL

<TABLE>
<CAPTION>

------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                               <C>        <C>        <C>             <C>
00060        50003514             NTEG99CZ                         50,000      Piece       48.44/500          4,844.00
             PIN P/CONECTOR MILITAR FCI SC20ML1S6UK
PIN P/CONECTOR MILITAR
NUMERO DE PARTE:  SC20ML1S6UK
MARCA:  SOURIAU (FCI)
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00070        50003511             NTEG12FB                          5,000      Piece        0.36              1,800.00
             RPCU HANDBOOK/MANUAL RPCU NTEG12FB
RPCU HANDBOOK/MANUAL RPCU
CODIGO NORTEL:  NTEG12FB
         We require an order acknowledgment for this item
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

00080        50003515             NTEG99JE                           200       Role       178.82             35,764.00
             CABLE EXTERIOR NEGRO NORTEL NTEG99JE
DROP CABLE 500 METER ROL
Part No. NTEG99JE
         We require an order acknowledgment for this item

                                                 Net Value without VAT USD                                1,905,706.00
                                                 ==================================================== ==================

</TABLE>


--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 4/5

<PAGE>
[LOGO]

SUPPLIER:  100515                                   Purchase Order/Date
NORTEL NETWORKS LIMITED                             4500046575/MAR/19/03
8200 DIXIE ROAD SUITE 100

L6T 5P6 BRAMPTON
Contact:  DAVID POWELL




<TABLE>
<CAPTION>

------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

                  Material                                          Qty.
   Item          Description                Supplier              Requested      Unit    Unit Price      Total Value
------------ -------------------- ----------------------------- -------------- --------- ------------ ------------------

<S>          <C>                  <C>                               <C>        <C>        <C>             <C>
------------ -------------------- ------------------------------ ------------- --------- ------------- -----------------

</TABLE>

PURCHASE ORDER CONDITIONS:

1.-The following issues: the Certificate the Origin, the packing list and the
Pro-form Invoice has to be deliver in the border to the broker. In case that we
(Axtel) pay the freight the Supplier has to send the freight bill too.

2.-The original Invoice has to be deliver by a courier to the following address:
AXTEL S.A. de C.V.
Central Purchasing Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215

Central Account Payable Departament
Blvd. Diaz Ordaz Km 3.33 No. L-1, Unidad San Pedro
San Pedro Garza Garcia, N.L. CP 66215



--------------------------------------------------------------------------------
AXTEL S.A. de C.V. Purchasing                      Sign:

--------------------------------------------------------------------------------

                                    Page 5/5

<PAGE>









                                     Annex B

                             CHANGE ORDER PROCEDURES



<PAGE>






                                     ANNEX B

                             CHANGE ORDER PROCEDURES

The following procedure shall apply to the issuance of Change Orders under the
Agreement. Capitalized terms used and not defined herein have the meanings
attributed to them in the Agreement.

1.   Change Order

     Any changes made by Customer after the effective date of the Agreement,
     resulting in adjustments to the content and/or specifications of the
     Products, Services, process, job schedule or other requirements shall be
     considered a change order ("Change Order"). The form of Change Order is
     attached hereto.

     1.1  Customer shall issue a written communication to the Nortel Networks
          Account Manager detailing the nature of the modifications it wishes to
          make.

     1.2  The Nortel Networks Account Manager shall return to Customer with an
          assessment of requirements to present a quotation.

     1.3  Upon acceptance of Nortel Networks' quotation. Customer shall issue a
          Change Order in the form attached hereto and deliver it to Nortel
          Networks five (5) business days from receipt of Nortel Networks'
          quotation.

2.   Non-Billable Change Order

     If changes to the content and specifications of the Products or Services
     after the Start Date of the Agreement are deemed non-billable to Customer
     by Nortel Networks, "Non-Billable" shall be checked off on the Change
     Order.

3.   Customer Information

     In cases where the Change Order is not based on models or merchandise, the
     Customer Information (CI) meeting shall be held and a related document
     shall be completed by Customer with the assistance of the Nortel Networks'
     Systems Application Engineer, capturing all network specifications.
     Customer shall approve this document prior to each request for quotation
     and subsequent Change Order.


                                     Page 2
<PAGE>



                             ANNEX B - ATTACHMENT 1
                              FORM OF CHANGE ORDER

                                                             Axtel, S.A. de C.V.
                               Re: Purchase and License Agreement dated ________
                                                     Change Order No.: _________
                                            Circle One: Billable or Non-Billable

1.   This Change Order is issued pursuant to Section 2 of the Purchase and
     License Agreement, dated __________ (the "Agreement"), by and between
     Axtel, S.A. de C.V. ("Customer") and Nortel Networks Limited and Nortel
     Networks de Mexico, S.A. de C.V. (collectively, "Nortel Networks"). This
     Change Order and the Products and Services to be supplied under this Change
     Order shall be subject to all the terms and conditions set forth in the
     Agreement.

2.   This Change Order shall become effective upon execution by authorized
     representatives of Nortel Networks and Customer. 3. Origin and Description
     of Changes:

     [insert narrative explaining reason for change]

     [INSERT ONLY IF NON-BILLABLE: The purpose of this Change Order is to notify
     you of some changes in the project as described below. Nortel Networks
     deems these changes non-billable. Any reference to prices or value is for
     informational purposes only. Nortel Networks requests your acknowledgement
     below to the changes described in this Change Order. This Change Order
     shall be deemed accepted if Nortel Networks has not received your express
     rejection within thirty days from the date set forth above.]

4.   Resulting Adjustment

[address addition, deletion or change in Products to be delivered, change in
Price, Schedule, Delivery Term, etc.]


In witness whereof, the Parties have executed this Change Order on the ____ day
of ____________, 200_.

AXTEL, S.A. DE C.V.

By:_______________________________
Print Name:_______________________
Title:____________________________


NORTEL NETWORKS LIMITED             NORTEL NETWORKS DE MEXICO, S.A. DE C.V.



By:__________________________       By:____________________________________
Print Name:__________________       Print Name:____________________________
Title:_______________________       Title:_________________________________


                                     Page 3

<PAGE>


Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------





                                     Annex C

                             DESCRIPTION OF PRODUCTS









<PAGE>
Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------



                                     Annex C

                             DESCRIPTION OF PRODUCTS

1.   DOCUMENT SCOPE

1.1  Document Scope

     This document details the definition of the FWA equipment to be supplied by
     Nortel Networks to AXtel. Note that "Qty." refers to the quantity of a
     component required for that configuration. Where the quantity of a
     component required for a configuration differs from the unit of measure for
     that component, the unit of measure is included in the description of that
     component. Equipment can only be ordered in whole multiples of the
     associated unit of measure.

2.1.1 FWA Description of Equipment

2.1.1.1 Intentionally Left in Blank

2.1.1.2 Customer Premise Equipment Kits.

     An F2 RSS Kit is defined as follows:

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG17DA             F2 RTU                                           1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500M)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GY             Dual Jacket Drop Cable Connector (50)            0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ -------

                  An F5 RSS Kit is defined as follows:

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG18DA             F5 RTU                                           1
-------------------- ------------------------------------------------ -------
NTEG18FA             RDA Kit                                          1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------

                                     Page 2
<PAGE>
Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------



-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GY             Dual Drop Cable Connector (50)                   0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ -------

2.1.1.3 Installation Brackets for F5 & F2 RSS.

                  Compact Mounting Bracket

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
     NTEG19AJ                 Compact Mounting Bracket (10)             1
-------------------- ------------------------------------------------ -------
     NTEG99DC                  Mounting Coach Screw (200)             0.015
-------------------- ------------------------------------------------ -------
     NTEG99DD                        Washer M8 (200)                  0.015
-------------------- ------------------------------------------------ -------
     NTEG99DE                       Frame Fixing(200)                 0.015
-------------------- ------------------------------------------------ -------


2.1.1.4 Radio Basestation Kits

     Discrete Radio Basestation Configurations.

     The following configurations are representative of a typical installation.
     Specific installations may require variations on these definitions.

<TABLE>
<CAPTION>

------------------- ------------------------------- -------------- --------------- -------------------
<S>                          <C>                       <C>            <C>               <C>
       PEC                   Description               18b RBS        27b RBS           48b RBS
------------------- ------------------------------- -------------- --------------- -------------------
     NTED4575       Transceiver Processor Module          5              7                 12
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG72AD       Transceiver Baseband Module           5              7                 15
                    Combining Diversity
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG77EC       Transceiver Masthead Unit Kit         6              9                 18
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97PC       Antenna to TMU 4m Cable               6              9                 18
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG94BD       1M Pre-Fit Cabinet                    1              2                 3
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG63AA       Transceiver Timer Module              0              0                 0
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG73AA       Network Management Module             0              0                 0
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG99CJ       TMU to Cabinet IF1/2" cable          0.6            0.9               1.8
                    (500m)
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG91BA       1/2  " IF Cable Connector Kit          6              9                 18
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG99CE       TMU to Cabinet Power cable           0.6            0.9               1.8
                    (500m)
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG93AA       Power Cable Connector Kit             6              9                 18
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG99CA       TMU to Cabinet Data Cable            0.6            0.9               1.8
                    (500m)
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG92AA       Data Cable Connector Kit              6              9                 18
------------------- ------------------------------- -------------- --------------- -------------------

</TABLE>


                                     Page 3
<PAGE>
Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

------------------- ------------------------------- -------------- --------------- -------------------
<S>                          <C>                       <C>            <C>               <C>
       PEC                   Description               18b RBS        27b RBS           48b RBS
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97MF       120 Degree Horizontal              Up to 6        Up to 9           Up to 6
                    Polarization Antenna
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97ME       120 Degree Vertical                Up to 6        Up to 9           Up to 6
                    Polarization Antenna
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97NF       60 Degree Horizontal               Up to 6        Up to 9           Up to 12
                    Polarization Antenna
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97NE       60 Degree Vertical                 Up to 6        Up to 9           Up to 12
                    Polarization Antenna
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97NG       40 Degree Vertical                    0              0              Up to 12
                    Polarization Antenna
------------------- ------------------------------- -------------- --------------- -------------------
     NTEG97NH       40 Degree Horizontal                  0              0              Up to 12
                    Polarization Antenna
------------------- ------------------------------- -------------- --------------- -------------------

</TABLE>

With regard to antennas for the various basestation configurations, the
quantities shown above reflect the maximum number of each antenna that could be
required in a specific installation. The combined total actual antenna
requirement for each configuration is:

                  18b - 6
                  27b - 9
                  48b - 18

For clarity, NTEG94BD (1M Pre-Fit Cabinet) and NTEG77EC (Transceiver Masthead
Unit Kit) are defined as follows:

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------
                           NTEG94BD 1M Pre-Fit Cabinet
------------------- -------------------------------------------------------------------------- -------
<S>                                                <C>                                          <C>
       PEC                                         Description                                  Qty.
------------------- -------------------------------------------------------------------------- -------
NTED4575            Transceiver Processor Module                                                 1
------------------- -------------------------------------------------------------------------- -------
NTEG63AA            Transceiver Timer Module                                                     2
------------------- -------------------------------------------------------------------------- -------
NTEG72AD            Transceiver Baseband Module Combining Diversity                              1
------------------- -------------------------------------------------------------------------- -------
NTEG73AA            Network Management Module                                                    1
------------------- -------------------------------------------------------------------------- -------
NTEG7662            CABINET CABLE SET TYPE 2                                                     1
------------------- -------------------------------------------------------------------------- -------
NTEG74BA            Over Voltage Protection Module                                               3
------------------- -------------------------------------------------------------------------- -------
NTEG76BA            ITS Fan Tray Assembly                                                        1
------------------- -------------------------------------------------------------------------- -------
NTEG76CC            Secondary DC Breaker Rack Filtered                                           1
------------------- -------------------------------------------------------------------------- -------
NTEG76FB            I.T.S Basestation Diversity Sub Rack                                         1
------------------- -------------------------------------------------------------------------- -------
NTEG76GA            I.T.S U.K Maintenance Port Assembly                                          1
------------------- -------------------------------------------------------------------------- -------
NTEG94AN            1.0M Cabinet Floor Mounting Plinth                                           1
------------------- -------------------------------------------------------------------------- -------
NTEG94FA            Alarm Connector Block                                                        1
------------------- -------------------------------------------------------------------------- -------
NTEG94QA            1.0M Internal ITS Cabinet                                                    1
------------------- -------------------------------------------------------------------------- -------

------------------------------------------------------------------------------------------------------
                     NTEG77EC Transceiver Masthead Unit Kit
------------------- -------------------------------------------------------------------------- -------
       PEC                                         Description                                  Qty.
------------------- -------------------------------------------------------------------------- -------
------------------- -------------------------------------------------------------------------- -------
NTEG77CA            T.M.U./T.A.S. Ground Bond Kit                                                1
------------------- -------------------------------------------------------------------------- -------
------------------- -------------------------------------------------------------------------- -------
NTEG77DA            Sun Shield Assembly                                                          1
------------------- -------------------------------------------------------------------------- -------
------------------- -------------------------------------------------------------------------- -------
NTEG77GB            T.M.U. Assemble BF Band (100MHz)                                             1
------------------- -------------------------------------------------------------------------- -------
------------------- -------------------------------------------------------------------------- -------
P0821020            U Bolt 61 C R S                                                              2
------------------- -------------------------------------------------------------------------- -------
------------------- -------------------------------------------------------------------------- -------
P0821021            U Bolt 126 C R S                                                             2
------------------- -------------------------------------------------------------------------- -------
------------------- -------------------------------------------------------------------------- -------
P0834843            T.M.U. Mounting Bracket V3                                                   1
------------------- -------------------------------------------------------------------------- -------
</TABLE>

                                     Page 4
<PAGE>
Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------


2.1.1.5 Discrete Radio Basestation Upgrade Configurations.

     The following configurations are representative of a typical installation,
     eg. 45m cable runs assumed. Specific installations may require variations
     on these definitions.


<TABLE>
<CAPTION>

------------------- --------------------------- ---------------- ----------------- -------------------
<S>                        <C>                    <C>               <C>              <C>
       PEC                 Description            18b to 27b        27b to 48b       PDS Upgrade to
                                                    Upgrade          Upgrade            18b ITS
------------------- --------------------------- ---------------- ----------------- -------------------
     NTED4575       Transceiver Processor              2                5                  0
                    Module
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG72AD       Transceiver Baseband               2                8                  0
                    Module Combining Diversity
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG77EC       Transceiver Masthead Unit          3                9                  0
                    Kit
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97PC       Antenna to TMU 4m Cable            3                9                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG94BD       1M Pre-Fit Cabinet                 1                1                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG63AA       Transceiver Timer Module           0                0                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG73AA       Network Management Module          0                0                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CJ       TMU to Cabinet IF1/2"             0.3               1                  0
                    cable  (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG91BA       1/2" IF Cable Connector            3                9                  0
                    Kit
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CE       TMU to Cabinet Power              0.3               1                  0
                    cable (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG93AA       Power Cable Connector Kit          3                9                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CA       TMU to Cabinet Data Cable         0.3               1                  0
                    (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG92AA       Data Cable Connector Kit           3                9                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97MF       120 Degree Horizontal           Up to 3             0                  0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97ME       120 Degree Vertical             Up to 3             0                  0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97NF       60 Degree Horizontal            Up to 3          Up to 12              0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97NE       60 Degree Vertical              Up to 3          Up to 12              0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97NG       40 Degree Vertical                 0             Up to 12              0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97NH       40 Degree Horizontal               0             Up to 12              0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG71HA       Transceiver processor              0                0                  2
                    Module - Packet Data
------------------- --------------------------- ---------------- ----------------- -------------------
       N/A          Packet Data Software               0                0                  1
                    Activation Fee
------------------- --------------------------- ---------------- ----------------- -------------------

</TABLE>

                                     Page 5
<PAGE>
Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------

                  With regard to antennas for the various basestation upgrade
                  configurations, the quantities shown above reflect the maximum
                  number of each antenna that could be required in a specific
                  installation. The combined total actual antenna requirement
                  for each upgrade configuration is:
                  18b to 27b Upgrade - 3
                  27b to 48b Upgrade - 12

2.1.1.6  FWA Software.


------------ -------------------------------------------------------- ----------
    PEC                            Description                           Qty.
------------ -------------------------------------------------------- ----------
    N/A      Basestation Packet Data Software Activation Fee               1
------------ -------------------------------------------------------- ----------
    N/A      F2 RSS 2nd Line Activation                                    1
------------ -------------------------------------------------------- ----------
    N/A      F5 RSS 2nd Line Activation                                    1
------------ -------------------------------------------------------- ----------


2.1.1.7 FWA OA&M Equipment.

                        Field Engineering Terminal (FET).

Choose one of the following.

------------ -------------------------------------------------------- ----------
     PEC                           Description                            Qty.
------------ -------------------------------------------------------- ----------
   NTEG30AN  FET System Complete (LINUX)on  Panasonic CF27                 1
------------ -------------------------------------------------------- ----------
   NTEG30AF  LINUX FET Software Application Kit for Panasonic CF27         1
------------ -------------------------------------------------------- ----------


                  Residential Installation System (RIS).
Survey Kit

--------------- ------------------------------------------------------ ---------
       PEC                          Description                            Qty.
--------------- ------------------------------------------------------ ---------
    NTEG24BF                100 MHz Generic Survey Kit                      1
--------------- ------------------------------------------------------ ---------
   NTEG10DCBV         RSS Installation Sub-Set Documentation                1
--------------- ------------------------------------------------------ ---------
    P0872025                        Large Belt                              1
--------------- ------------------------------------------------------ ---------
    NTEG24BE       RTU SAK/Handle Pole Kit (5.5m extension kit)             1
--------------- ------------------------------------------------------ ---------
    NTEG22EB                  RTU SAK/Handle Assembly                       1
--------------- ------------------------------------------------------ ---------
    A0734347                            GPS                                 1
--------------- ------------------------------------------------------ ---------
    A0658055                    Linesman Phone U.S.                         1
--------------- ------------------------------------------------------ ---------

Maintenance Kit

-------------- ---------------------------------------------------- ------------
      PEC                        Description                           Qty.
-------------- ---------------------------------------------------- ------------
   NTEG24AA            100MHz Generic Maintenance Kit                    1
-------------- ---------------------------------------------------- ------------
   NTEG21ND                PSA Mains Adapter U.S.                        1
-------------- ---------------------------------------------------- ------------
   A0745625                RMT Mains Adapter U.S.                        1
-------------- ---------------------------------------------------- ------------
   A0657248                         Modem                                1
-------------- ---------------------------------------------------- ------------
   A0655833                      Multimeter                              1
-------------- ---------------------------------------------------- ------------
   NTEG21PB                Vehicle charging Cable                        1
-------------- ---------------------------------------------------- ------------
   A0743766                  RMT Docking Holster                         1
-------------- ---------------------------------------------------- ------------


                                     Pge 6
<PAGE>
Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------

                  Radio Element Manager (REM).
                  The following configurations are representative of a typical
                  installation. Specific installations may require variations on
                  these definitions.

------------- ------------------------------------------------------------ -----
      PEC                                Description                        Qty.
------------- ------------------------------------------------------------ -----
   NTEG43AC   HP Unix Server                                                  1
------------- ------------------------------------------------------------ -----
   NTEG41GD   REM Redundancy Upgrade Kit with Online Backup                   1
------------- ------------------------------------------------------------ -----
   NTEG41EG   REM Processor Upgrade Kit                                       1
------------- ------------------------------------------------------------ -----
   A0784688   HP 3.5" hot swappable drive for HP D-CAL                        1
------------- ------------------------------------------------------------ -----
   NTEG43AA   HP Client Workstation                                           1
------------- ------------------------------------------------------------ -----
   NTEJ40BK   Radio Element Manager Software Platform 4.4.2                   1
------------- ------------------------------------------------------------ -----
   NTEG42CB   Snmp Ethernet Network Mgt. Card Type 2                          1
------------- ------------------------------------------------------------ -----
   NTEG42BC   Network Hub 16 Slot Chassis,Fantray, Hipernmc & Dual Psu        1
------------- ------------------------------------------------------------ -----
   NTEG42FB   60 Channel Netserver Ethernet L A N Card                        1
------------- ------------------------------------------------------------ -----
   NTEG42GM   Quad Modem Card With S/Ware Type 1                              1
------------- ------------------------------------------------------------ -----
   NTEG43AD   Unix Server annual support                                      1
------------- ------------------------------------------------------------ -----
   NTEG43AB   Client Workstation annual support                               1
------------- ------------------------------------------------------------ -----
   NTEJ40GC   Remedy ARS Support                                              1
------------- ------------------------------------------------------------ -----
   NTEJ40JC   Oracle RDBMS Support                                            1
------------- ------------------------------------------------------------ -----
   A0743702   Openview SW Support                                             1
------------- ------------------------------------------------------------ -----
   NTEG42KA   Network Hub Annual SW Maintenance                               1
------------- ------------------------------------------------------------ -----
   A0743715   SW support CLEO                                                 1
------------- ------------------------------------------------------------ -----
   A0740374   Power cord grounded North America                               0
------------- ------------------------------------------------------------ -----
   NTEJ40AE   REM Exceed SW                                                   1
------------- ------------------------------------------------------------ -----
   NTEG41HB   10 BASE-T SWITCHING HUB-24R                                     1
------------- ------------------------------------------------------------ -----


2.1.1.8 FWA Equipment Spares.

------------------- ------------------------------------------------- ----------
       PEC                                    Description               Qty. Per
------------------- ------------------------------------------------- ----------
     NTED4575       Transceiver Processor Module                            1
------------------- ------------------------------------------------- ----------
     NTEG72AD       Transceiver Baseband Module Combining Diversity         1
------------------- ------------------------------------------------- ----------
     NTEG77EC       Transceiver Masthead Unit Kit                           1
------------------- ------------------------------------------------- ----------
     NTEG97PC       Antenna to TMU 4m Cable                                 1
------------------- ------------------------------------------------- ----------
     NTEG76BA       ITS Fan Tray Assembly                                   1
------------------- ------------------------------------------------- ----------
     NTEG76CC       Secondary DC Breaker Rack Filtered                      1
------------------- ------------------------------------------------- ----------
     NTEG76FB       I.T.S Basestation Diversity Sub Rack                    1
------------------- ------------------------------------------------- ----------
     NTEG76GA       I.T.S U.K Maintenance Port Assembly                     1
------------------- ------------------------------------------------- ----------
     NTEG94QA       1.0M Internal ITS Cabinet                               1
------------------- ------------------------------------------------- ----------
     NTEG74BA       Over Voltage Protection Module                          3
------------------- ------------------------------------------------- ----------
     NTEG63AA       Transceiver Timer Module                                1
------------------- ------------------------------------------------- ----------
     NTEG73AA       Network Management Module                               1
------------------- ------------------------------------------------- ----------
     NTEG99CJ       TMU to Cabinet IF1/2"Cable                            500m
------------------- ------------------------------------------------- ----------
     NTEG91BA       1/2" IF Cable Connector Kit                             1
------------------- ------------------------------------------------- ----------
     NTEG99CE       TMU to Cabinet Power Cable                            500m
------------------- ------------------------------------------------- ----------
     NTEG93AA       Power Cable Connector Kit                               1
------------------- ------------------------------------------------- ----------
     NTEG99CA       TMU to Cabinet Data Cable                             500m
------------------- ------------------------------------------------- ----------
     NTEG92AA       Data Cable Connector Kit                                1
------------------- ------------------------------------------------- ----------
     NTEG97ME       120 Degree Vertical Polarization Antenna                1
------------------- ------------------------------------------------- ----------

                                     Page 7
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Annex C - Description of Products
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------



------------------- ----------------------------------------------- ------------
       PEC                                    Description             Qty. Per
------------------- ----------------------------------------------- ------------
     NTEG97MF       120 Degree Horizontal Polarization Antenna            1
------------------- ----------------------------------------------- ------------
     NTEG97NE       60 Degree Vertical Polarization Antenna               1
------------------- ----------------------------------------------- ------------
     NTEG97NF       60 Degree Horizontal Polarization Antenna             1
------------------- ----------------------------------------------- ------------
     NTEG97NG       40 Degree Vertical Polarization Antenna               1
------------------- ----------------------------------------------- ------------
     NTEG97NH       40 Degree Horizontal Polarization Antenna             1
------------------- ----------------------------------------------- ------------
     NTEG71HA       Transceiver Processor Module - Packet Data            1
------------------- ----------------------------------------------- ------------
     NTEG18DA       F5 RTU                                                1
------------------- ----------------------------------------------- ------------
     NTEG18FA       RDA Kit                                               1
------------------- ----------------------------------------------- ------------
     NTEG12FA       RPCU                                                  1
------------------- ----------------------------------------------- ------------
     A0636762       RPCU Battery                                          1
------------------- ----------------------------------------------- ------------
     NTEG12CL       RPCU Power Cord                                       1
------------------- ----------------------------------------------- ------------
     NTEG12FB       RPCU Safety Booklet                                   1
------------------- ----------------------------------------------- ------------
     NTEG99JE       Dual Jacket Drop Cable                              500m
------------------- ----------------------------------------------- ------------
     NTEG99GY       Dual Jacket Drop Cable Connector                     50
------------------- ----------------------------------------------- ------------
     NTEG99CZ       Drop Cable Connector Pins                            500
------------------- ----------------------------------------------- ------------
     NTEG17DA       F2 RTU                                                1
------------------- ----------------------------------------------- ------------



                                     Page 8
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Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment

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                                     Annex D

                             Product Specifications




<PAGE>
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Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------





                                     Annex D

                             Product Specifications

                                PLA FWA Contract

1.   Scope

1.1  This section defines the essential performance characteristics of the
     Nortel Networks Internet Fixed Wireless Access system (Internet FWA). The
     scope of the section is confined to the airside equipment that supports
     wireless transmission in the local loop, i.e. that part of the system from
     the Base-station network interface to the subscriber premises terminal
     interface (telephone socket), together with associated network management
     operations systems in the element management layer. The specifications for
     the switch, service gateway and other associated backhaul equipment are
     therefore specifically excluded from this section.

2.1  General description

2.1.1 Intentionally Left in Blank

2.1.1.1 Purpose of Internet FWA

     The Internet FWA system allows telecommunications operators to construct
     high quality telephone access networks between customers' premises and
     local exchanges. The system uses cellular point to multi-point wireless
     technology as a replacement for traditional copper-based local loops. A
     major advantage of FWA technology is that it allows operators to create new
     access networks quickly and with minimum capital investment.

     Each terminal in the Internet FWA system is capable of delivering PSTN
     circuit-switched services through two standard analogue telephone lines. In
     addition to the PSTN services, a packet-mode service may be used to deliver
     `always-on' connections between one or more Internet Service Providers
     (ISPs) and the computer equipment of subscribers.

     The Internet FWA system provides a frequency division duplex radio link to
     a subscriber transceiver system and operates in the 3.4 to 3.6 GHz band.
     The air interface utilizes time division multiplex on the downlink and time
     division multiple access on the uplink. The system comprises a network of
     Radio Base-stations (RBS) arranged on a cellular plan and these are
     connected to the PSTN or to the public Internet by a conventional back-haul
     network. Each base-station consists of one or more Integrated Transceiver
     Systems (ITSs).

2.1.2 Sub-systems

     The Internet FWA system contains two Network elements (NEs):

     o    Remote Service System (RSS)

     o    Radio Base Station (RBS)

     The Internet FWA system contains three Operations systems (OSs):

     o    Radio Element Manager (REM)

     o    RSS Installation System (RIS)

     o    Field Engineering Terminal (FET)


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     The Remote Service System (RSS)

     This system provides the subscriber with two independent analogue exchange
     lines and optionally a packet data service interface. The system consists
     of the RSS Terminal Unit (RTU), an RSS Power and Connection unit (RPCU) and
     an RSS Data Adapter (RDA).

     The RTU is mounted externally to the subscriber premises and contains a
     directional antenna, radio electronics and the two analogue line interfaces
     to carry PSTN services. The unit is powered from the RPCU indoor unit that
     plugs into the subscribers mains supply. A `drop cable' connects the RTU to
     the RPCU. The RPCU contains two sets of telephone sockets for connection to
     the subscriber's telephone equipment. In order to provide the optional
     packet data service, an RDA is supplied along with a special version of the
     RTU that contains the required data interface. The packet data service
     makes use of the HPNA standard to multiplex the data onto `line 0' of the
     telephone wires. The RDA connects to the subscriber's personal computer.

     The Integrated Transceiver System (ITS)

     One or more ITSs form the basis of the radio base-station and have been
     designed to serve an area of up to 5km radius in a typical urban
     environment and up to 20km in a rural environment.

     Voice band circuits from the ITS are connected to the switch by means of E1
     links running a V5.2 protocol. The packet data service is also routed over
     E1 links to the service gateway using L2TP (layer 2 tunnel protocol). The
     ITS can route any slot from the `circuit' E1s to any slot on the airside
     interface.

     In principle, an ITS can be provisioned as a 3, 6, 9, 12, 15 or 18 bearer
     configuration. RBS configurations specifically supported by installation
     and maintenance processes provide tri-sectored configurations with 18 or
     27(1) RF carriers, or a tri/hex-sectored RBS with 48 RF carriers. The
     27-carrier configurations require the use of two ITSs, and the 48-carrier
     configuration requires the use of three ITSs. The 48 bearer base-station is
     designed to provide coverage in two `RF layers', the first layer allowing a
     frequency re-use of one to be employed whilst a more conservative frequency
     plan is used in the other layer. Service to the individual RSS can be
     switched between these two layers depending on the interference environment
     experienced at that RSS.

     Radio Element Manager (REM)

     The Radio Element Manger (REM) is a high performance, high capacity
     management system and is used to perform the Operation, Administration,
     Maintenance and Provisioning (OAM&P) procedures for the Internet FWA
     network. One REM can manage up to 200 ITSs and 150,000lines. The REM is
     primarily composed of a server platform, a client platform, additional user
     PCs and a Network Communications Server. Their respective purposes are
     described below. The REM supports a total of 4 expert and 4 standard user
     sessions.

     The REM server performs all provisioning related, object-related, event and
     alarm related processing, together with some of the GUI processing.
     Further, the server stores all object, event and alarm related data and
     state. As such, the majority of REM software executes on the server. The
     server also interfaces directly to a customer's High Level Management
     System (HLMS) for subscriber provisioning.

----------

1    In the Axtel application, the 27 bearer base-stations generally provide
     only 26 bearers due to limited availability of RF channels.


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     The REM Client primarily acts as the host platform for the additional user
     GUI screens. It provides some of the GUI processing, and acts as a platform
     on which additional user scripts run.

     PCs running Exceed software connect with the REM client to allow access for
     additional users.

     The Network Communication Server (NCS) is an integrated terminal server and
     modem unit, which provides a connectivity solution from the REM to its
     network of ITSs. It also provides connectivity to the Remote Maintenance
     Terminal that is used during the subscriber hardware installation.

     Field engineering terminal (FET)

     The installing engineer will use this equipment during installation and
     commissioning of Base-station equipment. The FET application runs on a PC
     platform using a LINUX operating system. The FET is intended to connect
     locally into an ITS and allows control of the ITS as well as access to
     status information. Each FET requires a license key to enable operation and
     these are available from Nortel Networks.

     RSS Installation system (RIS)

     The installing engineer will use this equipment to control the RSS during
     installation, to aid antenna alignment to the Base Station, to measure the
     performance of the RF link and to enable the connection. The primary
     component of the RIS is the Remote Maintenance Terminal (RMT).

2.1.3 External interfaces

     The physical layer external interfaces of the Internet FWA system are:

     o    Analogue line interface at the RSS

     o    Packet data interface at the RSS

     o    A.C. power interface at the RSS

     o    PCM (E1) interface at the RBS

     o    Packet data (E1) interface at the RBS

     o    D.C. power interface at the RBS

     o    External alarm interface at the RBS

     o    Analogue line interface at the RIS. This is used to connect the RMT to
          the REM to download provisioning data.

     o    Analogue line interface at the REM

     o    Ethernet interface at the REM. This is used to connect the REM to
          higher-layer operations systems.

2.2  Physical characteristics

2.2.1 RSS transceiver unit (RTU)

2.2.1.1 Mechanical

              Length/width: 300 mm (octagonal, measured between flat faces)
              Depth: 90 mm excluding mounting brackets
              Mass: 2.5 kg.


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2.2.1.2 Environmental

              Ambient temperature: -40 C to +50 C
              Solar radiation: <= 1120 W/m2
              Relative humidity: 5% to 100%

H2.2.2         RSS power and connection unit (RPCU)

2.2.2.1 Mechanical

              Length: 210 mm
              Width: 135 mm
              Depth: 41 mm
              Mass: 2.0 kg including battery

2.2.2.2 Electrical

              Input voltage: 85 V to 270 V RMS
              Input frequency: 45 Hz to 70 Hz

2.2.2.3 Environmental

              Ambient temperature: -5 C to +45 C
              Relative humidity 5% to 100%

2.2.3 RSS data adaptor (RDA)

2.2.3.1 Mechanical

              Length: 165 mm
              Width: 125 mm
              Depth: 28 mm
              Mass: 250 g

2.2.3.2 Environmental

              Ambient temperature: -5C to +45C
              Relative humidity: 5% to 100%

2.2.4 Integrated transceiver system (ITS) indoor equipment

2.2.4.1 Mechanical

              Width: 600mm
              Height and depth (1 metre cabinet): 1000 mm x 300 mm

2.2.4.2 Environmental

              Ambient temperature: 0 C to +45 C
              Solar radiation: <= 700 W/m2
              Relative humidity: 5% to 95%


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2.2.5 Integrated transceiver system (ITS) masthead equipment

2.2.5.1 Mechanical (TMU)

              Height: 600 mm
              Width: 450 mm
              Depth: 200 mm
              Mass: <= 30 kg

2.2.5.2 Environmental

              Ambient temperature: -40 C to +50 C
              Solar radiation: <= 1120 W/m2
              Relative humidity: 5% to 100%

2.3  Radio system

2.3.1 General description of the air interface

2.3.1.1 Physical layer

     The physical layer of the Internet FWA air interface uses digital time
     division multiplex/time division multiple access (TDM/TDMA) with a 10-slot
     frame structure. Uplink and downlink carriers are paired, and separated by
     a fixed duplex spacing of 99.84MHz. A TDM/TDMA channel (i.e. one time-slot
     one on one RF carrier) is known as a physical channel. In the maximum
     configuration, one ITS provides 18 pairs of RF carriers, and 180 physical
     channels.

     The uplink carriers are contained within the frequency band 3425 MHz to
     3450 MHz, and the downlink carriers are contained within the frequency band
     3525 MHz to 3550 MHz.

     The modulation scheme for both the uplink and downlink direction is pi/4
     shifted differential quadrature phase shift keying ((pi)/4DQPSK) with a
     nominal symbol rate of 256,000 symbols/s. The gross data rate is 512
     kbits/s per carrier.

     Reserved channels are used to allow contention access by terminals. These
     access channels are not available for carrying subscribers' voice or data
     traffic.

2.3.1.2 Channel plan

     The Internet FWA system operates over 78 RF channels, with a nominal
     channel spacing of 307.2 kHz. The lowest uplink channel (Ch. 2) has a
     nominal centre frequency of 3425.8944 MHz. The highest downlink channel
     (Ch. 79) has a nominal centre frequency of 3549.3888 MHz. The fixed duplex
     spacing is equivalent to 325 times the channel spacing.

2.3.1.3 MAC layer for PSTN traffic

     One physical channel is capable of carrying a single 32 kbit/s ADPCM
     circuit-switched connection, or one half of a 64 kbit/s PCM
     circuit-switched connection.

2.3.1.4 MAC layer for the Packet data service

     Physical channels can be allocated in groups of six to carry packet-mode
     traffic. One group of six physical channels is described as a packet
     channel.


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2.3.2 RF performance of the ITS equipment

2.3.2.1 Maximum transmit power

     The maximum transmit power from the ITS is not less than 28 dBm for each
     carrier, measured at the antenna port of the TMU.

2.3.2.2 Transmitter implementation loss

     The transmitted signal from the ITS is a close approximation to an ideal
     (pi)/4DQPSK signal. The additional carrier to noise margin required to
     demodulate the practical transmitted signal, compared to an ideal signal is
     less than 1 dB.

2.3.2.3 Spectrum due to modulation

     The spectrum due to modulation at the output of the ITS is as follows:

     ---------------------- ----------------------------------------------------
     Channel                Mean power (dBc)
     ---------------------- ----------------------------------------------------

     N                      0 dBc (by definition)

     N +/- 1                <= -24.5 dBc

     N +/- 2                <= -40 dBc

     N +/- 3                <= -50 dBc

     Any other channel      <= -60 dBc or -60 dBm (whichever is greater)
     ---------------------- ----------------------------------------------------

     The mean power is measured using an ideal receiver with root-raised-cosine
     filtering with transition factor ((alpha)) = 0.4, and with the receiver
     tuned to the centre of the appropriate adjacent channel.

2.3.2.4 Minimum receiver sensitivity

     The receiver sensitivity for the ITS is not greater than -101.5 dBm,
     measured at the antenna port of the TMU, for a bit error ratio (BER) of
     10-3 before forward error correction. This measurement assumes an ideal
     transmitter.

2.3.2.5 Receiver selectivity

     The ITS receiver selectivity is specified in terms of the level of
     interfering signal consistent with a bit error ratio (BER) for the wanted
     signal of less than 10-3 before FEC. The interfering signal is assumed to
     be from a signal source with the ideal characteristics of the Internet FWA
     radio system, centered on the applicable adjacent channel. The wanted
     signal is assumed to be from a similar ideal source and set at a level 3 dB
     greater than the level required for BER = 10-3 in the absence of
     interference. The carrier to interference levels are as follows:


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     ---------------------- ---------------------------------------------------
     Channel                Carrier/Interference ratio for BER = 10-3
     ---------------------- ---------------------------------------------------

     N                      <= 14.4 dB

     N +/- 1                <= -15.5 dB

     N +/- 2                <= -58.5 dB

     Any other channel      <= -84.5 dBc
     ---------------------- ---------------------------------------------------

2.3.3 RF performance of the RSS equipment

2.3.3.1 Maximum transmit power

     The maximum transmit power from the RSS is not less than 44.5 dBm EIRP in
     RF channels 8 to 73 inclusive, and not less than 41.5 dBm EIRP in the
     remaining channels. This transmit power specification applies to the
     complete RTU including the antenna.

2.3.3.2 Transmitter implementation loss

     The transmitted signal from the RSS is a close approximation to an ideal
     (pi)/4DQPSK signal. The additional carrier to noise margin required to
     demodulate the practical transmitted signal, compared to an ideal signal is
     less than 1 dB.

2.3.3.3 Spectrum due to modulation

     The spectrum due to modulation at the output of the RSS is as follows:

     -------------------------------- -------------------------------
     Channel                          Mean power (dBc)
     -------------------------------- -------------------------------

     N                                0 dBc (by definition)

     N +/- 1                          <= -24.5 dBc

     N +/- 2                          <= -40 dBc

     N +/- 3                          <= -50 dBc

     Any other channel                <= -60 dBc
     -------------------------------- -------------------------------

     The mean power is measured using an ideal receiver with root-raised-cosine
     filtering with transition factor ((alpha)) = 0.4, and with the receiver
     tuned to the centre of the appropriate adjacent channel. The measured power
     is averaged over duration of the time-slot containing the uplink
     transmission.

2.3.3.4 Minimum receiver sensitivity

     The receiver sensitivity for the RSS is not greater than -102 dBm in RF
     channels 8 to 73 inclusive, and not greater than -101.5 dBm in the
     remaining channels. The received signal is


                                     Page 8
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     measured at the connector of the RTU antenna, for a bit error ratio (BER)
     of 10-3 before forward error correction. This measurement assumes an ideal
     transmitter.

2.3.3.5 Receiver selectivity

     The RSS receiver selectivity is specified in terms of the level of
     interfering signal consistent with a bit error ratio (BER) for the wanted
     signal of less than 10-3 before FEC. The interfering signal is assumed to
     be from a signal source with the ideal characteristics of the Internet FWA
     radio system, centered on the applicable adjacent channel. The wanted
     signal is assumed to be from a similar ideal source and set at a level 3 dB
     greater than the level required for BER = 10-3 in the absence of
     interference. The carrier to interference levels are as follows:

     --------------------------- -----------------------------------------------
     Channel                     Carrier/Interference ratio for BER = 10-3
     --------------------------- -----------------------------------------------

     N                           <= 14.4 dB

     N +/- 1                     <= -10.2 dB

     N +/- 2                     <= -25.6 dB

     N +/- 3                     <= -32.6 dB

     N +/- 4                     <= -35.6 dB

     N +/- 5                     <= -58.6 dB

     Any other channel           Blocking specification applies
     --------------------------- -----------------------------------------------

2.3.3.6 RSS receiver dynamic range

     The dynamic range of the RSS receiver is from the limit of sensitivity to
     -20 dBm, measured at the antenna connector of the RTU. Over this dynamic
     range the BER of the received signal (measured before forward error
     correction) is not greater than 10-3.

2.3.3.7 RSS antenna gain

     The gain of the RSS antenna is between 18 dBi and 22 dBi at the peak of the
     response. The nominal beamwidth is 14 degrees (i.e. +/- 7 degrees). The
     rejection of cross-polar signals in the main antenna response is not less
     than 20 dB compared to a co-polar signal of identical level. The maximum
     level of side-lobe responses is 3 dBi, and this limit applies at azimuth
     angles from 22 degrees to 338 degrees with respect to the peak response.

2.3.4 Automatic power control

     To minimise interference in the network, the system incorporates automatic
     uplink RF power control whereby the ITS attempts to maintain a constant
     received signal strength (RSSI) of -80dBm for each active call or packet
     connection. If the RSSI strays from this target, the ITS will send a
     message to the appropriate RSS requesting an appropriate modification to
     the uplink RF power. The ITS normally integrates the RSSI over a 30s period
     before deciding whether an adjustment is required although there is a
     faster attack period at the start of a call or packet connection. At the
     end of a call or connection, the RSS calculates a new RF power that will be
     used to initiate the next call or connection on the same RF channel.


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     To maintain an appropriate initial uplink RF power level during extended
     periods of call inactivity, network test calls are automatically scheduled
     to each RSS on each of its operating channels. Just as is the case for
     normal calls, the uplink RF power is adjusted appropriately at the end of a
     network test call. The scheduling period is normally set to 23 hours.

2.3.5 Combining diversity

     In ITS configurations with 2 or more TMUs per sector, the system is
     configured to execute two-path maximum ratio combining in the uplink. The
     implementation of this feature delivers the theoretical benefit of maximum
     ratio combining with less than 1 dB implementation loss.

     The TMU receiver is wideband and covers all of the uplink spectrum. This
     means that the IF signals from 2 TMUs in the same sector differ only by
     virtue of being received from 2 physically separated antennas. The two I.F
     signals are fed to separate arms of each receiver pair of every TBM in the
     sector. The TBM hosts three such receiver pairs where each pair is
     configured to an appropriate channel. The maximum ratio combining algorithm
     is executed independently on each receiver pair.

2.3.6 Dynamic carrier list management

     Dynamic carrier list management feature allows each RSS to modify the
     classification of individual RF carriers in response to periodic
     measurements of the received (downlink) signal. Each RSS notifies the ITS
     of changes in carrier classification, allowing the ITS to allocate channels
     with a priority reflecting the recent quality of downlink carriers. This
     feature has proven to be effective in combating the effects of static
     frequency-selective fading, and minimizing the impact of downlink radio
     interference from nearby RBSs in the same network. This feature is
     extremely valuable in networks where tri-sector and tri/hex-sector RBSs are
     built in adjacent or nearby cells.

2.4  Equipment configurations

2.4.1 RBS configurations

     RBS configurations that can be constructed using SR14 consist of one, two
     or three ITSs. The table below lists the configurations that can be used.

<TABLE>
<CAPTION>

     ------------------------------------------- ------------------ --------- ---------- ------------
     Base station configuration                  ITS sector         Circuit-  Packet-    Maximum
                                                 organisation       switched  switched   number of
                                                                    E1s       E1s        E1
                                                                                         connections
     ------------------------------------------- ------------------ --------- ---------- ------------
<S>                                              <C>                <C>       <C>        <C>
     18-carrier, tri-sector, Type I              6.6.6              6         0, 2       8
     ------------------------------------------- ------------------ --------- ---------- ------------
     26-carrier, tri-sector, Type II             6.6.5              6         0, 2       11
     ------------------------------------------- ------------------ --------- ---------- ------------

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     ------------------------------------------- ------------------ --------- ---------- ------------
     Base station configuration                  ITS sector         Circuit-  Packet-    Maximum
                                                 organisation       switched  switched   number of
                                                                    E1s       E1s        E1
                                                                                         connections
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 3.3.3              3         0
     ------------------------------------------- ------------------ --------- ---------- ------------
     26-carrier, tri-sector, Type III            9.8                6         0, 2       13
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 9                  3         0, 2
     ------------------------------------------- ------------------ --------- ---------- ------------
     26-carrier, tri-sector, Type IV             9.9                6         0, 2       13
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 8                  3         0, 2
     ------------------------------------------- ------------------ --------- ---------- ------------
     27-carrier, tri-sector, Type I              6.6.6              6         0, 2       11
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 3.3.3              3         0
     ------------------------------------------- ------------------ --------- ---------- ------------
     27-carrier, tri-sector, Type II             9.9                6         0, 2       13
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 9                  3         0, 2
     ------------------------------------------- ------------------ --------- ---------- ------------
     48-carrier, tri/hex-sector                  6.6.4              5         0, 2       21
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 6.6.4              5         0, 2
     ------------------------------------------- ------------------ --------- ---------- ------------
                                                 6.6.4              5         0, 2
     ------------------------------------------- ------------------ --------- ---------- ------------

</TABLE>

     The column `ITS sector organization' denotes the number of RF carriers than
     are enabled in each sector. No relationship is implied between the position
     of the elements of this list and the numbering of ITS sectors; thus a
     sector organization of 6.6.5 applies equally to configurations where the
     five-carrier sector is ITS sector 1, 2 or 3.

     The tri/hex configuration is described as 6.6.4. The six-carrier sectors
     are associated with the hex-sectored antennas, and the four-carrier sector
     is associated with the tri-sectored antennas. By default, the tri-sector is
     ITS sector 1.

     The following rules apply:

     o    Where PDS is required at an ITS, two TPM-PDs must be fitted.

     o    Each TPM requires one E1 connection between the ITS and the local
          exchange.

     o    Each TPM-PD requires one E1 connection between the ITS and the service
          gateway.

     Some of the base station configurations make use of more than one ITS. PDS
     can be enabled or disabled on a `per-ITS' basis, and so it is possible to
     create a multi-ITS configuration where only one or two of the ITSs has PDS
     enabled.


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2.4.2 PSTN traffic capacity

     The PSTN traffic capacity of the supported RBS configurations is detailed
     in the table below. Note these figures apply where PDS is not provided; the
     PSTN capacity of an ITS with PDS is necessarily lower.

<TABLE>
<CAPTION>

     ---------------------------------------------- -------------------------------------------------
     Base station configuration                     Reference capacity (E)
     ---------------------------------------------- -------------------------------------------------
                                                    Soft sector = 0%        Soft sector = 10%
     ---------------------------------------------- ----------------------- -------------------------
<S>                                                 <C>                     <C>
     18-carrier, tri-sector, Type I                 135.4                   146.9
     ---------------------------------------------- ----------------------- -------------------------
     26-carrier, tri-sector, Type III & IV          209.1                   210.0
     ---------------------------------------------- ----------------------- -------------------------
     27-carrier, tri-sector, Type II                218.4                   220.0
     ---------------------------------------------- ----------------------- -------------------------
     48-carrier, tri/hex-sector                     376.0                   376.0
     ---------------------------------------------- ----------------------- -------------------------

</TABLE>

     The reference capacity is defined as the capacity at 1% probability of
     blocking for long ADPCM calls, with the optimum distribution of traffic
     loading between ITS sectors.

     The soft-sector capacity assumes that 10% of the traffic loading arises
     from subscribers in the overlap regions between sectors, and that the
     soft-sectored load is distributed evenly between three overlap regions
     (3.3% of the total load in each overlap). In 26-carrier RBSs of type III
     and IV, and 27-carrier RBSs of type II, there is only one overlap region
     where a benefit is derived from soft sectoring; in these cases, the
     capacity gain is relatively small. In the tri/hex-sectored ITS,
     soft-sectoring is not enabled between hex-sectors.

     One ITS with V5.2 interface can support a maximum of 2048 PSTN lines, and a
     maximum of 2048 RSSs.

2.4.3 Packet data traffic capacity

2.4.3.1 Number of packet channels at an ITS

     Packet channels at an ITS can be configured subject to the following rules:

     o    Packet data can be supported by ITSs with sector arrangement 6.6.6,
          6.6.5, 8, 9, 9.8, 9.9, 6.6.4 (tri/hex)

     o    All packet channels consist of 6 physical channel pairs

     o    An ITS that supports PDS has two TPM-PDs

     o    One TPM-PD may support zero to four packet channels inclusive

     o    One ITS supports a maximum of 36 physical channels (i.e. six packet
          channels)

     o    The largest packet partition allowed in one sector is three packet
          channels

     o    In bi-sector or tri-sector ITSs, if the ITS provides PDS then each
          sector must have at least one packet channel


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     o    In a tri-sector ITS, the sum of the number of packet channels in the
          smallest two packet partitions must not exceed four. This ensures that
          sectors will not be split across TPM-PDs.

2.4.3.2 Number of simultaneous PPP and MAC connections

     The packet data service supports a maximum of:

     o    700 packet data subscribers per ITS

     o    700 simultaneous PPP connections per ITS

     o    25 simultaneous active MAC connections per packet channel

     o    60 simultaneous active MAC connections per TPM-PD

     o    110 simultaneous active MAC connections per ITS

2.4.3.3 Traffic capacity of a packet channel

     Each packet channel (consisting of six physical channels) provides a shared
     channel with an aggregate capacity for users' packet data traffic of not
     less than 192 kbps in the downlink direction, and not less than 84 kbps in
     the uplink direction. PPP, TCP and IP headers applied at the users'
     computers are assumed to form part of the useful throughput.

2.4.3.4 Peak throughput for a single PDS user

     The peak throughput for a single user is approximately 96 kbps in the
     downlink direction (using the USB interface) and approximately 92 kbps in
     the downlink direction (using the RS-232 interface). The peak throughput
     for a single user is approximately 42 kbps in the uplink direction.

     Note that these are peak figures, and apply when the user has exclusive use
     of three physical channels. In normal operation, the packet channel
     capacity is shared between a number of users, and mean throughput figures
     for individual users will be lower than these peak values. The operator
     must ensure that sufficient packet channels are configured to offer
     reasonable quality of service to packet data subscribers.

2.4.3.5 Reduction in PSTN capacity

     The remaining PSTN traffic capacity at an RBS with packet data service is
     defined in the following table. These figures assume that 10% of the
     offered traffic is from soft-sectored terminals.

     -------------------------------------- ------------------------------------
     Base station configuration             Reference capacity (E)
     -------------------------------------- ------------------------------------
         One packet channel in Two packet channels in
                                            each sector             each sector
     -------------------------------------- ----------------------- ------------
     26-carrier, tri-sector, Type III & IV  194.0                   178.0
     -------------------------------------- ----------------------- ------------
     48-carrier, tri/hex-sector             327.0                   279.0
     -------------------------------------- ----------------------- ------------

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2.5  External interfaces

2.5.1 ITS to transmission system

     The interface between the ITS and the transmission system is defined by
     ITU-T G.703 11/2001, `Physical/electrical characteristics of hierarchical
     digital interfaces'. Only the interface at 2048 kbit/s is supported in
     Internet FWA.

     As an additional requirement, Internet FWA requires that the long-term
     frequency accuracy of the E1 signal from the transmission system is better
     than 10-7 (0.1 ppm). Transmission equipment does not normally re-time
     digital traffic, and so this frequency accuracy is usually dependent on
     correct configuration of the local exchange (for PSTN connections) or the
     packet data network.

     Internet FWA complies with ITU-T G.823, `The control of jitter and wander
     within digital networks which are based on the 2048 kbit/s hierarchy'.

2.5.2 ITS to local exchange

     The framing structure of the signal between the ITS and the local exchange
     is defined by ITU-T G.704 10/1998, `Synchronous frame structures used at
     1544, 6312, 2048, 8448 and 44 736 kbit/s hierarchical levels', and ITU-T
     G.706 04/1991, `Frame alignment and cyclic redundancy check (CRC)
     procedures relating to basic frame structures defined in Recommendation
     G.704'.

     The voice coding for circuit-switched traffic complies with ITU-T G.711
     11/1988, `Pulse code modulation (PCM) of voice frequencies'.

     Signaling between the ITS and the local exchange uses the V5.2 protocol,
     defined in the ETSI V5.1 Specification ETS 300 324-1, V 1.2.2,
     `V-Interfaces at the digital local exchange (LE) - V5.1-Interface (based on
     2048 kbit/s) for the support of access network (AN)', and ETSI V5.2
     Specification ETS 300 347-1, V 2.1.2, `V-interfaces at the digital local
     exchange (LE) - V5.2 interface (based on 2048 kbit/s) for the support of
     access network (AN)'. Only requirements for PSTN services apply to Internet
     FWA.

2.5.3 ITS to packet data network

     Internet FWA requires that the E1 signal from the packet data network must
     comply with the framing structure defined in ITU-T G.704 (see above for a
     detailed reference). Time-slot zero contains a frame synchronization
     signal, and the remaining 31 time-slots are joined together to provide a
     connection with an aggregate capacity of 1984 kbit/s.

     The layer-2 tunnel between the ITS and the packet data network uses a
     protocol stack consisting of the point-to-point protocol (PPP), Internet
     protocol (IP), user datagram protocol (UDP) and the layer-2 tunneling
     protocol (L2TP). These protocols are defined as follows:

     o    PPP: Internet engineering task force (IETF) STD 51, `The point to
          point protocol'

     o    IP: IETF RFC 791, `Internet protocol'

     o    UDP: IETF RFC 768, `User datagram protocol'

     o    L2TP: IETF RFC 2661, `Layer two tunnelling protocol (L2TP)'

2.5.4 RDA to PC

     The RDA provides a choice of two different serial data standards at the
     PC-RDA interface:


                                    Page 14
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     o    Asynchronous serial interface (commonly known as RS-232) as defined in
          ANSI/TIA/EIA-232-F-1997, Interface Between Data Terminal Equipment and
          Data Circuit-Terminating Equipment Employing Serial Binary Data
          Interchange, and

     o    Universal Serial Bus (USB), using the `full-speed' option, as defined
          in Universal Serial Bus specification, Rev. 1.1 and USB class
          definitions for communications devices, Rev. 1.0.

2.6  Additional Specifications

     In addition to the Product's Specifications set forth in this Annex D, the
     Parties agree to include as part of this Annex D the Product's
     Specifications that will be set forth in the Compact Discs to be named as:
     (i) Internet Fixed Wireless Access, MR 14.0.3 "Customer Documentation
     Suite" and (ii) Internet Fixed Wireless Access, Maintenance Release MR
     14.0.3 System Line Up that will be delivered with MR14.03 in February 2003.



                                    Page 15
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Annex E
Purchase and License Agreement for FWA Equipment


--------------------------------------------------------------------------------





                                     Annex E


                               FWA Order Procedure








<PAGE>
Annex E
Purchase and License Agreement for FWA Equipment


--------------------------------------------------------------------------------
ORDER PROCEDURE


1 Purchase Order Procedure for other than FWA Equipment Annual Minimum Order
Commitments


Nortel Networks and Axtel agree that a Purchase Order must be issued and
delivered in order to proceed with the supply of any Product or Service for the
purposes of this Agreement.

The Purchase Order will be issued either according to prices established in
Annex F- Prices of this Agreement or according to a specific quotation provided
by Nortel Networks for those cases in which the prices are not stated in such
Annex. Nortel Networks is not obliged to quote or deliver any service or
material not included in Annex C - Description of Products.

1.1 Request for Quotation


Applicable for Products and Services not included in Annex C - Description of
Products. Axtel will request the quotation in writing in a mutually agreed
format and containing the following minimum information:

     a)   Supplier Part or Service Number if available
     b)   Manufacturer Part Number if different to supplier
     c)   Part or Service Description d) Quantity
     e)   Unit of Measure
     f)   Requested Deliver Time or Date
     g)   Delivery Location when applicable


1.2 Delivery of quotation by supplier

Nortel Networks will deliver the quotation in accordance with the terms set
forth below.

The quotation will be submitted to Axtel's Purchasing Department and
Strategic Negotiations Department in writing within a reasonable period of time,
depending on the complexity of the quote referred, duly signed by Supplier Sales
Representative and containing the following information:

     a)   Supplier Quotation Number
     b)   Supplier Part or Service Number
     c)   Manufacturer Part Number if different to Supplier's
     d)   Part or Service Description
     e)   Quantities
     f)   Unit of Measure
     g)   Unit Price as defined in Annex F of the Agreement


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     h)   Extended Price
     i)   Warranty Terms and Conditions if applicable
     j)   Payment Terms
     k)   Expiration Date
     l)   Delivery Time per Item
     m)   Delivery Site or Delivery Location when applicable
     n)   Agreement Name

1.3 Submission of Purchase Orders - General

Customer will submit the Purchase Order in accordance with the terms set forth
below

Purchase Orders shall be submitted in a mutually agreed format or media to the
Nortel Commercial Representative, duly signed by an authorized Axtel
representative and containing the following minimum information:

     a)   Purchase Order Number
     b)   Purchase Order Date
     c)   Supplier Quotation Number if applicable
     d)   Requested Delivery Date per each item
     e)   Supplier Part or Service Number as per Annex C or quotation
     f)   Manufacturer Part Number if different to Supplier when applicable
     g)   Part or Service Description
     h)   Quantities per each item
     i)   Unit of Measure
     j)   Unit Price as defined in Annex F of the Agreement
     k)   Extended Price
     l)   Billing Instructions
     m)   Payment Terms as per signed Agreement
     n)   Shipping Instructions and Delivery Location
     o)   Agreement Name
     p)   Wording expressing "Purchase Order 100% binding and non-cancelable"
     q)   Wording referencing Terms and Conditions to Agreement signed
     r)   Special wording when applicable


Nortel shall acknowledge receipt in writing of the Purchase Order within five
(5) business days after received.

Nortel shall accept such Purchase Order in accordance with the terms set forth
in Section 2 of the Agreement.


                                     Page 3
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1.4 Address and Times for Submission of Purchase Orders

Purchase Orders shall be submitted to Nortel Commercial Representative at the
following address:

         Nortel Networks
         Av. Ricardo Margain 555-A
         Col. Santa Engracia
         San Pedro Garza Garcia, N. L.
         C.P. 66267

During the following hours:

     Solely working weekdays (Monday to Friday) from 9:00hr to 13:00hr and
     14:00hr to 17:00hrs local time

In the event of changing the address, Nortel will advise Axtel

2 FWA Product Lead Times

Product lead times are indicated in Annex J .

For Purchase Orders specifying CIP Incoterm conditions, Delivery will be at a
Nortel Networks location in Texas.

2.1 Product Delivery

Within three business days after Final Ship Date:

     a)   Customer's freight representative shall collect the products at the
          Nortel Networks factory and shall sign the corresponding Freight Bill
          which will constitute the sole Proof of Delivery (the "Product
          Delivery").

     b)   If, for whatever reason, the customer's freight representative does
          not collect the products within the aforementioned period of three
          business days, Delivery of the products shall be deemed 100% complete
          (the "Product Delivery"). In such case, Proof of Delivery shall be the
          unsigned Freight Bill.

3  Purchase Order for FWA Equipment Annual Minimum Order Commitments

In the case of Purchase Orders for the annual minimum order amount (AMOA) as set
forth in Annex H Purchase Commitment for RSS Equipment and Base Station Units,
Purchaser shall submit, on or before December 15 of each year, and dated as of
the date of such submission, separate Purchase Orders relating to the minimum
order commitments for the succeeding calendar year. In the case of RSS's, the
Purchaser shall submit four (4) separate Purchase Orders, each for one fourth
(1/4) of the annual minimum commitment, relating to the four calendar quarters
of the succeeding calendar year. In the case of Base Stations, the Purchaser
shall submit one (1) Purchase


                                     Page 4
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--------------------------------------------------------------------------------


Order for the total annual minimum commitment for such calendar year. Vendor
shall accept such Purchase Orders within 10 business days after delivery thereof
if such Purchase Orders are in compliance with the FWA Equipment Agreement
(prices and descriptions), no additional terms and conditions have been imposed.
The payment terms for those Purchase Order are set forth in the Agreement.

4 Invoicing

4.1 Product Invoicing


Nortel Networks will submit the invoice in accordance with the terms set forth
in Section 5 of the Agreement.

Within the next five (5) business days after the delivery by Customer to Nortel
Networks of a Purchase Order which is in compliance with Section 2 of this
Contract, Nortel Networks shall deliver to Customer an invoice for one hundred
percent (100%) of the purchase price of such Order.

Nortel Networks' original invoices will be delivered to Axtel's Accounts Payable
department with a copy to the Axtel Purchasing representative. Axtel will
immediately acknowledge receipt of invoices by stamping a copy as "received" and
returning it to Nortel Networks.

4.2 Services Invoicing

Nortel Networks shall invoice Customer in accordance with section 5 of the
Agreement.

4.3 Invoicing General

All invoices shall be issued containing the following minimum information and
requirements:

     a)   Official name and address of Axtel as follows: Axtel S.A. de C.V.
          Blvd. Diaz Ordaz Km. 3.33 L-1 Col . Unidad San Pedro San Pedro
          Garza Garcia, N.L.
          Mexico 66215
          RFC: AXT-940727-FP8

     b)   Purchase Order Number (s)
     c)   Invoice Number
     d)   Invoice date
     e)   Supplier Quotation Number if applicable
     f)   Supplier Part or Service Number if applicable
     g)   Manufacturer Part Number if different to Supplier when applicable

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     h)   Part or Service Description
     i)   Quantities per each item
     j)   Unit of Measure
     k)   Unit Price for Equipment or Services.
     l)   Extended Price for Equipment or Services.
     m)   Payment Terms
     n)   Delivery Location for Services when applicable
     o)   Agreement Name
     p)   Supplier Name and Address
     q)   Service Acceptance Number if applicable.

5 Equipment Shipping Instructions, Shipping Documents and Goods Receipt.

All shipments should be consigned according to the Purchase Order or Change
Order.

Nortel Networks should submit a copy of the following documentation via fax to
Axtel's Purchasing Department immediately after Delivery.

     o    Proof of Delivery
     o    Packing List including equipment serial number when applicable
     o    Certificate of Origin (NAFTA Certificate, if it applies)
     o    Copy of Original Invoice

For purposes of the Agreement, the Delivery Date of the products shall be deemed
the date on which Nortel Networks delivers via fax to Axtel the documents
mentioned above.

A copy of the following documentation should be attached to the shipment:

     o    Copy of Original Invoice
     o    Packing List with product serial number when applicable
     o    Certificate of Origin (NAFTA Certificate, if it applies)


During the following ten (10) days after Delivery Date, Axtel shall issue a
Goods Receipt document that shall contain at least the following information:

     o    Document Date
     o    Purchase Order Number (s)
     o    Invoice Number(s)
     o    Delivery Date
     o    Acceptance Note and Goods Receipt Number (if applicable)
     o    Refusal Note describing the reasons in writing (if applicable) in
          accordance with the terms of the Agreement

If after ten (10) days from Delivery Date, Axtel has not delivered to Nortel
Networks such Goods Receipt document, it will be deemed that Axtel has accepted
the shipment and it will be deemed that there are no Non-Compliant products in
such shipment.


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6 Services Acceptance

In the event of Services, during the following five (5) Business Days after
completion of the Services by Supplier, Axtel shall issue a Service Acceptance
Notification to Supplier that should contain at least the following information:

     o    Document Date
     o    Purchase Order Number
     o    Date of Service Completion
     o    Acceptance Note and Service Acceptance Number (if applicable)
     o    Refusal Note describing the reasons in writing (if applicable)

If after five (5) Business Days, Axtel has not delivered to Nortel Networks such
Service Acceptance Notification, it will be deemed that Axtel has accepted the
provided Services and Nortel Networks will invoice Axtel.

7 Payments Procedure

7.1 Product Payments

Axtel shall make the payment of the seventy percent (70%) of the purchase price
set forth in the corresponding Purchase Order and according with terms and
conditions established in Section 5 of the Agreement.

Payment of the remaining thirty percent (30%), shall be made by Axtel within ten
(10) days of the Delivery Date.

7.2 Services Payments

Amounts are due upon receipt of invoice and shall be paid by Axtel within thirty
(30) days after its receipt by Axtel.

                                     Page 7
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Annex F - Prices
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------


                                     Annex F


                                   FWA Prices








<PAGE>
Annex F - Prices
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------


                                     Annex F
                                   FWA Prices

1.0  Document Scope.

This document details the definition and pricing of the FWA equipment to be
supplied by Nortel Networks to AXtel as per the "FWA Supply Agreement". All
prices are in US dollars. CIP for RSS & RIS are quoted as @ Nortel Networks
American consolidation warehouse for Mexico (currently Texas, USA). Ex-works
terms for RBS & FET are quoted @ Nortel Networks RBS manufacturing site
(currently Calgary, Canada) and Ex-works terms for REM are quoted @ Nortel
Networks REM integration site (currently Maidenhead, England).

2.0  Customer Premise Equipment Kits.

CPE quantities in excess of 35,000 units ordered within a calendar year will
benefit from a volume related price reduction of $25.00 per unit with respect to
this price list.

2.1  Customer Premise Equipment Kits (CPE).

                  An F2 RSS Kit is defined as follows:

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- -------------------
        PEC                            Description                     Qty.   Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- -------------------
<S>                  <C>                                              <C>     <C>
NTEG17DA             F2 RTU                                           1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ ------- -------------------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ ------- -------------------
NTEG99JE             Drop Cable (500M)                                0.04
-------------------- ------------------------------------------------ ------- -------------------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ ------- -------------------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ ------- -------------------
                                                                                   $381.14
----------------------------------------------------------------------------- -------------------

                  An F5 RSS Kit is defined as follows:

-------------------- ------------------------------------------------ ------- -------------------
        PEC                            Description                     Qty.   Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- -------------------
NTEG18DA             F5 RTU                                           1
-------------------- ------------------------------------------------ ------- -------------------
NTEG18FA             RDA Kit                                          1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ ------- -------------------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ ------- -------------------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ ------- -------------------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ ------- -------------------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
----------------------------------------------------------------------------- -------------------
                                                                                   $570.77
----------------------------------------------------------------------------- -------------------

</TABLE>


                                     Page 2
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--------------------------------------------------------------------------------

2.2      Installation Brackets for F5 & F2 RSS.

                  Compact Mounting Bracket

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- -------------------
        PEC                            Description                     Qty.   Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- -------------------
<S>                           <C>                                       <C>          <C>
     NTEG19AJ                 Compact Mounting Bracket (10)             1
-------------------- ------------------------------------------------ -------
     NTEG99DC                  Mounting Coach Screw (200)             0.015
-------------------- ------------------------------------------------ -------
     NTEG99DD                        Washer M8 (200)                  0.015
-------------------- ------------------------------------------------ -------
     NTEG99DE                       Frame Fixing(200)                 0.015
-------------------- ------------------------------------------------ ------- -------------------
                                                                                    $7.35
-------------------- ------------------------------------------------ ------- -------------------

</TABLE>


3.0 Radio Basestation Kits

    Discrete Radio Basestation Configurations.

The following configurations and the associated pricing are representative of a
typical installation. Specific installations may require variations on these
definitions for which the vendor will provide revised pricing quotations at that
time.

<TABLE>
<CAPTION>

------------------- --------------------------- ---------------- ----------------- -------------------
       PEC                 Description              18b RBS          27b RBS            48b RBS
------------------- --------------------------- ---------------- ----------------- -------------------
<S>                 <C>                                <C>              <C>                <C>
     NTED4575       Transceiver Processor              5                7                  12
                    Module
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG72AD       Transceiver Baseband               5                7                  15
                    Module Combining Diversity
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG77EC       Transceiver Masthead Unit          6                9                  18
                    Kit
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97PC       Antenna to TMU 4m Cable            6                9                  18
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG94BD       1M Pre-Fit Cabinet                 1                2                  3
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG63AA       Transceiver Timer Module           0                0                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG73AA       Network Management Module          0                0                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CJ       TMU to Cabinet IF 1/2"            0.6              0.9                1.8
                    cable  (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG91BA       1/2" IF Cable Connector            6                9                  18
                    Kit
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CE       TMU to Cabinet Power              0.6              0.9                1.8
                    cable (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG93AA       Power Cable Connector Kit          6                9                  18
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CA       TMU to Cabinet Data Cable         0.6              0.9                1.8
                    (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG92AA       Data Cable Connector Kit           6                9                  18
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97NE       60 Degree Vertical                 0                0                  12
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97ME       120 Degree Vertical                6                9                  6
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
Ex-Works Price  USD                               $137,136.62      $212,017.55         455,003.26
----------------------------------------------- ---------------- ----------------- -------------------

</TABLE>

                                     Page 3
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For clarity, NTEG94BD (1M Pre-Fit Cabinet) and NTEG77EC (Transceiver Masthead
Unit Kit) are defined as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                           NTEG94BD 1M Pre-Fit Cabinet
------------------- -------------------------------------------------------------- -------------------
       PEC                                   Description                                  Qty.
------------------- -------------------------------------------------------------- -------------------
<S>                 <C>                                                                    <C>
NTED4575            TRANSCEIVER PROCESSOR MODULE                                           1
------------------- -------------------------------------------------------------- -------------------
NTEG63AA            TRANSCEIVER TIMER MODULE                                               2
------------------- -------------------------------------------------------------- -------------------
NTEG72AD            TRANSCEIVER BASEBAND MODULE COMBINING DIVERSITY                        1
------------------- -------------------------------------------------------------- -------------------
NTEG73AA            NETWORK MANAGEMENT MODULE                                              1
------------------- -------------------------------------------------------------- -------------------
NTEG7762            CABINET CABLE SET TYPE 2                                               1
------------------- -------------------------------------------------------------- -------------------
NTEG74BA            OVER-VOLTAGE PROTECTION MODULE                                         3
------------------- -------------------------------------------------------------- -------------------
NTEG76BA            FRA-ITS FAN TRAY ASSEMBLY                                              1
------------------- -------------------------------------------------------------- -------------------
NTEG76CC            SECONDARY DC BREAKER RACK FILTERED                                     1
------------------- -------------------------------------------------------------- -------------------
NTEG76FB            I.T.S Basestation DIVERSITY SUB RACK                                   1
------------------- -------------------------------------------------------------- -------------------
NTEG76GA            I.T.S U.K MAINTENANCE PORT ASSEMBLY                                    1
------------------- -------------------------------------------------------------- -------------------
NTEG94AN            1.0M CABINET FLOOR MOUNTING PLINTH                                     1
------------------- -------------------------------------------------------------- -------------------
NTEG94FA            ALARM CONNECTOR BLOCK                                                  1
------------------- -------------------------------------------------------------- -------------------
NTEG94QA            1.0M INTERNAL I.T.S. CABINET                                           1
------------------- -------------------------------------------------------------- -------------------



------------------------------------------------------------------------------------------------------
                     NTEG77EC Transceiver Masthead Unit Kit
------------------------------------------------------------------------------------------------------
       PEC                                   Description                                  Qty.
------------------- -------------------------------------------------------------- -------------------
NTEG77CA            T.M.U./T.A.S. GROUND BOND KIT                                          1
------------------- -------------------------------------------------------------- -------------------
NTEG77DA            SUN SHIELD ASSEMBLY                                                    1
------------------- -------------------------------------------------------------- -------------------
NTEG77GB            T.M.U. ASSY BF-BAND (100MHz)                                           1
------------------- -------------------------------------------------------------- -------------------
P0821020            U BOLT 61 C R S                                                        2
------------------- -------------------------------------------------------------- -------------------
P0821021            U BOLT 126 C R S                                                       2
------------------- -------------------------------------------------------------- -------------------
P0834843            T.M.U. MOUNTING BRACKET V3                                             1
------------------- -------------------------------------------------------------- -------------------

</TABLE>

3.1 Discrete Radio Basestation Upgrade Configurations.

     The following configurations and the associated pricing are representative
     of a typical installation, eg. 45m cable runs assumed. Specific
     installations may require variations on these definitions for which the
     vendor will provide revised pricing quotations at that time.


<TABLE>
<CAPTION>

------------------- --------------------------- ---------------- ----------------- -------------------
       PEC                 Description            18b to 27b        27b to 48b        PDS Upgrade
                                                    Upgrade          Upgrade
------------------- --------------------------- ---------------- ----------------- -------------------
<S>                 <C>                                <C>              <C>                <C>
     NTED4575       Transceiver Processor              2                5                  0
                    Module
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG72AD       Transceiver Baseband               2                8                  0
                    Module Combining Diversity
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG77EC       Transceiver Masthead Unit          3                9                  0
                    Kit
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97PC       Antenna to TMU 4m Cable            3                9                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG94BD       1M Pre-Fit Cabinet                 1                1                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG63AA       Transceiver Timer Module           0                0                  0
------------------- --------------------------- ---------------- ----------------- -------------------

</TABLE>

                                     Page 4
<PAGE>
Annex F - Prices
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

------------------- --------------------------- ---------------- ----------------- -------------------
       PEC                 Description            18b to 27b        27b to 48b        PDS Upgrade
                                                    Upgrade          Upgrade
------------------- --------------------------- ---------------- ----------------- -------------------
<S>                 <C>                                <C>              <C>                <C>
     NTEG73AA       Network Management Module          0                0                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CJ       TMU to Cabinet IF 1/2"            0.3               1                  0
                    cable  (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG91BA       1/2" IF Cable Connector            3                9                  0
                    Kit
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CE       TMU to Cabinet Power              0.3               1                  0
                    cable (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG93AA       Power Cable Connector Kit          3                9                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG99CA       TMU to Cabinet Data Cable         0.3               1                  0
                    (500m)
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG92AA       Data Cable Connector Kit           3                9                  0
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97ME       120 Degree Vertical                3                0                  0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG97NG       40 Degree Vertical                 0                12                 0
                    Polarization Antenna
------------------- --------------------------- ---------------- ----------------- -------------------
     NTEG71HA       Transceiver processor              0                0                  2
                    Module - Packet Data
------------------- --------------------------- ---------------- ----------------- -------------------
       N/A          Packet Data Software               0                0                  1
                    Activation Fee
------------------- --------------------------- ---------------- ----------------- -------------------
Ex-Works Price USD                                $74,880.94       $249,265.91         $40,384.62
----------------------------------------------- ---------------- ----------------- -------------------

</TABLE>

4.0 FWA Software.

<TABLE>
<CAPTION>

------------ -------------------------------------------------------- ------------ ---------------------
    PEC                            Description                           Qty.       Ex-Works Price USD
------------ -------------------------------------------------------- ------------ ---------------------
<S>          <C>                                                           <C>          <C>
    N/A      Cell Site  Packet Data Software Activation Fee                1            $25,000.00
------------ -------------------------------------------------------- ------------ ---------------------
    N/A      F2 RSS 2nd Line Activation Fee                                1              $50.00
------------ -------------------------------------------------------- ------------ ---------------------
    N/A      F5 RSS 2nd Line Activation Fee                                1              $50.00
------------ -------------------------------------------------------- ------------ ---------------------

</TABLE>


5.0 FWA OA&M Equipment.

5.1 Field Engineering Terminal (FET).

Choose one of the following.

<TABLE>
<CAPTION>

------------------ ------------------------------------------------------ ---------- -------------------
       PEC                              Description                         Qty.       Ex-Works Price
                                                                                            USD
------------------ ------------------------------------------------------ ---------- -------------------
<S>                <C>                                                        <C>        <C>
    NTEG30AN       FET System Complete (LINUX)on  Panasonic CF27              1          $7,812.00
------------------ ------------------------------------------------------ ---------- -------------------
    NTEG30AF       LINUX FET Software Application Kit for Panasonic CF27      1          $3,600.00
------------------ ------------------------------------------------------ ---------- -------------------

</TABLE>

                                     Page 5
<PAGE>
Annex F - Prices
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------


5.2 Residential Installation System (RIS). Survey & Maintenance Kit

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------------ -----------
        PEC                               Description                          Qty.
-------------------- ------------------------------------------------------ -----------
<S>                               <C>                                           <C>
     NTEG24BF                     100 MHz Generic Survey Kit                    1
-------------------- ------------------------------------------------------ -----------
    NTEG10DCBV              RSS Installation Sub-Set Documentation              1
-------------------- ------------------------------------------------------ -----------
     P0872025                             Large Belt                            1
-------------------- ------------------------------------------------------ -----------
     NTEG24BE            RTU SAK/Handle Pole Kit (5.5m extension kit)           1
-------------------- ------------------------------------------------------ -----------
     NTEG22EB                       RTU SAK/Handle Assembly                     1
-------------------- ------------------------------------------------------ -----------
     A0734347                                 GPS                               1
-------------------- ------------------------------------------------------ -----------
     A0658055                         Linesman Phone U.S.                       1
-------------------- ------------------------------------------------------ -----------
     NTEG24AA                   100MHz Generic Maintenance Kit                  1
-------------------- ------------------------------------------------------ -----------
     NTEG21ND                       PSA Mains Adapter U.S.                      1
-------------------- ------------------------------------------------------ -----------
     A0745625                       RMT Mains Adapter U.S.                      1
-------------------- ------------------------------------------------------ -----------
     A0657248                                Modem                              1
-------------------- ------------------------------------------------------ -----------
     A0655833                             Multimeter                            1
-------------------- ------------------------------------------------------ -----------
     NTEG21PB                       Vehicle charging Cable                      1
-------------------- ------------------------------------------------------ -----------
     A0743766                         RMT Docking Holster                       1
-------------------- ------------------------------------------------------ -----------
CIP Price USD                                                               $8,322.30
-------------------- ------------------------------------------------------ -----------

</TABLE>


5.3 Radio Element Manager (REM).

The following configuration is based on the original Model 3 REM but includes
additional functionality upgrades that were introduced during the previous
contract.


<TABLE>
<CAPTION>

-------------------- ----------------------------------------------------------------- -----------------
                                               Description                                   Qty.
-------------------- ----------------------------------------------------------------- -----------------
<S>                  <C>                                                                      <C>
     NTEG43AC        HP Unix Server                                                           1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG41GD        HASS Functionality                                                       1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG41GE        Dual Processor Functionality                                             1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG43AA        HP Client Workstation                                                    1
-------------------- ----------------------------------------------------------------- -----------------
     NTEJ40BN        Radio Element Manager Software Platform                                  1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42BC        Network Hub 16 Slot Chassis,Fantray,Hipernmc, Dual Psu                   1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42FB        HyperARC                                                                 1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42GM        Quad Modem Card With S/Ware Type 1                                       1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG43AD        Unix Server annual support                                               1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG43AB        Client Workstation annual support                                        1
-------------------- ----------------------------------------------------------------- -----------------
     NTEJ40GC        Remedy ARS Support                                                       1
-------------------- ----------------------------------------------------------------- -----------------
     NTEJ40JC        Oracle RDBMS Support                                                     1
-------------------- ----------------------------------------------------------------- -----------------
     A0743702        Openview SW Support                                                      1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42KA        Network Hub Annual SW Maintenance                                        1
-------------------- ----------------------------------------------------------------- -----------------
     A0743715        SW support CLEO                                                          1
-------------------- ----------------------------------------------------------------- -----------------
Ext-Works Price USD                                                                      $569,607.29
-------------------- ----------------------------------------------------------------- -----------------

</TABLE>


                                     Page 6
<PAGE>
Annex F - Prices
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------



6.0 FWA Equipment Spares.

<TABLE>
<CAPTION>

------------------ -------------------------------------------------- ------------ ---------------------
       PEC                            Description                      Qty. Per     Ex-Works Price USD
------------------ -------------------------------------------------- ------------ ---------------------
<S>                <C>                                                     <C>          <C>
    NTED4575       Transceiver Processor Module                            1            $5,877.05
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG72AD       Transceiver Baseband Module Combining Diversity         1            $2,843.62
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG77EC       Transceiver Masthead Unit Kit                           1            $9,910.94
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97PC       Antenna to TMU 4m Cable                                 1              $94.45
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG76BA       I.T.S. Fan Tray Assembly                                1             $489.85
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG76CC       Secondary DC Breaker Rack Filtered                      1            $2,001.71
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG76FB       I.T.S Basestation Diversity Sub Rack                    1            $2,999.91
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG76GA       I.T.S U.K. Maintenance Port Assembly                    1              $82.56
------------------ -------------------------------------------------- ------------ ---------------------
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG94QA       1.0M Internal ITS Cabinet                               1            $1,553.40
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG74BA       Over Voltage Protection Module                          1             $546.29
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG63AA       Transceiver Timer Module                                1            $1,528.64
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG73AA       Network Management Module                               1            $2,452.98
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG99CJ       TMU to Cabinet IF1/2" Cable                            500m           $3,149.90
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG91BA     1/2" IF Cable Connector Kit                              1              $78.86
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG99CE       TMU to Cabinet Power Cable                            500m           $3,010.50
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG93AA       Power Cable Connector Kit                               1             $112.79
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG99CA       TMU to Cabinet Data Cable                             500m            $746.40
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG92AA       Data Cable Connector Kit                                1              $97.20
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97ME       120 Degree Vertical Polarization Antenna                1            $1,800.00
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97MF       120 Degree Horizontal Polarization Antenna              1            $1,800.00
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97NE       60 Degree Vertical Polarization Antenna                 1            $1,800.00
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97NF       60 Degree Horizontal Polarization Antenna               1            $1,800.00
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97NG       40 Degree Vertical Polarization Antenna (For            1            $3,625.00
                   orders of less than 120 units)
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97NH       40 Degree Horizontal Polarization Antenna (For          1            $3,625.00
                   orders of less than 120 units)
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97NG       40 Degree Vertical Polarization Antenna (For            1             $1626.00
                   orders of more than 120 units)
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG97NH       40 Degree Horizontal Polarization Antenna (For          1             $1626.00
                   orders of more than 120 units)
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG71HA       Transceiver Processor Module - Packet Data              1             $9320.40
------------------ -------------------------------------------------- ------------ ---------------------


------------------ -------------------------------------------------- ------------ ---------------------
       PEC                            Description                      Qty. Per     Ext. Price CIP USD
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG18DA       F5 RTU                                                  1
                                                                                         $471.20
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG18FA       RDA Kit                                                 1
                                                                                         $107.11
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG12FA       RPCU                                                    1              $39.01
------------------ -------------------------------------------------- ------------ ---------------------
    A0636762       RPCU Battery                                            1              $11.02
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG12CL       RPCU Power Cord                                         1              $0.54
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG12FB       RPCU Safety Booklet                                     1              $0.36
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG99JE       Dual Jacket Drop Cable                                500m            $178.82
------------------ -------------------------------------------------- ------------ ---------------------

</TABLE>

                                     Page 7
<PAGE>
Annex F - Prices
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------


<TABLE>
<CAPTION>

------------------ -------------------------------------------------- ------------ ---------------------
       PEC                            Description                      Qty. Per     Ext. Price CIP USD
------------------ -------------------------------------------------- ------------ ---------------------
<S>                <C>                                                    <C>            <C>
    NTEG99GY       Dual Jacket Drop Cable Connector                       50             $242.98
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG99CZ       Drop Cable Connector Pins                              500             $48.44
------------------ -------------------------------------------------- ------------ ---------------------
    NTEG17DA       F2 RTU                                                  1             $326.87
------------------ -------------------------------------------------- ------------ ---------------------

</TABLE>

                                     Page 8

<PAGE>



ANNEX G - WARRANTY SERVICES

PURCHASE AND LICENSE AGREEMENT FOR FWA EQUIPMENT

--------------------------------------------------------------------------------







                                     ANNEX G

                               WARRANTY SERVICES







<PAGE>
Annex G - Warranty Services

Purchase and License Agreement for Fwa Equipment

--------------------------------------------------------------------------------


                Purchase and License Agreement for Fwa Equipment
                          Annex G - Warranty Services

1.0 SERVICES SUMMARY

For this 1-year Warranty, Nortel Networks will:

     *    Provide Remote Technical Assistance to assist Axtel in the diagnosis
          of hardware failures during the warranty period for all Nortel
          Networks' Hardware supplied by Nortel Networks under this Agreement.

     *    Repair or replace a defective Field Replaceable Unit (FRU). Target
          times for repair/replacement are within 60 days following receipt of
          the defective FRU.

          Note: AXTEL will maintain its own stock of spares at levels sufficient
          to cover requirements within timeframes consistent with AXTEL quality
          of service objectives.

     Nortel Networks will register and manage requests for Remote Technical
     Assistance and for FRU replacement during normal business days and hours in
     the location where the service is being performed.

Here follows a description of the warranty services to be provided by Nortel
Networks:


1.1     Technical Assistance Service during Warranty Period

1.1.1   Technical Assistance Service Deliverables

     *    Provide Remote Technical Assistance to assist Axtel in the diagnosis
          of hardware failures during the warranty period.

     To provide Technical Assistance, Nortel Networks technicians and engineers
     will provide support primarily by remote means. In a collaborative effort
     with Axtel's technical staff, these personnel will attempt to diagnose and
     resolve issues related to the hardware supplied by Nortel Networks as
     explained in this service description.

     Where telephone support, remote diagnosis, and all other means of restoring
     product operation have failed, Nortel Networks, upon Axtel's request, and
     if Nortel Networks determines that on-site support is necessary and
     appropriate, will dispatch a trained and qualified technical expert to
     Axtel's premises to facilitate further diagnosis.

          * Notwithstanding Nortel Networks' determination that on-site support
          is not necessary, Axtel will nevertheless have the right to require on
          site support from Nortel Networks, provided that such on site support
          required by Axtel shall be at Axtel's cost unless it is agreed that it
          was necessary for such support to be provided on site.


1.1.2   Axtel Responsibilities for Technical Assistance Service

     For Remote Technical Assistance Axtel will be required to:

                                     Page 2
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     *    Confirm that the products have been installed & commissioned and are
          used and maintained by knowledgeable and skilled people using Nortel
          Procedures.

     *    Replace hardware components during diagnosis or as remedial actions.

     *    Generate performance/availability reports and associated trend
          analysis.

     *    Gather data in a timely manner in support of Nortel Networks'
          diagnostic process when reasonably within the technical competency of
          AXtel.

     *    Identify issues requiring hardware replacement

     *    If applicable, use all reasonable efforts to maintain hardware and
          software at the release or update level for supported hardware and
          software. This maintenance will need to be in accordance with policies
          and procedures published by Nortel Networks. Axtel will maintain
          software levels at the then-current or immediately prior Software
          Release level.

     *    Perform software upgrades and/or patch applications

     *    Provide connectivity in a timely manner to the product(s) for Nortel
          Networks to establish a data link for use by Nortel Networks technical
          support group in order to conduct remote diagnosis and maintenance

               Note: Axtel and Nortel Networks technical personnel will agree on
               the appropriate type of data link based on network equipment and
               configuration as well as the appropriate security measures to
               prevent unauthorized access. Axtel will be solely responsible for
               security of the network. Nortel Networks will not connect to
               Axtel's network without prior authorization and such connection
               will be solely to provide technical support.

     *    Excuse Nortel Networks from fault resolution for a period equal to
          such failure or delay, should Axtel fail or cause delay in providing
          connectivity

     *    Designate and make available competent personnel to aid in problem
          diagnosis and provide electronic access to the affected product(s) to
          aid in problem investigation and resolution for all incidents. Axtel
          personnel should be available to work together with Nortel Networks
          technical expert during all the process.

     *    Axtel should provide their internal escalation process in order to
          inform all the contacts to Nortel Networks.

     *    Maintain a support agreement(s) with the third-party supplier(s) for
          such product(s), as Axtel sees fit.

     *    Axtel's in-house structure that performs first-line support will need
          to exhaust internal troubleshooting processes. First-level Operations,
          Administration, and Maintenance (OA&M) functions may include, but are
          not limited to:

          *    Performing day-to-day maintenance and network operations

          *    Monitoring network and system alarms

          *    Performing diagnosis in accordance with instructions provided by
               Nortel Networks and carrying out initial remedial actions,
               including remote diagnosis

          *    Operating and controlling Axtel's internal help desk for logging
               and tracking fault inquiries, prioritizing events, and
               escalating, as required, to the Nortel Networks technical support
               group


                                     Page 3
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--------------------------------------------------------------------------------

          *    Providing local time templates and historical actions performed
               on each event as reference information to the Nortel Networks
               technical support group (NTS).

1.1.3   Technical Assistance Services Assumptions

     For Remote Technical Assistance the following assumptions will apply:
     Technical Support Services (2nd & 3rd Level) will be provided by Nortel
     Networks at its cost and expense during warranty to the Hardware elements
     covered by this warranty.

     *    In the event that Axtel fails to comply with the requirements
          described in section 1.1.2 (Axtel Responsibilities for Technical
          Assistance), Nortel Networks will advise Axtel of its non-compliance.
          Nortel Networks and Axtel may then agree upon service to be provided
          at the then-current time-and-materials basis published by Nortel
          Networks plus any travel and living expenses incurred

     *    Nortel Services provided under this Annex G are warranted in
          accordance with Section 6.3 of this Agreement.

     *    Nortel Networks, or a skilled, qualified third-party authorized by
          Nortel Networks, will furnish these Services.

1.1.4   Technical Assistance Services Exclusions

     The following exclusions will govern the delivery of Remote Technical
     Assistance:

     *    Software provided by Nortel under this Agreement has no warranty.

     *    Providing advice on how to detect and resolve network-related problems

     *    Diagnosing issues related to Nortel Networks products interfacing with
          non-Nortel Networks products

     *    Analyzing trace / log / dump / Operational Measurement (OM)
          information

     *    Emergency Recovery

     *    Nortel Networks is not responsible for supporting non-Nortel Networks
          supplied third-party product(s). Axtel will be responsible for
          maintaining support agreements with the OEM/third-party supplier for
          such product(s).

     *    No warranty is provided for: (i) supply items normally consumed during
          Product operation; (ii) failures caused by non-Nortel Networks
          products; (iii) failures caused by a Product's inability to operate in
          conjunction with other Customer hardware or software different from
          the Third Party Vendor Items provided by Nortel Networks under this
          Agreement ;or (iv) performance failures resulting from services not
          performed by Nortel Networks or Customer's use of unauthorized parts
          or components. Warranty will be voided by misuse, accident, damage,
          alteration or modification, failure to maintain proper physical or
          operating environment, use of unauthorized parts or components or
          improper Customer maintenance. Software is not warranted to operate
          uninterrupted or error free.

     *    Nortel Networks support obligations are expressly conditional upon the
          products not being (i) subject to unusual mechanical stress or unusual
          electrical or environmental conditions; (ii) subject to misuse,
          accident or disaster including without limitation, fire, flood, water,
          wind, lightning or other acts of God; or (iii) altered or modified
          unless performed or authorized by Nortel Networks


                                     Page 4
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     *    Products which have not been installed and commissioned by
          appropriately skilled and trained personnel using Nortel Procedures
          are excluded from this warranty.

     *    Remote Technical Assistance will not be provided during installation
          and/or commissioning process.

1.2     Return and Replace Service

     Nortel Networks will register and manage requests for Return and Replace
     service during Nortel Networks' normal business days and hours in the
     location where the service is being performed.

     Upon receiving AXTEL's request, Nortel Networks will allocate a part
     request number (also known as a Return Material Authorization number) to
     each FRU to be replaced and notify AXTEL of the relevant part request
     number.

     Following allocation of the part request number(s) Nortel Networks will
     repair or replace the unit at its discretion and will use commercially
     reasonable efforts to deliver the repaired unit or an equivalent to AXTEL
     within 60 days.


1.2.1   Axtel Responsibilities for Repair Services

     Axtel will be required to:

     *    Pay the expense of shipping the defective FRU to Nortel Networks
          warehouse in Mexico City or the closest Nortel Networks' regional
          logistics center.

     *    Use the specifically assigned part request number(s) provided by
          Nortel Networks and include completed Nortel Networks Fault Report
          Forms when returning any FRU

     *    Adhere to Nortel Networks' packing instructions (including anti-static
          precautions) when returning the defective unit Note: The packing
          instructions are included with the return instructions accompanying
          the replacement FRU.

     *    Put the replacement FRU into service

          Note: On-site repair and on-site replacement services are not included
          with the Return and Replace Service.

1.2.2   Assumptions for Repair Services

     The following assumption will govern the delivery of Warranty Repair
     Services:

     *    Nortel Networks will incur the expense of shipping the repaired unit
          or the replacement unit to AXTEL using a method and carrier selected
          by Nortel Networks. Nortel Networks is responsible for loss of, or
          damage to, an FRU while it is in Nortel Networks' possession or in
          transit to AXTEL, as well as, to pay all applicable duties, taxes, and
          other charges associated with the importation of the repaired or
          replacement FRU into the country of destination.

     *    Unless required for operational reasons and agreed upon with Nortel
          Networks, the replacement FRU will be at the then-current hardware and
          firmware release levels as they are made Generally Available (GA) by
          Nortel Networks. Upon a specific request of Customer for repair of a
          quantity of RTU with a specific


                                     Page 5
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Purchase and License Agreement for Fwa Equipment

--------------------------------------------------------------------------------

          software release version, the parties will work together to define a
          mutually agreeable process to satisfy such specific request, provided
          that, such a process does not cause Nortel Networks to incur any out
          of pocket expenses or material additional cost.

     *    Warranty on units repaired (FRU) by Nortel Networks to be limited to
          ninety (90) days from delivery of repaired part or to the end of the
          original warranty period, whichever is longer. * The defective FRU
          returned to Nortel Networks becomes the property of Nortel Networks
          and, subject to Nortel Networks' receipt of the defective FRU, its
          replacement becomes AXTEL's property.

     *    Nortel Networks reserves the right to reject the return of any FRU
          that does not clearly display the specific part request number [Return
          Material Authorization (RMA) number] or does not include the
          associated completed Nortel Networks fault report forms.

     *    Nortel Networks will from time to time assess products offered and
          supported. The assessment will be based on technology, market
          development, product deployment, and support requirements and may
          identify certain products that will be discontinued. Nortel Networks
          reserves the right to terminate any service purchased by AXTEL for
          products that have been discontinued. Subject to the Nortel Networks
          then-current policies, continued support for any discontinued products
          beyond the effective date of discontinuance may be provided on a
          reasonable basis, as determined by Nortel Networks.

     *    The service will be furnished by Nortel Networks or a party authorized
          by Nortel Networks.

     *    As part of repair service, Nortel Networks will monitor all faulty
          product returns for No Fault Found (NFF) from Axtel. All repair cases
          resulting in "no fault found" will be charged to Axtel at 50% of
          Nortel Networks full repair rates. In the event that such Product
          presents again in the field within 120 days of return date the same
          failures as noticed by Axtel, Nortel Networks shall repair or replace,
          in a term no longer than 60 days, such Product at its cost and
          expense.

     *    If, in the judgment of Nortel Networks, the returned FRU has been
          damaged by misuse, accident, modification, failure to install and
          commission as per Nortel Networks processes or maintain proper
          physical or operating environment or improper maintenance by AXTEL,
          then Nortel Networks will return the defective un-repaired FRU to
          AXTEL at AXTEL's expense.

     *    It is critical that Axtel regularly ship all defective Equipment to
          Nortel Networks, as defects are detected, to avoid the accumulation of
          defectives that will impact Nortel's ability to meet the target
          turnaround times.

1.2.3   Exclusions to Repair Services

     The following exclusions will govern the delivery of Repair Services:

     *    Nortel Networks support obligations are expressly conditional upon the
          products not being (i) subject to unusual mechanical stress or unusual
          electrical or environmental conditions; (ii) subject to misuse,
          accident or disaster including without limitation, fire, flood, water,
          wind, lightning or other acts of God; or (iii) altered or modified
          unless performed or authorized by Nortel Networks.

     *    Repair Services are not offered on Nortel Networks holidays observed
          in the region where the service is being performed.


                                     Page 6
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--------------------------------------------------------------------------------

     *    Additionally, Repair Services do not include Emergency Repair Support
          (also known as Emergency Part Dispatch).

     *    Root-cause analysis, the provision of fault reports,
          lead-time/performance metrics, or hardware upgrades

     *    Those exclusions identified in Section 6 of this agreement. For
          further clarity of Section 6.5, supply items normally consumed during
          Product operation include but are not limited to printer ribbons,
          light bulbs, cables, batteries, fuses, filters, etc. Software is not
          warranted to operate uninterrupted or error free.

     *    On-site repair or replacement, which are not offered as part of this
          proposal.

     *    Products which have not been installed and commissioned by
          appropriately skilled and trained personnel using Nortel Procedures.

2.0     GENERAL


2.1     Holidays Observed by Nortel Networks

     Please refer to your local Nortel Networks representative to get
     information of Local National Holidays observed at[N1] Customer's location.


2.2     Call Center Access for Technical Support

     The Nortel Networks Call Center will function as a single point of contact
     for the receipt of all support calls and inquiries. The remote support
     effort will begin with a telephone call and will continue with the
     appropriate actions to be taken according to Nortel Networks Case Severity
     Classifications.

     In accordance with Table 2-R below, the Call Center will register and
     manage requests for Remote Technical Assistance during normal business days
     (M-F) and hours (9:00-18:00 hrs), excluding holidays for Business Critical,
     Major and Minor Severity Problems and for E1 and E2 Severity Problems the
     Call Center will be available 24 hours a day, 365 days a year. General
     provisions for accessing Technical Assistance services include:


     *    Nortel Networks may, where applicable, also provide a customer with
          the ability to open, view, and modify cases directly within the Nortel
          Networks case-tracking system via www.nortelnetworks.com. The customer
          will bear telecommunication facility charges and/or long distance toll
          charges associated with access to www.nortelnetworks.com

     *    Where toll-free +access is not available, the customer will bear
          telecommunication facility charges and/or long distance toll charges
          for access to the Call Center

     *    All cases are logged into a Nortel Networks case-tracking system. The
          case is time-stamped and a case reference number allocated.
          Furthermore, Nortel Networks will request that the customer agree to a
          case priority level

     *    E1 and E2 priority cases are to be reported by telephone only

     *    The customer to escalate a case to higher levels of management within
          Nortel Networks, shall be in accordance with the escalation table in
          section 2.2.5.


                                     Page 7
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--------------------------------------------------------------------------------

2.2.1   Nortel Networks Technical Support Services Call Process

     When calling Nortel Networks for Technical Assistance or Emergency
     Recovery, the customer's representative will be asked to provide the
     following information:

     1.   Company name

     2.   Caller name and phone number

     3.   Personal Identification Number (PIN) or a unique Customer Purchase
          Order number or credit card number, if a PIN has not been issued.

     4.   Site Location/Site ID

     5.   Product on which the problem is being reported

     6.   Problem description and severity

     A Call Center agent will generate a Case Reference Number (CRN), which will
     be provided to the customer for tracking the case. A Nortel Networks
     technician will then team with the customer's representative to resolve the
     reported issue.


2.2.2 Call Center Phone Numbers

     Customer sites in Latin America will access the Nortel Networks technical
     support organizations by calling:

     Tel: (52) 55 5480-2170, Fax. (52) 55 5480-2103

     Pager: SkyTel (52) 55 5227-7979

     PIN: 5266667 / Reach Me PIN: 52 5266667

     email: nsc@nortelnetworks.com


2.2.3   Technical Support Response Times

     Once Axtel has opened a CRN at the Nortel Networks' Call Center and
     depending on the Severity Classification, a Nortel Networks Technical
     Support (NTS) Engineer will contact Axtel's representative as per the terms
     set forth in Table 2-R below.

2.2.4   Technical Support Case Priority

     The definitions in this Section 2.2.4 are generic and shall apply to the
     limited extent that this Annex G covers Hardware warranty only. Problem
     reports will be classified as set forth in the tables below.


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TL9000
Severity         Nortel Networks Case
Classification   Priority & Definition         Examples
--------------------------------------------------------------------------------
Critical         E1                            > Total or partial network
                                               element outage
                 Problems that severely
                 affect service,               > A reduction in capacity or
                 capacity/traffic,             traffic handling capability such
                 billing and maintenance       that expected loads cannot be
                 capabilities and              handled
                 require immediate
                 corrective action,            > Failure resulting in dynamic
                 regardless of time of         routing, switching capability or
                 day or day of the week.       transport loss

                                               > Any loss of safety or emergency
                                               capability (e.g., emergency calls
                                               such as 911 in North America)

                                               > Loss of the system's ability to
                                               perform automatic system
                                               reconfiguration

                                               > Inability to restart the system

                                               > Loss of billing/accounting
                                               capability

                                               > Corruption of billing or system
                                               databases that requires service
                                               affecting corrective actions

                                               > Other problems that severely
                                               affect service, capacity/traffic
                                               billing, and maintenance
                                               capabilities or are jointly
                                               viewed by Nortel Networks and the
                                               customer as critical

--------------------------------------------------------------------------------

TL9000
Severity         Nortel Networks Case
Classification   Priority & Definition       Examples
------------------------------------------------------------------------------
Major            E2                         > Loss of redundancy of critical
                                             functions
                 Problems that result in
                 potential service          > Loss of protection switching
                 degradation and/or          capability
                 total outage. Serious
                 situation not involving    > Short outages equivalent to system
                 service degradation in      or subsystem outages not seriously
                 a live environment, but     impacting service with accumulated
                 leading to a total or       duration of greater than two
                 partial loss of             minutes in any 24-hour period, or
                 redundancy.                 that continue to repeat during
                                             longer periods

                                            > A reduction in provisioned
                                             capacity of 5% and for a cumulative
                                             duration of more than 10 minutes
                                             per 24 hours

                                            > Repeated degradation of DS1/E1 or
                                             higher rate spans or connections

                                            > Loss of system's ability to
                                             perform automatic system
                                             reconfiguration

                                            > Loss of access to maintenance or
                                             recovery operations > Any loss of
                                             functional visibility and/or
                                             diagnostic capability

                                            > Loss of system's ability to
                                             provide any required system
                                             critical/major alarms

                                            > Total loss of access to
                                             provisioning

-------------------------------------------------------------------------------

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TL9000
Severity         Nortel Networks Case
Classification   Priority & Definition       Examples
------------------------------------------------------------------------------
Major            Business Critical           > The customer has been given a
                                             work-around but the situation stilL
                 Problems that result in     requires constant attention due to
                 a major degradation of      the temporary nature of the
                 system or service           work-around
                 performance that
                 impacts service quality     > Software application/migration
                 or significantly            issues that gate the introduction
                 impairs network             of new services or functionality
                 operator control or
                 operational                 > Billing error rates that exceed
                 effectiveness. Overall      specifications
                 network is degraded
                 resulting in severe         > Corruption of system or billing
                 limitations to              databases
                 operations or network
                 management software
                 product has major
                 feature that is not
                 working properly with
                 only difficult
                 workaround.

--------------------------------------------------------------------------------


TL9000
Severity         Nortel Networks Case
Classification   Priority & Definition       Examples
------------------------------------------------------------------------------
Major            Major                       > Degradation of any capacity/
                                             traffic measurement function;
                 Problems that result in     degradation of functional
                 conditions that             visibility and/or diagnostic
                 seriously affect system     capability
                 operation, maintenance
                 and administration,         > Degradation of access for
                 etc. and require            maintenance or recovery operations
                 immediate attention.
                 The urgency is less         > Degradation of the system's
                 than in a Business          ability to provide any required
                 Critical situation          system critical/major alarms
                 because of a lesser
                 immediate or impending      > Loss of access for routine
                 effect on system            administrative activity
                 performance, customers,
                 and the customer's          > Any system failure without direct
                 operation and revenue.      immediate impact

                                             > Intermittent degradation of
                                             services; partial loss of access to
                                             provisioning

                                             > Software application/migration
                                             issues that do not impact service

                                             > Reduction in any capacity/traffic
                                             measurement function

                                             > Any loss of functional visibility
                                             and/or diagnostic capability

                                             > Any significant increase in
                                             product-related customer trouble
                                             reports

                                             > Follow-up to E1 customer problems

                                             > Other problems that disrupt or
                                             prevent routine system activities,
                                             or problems that are jointly viewed
                                             as Major events by Nortel Networks
                                             and the customer

--------------------------------------------------------------------------------


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TL9000
Severity         Nortel Networks Case
Classification   Priority & Definition       Examples
------------------------------------------------------------------------------
Minor            Minor                       > Service analysis, recorded
                                             announcements, operational
                 Problems do not             measurements, maintenance program,
                 significantly impair        or network management problems; or
                 the functioning of the      system-related documentation
                 system and do not           inaccuracies, that do not affect
                 significantly affect        call processing
                 service to customers.
                 These problems are          > Test equipment failures for which
                 tolerable during system     a backup or manual alternative can
                 use.                        be employed

                                             > Circuit pack testing problems

--------------------------------------------------------------------------------

2.2.5   Case Resolution Objectives and Escalation Procedures


     The definitions in Table 2-R below are generic and shall apply to the
limited extent that this Annex G covers Hardware warranty only.

     Nortel Networks Technical Support case resolution targets are based in
Nortel Networks best efforts and set according to the following TL9000 standard:

                                 "Table 2 - R"



<TABLE>
<CAPTION>

TL9000 Severity           Actions                   Response Times         Target         Targets
Classification                                    Business    Non-        Service        Based on
                                                    Hours   Business      restorat-        RQMs*
                                                             Hours        tion time
---------------------------------------------------------------------------------------------------
<S>                 <C>                           <C>        <C>          <C>            <C>


E1 (*1)             Worked continuously (7 x 24)  15 min     30 min       7 Hr           24 hr
                    until resolution or workaround
                    is provided

E2 (*1)             Worked continuously (7 x 24)
                    until resolution or workaround
                    is provided                   15 min     30 min       8 Hr           10 Days

Business Critical
and Major (*2)      Worked during normal business
                    days and business hours.      2 hrs   Next Business   24 Hr          30 Days
                                                              Day

Minor (*2)          Worked during normal business
                    days and business hours.      Next    Next Business   30 Days        180 days
                                                Business      Day
                                                  Day
---------------------------------------------------------------------------------------------------

</TABLE>


(*1) This Service is provided 7 x 24

(*2) This Service is provided in Normal Business Hours

Note: The times set forth in Table 2 - R above, are subject to Nortel Networks
and Customer working together in conjunction on a reasonable efforts basis to
find a workaround for services restoration and resolution within the target
times. These times do not represent an obligation or performance indicator.

* RQMS - Reliability and Quality Measurements for Telecommunications Systems.


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                     "Nortel Networks Escalation Procedure"

                                  Axtel's NOC

                          Call Center Nortel Networks

                   Nortel Networks Technical Support Engineer

                   Nortel Networks Technical Support Manager.

                   Nortel Networks Technical Support Sr. Mgr.


Nortel Networks Technical                    Nortel Networks Customer
Support Director                             Operation Leader


     At Closing Date, Nortel Networks will provide Customer with the contact
     information of the persons involved in this Escalation Procedures, as well
     from time to time, the changes to such contact information will be provided
     to Customer.

2.2.6   Case Progress Status

Nortel Networks Technical Support use the following status to differentiate the
case conditions during the evolution of the case investigation. A set of status,
its related meaning and its relationship with the case age, are defined in the
table below:

Status              Description                                    Nortel Clock

Newly Opened   This status is the default. It signifies that
               no work has been done on the case.                  Start

WIP Level 1    This status is used when a NTS Engineer is
               actively working on the Case.                       Not Stopped

WIP Level 2    This status is used when a Second Level
               Support Engineer is actively working a
               case *

               Second Level Support: Software Support,
               Product Support.                                    Not Stopped

Escalated To
Design         This status is used when a Design Engineer
               is actively working on the case                     Not Stopped


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Status              Description                                    Nortel Clock
--------------------------------------------------------------------------------
Answer From
Design         Design Engineer has concluded its investigation
               and has replied back to the NTS Engineer            Not Stopped

With A
Customer       During the course of conducting their research,
               the NTS Engineer may need additional information
               or activity from the Customer. The "With a Customer"
               status is assigned when the NTS Engineer is
               waiting on a Customer response in order to continue
               investigation                                       Stopped

Interim
Solution       If a temporary solution is provided that
               eliminates the customers pain until a permanent
               solution can be delivered, RQMS requirements
               allow the case to be set to an "IS" status during
               this window of time if approved by the Customer. In
               calculating case age, this interval will be
               discounted if the permanent fix was delivered on
               the negotiated commitment date. If the permanent
               fix does not resolve the reported problem, case
               status shall be changed to Work in Progress
               (Level 1 or 2). If the case is returned to a Work
               in Progress (Level 1 or 2) status after using the
               IS, the IS time period will be added to the RQMS
               age of the case.                                    Stopped

Future
Deliverable    Customer agrees to live with the problem
               condition and that the fix will be delivered as
               part of a future Nortel product release (software
               release, maintenance release, documentation
               release or hardware revision. Requirements to
               use this status include Customer consent; fix
               identification, and delivery commitment. This
               status code does not add time to the RQMS age of
               the case unless the solution fails and the case
               is moved back to Work in Progress (Level 1 or 2)
               status. If the case is returned to a Work in
               Progress (Level 1 or 2) status after using the FD,
               the FD time period will be added to the RQMS age
               of the case.                                        Stopped

Solution
Delivered      Solution Delivered or available for testing
               and verification. If the delivered solution does
               not resolve the reported problem, the status will
               be changed to Work in Progress (Level 1 or 2). If
               the case is returned to a Work in Progress (Level
               1 or 2) status after using the SD status, the SD
               time period will be added to the RQMS age of
               the case.                                           Stopped

Pending OEM
Vendor         The case has been handed over to an OEM Vendor
               for resolution                                      Not Stopped

--------------------------------------------------------------------------------

2.2.7   Case Resolutions Classifications

     Nortel Networks Technical Support case resolutions, which shall be mutually
     agreed for each case:

     *    Cannot Reproduce: After 60 days and a reasonable effort, a problem has
          not been observed in the Network, is not reproducible or sufficient
          information has not been provided to adequately troubleshoot the
          problem and isolate the root cause


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     *    Customer Process: Human errors are present or the customer has failed
          to follow procedures recommended and documented by Nortel Networks

     *    Design Intent: The functionality required by customer does not align
          with the design specifications of the product set forth in Agreement,
          in which case Nortel Networks shall make clear to Axtel which is such
          design specification (i.e., the functionality is unsupported), and the
          issue can only be resolved through new development efforts subject to
          a separate product development agreement and charges.

     *    External Cause: Issue caused by non-Nortel Networks products

     *    Hardware Deficiency: A problem is isolated to defective hardware
          materials or workmanship or substantial nonconformance to
          specifications published by Nortel Networks

     *    Hardware Failure: A problem is caused by a hardware component failure
          that falls within Mean Time Between Failure (MTBF) limitations

     *    Nortel Networks Literature: Required Nortel Networks technical
          document does not exist or the contents of an existing document are in
          error [for example, an incomplete Nortel Networks Technical
          Publication (NTP)]

     *    Nortel Networks Process: A problem occurs as a result of a Nortel
          Networks process deficiency

     *    Opened in Error: The case should not have been opened

     *    Scheduled Event: An outage occurs resulting from planned maintenance,
          installation, or manual initialization, including such activities as
          parameter loads, software/firmware changes, and other OA&M activities

     *    Software Deficiency: A problem is isolated to a software design
          deficiency.


2.3 Axtel Order Process for FWA Repair Services

     This process supports the delivery of Nortel Networks FWA Repair Services
     for AXtel. Customers of Nortel Networks who request a hardware warranty
     repair service should have the following required information ready when
     placing a repair order with Nortel Networks:

     1.   Customer or distributor name
     2.   Customer ID (Project #, Site ID)
     3.   Requestor name, phone and fax number, and e-mail address
     4.   Customer ship to address
     5.   Part number (PEC or CPC or manufacturer's part number)
     6.   Quantity (quantity of one per serial number)
     7.   Serial number of the defective part(s) being returned (if applicable)
     8.   Warranty status
     9.   Confirmation of the availability of a fully completed Nortel Networks
          fault report form for said product.
     10.  Any additional information about product (system type or software
          release)
     11.  Any special shipping instructions

     Upon receiving the customer's request and after any diagnostics assistance,
     Nortel Networks will allocate a part request number to each FRU to be
     repaired and notify the customer of the relevant part request number.


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     This part request number, also known as the Return Material Authorization
     (RMA) number, is critical for tracking individual orders and must be
     referenced on failure tags, shipping/packing lists, returned defectives,
     and any correspondence or inquiries concerning the order.

     The customer's representative can call in, fax or e-mail a Repair Service
     order directly to Nortel Networks in Mexico using the following contact
     means:

     Office hours (Monday through Friday from 9:00 a.m. to 6:00 p.m. (Local
     time) Phone number: (52) 55 50 91-4839, Fax: (52) 55 5091 4842,
     aliciav@nortelnetworks.com

Faxes
All faxed orders will be processed and assigned an RMA# by the close of the next
business day. Faxed emergency orders must also be called in to verify receipt of
faxes. E-mail
To obtain a parts request form by e-mail, please send an e-mail
message to any of the above addresses and note "repair order form" in the
subject/title field. A form will be sent automatically.
Place the PO number in the subject/title field when e-maling a completed parts
request form back to Nortel Networks. For order confirmation, Nortel Networks
will respond with an RMA number to all e-mail orders by the next business day.


2.4.1   Method of Payment for Excluded Services

     If AXTEL requests a service that is neither part of the scope of this
     Warranty Service nor within the control or responsibility of Nortel
     Networks under the Technical Assistance Support Services Agreement, then
     Nortel Networks will charge additional fees to perform such services, in
     the event that Nortel Networks agrees to perform them. Nortel Networks
     reserves the right not to perform any Service not covered by this Warranty.

2.4.2 Package Labeling Instructions and Addresses for Returns

     Circuit packs should be packed in anti-static containers designed
     specifically for the circuit packs in order to avoid damage during
     shipment. Other parts should be individually wrapped in either anti-static
     packaging or packaging specifically designed for that product to avoid
     damage during shipment. Nortel Networks will inform customers of any
     improper packaging, which will void the warranty.

     All materials should be returned pre-paid and sent to the appropriate
     Nortel Networks repair facility. The customer should use discretion in
     selecting shipping methods. Nortel Networks recommends that customers
     insure all packages to cover possible loss or damage during shipping,
     regardless of warranty status.

     A completed Nortel Networks fault report must be filled out and attached to
     each returned item to assist in failure assessment and problem tracking.
     Fault reports are sent with each replacement shipment. Customers can obtain
     additional supplies by contacting the Nortel Networks Customer Support
     Center.

     Nortel Networks will inform customers of any discrepancy in return
     shipments. Any discrepancy, whether it is quantity (more or less), product
     returned not matching what was ordered, inability to determine complete
     order information, or non-suitable packaging, would be noted and addressed.



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     Defective Return Packing Slips

     Defective return packing slips should be used to return all defective parts
     to Nortel Networks. Nortel Networks will provide defective return packing
     slips for use to return shipments. A copy of the defective return packing
     slip should be placed in all the cartons and attached outside. This
     duplication will aid in processes and proper identification of returned
     material. The RMA number and the PO number should be clearly marked on the
     outside of each box. If a customer supplies a packing slip, the following
     information must be included on the shipping/packing list for proper
     handling:

     Item (Information Required)

          1.   From (Company name, return address, and telephone number)
          2.   Ship Date (Date parts are shipped from the customer)
          3.   Ship via (Carrier or Enterprise name)
          4.   Waybill number (Carrier or Enterprise tracking number
          5.   Number of Cartons (Number of cartons being sent on shipment)
          6.   Customer's PO# (Provided, if applicable)
          7.   Repair order number (RMA# issued by Call Center when order is
               placed)
          8.   Site ID or Project number
          9.   Item Number
          10.  Quantity ordered
          11.  Quantity returned
          12.  Nortel Networks Part number
          13.  Description of item
          14.  Serial number (The serial number for each item in the shipment)
          15.  Shipment requested by (Signature of the customer's
               representative)


     Repair Facility Addresses

Nortel Networks de Mexico
Kilometro 42.5 Carretera Mexico-Queretaro
Nave # 3
Parque Industrial Cedros
Tepozotlan, Edo. de Mexico, CP 54600
MEXICO
Attn: Hardware Support Representative

This address may be modified from time to time by Nortel Networks.
Page: 17
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                                    Page 16



<PAGE>

Annex H - Purchase Commitment
Purchase and License Agreement for FWA Equipment

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                                     ANNEX H

                               PURCHASE COMMITMENT


<PAGE>
Annex H - Purchase Commitment
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------



                                     ANNEX H
                               PURCHASE COMMITMENT

1.   RSS Equipment:

a)   Customer hereby irrevocably agrees to issue Orders for a Total Annual
     Minimum Commitment of units in accordance with the table below, where a
     unit is a complete F2 RSS or a complete F5 RSS including the RDA:


<TABLE>
<CAPTION>

------------------ -------------------- --------------------------- ------------------------

                     Baseline Annual    Additional Annual Minimum    Total Annual Minimum
                   Minimum Commitment           Commitment                Commitment
------------------ -------------------- --------------------------- ------------------------

Year/ RSS type     Either F2            F2 RSS      F5 RSS          Total RSS Units
                   or F5 Units          Units       (including
                                                    RDA) Units

------------------ -------------------- ----------- --------------- ------------------------
<S>                <C>                              <C>             <C>
2003               20,000                           5,000           25,000
2004               20,000                                           20,000
2005               20,000                           5,000           25,000
2006               20,000               10,000                      30,000
2007               20,000               15,000                      35,000
------------------ -------------------- ----------- --------------- ------------------------

</TABLE>


b)   Orders for the 20,000 unit order amount for 2003 will be submitted on the
     Closing Date.

c)   An annual review of volume requirements for the following calendar year
     shall be conducted in November of each year.

d)   Minimum Order size shall be 5,000 units, with the following options: (i) at
     least 5,000 F2 RSS, (ii) at least 5,000 F5 RSS, or (iii) at least 2,500 F2
     RSS and at least 2,500 F5 RSS.

e)   A surcharge of US$25 per unit shall be added to the price for the first
     35,000 units ordered per year (the price per RSS set forth in Annex F of
     the Contract, already includes the US$25.00 Dollar surcharge set forth in
     this Section (e)). Nortel Networks will review options for reduction of
     this surcharge conditional upon additional base station volume commitments.

f)   Within the first thirty (30) months after Closing Date of the Agreement,
     Customer hereby irrevocably agrees to issue Orders for an accumulative
     quantity of compact bracket kits not less than 50,000. Bracket requirements
     for the balance of the Term will be agreed between the Parties once the
     above order has been completed.

     Minimum Order quantity for such compact bracket kits shall be in multiples
     of 5,000 units, unless otherwise agreed by the Parties.


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2.   Base Station Units:

a)   Full calendar year minimum order commitments as per the table below:


----------- ----------------------------
            Base Stations "units"
----------- ----------------------------
2003        20
2004        30
2005        20
2006        20
2007        20
----------- ----------------------------


where a "unit" is counted as:

-        An 18 bearer base station,
-        An 18 to 27 bearer capacity upgrade,
-        A 27 to 48 bearer upgrade, or
-        A cell site Packet Data upgrade.

b)   Order for the full calendar year minimum commitment to be placed on or
     before December 15th of each year, except in 2003, where the order shall be
     placed on Closing Date. Delivery to commence within six (6) months of order
     acceptance and, except in the case of 2003, shall be completed within
     twelve (12) months of order acceptance.

c)   Minimum order quantity of ten (10) base station units shall apply.
     Specifically in the case of cell site Packet Data Upgrades, where one (1)
     cell site upgrade equals two (2) TPM-PDs and corresponding software
     activation fees, this would mean a minimum order quantity of twenty (20)
     TPM-PDs

d)   Not withstanding the foregoing, in the event that AXtel identifies
     additional requirements for base station units after placing the annual
     purchase order as per Section 2 (b) above, such requirements will not be
     subject to minimum order quantity restrictions if ordered within two (2)
     months of the original order acceptance date and in accordance with the
     Change Order Procedures as detailed in Annex B.

                                     Page 3

<PAGE>

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<PAGE>


Annex J
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------







                                     Annex J


                             PLA FWA Delivery Times





<PAGE>
Annex J
Purchase and License Agreement for FWA Equipment

--------------------------------------------------------------------------------




                                     ANNEX J

                                 DELIVERY TIMES


1.-  RSS Equipment.

     (i)  Delivery of Product to commence within 6 (six) months of order
          acceptance.

     (ii) Partial RSS deliveries to be targeted to average 2,000 (two thousand)
          per calendar month.

2.-  RBS Equipment.

     (i)  Delivery of Product to commence within 6 (six) months of order
          acceptance.

     (ii) Except in the case of the year 2003, orders for the Annual Minimum
          Order Requirements will be fulfilled within twelve (12) months of
          order acceptance.

     (iii) Except in the case of the year 2003, within two (2) months of
          accepting the order for the Annual Minimum Requirement, Nortel will
          provide a forecasted delivery schedule for order fulfillment and,
          within a further four (4) months, a committed delivery schedule for
          order fulfillment.


The Product Delivery Dates are defined in Annex E (Order Procedures) of the
Agreement.



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