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**Exhibit      10.35**

**SETTLEMENT      AGREEMENT**

**SETTLEMENT      AGREEMENT DATED MARCH 6, 2006, IS ENTERED INTO BY AND      BETWEEN:**

|   | **(I)** | **ON                ONE PART, BY:** |
|--------|---------|-------------------------------------|

|   | **a.** | **MEGA                CABLE, S.A. DE C.V. (HEREINAFTER REFERRED TO AS “MC”), REPRESENTED BY MR.                FRANCISCO JAVIER R. BOURS                CASTELO;** |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | **MCM                HOLDING, S.A. DE C.V., (HEREINAFTER REFERRED TO AS “MCM”) REPRESENTED BY                MR. FRANCISCO JAVIER R. BOURS CASTELO;** |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **c.** | **THE                PRIVATE SHAREHOLDERS (AS DEFINED HEREUNDER) ALL REPRESENTED BY MR.                RICARDO                RÍOS FERRER,** |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

**d.     **
**TELEHOLDING,      S.A. DE C.V. (HEREINAFTER REFERRED TO AS “PURCHASER”), REPRESENTED BY MR.      FRANCISCO JAVIER R. BOURS CASTELO (MC, MCM, THE PRIVATE SHAREHOLDERS AND      PURCHASER ARE COLLECTIVELY REFERRED TO AS THE “MC GROUP”),      AND**

|   | **(II)** | **ON                THE OTHER, BY:** |
|--------|----------|--------------------------------------|

|   | **a.** | **RCN                INTERNATIONAL HOLDINGS, INC. (HEREINAFTER REFERRED TO AS “RCN INT.”)                AND** |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | **b.** | **RCN                CORPORATION, INC. (HEREINAFTER REFERRED TO AS “RCN                CORP”).** |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

**(RCN      INT. AND RCN CORP. ARE JOINTLY REFERRED TO AS THE “RCN      GROUP”)**

**(THE      MC GROUP AND THE RCN GROUP ARE HEREINAFTER COLLECTIVELY REFERRED TO AS THE      “PARTIES” AND INDIVIDUALLY AS A “PARTY”).**

**WHEREAS,      **
**MC      **
**      MCM **

**WHEREAS,      **
**      PRIVATE SHAREHOLDERS **
**Exhibit      A**

**WHEREAS,      **

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**WHEREAS,      RCN INT.**

**WHEREAS,      RCN CORP **

**WHEREAS,      MC **
**RCN      INT.**

**WHEREAS,      MC, **
**PRIVATE      SHAREHOLDERS**
**RCN      INT. **

**WHEREAS,      MC, **
**PRIVATE      SHAREHOLDERS **
** **
**EXHIBIT      “B”**

**WHEREAS,      MCM, **
**MC’s**
**MC      **
** **

**WHEREAS,      **
**PRIVATE      SHAREHOLDERS, **
** **
**RCN      INT.**
**MC      **
**MCM,      **
**EXHIBIT      “C”**

**WHEREAS,**
**RCN      CORP**
**Exhibit      “D”**

**WHEREAS**
**MC      GROUP**
**RCN      INT.**
**Exhibit      “E”**

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**NOW,      THEREFORE,**

**CLAUSES**

**1.-      **
**Settlement.**

**MC      Group **
**RCN      Group**

**2.-      **
**Termination      of the Agreements.**

**MC      Group **
**RCN      Group, **

**3.-      **
**Assurances.**
** **

|   | (i) | The                **MC                Group**                shall file with the International Court of Arbitration of the                International Chamber of Commerce an irrevocable withdrawal and dismissal                of the Arbitration Petition and **RCN                INT.**                shall file with the International Court of Arbitration of the                International Chamber of Commerce a letter consenting to the **MC                Group’s**                irrevocable withdrawal and dismissal of the Arbitration Petition                and each                of the **MC                Group**                and the **RCN                Group**                shall take any other actions necessary to terminate the corresponding                Arbitration Proceeding; copies of such withdrawal and such consent                letter,                as approved by both Parties, are enclosed hereby as **Exhibits                “F-1**“                and **“F-2”**;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (ii) | **RCN                CORP**shall                file with the Bankruptcy Court an irrevocable withdrawal of the Bankruptcy                Motion; a copy of this withdrawal, as approved by both Parties, is                enclosed hereby as **Exhibit                “G**“;                and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Each                of the **MC                Group**and                of the **RCN                Group**shall                withdraw any other claim or action filed with any other authority,                panel,                arbitration institution, mediator or otherwise, related to each other                for                whatever reason. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**MC      Group**
**RCN      Group**

**4.-      **
**Mutual      Release.**

**MC      Group **
**RCN      Group, **

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**5.-**
**      Applicable Law**
**.**

**6.-**
**      Arbitration**

**MC      Group **
**RCN      Group**

**7.-      **
**Modifications**
**.      **

**8.-Counterparts.**

**9.-**
**Further      Assurances.**

**10.-      **
**Entire      Agreement.**

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**11.      **
**Notifications.**

| If                to MC GROUP  |                                                                       |
|--------------------------------|----------------------------------------------------------------------------|
|                           |                                                                       |   |
|                           | Ave.                Miguel Alemán 300 Norte                           |   |
|                           | Centro                                                                     |   |
|                           | Ciudad                Obregón, Sonora                                 |   |
|                           | 85000                México.                                          |   |
|                           |                                                                       |   |
|                           | Attention:                Javier R. Bours Castelo.                         |   |
|                           |                                                                       |   |
|                           |                                                                       |   |
| If                to RCN GROUP |                                                                       |
|                           |                                                                       |   |
|                           | 196                Van Buren Street, Suite 300, Herndon, VA. 20170, U.S.A: |   |
|                           | Attention:                Mr. Peter D. Aquino                              |   |

**12.      **
**Conditionality**
**.**

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**IN      WITNESS WHEREOF,**

| **MEGA                CABLE, S.A. DE C.V.,:**             |                                                  |                                     | **MCM                HOLDING, S.A. DE C.V.:** |                                          |
|-----------------------------------------------------------|-------------------------------------------------------|------------------------------------------|-----------------------------------------------|-----------------------------------------------|
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
| By:                                                       | /s/                Javier Bours                       |                                     | By:                                           | /s/                Javier Bours               |   |
|                                                      | Name:                Javier Bours                     |                                     |                                          | Name:                Javier Bours             |   |
|                                                      | Title:                Chairman                        |                                     |                                          | Title:                Chairman                |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
| **THE                PRIVATE SHAREHOLDERS**               |                                                  |                                     |                                          |                                          |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
| By:                                                       | /s/                Ricardo                Rios Ferrer |                                     |                                          |                                          |   |
|                                                      | Name:                Ricardo Rios Ferrer              |                                     |                                          |                                          |   |
|                                                      | Title:                Attorney in Fact                |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
| **RCN                INTERNATIONAL HOLDINGS,  INC.** |                                                  | **RCN                CORPORATION, INC.** |                                          |
|                                                      |                                                  |                                     |                                          |                                          |   |
|                                                      |                                                  |                                     |                                          |                                          |   |
| By:                                                       | /s/                Peter D. Aquino                    |                                     | By:                                           | Peter                D. Aquino                |   |
|                                                      | Name:                Peter D. Aquino                  |                                     |                                          | Name:                Peter D. Aquino          |   |
|                                                      | Title:                Chief Executive Officer         |                                     |                                          | Title:                Chief Executive Officer |   |

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