EXHIBIT 4.10

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SUNDAY 3G (Hong Kong) Limited 
13th Floor, Warwick House 
TaiKoo Place 
979 King's Road 
Quarry Bay 
Hong Kong

Attention: Mr. William Bruce Hicks

25 July, 2005

Dear Sirs,

Uncommitted Banking Facility Letter with Bayerische Landesbank, Hong Kong
Branch ("BLB") dated 15 July, 2005 (the "BLB Facility")

Background

We refer to the BLB Facility, a copy of which is attached to
this letter agreement and initialled for the purpose of identification.
Capitalised terms and expressions used in this letter agreement which are not
defined herein shall, unless the context otherwise requires, have the meanings
respectively assigned to those terms and expressions in the BLB Facility.

We also refer to the letter of support dated 8 July, 2005
from PCCW Limited ("PCCW")to Mandarin Communications Limited ("Mandarin")confirming PCCW's in-principle agreement (directly or through
one or more of PCCW's subsidiaries) to provide, among other things, the
financial support necessary to enable Mandarin to:

(a)           
repay all amounts outstanding in respect of the facilities provided by Huawei
Tech. Investment Co., Limited ("Huawei") under the Facility Agreement dated 13
May, 2004 (as amended and restated on 15 November, 2004) entered into between
Mandarin as borrower, SUNDAY Communications Limited as guarantor, Huawei as
original lender and JPMorgan Chase Bank, N.A. as agent (the "Huawei
Facility");and

(b)           
refinance the terms of Mandarin's performance bond obligations in relation to
its 3G licence.

In this connection, PCCW has entered into the BLB Facility
with BLB, pursuant to which, at the request of PCCW, BLB has issued Performance
Bonds in favour of the Telecommunications Authority of Hong Kong in an aggregate
amount of HK$210,746,000, in compliance with the conditions of the Mobile
Carrier Licence No.080 which is currently held by SUNDAY 3G (Hong Kong) Limited
("SUNDAY 3G"),a wholly owned subsidiary of Mandarin. The Performance
Bonds issued under the BLB Facility have replaced the existing performance
bond(s) in the aggregate amount of HK$210,746,000 issued under or in connection
with the Huawei Facility.

1

|PCCW Limited         
    www.pccw.com                                                                       
|-------------------------------------------------------------------------------------------------------------
|39/F PCCW Tower, TaiKoo
    Place, Quarry Bay, Hong Kong     Tel +852 2514 8759       
    Fax +852 2962 5725

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Under the BLB Facility, the amount of the Performance Bonds
issued under the BLB Facility will vary and be increased during the term of the
BLB Facility, in accordance with the provisions of Appendix 1 to the BLB
Facility, up to a maximum amount of HK$604,352,000 of Performance Bonds in issue
during the period from 22 October, 2010 to 21 October, 2011, as required by the
conditions of the Mobile Carrier Licence No. 080 held by SUNDAY 3G.
Commission payable by SUNDAY 3G
In consideration of PCCW having entered into the BLB Facility
and having arranged for the issue of Performance Bonds under the BLB Facility
and continuing to do so, SUNDAY 3G shall pay to PCCW an amount of non refundable
commission equal to 0.675% per annum on the Bond Sum for the respective validity
period of the Performance Bonds to be issued by BLB under the BLB Facility.
The amount of the non refundable commission payable by SUNDAY
3G to PCCW referred to above in respect of the issuance of any Performance Bond
under the BLB Facility shall be paid by SUNDAY 3G in arrear within 10 Business
Days after the Performance Bond Issuance Date and Performance Bond Reissued Date
of the relevant Performance Bond, until the liability of BLB under the relevant
Performance Bond ceases.
Deemed advance and indemnity
SUNDAY 3G acknowledges that:
(i)            
any amount drawn under a Performance Bond is deemed to be an advance by BLB to
PCCW under the BLB Facility, made on terms that it is immediately due and
payable by PCCW without any demand being made by BLB and bearing interest on the
outstanding amount at the Cost of Funds as quoted by BLB from time to time plus
2% per annum from the date of advance until the date of actual payment received
by BLB in full; and
(ii)           
under a general letter of indemnity dated 21 July, 2005 (the "Letter of
Indemnity")entered into by PCCW in favour of BLB in connection with the BLB
Facility, PCCW is required to hold BLB harmless and indemnify BLB against all
actions, claims, demands and proceedings in connection with or in relation to
the Performance Bonds and to pay to BLB on first demand the amount of all costs,
liabilities, claims, demands, damages, losses and expenses of any kind (on a
full indemnity basis) which may be incurred or sustained by BLB under the
Performance Bonds or for which BLB may become liable by reason of BLB having
given and signed the Performance Bonds or otherwise in connection therewith.
Accordingly, SUNDAY 3G hereby agrees with and undertakes to PCCW as follows:
(a)           
any amount drawn under a Performance Bond is deemed as an advance by PCCW to
SUNDAY 3G. Such advance shall be immediately due and payable by SUNDAY 3G on
demand being made by PCCW. Interest on any outstanding advance (both before and
after any demand is made by PCCW) shall be charged at the Cost of Funds as
quoted by BLB from time to time plus 2% per annum, from the date of advance
until the date of actual payment received by PCCW in full; and
(b)           
SUNDAY 3G shall hold PCCW harmless and indemnify PCCW against all actions,
claims, demands and proceedings in connection with or in relation to the Letter
of Indemnity and shall pay to PCCW on first demand the amount of all costs,
liabilities, claims, demands, damages, losses and expenses of any kind (on a
full indemnity basis) which may be incurred or sustained by PCCW under the
Letter of Indemnity.

2

|PCCW Limited         
    www.pccw.com                                                                       
|-------------------------------------------------------------------------------------------------------------
|39/F PCCW Tower, TaiKoo
    Place, Quarry Bay, Hong Kong     Tel +852 2514 8759       
    Fax +852 2962 5725

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General
All payments to be made by SUNDAY 3G hereunder shall be made
by SUNDAY 3G to PCCW in accordance with PCCW's directions, in such currency as
the BLB Facility is denominated and in immediately available funds without set
off or counterclaim and free and clear and without any deduction or withholding
for any taxes, duties, or any other charges whatsoever. If SUNDAY 3G is for any
reason obliged to make any deduction from any payment, it will pay such
additional amounts to PCCW and will ensure that PCCW receives the amount it
would have received if no such deduction had been made. Any payment to be made
by SUNDAY 3G or which is otherwise due on a non-Business Day shall instead be
due on the previous Business Day.
Kindly indicate your agreement to the above terms and conditions by signing
and returning to us the attached counterpart copy of this letter agreement.Yours faithfully For and on behalf ofPCCW Limited
Name: Alexander Anthony ArenaTitle: Director
We hereby agree
    and accept the above terms and conditions.The Common Seal of
    )SUNDAY 3G (HONG KONG) LIMITED
    )was hereunto affixed
    )in the presence of:
    )Name: William Bruce HicksTitle: DirectorDate: 25 July 2005Name: Raymond Mak Wai ManTitle: Company SecretaryDate: 25 July, 20053
PCCW Limited         
    www.pccw.com39/F PCCW Tower, TaiKoo
    Place, Quarry Bay, Hong Kong     Tel +852 2514 8759       
    Fax +852 2962 5725

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|                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|15 July 2005                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|PCCW Limited                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|41/F., PCCW Tower,                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|TaiKoo Place, Quarry Bay,                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Hong Kong.                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Attn:   Mr. David
    Woo/Ms. Betzilia Ma                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|Dear
    David and Betzilia,                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|Re : Uncommitted Banking Facility
    We, Bayerische Landesbank, Hong Kong Branch (hereinafter
    referred as the "Bank") are pleased to advise that we are prepared to make
    available the following banking facility ("hereinafter referred as the
    "Facility") upto a limit of HKD210,746,000 as varied from time to time on
    the following terms and conditions.
|                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|Applicant                                                                                                                                                                                                                                                                                                                                                                      | : | PCCW Limited (the "Applicant")                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 
|Facility                                                                                                                                                                                                                                                                                                                                                                       | : | HKD210,746,000
    for the issuance of Performance Bonds by the Bank. Such facility amount
    shall be varied in accordance to the Bond Sum as envisaged in Appendix 1
    which is in compliance with the requirements made by the Beneficiary; or any
    amount as otherwise agreed by both the Applicant and the Bank. On each
    Performance Bond Reissued Date, the aggregate amount of Facility shall not
    exceed the corresponding Bond Sum.                                                                                                                                                                             
|Beneficiary                                                                                                                                                                                                                                                                                                                                                                    | : | Telecommunications Authority of
    Hong Kong (the "Beneficiary")                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Purpose                                                                                                                                                                                                                                                                                                                                                                        | : | To issue
    Performance Bonds in favour of the Beneficiary by the Bank to enable the
    Applicant to comply with the conditions of the Mobile Carrier Licence which
    is currently held by SUNDAY 3G (Hong Kong) Limited.                                                                                                                                                                                                                                                                                                                                                                                                         
|Utilization                                                                                                                                                                                                                                                                                                                                                                    | : | Subject to the
    terms and conditions of this Letter, the Applicant may request utilization
    of the Facility by delivering the application request as per Appendix 2 with
    the acceptable form of Performance Bond 5 Business Days prior to the
    Performance Bond Issuance Date. The Applicant may make more than one request
    and the aggregate amount of utilization shall not exceed the Bond Sum during
    the time of validity period as envisaged in Appendix 1.
    The Bank shall
    deliver the executed Performance Bond to the Beneficiary 3 Business Days
    prior to the Performance Bond Issuance Date.

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|----------------------------------------------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|Availability, Tenor and Expiry                  | : | Maximum tenor
    for Performance Bond issuance shall not exceed 5 years, or unless otherwise
    agreed in writing by the Bank.
    Any amount
    drawn under the Performance Bond is deemed as an advance by the Bank to the
    Applicant. Such advance shall be immediately due and payable by the
    Applicant without any demand being made by the Bank. Interest on any
    outstanding advance shall be charged at the Cost of Funds as quoted by the
    Bank from time to time plus 2% per annum from the date of advance until the
    date of actual payment received by the Bank in full.
    The Bank may
    elect not to reissue or renew the Bond on the last day of validity period as
    envisaged in Appendix 1 by delivering a 45 days' prior written notice to the
    Applicant and the Performance Bond shall cease on such last day of
    prevailing validity period.                                                                                   | 
|Pricing                                         | : | Commission for
    Performance Bonds issuance will be charged at 0.425% p.a. on the Bond Sum
    for the respective validity period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Calculation and Payment of
    Interest and Fee | : | 1. Non-refundable
    commission will be paid in advance on the Performance Bond Issuance Date and
    Performance Bond Reissued Date until the liability of the Bank under the
    Performance Bond cease. 
    2. All payments are to
    be made by the Applicant to the Bank in accordance with the Bank's
    directions in such currency as the Facility is denominated in immediately
    available funds without set-off or counterclaim and free and clear and
    without any deduction or withholding for any taxes, duties or any other
    charges whatsoever. 
    3. If the Applicant is
    for any reason obliged to make any deduction from any payment, it will pay
    such additional amounts to the Bank and will ensure that the Bank receives
    the amount had no such deductions been made.
    4.
    Any payment to be made by the
    Applicant or which is otherwise due on a non-Business Day shall instead be
    due on the previous Business Day.
|Interpretation                                  | : | "Bond Sum" 
    means the amount as shown in the
    Performance Bond during the validity period as envisaged in the Appendix 1
    hereof.
    "Business Day"
    means a day (excluding Saturday) on which
    banks are open for business in Hong Kong, and where a payment is to be made                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 
|-------------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                     |   | in the currency other than Hong
    Kong Dollars, the relevant major financial center for such other currency.
    "Cost
    of Funds"
    means the actual, direct and reasonable cost to the Bank of funding an
    advance. 
    "Performance Bond Issuance
    Date"means the date when the Performance Bond is first issued and becomes
    effective. 
    "Performance Bond Reissued
    Date"means 22 October of each respective year. 
    unless the context requires,
    words importing the singular include the plural and vice versa.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 
|Conditions Precedent | : | The
    availability of the Facility is conditional upon completion and delivery of
    the following documentation, items and evidence in a form and substance
    acceptable to the Bank :-
    1.     Copies, certified as true and complete by a
    director or company secretary of the Applicant of its Certificate of
    Incorporation, up-to-date Memorandum and Articles of Association and current
    Business Registration Certificate;
    2.     Certified true copy of a list of specimen
    signatures of the signatories who are duly authorised to sign all
    documentation relating to ALL operations under or for the purposes of the
    utilisation of the Facility;
    3.   
    The enclosed duplicate-copy of this Letter; and the General Letter of
    Indemnity; duly signed by the authorised signatories of the Applicant;
    4.     An extract of copies, certified as true and
    complete by a director or the company secretary of the Applicant, of
    resolution of its Board of Directors:
    i)     
    approving the acceptance of the Facility and all related terms offered by
    the Bank under this Letter;
    ii)     
    executing the General Letter of Indemnity; and
    iii)   
    appointing person(s) to sign on behalf of the Applicant to indicate
    acceptance of this Letter, the General Letter of Indemnity; and a list of
    authorised signatories to sign any documentation

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|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|------------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|              |   | relating to All operations
    under or for the purpose of the utilisation of the Facility.
    5.    
    Any other documents, items or evidence as the Bank may require.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|Covenants     | : | The Applicant agrees as
    follows:1.    It shall furnish to the Bank within 180 days after the
    end of each of its financial years, a copy of its balance sheet as at the
    end of each year and a profit and loss account and report for such year
    audited and certified by independent qualified auditor setting forth the
    financial condition of Applicant in accordance with the generally accepted
    accounting standards, and shall furnish such other documents and information
    as may be requested by the Bank.2.    It shall promptly advise the Bank of any occurrence
    which create a material and adverse effect on the business, assets or
    financial condition of Borrower Group or which will have a material adverse
    effect on the ability of the Applicant to perform its obligations under this
    Letter or the General Letter of Indemnity.3.    Its payment obligations under this Letter rank at least
    pari passu with the claims of all its other unsecured and unsubordinated
    creditors.
    4.   It shall, at the Bank's request, provide information in
    relation to the transaction secured by the Performance Bond.
    5.   
    It shall not hold less than 51% voting shares in PCCW-HKT Telephone Limited.
    6.   
    It shall remain listed on the Stock Exchange of Hong Kong.
    7.   
    It undertakes that:
    7.1 Its EBITDA to Interest
    shall not at any time be less than 2:1 
    7.2 Its Total Debt to EBITDA shall not at any time exceed 6:1.
    In these clauses 2 and 7,
    defined terms shall have the definitions provided in Appendix 3.
|Cross Default | : | The Applicant defaults under
    any agreement or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 

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|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 
|-------------------------------------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                       |   | obligation
    relating to any of its indebtedness for an amount exceeds USD30,000,000 or
    equivalent payable before its stated maturity or is not paid within 5
    Business Days of the day it falls due or any encumbrance, guarantee or other
    security now or hereafter created by the Applicant securing the payment or
    discharge of indebtedness becomes enforceable.                                                                                                                                                      | 
|Other conditions - Cash
    collateral | : | The Applicant
    undertakes to provide cash collateral for the Bond Sum as deposit in the
    case of any failure to comply with covenants under items (5) to (7) and in
    the case of Cross Default occurred during the utilization of Facility,
    within 10 Business Days from the date of first written demand made by the
    Bank. Such deposit shall be placed with the Bank until such time as the
    Performance Bond is released and returned to the Bank or during the time any
    liability thereunder otherwise remains.
|Waiver and
    remedies cumulative     | : | No delay or failure by the Bank
    to exercise any rights,power or privilege hereunder will operate as a waiver thereof, nor will any
    single or partial exercise of any such rights, power, or privilege preclude
    any other or further exercise thereof. The rights and remedies in this
    Letter are cumulative, may be exercised as often as the Bank considers
    appropriate and are not exclusive of any rights or remedies provided by law.                                                                              
|Set-off                                | : | The Applicant
    authorizes the Bank to apply any credit balance to which the Applicant is
    then entitled on any account of the Applicant with the Bank at any of its
    branches in or towards satisfaction of any sum then due and payable from the
    Applicant to the Bank under the Facility. For this purpose, the Bank is
    authorized to purchase with the moneys standing to the credit of such
    account other currencies as may be necessary to effect such application.                                              
|Expenses                               | : | All reasonable
    and agreed out-of-pocket costs and expenses (including, but not limited to
    legal and other professional advisers' fees) incurred by the Bank in
    connection with the preparation, negotiation and entry into of this Letter
    and other security documents to be given by the Applicant or other security
    providers; or in perfecting, preserving, protecting or exercising or
    enforcing any rights under this Letter and other security documents shall be
    for the account of the Applicant.       | 

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|Assignment                                                                                                                                                                                                                                                                                                                                                             | : | The Applicant and the Bank may not assign or transfer any
    or all of its rights or obligations under this Letter without the consent of
    the other party.                                                                                                                           | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|Uncommitted Facility                                                                                                                                                                                                                                                                                                                                                   | : | The Facility is made available on an uncommitted basis
    and the Bank shall have an absolute discretion as to whether or not it
    permits any utilization of the Facility. The renewal of Performance Bond
    under the Facility is subject to the Bank's internal periodical review
|Governing Law and Jurisdiction                                                                                                                                                                                                                                                                                                                                         | : | This Letter is subject to the laws of Hong Kong Special
    Administrative Region with non-exclusive jurisdiction of courts of the Hong
    Kong Special Administrative Region.                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                          
|Please signify your understanding and acceptance of this
    Letter by signing and returning the duplicate copy of this Letter to the
    Bank by 22 July 2005. We are pleased to have the opportunity of working with
    you on this transaction and look forward to a lasting and mutually
    beneficial relationship.
    Bayerische Landesbank, Hong Kong Branch
|Bruce Fraser
    Executive Vice President
    Regional Head Corporate Banking
    Asia Pacific & Chief Executive                                                                                                                                                                                                                                                       |   | William Ho
    Vice President
    Credit Analysis                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                          
|We, as the Applicant, agree to
    the terms and conditions of this Letter.
    Signed for and on behalf of 
    PCCW Limited                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                           | 
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                           | 
|                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                           | 

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|                                                                                                                                                                                            |               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------
|                                                                                                                                                                                            |               
|                                                                                                                                                                                            |               
|Appendix 1
    Performance Bond Facility amount shall be varied in
    accordance to the Bond Sum as envisaged below which is in compliance to the
    requirements made by the Beneficiary |               
|                                                                                                                                                                                            |               
|Validity period (both dates
    inclusive)                                                                                                                                                  | Bond Sum (HKD)
|Performance Bond Issuance Date to
    21 Oct 2005                                                                                                                                           | 210,746,000   
|22 Oct 2005 to 21 Oct 2006                                                                                                                                                                  | 301,243,000   
|22 Oct 2006 to 21 Oct 2007                                                                                                                                                                  | 401,865,000   
|22 Oct 2007 to 21 Oct 2008                                                                                                                                                                  | 452,487,000   
|22 Oct 2008 to 21 Oct 2009                                                                                                                                                                  | 503,108,000   
|22 Oct 2009 to 21 Oct 2010                                                                                                                                                                  | 553,730,000   
|22 Oct 2010 to 21 Oct 2011                                                                                                                                                                  | 604,352,000   
|                                                                                                                                                                                            |               

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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Appendix 2
    Performance Bond Application Request                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|[Date]
    Bayerische Landesbank, Hong Kong Branch 
    19th Floor, Standard Chartered Bank Building 
    4A Des Voeux Road Central 
    Hong Kong 
    Attention: Ms. Doris Pang / Ms. Carol Chan 
    Fax: 852 29788352
    Dear Sir,
    Re : Uncommitted Banking Facility Letter dated [    
    ]
    1.   
    We refer to the Facility Letter. Terms defined in the Facility Letter shall
    have the same meaning in this Performance Bond Application Request.
    2.    We wish to
    request your issuance of Performance Bond on the following terms: |                                                                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                         
|Performance
    Bond Issuance Date / Reissued Date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | [___] (or, if that is not a
    Business Day, the previous Business Day)
|Amount:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | [_] which comply with the Bond
    Sum                                  
|Validity period:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | [___] to [     
    ]                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                         
|3.    We confirm
    that each condition precedent is satisfied on the date of this Performance
    Bond Application Request.
    4.    We hereby
    certify and confirm that all the covenants have been duly complied with,
    observed and performed.
    5.    This
    Performance Bond Application Request is irrevocable.
    Yours faithfully,
    Signed for and on behalf of 
    PCCW Limited
    __________________________
    [Capacity] 
    [Date]                                                                                               

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|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Appendix 3 - Definitions of financial covenants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|"Borrowed Money" means
    any indebtedness (other than Subordinated Indebtedness) for or in respect of
    (but without double counting) all or Hong Kong any of the following:(A)     
    any moneys borrowed;
    (B)      
    any amount raised by acceptance under any acceptance credit facility;
    (C)      
    any amount raised pursuant to any note purchase facility or the issue of
    bonds (including, for the avoidance of doubt, convertible bonds to the
    extent not converted into equity), notes, debentures, loan stock or any
    similar instrument;
    (D)      
    the amount of any liability in respect of any lease or hire purchase
    contract which would, in accordance with Hong Kong GAAP be treated as a
    finance or capital lease;(E)      
    the amount of any liability in respect of any advance or deferred purchase
    agreement if the primary reasons for entering into such agreement is to
    raise finance;(F)      
    receivables sold or discounted (other than on a non-recourse basis);(G)      
    any agreement or option to re-acquire an asset if one of the primary reasons
    for entering into such agreement or option is to raise finance;(H)      
    any amount raised under any other transaction (including any forward sale or
    purchase agreement) having the commercial effect of a borrowing;(I)        
    the amount of any liability in respect of any guarantee or indemnity for any
    of the items referred to in paragraphs (A) to (H) above; and(J)       
    counter-indemnity obligations in respect of letters of credit, guarantees or
    similar instruments issued by banks or financial institutions to support
    indebtedness for Borrowed Money of any other person."Borrower
    Group" means the Borrower and each of its Subsidiaries from time to time
    and "Borrower Group Company" means each or any of them as the context
    may require."EBITDA"
    means, in respect of any Relevant Period, the total operating profit (loss)
    for continuing operations before interest, tax, depreciation of tangible
    assets and amortisation of goodwill and other intangible assets of the
    Borrower Group as determined on a consolidated basis in accordance with Hong
    Kong GAAP and | 

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|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|excluding in
    respect of the Borrower Group any share of results of associates, jointly
    controlled and unconsolidated companies, any exceptional profits or losses
    on the sale of or termination of an operation, exceptional costs of a
    reorganisation or restructuring, any extraordinary losses or expenses such
    as goodwill write-off, asset and investment impairment losses and provisions
    for investments and properties and any exceptional profits or losses on the
    disposals of assets and extraordinary items and minority interests.
    "Hong Kong GAAP" means
    generally accepted accounting principles in Hong Kong.
    "Indebtedness" of any
    person means any indebtedness for or in respect of Borrowed Money that has a
    final maturity of one year or more from its date of incurrence or issuance
    and that is evidenced by any agreement or other instrument, excluding trade
    payables; provided, however, that for the purpose of determining the amount
    of Indebtedness of any Borrower Group Company outstanding at any relevant
    time, the amount included as Indebtedness of such Borrower Group Company in
    respect of finance leases shall be the net amount from time to time properly
    characterised as "obligations under finance leases" in accordance with Hong
    Kong GAAP.
    "Interest"
    means, in relation to any Relevant Period, interest (including the interest
    element of any payments made under finance leases or hire purchase
    agreements), commission, fees, discounts and other finance expenses or
    charges payable by the Borrower Group during the Relevant Period (but
    excluding any interest payable to any Borrower Group Company) as determined
    on a consolidated basis in accordance with Hong Kong GAAP.
    "Relevant
    Period" means each period of twelve months ending on the last day of the
    Borrower's Financial Year and each period of twelve months ending on the
    last day of the first half of the Borrower's Financial Year.
    "Subsidiary" means, in
    relation to any company, any company or other business entity of which the
    first-named company owns or controls (either directly or through one or more
    other Subsidiaries) more than 50% of the issued share capital, or other
    ownership interest, giving ordinary voting power to elect directors,
    managers or trustees of such company or other business entity, or any
    company or other business entity which at any time has its accounts
    consolidated with those of the first-named company or which, under Hong Kong
    law or regulations and under Hong Kong GAAP from time to time, should have
    its accounts consolidated with those of the first-named company.
    "Total Debt"
    of any person means, at any date, the aggregate outstanding principal or
    capital amount of (without duplication) (A) all Indebtedness of such person,
    (B) any other indebtedness for Borrowed Money with a final maturity of less
    than one year from its date of incur owed to any commercial bank or other
    credit institution by such person, (C) all amounts outstanding under any
    commercial | 

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|paper programme
    of such person and (D) any guarantees, indemnities or other assurances
    against financial loss given by such person in respect of the Total Debt of
    any other person, in each case as determined on a consolidated basis in
    accordance with Hong Kong GAAP, provided that the following liabilities
    shall be excluded when calculating the Total Debt of any person (1) any
    currency hedging in relation to non-Hong Kong Dollar indebtedness by the
    Borrower or any of its Subsidiaries from time to time, (2) any issue of
    securities which are mandatorily convertible into shares, (3) its
    subordinated indebtedness and (4) trade payables and vendor financing. | 



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