Document:

EXECUTION COPY

                                  $175,000,000]

                               AXTEL, S.A. de C.V.

                            11% Senior Notes due 2013

                          REGISTRATION RIGHTS AGREEMENT

                                                               December 16, 2003

CREDIT SUISSE FIRST BOSTON LLC
    Eleven Madison Avenue
      New York, NY 10010-3629

Dear Sirs:

     Axtel, S.A. de C.V., a Mexican corporation (the "Issuer"), proposes to
issue and sell to Credit Suisse First Boston LLC, (the "Initial Purchaser"),
upon the terms set forth in a purchase agreement of even date herewith (the
"Purchase Agreement"), $175,000,000 aggregate principal amount of its 11% Senior
Notes due 2013 (the "Initial Securities") to be unconditionally guaranteed (the
"Guaranties") on a senior unsecured basis by each of the Issuer's subsidiaries
set forth on Schdule A to the Purchase Agreement (the "Guarantors" and together
with the Issuer, the "Company"). The Initial Securities will be issued pursuant
to an Indenture, dated as of December 16, 2003, (the "Indenture") among the
Company, the Guarantors named therein and The Bank of New York (the "Trustee").
As an inducement to the Initial Purchaser, the Company agrees with the Initial
Purchaser, for the benefit of the holders of the Initial Securities (including,
without limitation, the Initial Purchaser), the Exchange Securities (as defined
below) and the Private Exchange Securities (as defined below) (collectively the
"Holders"), as follows:

     1. Registered Exchange Offer. The Company shall, at its own cost, prepare
and file with the Securities and Exchange Commission (the "Commission") a
registration statement (the "Exchange Offer Registration Statement") on an
appropriate form under the Securities Act of 1933, as amended (the "Securities
Act"), with respect to a proposed offer (the "Registered Exchange Offer") to the
Holders of Transfer Restricted Securities (as defined in Section 6 hereof), who
are not prohibited by any law or policy of the Commission from participating in
the Registered Exchange Offer, to issue and deliver to such Holders, in exchange
for the Initial Securities, a like aggregate principal amount of debt securities
(the "Exchange Securities") of the Company issued under the Indenture and
identical in all material respects to the Initial Securities (except for the
transfer restrictions relating to the Initial Securities and the provisions
relating to the matters described in Section 6 hereof) that would be registered
under the Securities Act. The Company shall use its reasonable best efforts to
cause such Exchange Offer Registration Statement to become effective under the
Securities Act within 210 days (or if the 210th day is not a business day, the
first business day thereafter) after the date of original issue of the Initial
Securities (the "Issue Date") and shall keep the Exchange Offer Registration
Statement effective for not less than 30 days (or longer, if required by
applicable law) after the date notice of the Registered Exchange Offer is mailed
to the Holders (such period being called the "Exchange Offer Registration
Period"). The Company will take all actions that are necessary under the
applicable laws of Mexico in order to carry out and consummate the Registered
Exchange Offer, including, without limitation, the filing of documents and the
registration of the Exchange

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Securities in the Special Section (Seccion Especial) of Mexico's National
Securities Registry (Registro Nacional de Valores) of the National Banking and
Securities Commission (Comision Nacional Bancaria y de Valores).

     If the Company effects the Registered Exchange Offer, the Company will be
entitled to close the Registered Exchange Offer 30 days after the commencement
thereof provided that the Company has accepted all the Initial Securities
theretofore validly tendered in accordance with the terms of the Registered
Exchange Offer.

     Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered
Exchange Offer, it being the objective of such Registered Exchange Offer to
enable each Holder of Transfer Restricted Securities (as defined in Section 6
hereof) electing to exchange the Initial Securities for Exchange Securities
(assuming that such Holder is not an affiliate of the Company within the meaning
of the Securities Act, acquires the Exchange Securities in the ordinary course
of such Holder's business and has no arrangements with any person to participate
in the distribution of the Exchange Securities and is not prohibited by any law
or policy of the Commission from participating in the Registered Exchange Offer)
to trade such Exchange Securities from and after their receipt without any
limitations or restrictions under the Securities Act and without material
restrictions under the securities laws of the several states of the United
States.

     The Company acknowledges that, pursuant to current interpretations by the
Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Securities, acquired for its own account as a result of
market making activities or other trading activities, for Exchange Securities
(an "Exchanging Dealer"), is required to deliver a prospectus containing the
information set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in
the "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer"
section, and (c) Annex C hereto in the "Plan of Distribution" section of such
prospectus in connection with a sale of any such Exchange Securities received by
such Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) if the
Initial Purchaser elects to sell Exchange Securities acquired in exchange for
Securities constituting any portion of an unsold allotment will be required to
deliver a prospectus containing the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in connection with such
sale.

     The Company shall use its reasonable best efforts to keep the Exchange
Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that
(i) in the case where such prospectus and any amendment or supplement thereto
must be delivered by an Exchanging Dealer or the Initial Purchaser, such period
shall be the lesser of 180 days and the date on which all Exchanging Dealers and
the Initial Purchaser have sold all Exchange Securities held by them (unless
such period is extended pursuant to Section 3(j) below) and (ii) the Company
shall make such prospectus and any amendment or supplement thereto, available to
any broker-dealer for use in connection with any resale of any Exchange
Securities for a period of not less than 90 days after the consummation of the
Registered Exchange Offer.

     If, upon consummation of the Registered Exchange Offer, the Initial
Purchaser holds Initial Securities acquired by it as part of its initial
distribution, the Company, simultaneously with the delivery of the Exchange
Securities pursuant to the Registered Exchange Offer, shall issue and deliver to
the Initial Purchaser upon the written request of the Initial Purchaser, in
exchange (the "Private Exchange") for the Initial Securities held by the Initial
Purchaser, a like principal amount of debt securities of the Company issued
under the Indenture and identical in all material respects (including the
existence of restrictions on

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transfer under the Securities Act and the securities laws of the several states
of the United States, but excluding provisions relating to the matters described
in Section 6 hereof) to the Initial Securities (the "Private Exchange
Securities"). The Initial Securities, the Exchange Securities and the Private
Exchange Securities are herein collectively called the "Securities".

     In connection with the Registered Exchange Offer, the Company shall:

          (a) mail to each Holder a copy of the prospectus forming part of the
     Exchange Offer Registration Statement, together with an appropriate letter
     of transmittal and related documents;

          (b) keep the Registered Exchange Offer open for not less than 30 days
     (or longer, if required by applicable law) after the date notice thereof is
     mailed to the Holders;

          (c) utilize the services of a depositary for the Registered Exchange
     Offer with an address in the Borough of Manhattan, The City of New York,
     which may be the Trustee or an affiliate of the Trustee;

          (d) permit Holders to withdraw tendered Securities at any time prior
     to the close of business, New York time, on the last business day on which
     the Registered Exchange Offer shall remain open; and

          (e) otherwise comply with all applicable laws.

     As soon as practicable after the close of the Registered Exchange Offer or
the Private Exchange, as the case may be, the Company shall:

          (x) accept for exchange all the Securities validly tendered and not
     withdrawn pursuant to the Registered Exchange Offer and the Private
     Exchange;

          (y) deliver to the Trustee for cancellation all the Initial Securities
     so accepted for exchange; and

          (z) cause the Trustee to authenticate and deliver promptly to each
     Holder of the Initial Securities, Exchange Securities or Private Exchange
     Securities, as the case may be, equal in principal amount to the Initial
     Securities of such Holder so accepted for exchange.

     The Indenture will provide that the Exchange Securities will not be subject
to the transfer restrictions set forth in the Indenture and that all the
Securities will vote and consent together on all matters as one class and that
none of the Securities will have the right to vote or consent as a class
separate from one another on any matter.

     To the extent applicable, interest on each Exchange Security and Private
Exchange Security issued pursuant to the Registered Exchange Offer and in the
Private Exchange will accrue from the last interest payment date on which
interest was paid on the Initial Securities surrendered in exchange therefor or,
if no interest has been paid on the Initial Securities, from the date of
original issue of the Initial Securities.

     Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer (i) any Exchange Securities received by such Holder
will be acquired in the ordinary course of business, (ii) such Holder will have
no arrangements or understanding with any person to participate in the
distribution of the Securities or

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<PAGE>

the Exchange Securities within the meaning of the Securities Act, (iii) such
Holder is not an "affiliate," as defined in Rule 405 of the Securities Act, of
the Company or if it is an affiliate, such Holder will comply with the
registration and prospectus delivery requirements of the Securities Act to the
extent applicable, (iv) if such Holder is not a broker-dealer, that it is not
engaged in, and does not intend to engage in, the distribution of the Exchange
Securities and (v) if such Holder is a broker-dealer, that it will receive
Exchange Securities for its own account in exchange for Initial Securities that
were acquired as a result of market-making activities or other trading
activities and that it will be required to acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company will ensure that
(i) any Exchange Offer Registration Statement and any amendment thereto and any
prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations
thereunder, (ii) any Exchange Offer Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any prospectus
forming part of any Exchange Offer Registration Statement, and any supplement to
such prospectus, does not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

     2. Shelf Registration. If, (i) because of any change in law or in
applicable interpretations thereof by the staff of the Commission, the Company
is not permitted to effect a Registered Exchange Offer, as contemplated by
Section 1 hereof, (ii) the Registered Exchange Offer is not consummated within
240 days of the Issue Date, (iii) the Initial Purchaser so requests with respect
to the Initial Securities (or the Private Exchange Securities) not eligible to
be exchanged for Exchange Securities in the Registered Exchange Offer and held
by it following consummation of the Registered Exchange Offer or (iv) any Holder
(other than an Exchanging Dealer) is not eligible to participate in the
Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer, such
Holder does not receive freely tradeable Exchange Securities on the date of the
exchange, the Company shall take the following actions:

          (a) The Company shall, at its cost, as promptly as practicable file
     with the Commission and thereafter shall use its reasonable best efforts to
     cause to be declared effective a registration statement (the "Shelf
     Registration Statement" and, together with the Exchange Offer Registration
     Statement, a "Registration Statement") on an appropriate form under the
     Securities Act relating to the offer and sale of the Transfer Restricted
     Securities (as defined in Section 6 hereof) by the Holders thereof from
     time to time in accordance with the methods of distribution set forth in
     the Shelf Registration Statement and Rule 415 under the Securities Act
     (hereinafter, the "Shelf Registration"); provided, however, that no Holder
     (other than the Initial Purchaser) shall be entitled to have the Securities
     held by it covered by such Shelf Registration Statement unless such Holder
     agrees in writing to be bound by all the provisions of this Agreement
     applicable to such Holder.

          (b) The Company shall use its reasonable best efforts to keep the
     Shelf Registration Statement continuously effective in order to permit the
     prospectus included therein to be lawfully delivered by the Holders of the
     relevant Securities, for a period of two years (or for such longer period
     if extended pursuant to Section 3(j) below) from the date of its
     effectiveness or such shorter period that will terminate when all the
     Securities covered by the Shelf Registration Statement (i) have been sold
     pursuant thereto or (ii) are no longer restricted securities (as defined in
     Rule 144 under the Securities Act, or any successor rule thereof). The
     Company shall be deemed not to have used its reasonable best efforts to
     keep the Shelf Registration Statement effective during the

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<PAGE>

     requisite period if it voluntarily takes any action that would result in
     Holders of Securities covered thereby not being able to offer and sell such
     Securities during that period, unless such action is required by applicable
     law.

          (c) Notwithstanding any other provisions of this Agreement to the
     contrary, the Company shall cause the Shelf Registration Statement and the
     related prospectus and any amendment or supplement thereto, as of the
     effective date of the Shelf Registration Statement, amendment or
     supplement, (i) to comply in all material respects with the applicable
     requirements of the Securities Act and the rules and regulations of the
     Commission and (ii) not to contain any untrue statement of a material fact
     or omit to state a material fact required to be stated therein or necessary
     in order to make the statements therein, in light of the circumstances
     under which they were made, not misleading.

     3. Registration Procedures. In connection with any Shelf Registration
contemplated by Section 2 hereof and, to the extent applicable, any Registered
Exchange Offer contemplated by Section 1 hereof, the following provisions shall
apply:

          (a) The Company shall (i) furnish to the Initial Purchaser, prior to
     the filing thereof with the Commission, a copy of the Registration
     Statement and each amendment thereof and each supplement, if any, to the
     prospectus included therein and, in the event that the Initial Purchaser
     (with respect to any portion of an unsold allotment from the original
     offering) is participating in the Registered Exchange Offer or the Shelf
     Registration Statement, the Company shall use its reasonable best efforts
     to reflect in each such document, when so filed with the Commission, such
     comments as the Initial Purchaser reasonably may propose; (ii) include the
     information set forth in Annex A hereto on the cover, in Annex B hereto in
     the "Exchange Offer Procedures" section and the "Purpose of the Exchange
     Offer" section and in Annex C hereto in the "Plan of Distribution" section
     of the prospectus forming a part of the Exchange Offer Registration
     Statement and include the information set forth in Annex D hereto in the
     Letter of Transmittal delivered pursuant to the Registered Exchange Offer;
     (iii) if requested by the Initial Purchaser, include the information
     required by Items 507 or 508 of Regulation S-K under the Securities Act, as
     applicable, in the prospectus forming a part of the Exchange Offer
     Registration Statement; (iv) include within the prospectus contained in the
     Exchange Offer Registration Statement a section entitled "Plan of
     Distribution," reasonably acceptable to the Initial Purchaser, which shall
     contain a summary statement of the positions taken or policies made by the
     staff of the Commission with respect to the potential "underwriter" status
     of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3
     under the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
     of Exchange Securities received by such broker-dealer in the Registered
     Exchange Offer (a "Participating Broker-Dealer"), whether such positions or
     policies have been publicly disseminated by the staff of the Commission or
     such positions or policies, in the reasonable judgment of the Initial
     Purchaser based upon advice of counsel (which may be in-house counsel),
     represent the prevailing views of the staff of the Commission; and (v) in
     the case of a Shelf Registration Statement, include the names of the
     Holders, who propose to sell Securities pursuant to the Shelf Registration
     Statement, as selling securityholders.

          (b) The Company shall give written notice to the Initial Purchaser,
     the Holders of the Securities and any Participating Broker-Dealer from whom
     the Company has received prior written notice that it will be a
     Participating Broker-Dealer in the Registered Exchange Offer (which notice
     pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction
     to suspend the use of the prospectus until the requisite changes have been
     made):

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               (i) when the Registration Statement or any amendment thereto has
          been filed with the Commission and when the Registration Statement or
          any post-effective amendment thereto has become effective;

               (ii) of any request by the Commission for amendments or
          supplements to the Registration Statement or the prospectus included
          therein or for additional information;

               (iii) of the issuance by the Commission of any stop order
          suspending the effectiveness of the Registration Statement or the
          initiation of any proceedings for that purpose;

               (iv) of the receipt by the Company or its legal counsel of any
          notification with respect to the suspension of the qualification of
          the Securities for sale in any jurisdiction or the initiation or
          threatening of any proceeding for such purpose; and

               (v) of the happening of any event that requires the Company to
          make changes in the Registration Statement or the prospectus in order
          that the Registration Statement or the prospectus do not contain an
          untrue statement of a material fact nor omit to state a material fact
          required to be stated therein or necessary to make the statements
          therein (in the case of the prospectus, in light of the circumstances
          under which they were made) not misleading.

          (c) The Company shall make every reasonable effort to obtain the
     withdrawal at the earliest possible time, of any order suspending the
     effectiveness of the Registration Statement.

          (d) The Company shall furnish to each Holder of Securities included
     within the coverage of the Shelf Registration, without charge, at least one
     copy of the Shelf Registration Statement and any post-effective amendment
     thereto, including financial statements and schedules, and, if the Holder
     so requests in writing, all exhibits thereto (including those, if any,
     incorporated by reference).

          (e) The Company shall deliver to each Exchanging Dealer and the
     Initial Purchaser, and to any other Holder who so requests, without charge,
     at least one copy of the Exchange Offer Registration Statement and any
     post-effective amendment thereto, including financial statements and
     schedules, and, if the Initial Purchaser or any such Holder requests, all
     exhibits thereto (including those incorporated by reference).

          (f) The Company shall, during the Shelf Registration Period, deliver
     to each Holder of Securities included within the coverage of the Shelf
     Registration, without charge, as many copies of the prospectus (including
     each preliminary prospectus) included in the Shelf Registration Statement
     and any amendment or supplement thereto as such person may reasonably
     request. The Company consents, subject to the provisions of this Agreement,
     to the use of the prospectus or any amendment or supplement thereto by each
     of the selling Holders of the Securities in connection with the offering
     and sale of the Securities covered by the prospectus, or any amendment or
     supplement thereto, included in the Shelf Registration Statement.

          (g) The Company shall deliver to the Initial Purchaser, any Exchanging
     Dealer, any Participating Broker-Dealer and such other persons required to
     deliver a prospectus following the Registered Exchange Offer, without
     charge, as many copies of the final prospectus included in the Exchange
     Offer Registration Statement and any amendment or supplement thereto as
     such persons may reasonably request. The Company consents, subject to the
     provisions of this Agreement, to

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     the use of the prospectus or any amendment or supplement thereto by the
     Initial Purchaser, if necessary, any Participating Broker-Dealer and such
     other persons required to deliver a prospectus following the Registered
     Exchange Offer in connection with the offering and sale of the Exchange
     Securities covered by the prospectus, or any amendment or supplement
     thereto, included in such Exchange Offer Registration Statement.

          (h) Prior to any public offering of the Securities, pursuant to any
     Registration Statement, the Company shall register or qualify or cooperate
     with the Holders of the Securities included therein and their respective
     counsel in connection with the registration or qualification of the
     Securities for offer and sale under the securities or "blue sky" laws of
     such states of the United States as any Holder of the Securities reasonably
     requests in writing and do any and all other acts or things necessary or
     advisable to enable the offer and sale in such jurisdictions of the
     Securities covered by such Registration Statement; provided, however, that
     the Company shall not be required to (i) qualify generally to do business
     in any jurisdiction where it is not then so qualified or (ii) take any
     action which would subject it to general service of process or to taxation
     in any jurisdiction where it is not then so subject.

          (i) The Company shall cooperate with the Holders of the Securities to
     facilitate the timely preparation and delivery of certificates representing
     the Securities to be sold pursuant to any Registration Statement free of
     any restrictive legends and in such denominations and registered in such
     names as the Holders may request a reasonable period of time prior to sales
     of the Securities pursuant to such Registration Statement.

          (j) Upon the occurrence of any event contemplated by paragraphs (ii)
     through (v) of Section 3(b) above during the period for which the Company
     is required to maintain an effective Registration Statement, the Company
     shall promptly prepare and file a post-effective amendment to the
     Registration Statement or a supplement to the related prospectus and any
     other required document so that, as thereafter delivered to Holders of the
     Securities or purchasers of Securities, the prospectus will not contain an
     untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in light of the circumstances under which they were made, not misleading.
     If the Company notifies the Initial Purchaser, the Holders of the
     Securities and any known Participating Broker-Dealer in accordance with
     paragraphs (ii) through (v) of Section 3(b) above to suspend the use of the
     prospectus until the requisite changes to the prospectus have been made,
     then the Initial Purchaser, the Holders of the Securities and any such
     Participating Broker-Dealers shall suspend use of such prospectus, and the
     period of effectiveness of the Shelf Registration Statement provided for in
     Section 2(b) above and the Exchange Offer Registration Statement provided
     for in Section 1 above shall each be extended by the number of days from
     and including the date of the giving of such notice to and including the
     date when the Initial Purchaser, the Holders of the Securities and any
     known Participating Broker-Dealer shall have received such amended or
     supplemented prospectus pursuant to this Section 3(j).

          Notwithstanding the foregoing, the Company may suspend the offering
     and sales under the Exchange Offer Registration Statement subsequent to the
     consummation of the Registered Exchange Offer or the Shelf Registration
     Statement for up to 30 days in each year during which such Exchange Offer
     Registration Statement is required to be effective and usable hereunder
     subsequent to the consummation of the Registered Exchange Offer or such
     Shelf Registration Statement is required to be effective and usable
     hereunder (measured from the date of effectiveness of such Shelf
     Registration Statement to successive anniversaries thereof) if (A) either
     (x)(I) the Company shall be engaged in a material acquisition or
     disposition and (II)(a) such acquisition or disposition is required to be
     disclosed in the Exchange Offer Registration Statement or the Shelf

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     Registration Statement, the related prospectus or any amendment or
     supplement thereto, or the failure by the Company to disclose such
     transaction in the Exchange Offer Registration Statement or the Shelf
     Registration Statement or related prospectus, or any amendment or
     supplement thereto, as then amended or supplemented, would cause such
     Exchange Offer Registration Statement or Shelf Registration Statement,
     prospectus or amendment or supplement thereto, to contain an untrue
     statement of material fact or omit to state a material fact necessary in
     order to make the statements therein not misleading, in light of the
     circumstances under which they were made, (b) information regarding the
     existence of such acquisition or disposition has not then been publicly
     disclosed by or on behalf of the Company and (c) a majority of the Board of
     Directors of the Company determines in the exercise of its good faith
     judgment that disclosure of such acquisition or disposition would not be in
     the best interest of the Company or would have a material adverse effect on
     the consummation of such acquisition or disposition or (y) a majority of
     the Board of Directors of the Company determines in the exercise of its
     good faith judgment that compliance with the disclosure obligations set
     forth in this Section 3(j) would otherwise have a material adverse effect
     on the Company and its subsidiaries, taken as a whole, and (B) the Company
     notifies the Holders within two business days after such Board of Directors
     makes the relevant determination set forth in clause (A); provided,
     however, that in each such case the applicable period of effectiveness of
     the Shelf Registration Statement provided for in Section 2(b) above and the
     Exchange Offer Registration Statement provided for in Section 1 above shall
     each be extended by the number of days during which such effectiveness was
     suspended pursuant to the foregoing and Additional Interest shall not apply
     during any period the Company is permitted to suspend offerings and sales
     under this sentence.

          (k) Not later than the effective date of the applicable Registration
     Statement, the Company will provide a CUSIP number for the Initial
     Securities, the Exchange Securities or the Private Exchange Securities, as
     the case may be, and provide the applicable trustee with printed
     certificates for the Initial Securities, the Exchange Securities or the
     Private Exchange Securities, as the case may be, in a form eligible for
     deposit with The Depository Trust Company.

          (l) The Company will comply with all rules and regulations of the
     Commission to the extent and so long as they are applicable to the
     Registered Exchange Offer or the Shelf Registration and will make generally
     available to its security holders (or otherwise provide in accordance with
     Section 11(a) of the Securities Act) an earnings statement satisfying the
     provisions of Section 11(a) of the Securities Act, no later than 45 days
     after the end of a 12-month period (or 120 days, if such period is a fiscal
     year) beginning with the first month of the Company's first fiscal quarter
     commencing after the effective date of the Registration Statement, which
     statement shall cover such 12-month period.

          (m) The Company shall cause the Indenture to be qualified under the
     Trust Indenture Act of 1939, as amended, in a timely manner and containing
     such changes, if any, as shall be necessary for such qualification. In the
     event that such qualification would require the appointment of a new
     trustee under the Indenture, the Company shall appoint a new trustee
     thereunder pursuant to the applicable provisions of the Indenture.

          (n) The Company may require each Holder of Securities to be sold
     pursuant to the Shelf Registration Statement to furnish to the Company such
     information regarding the Holder and the distribution of the Securities as
     the Company may from time to time reasonably require for inclusion in the
     Shelf Registration Statement, and the Company may exclude from such
     registration the Securities of any Holder that unreasonably fails to
     furnish such information within a reasonable time after receiving such
     request.

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          (o) The Company shall enter into such customary agreements and take
     all such other action, if any, as any Holder of the Securities shall
     reasonably request in order to facilitate the disposition of the Securities
     pursuant to any Shelf Registration.

          (p) In the case of any Shelf Registration, the Company shall (i) make
     reasonably available for inspection by the Holders of the Securities, any
     underwriter participating in any disposition pursuant to the Shelf
     Registration Statement and any attorney, accountant or other agent retained
     by the Holders of the Securities or any such underwriter all relevant
     financial and other records, pertinent corporate documents and properties
     of the Company and (ii) cause the Company's officers, directors, employees,
     accountants and auditors to supply all relevant information reasonably
     requested by the Holders of the Securities or any such underwriter,
     attorney, accountant or agent in connection with the Shelf Registration
     Statement, in each case, as shall be reasonably necessary to enable such
     persons, to conduct a reasonable investigation within the meaning of
     Section 11 of the Securities Act; provided, however, that the foregoing
     inspection and information gathering shall be coordinated on behalf of the
     Initial Purchaser by you and on behalf of the other parties, by one counsel
     designated by and on behalf of such other parties as described in Section 4
     hereof.

          (q) In the case of any Shelf Registration, the Company, if requested
     by any Holder of Securities covered thereby, shall cause (i) its counsel to
     deliver an opinion and updates thereof relating to the Securities in
     customary form addressed to such Holders and the managing underwriters, if
     any, thereof and dated, in the case of the initial opinion, the effective
     date of such Shelf Registration Statement (it being agreed that the matters
     to be covered by such opinion shall include, without limitation, the due
     incorporation and good standing of the Company and its subsidiaries; the
     qualification of the Company and its subsidiaries to transact business as
     foreign corporations; the due authorization, execution and delivery of the
     relevant agreement of the type referred to in Section 3(o) hereof; the due
     authorization, execution, authentication and issuance, and the validity and
     enforceability, of the applicable Securities; the absence of material legal
     or governmental proceedings involving the Company and its subsidiaries; the
     absence of governmental approvals required to be obtained in connection
     with the Shelf Registration Statement, the offering and sale of the
     applicable Securities, or any agreement of the type referred to in Section
     3(o) hereof; the compliance as to form of such Shelf Registration Statement
     and any documents incorporated by reference therein and of the Indenture
     with the requirements of the Securities Act and the Trust Indenture Act,
     respectively; and, as of the date of the opinion and as of the effective
     date of the Shelf Registration Statement or most recent post-effective
     amendment thereto, as the case may be, the absence from such Shelf
     Registration Statement and the prospectus included therein, as then amended
     or supplemented, and from any documents incorporated by reference therein
     of an untrue statement of a material fact or the omission to state therein
     a material fact required to be stated therein or necessary to make the
     statements therein not misleading (in the case of any such documents, in
     the light of the circumstances existing at the time that such documents
     were filed with the Commission under the Exchange Act); (ii) its officers
     to execute and deliver all customary documents and certificates and updates
     thereof requested by any underwriters of the applicable Securities and
     (iii) its independent public accountants to provide to the selling Holders
     of the applicable Securities and any underwriter therefor a comfort letter
     in customary form and covering matters of the type customarily covered in
     comfort letters in connection with primary underwritten offerings, subject
     to receipt of appropriate documentation as contemplated, and only if
     permitted, by Statement of Auditing Standards No. 72.

          (r) If a Registered Exchange Offer or a Private Exchange is to be
     consummated, upon delivery of the Initial Securities by Holders to the
     Company (or to such other Person as directed by the Company) in exchange
     for the Exchange Securities or the Private Exchange Securities, as the

                                       9

<PAGE>

     case may be, the Company shall mark, or caused to be marked, on the Initial
     Securities so exchanged that such Initial Securities are being canceled in
     exchange for the Exchange Securities or the Private Exchange Securities, as
     the case may be; in no event shall the Initial Securities be marked as paid
     or otherwise satisfied.

          (s) The Company will use its best efforts to (a) if the Initial
     Securities have been rated prior to the initial sale of such Initial
     Securities, confirm such ratings will apply to the Securities covered by a
     Registration Statement, or (b) if the Initial Securities were not
     previously rated, cause the Securities covered by a Registration Statement
     to be rated with the appropriate rating agencies, if so requested by
     Holders of a majority in aggregate principal amount of Securities covered
     by such Registration Statement, or by the managing underwriters, if any.

          (t) In the event that any broker-dealer registered under the Exchange
     Act shall underwrite any Securities or participate as a member of an
     underwriting syndicate or selling group or "assist in the distribution"
     (within the meaning of the Conduct Rules (the "Rules") of the National
     Association of Securities Dealers, Inc. ("NASD")) thereof, whether as a
     Holder of such Securities or as an underwriter, a placement or sales agent
     or a broker or dealer in respect thereof, or otherwise, the Company will
     assist such broker-dealer in complying with the requirements of such Rules,
     including, without limitation, by (i) if such Rules, including Rule 2720,
     shall so require, engaging a "qualified independent underwriter" (as
     defined in Rule 2720) to participate in the preparation of the Registration
     Statement relating to such Securities, to exercise usual standards of due
     diligence in respect thereto and, if any portion of the offering
     contemplated by such Registration Statement is an underwritten offering or
     is made through a placement or sales agent, to recommend the yield of such
     Securities, (ii) indemnifying any such qualified independent underwriter to
     the extent of the indemnification of underwriters provided in Section 5
     hereof and (iii) providing such information to such broker-dealer as may be
     required in order for such broker-dealer to comply with the requirements of
     the Rules.

                  (u) The Company shall use its reasonable best efforts to take
         all other steps necessary to effect the registration of the Securities
         covered by a Registration Statement contemplated hereby.

     4. Registration Expenses. The Company shall bear all fees and expenses
incurred in connection with the performance of its obligations under Sections 1
through 3 hereof (including the reasonable fees and expenses, if any, of
Cravath, Swaine & Moore LLP and Creel, Garcia-Cuellar y Muggenburg, counsel for
the Initial Purchaser, incurred in connection with the Registered Exchange
Offer), whether or not the Registered Exchange Offer or a Shelf Registration is
filed or becomes effective, and, in the event of a Shelf Registration, shall
bear or reimburse the Holders of the Securities covered thereby for the
reasonable fees and disbursements of one firm of counsel designated by the
Holders of a majority in principal amount of the Initial Securities covered
thereby to act as counsel for the Holders of the Initial Securities in
connection therewith.

     5. Indemnification. (a) The Company agrees to indemnify and hold harmless
each Holder of the Securities, any Participating Broker-Dealer and each person,
if any, who controls such Holder or such Participating Broker-Dealer within the
meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer and such controlling persons are referred to
collectively as the "Indemnified Parties") from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each
Indemnified Party may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary

                                       10

<PAGE>

prospectus relating to a Shelf Registration, or arise out of, or are based upon,
the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
shall reimburse, as incurred, the Indemnified Parties for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action in respect thereof;
provided, however, that (i) the Company shall not be liable in any such case to
the extent that such loss, claim, damage or liability arises out of or is based
upon any untrue statement or alleged untrue statement or omission or alleged
omission made in a Registration Statement or prospectus or in any amendment or
supplement thereto or in any preliminary prospectus relating to a Shelf
Registration in reliance upon and in conformity with written information
pertaining to such Holder and furnished to the Company by or on behalf of such
Holder specifically for inclusion therein and (ii) with respect to any untrue
statement or omission or alleged untrue statement or omission made in any
preliminary prospectus relating to a Shelf Registration Statement, the indemnity
agreement contained in this subsection (a) shall not inure to the benefit of any
Holder or Participating Broker-Dealer from whom the person asserting any such
losses, claims, damages or liabilities purchased the Securities concerned, to
the extent that a prospectus relating to such Securities was required to be
delivered by such Holder or Participating Broker-Dealer under the Securities Act
in connection with such purchase and any such loss, claim, damage or liability
of such Holder or Participating Broker-Dealer results from the fact that there
was not sent or given to such person, at or prior to the written confirmation of
the sale of such Securities to such person, a copy of the final prospectus if
the Company had previously furnished copies thereof to such Holder or
Participating Broker-Dealer which final prospectus corrected such untrue
statement or omission or alleged untrue statement or omission made in any
preliminary prospectus; provided further, however, that this indemnity agreement
will be in addition to any liability which the Company may otherwise have to
such Indemnified Party. The Company shall also indemnify underwriters, their
officers and directors and each person who controls such underwriters within the
meaning of the Securities Act or the Exchange Act to the same extent as provided
above with respect to the indemnification of the Holders of the Securities if
requested by such Holders. Any amounts advanced by the Company to an Indemnified
Party pursuant to this Section 5 as a result of any losses described herein
shall be returned to the Company if it shall be finally determined by a court of
competent jurisdiction in a judgment not subject to appeal or further review
that such Indemnified Party was not entitled to such indemnification by the
Company.

     (b) Each Holder of the Securities, severally and not jointly, will
indemnify and hold harmless the Company and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act from
and against any losses, claims, damages or liabilities or any actions in respect
thereof, to which the Company or any such controlling person may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in
each case only to the extent that the untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with
written information pertaining to such Holder and furnished to the Company by or
on behalf of such Holder specifically for inclusion therein; and, subject to the
limitation set forth immediately preceding this clause, shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by the
Company or any such controlling person in connection with investigating or
defending any loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Company or any of its controlling persons.

     (c) Promptly after receipt by an indemnified party under this Section 5 of
notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to
be made against the indemnifying party under this Section 5,

                                       11

<PAGE>

notify the indemnifying party of the commencement thereof; but the failure to
notify the indemnifying party shall not relieve the indemnifying party from any
liability that it may have under subsection (a) or (b) above except to the
extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided further that the
failure to notify the indemnifying party shall not relieve it from any liability
that it may have to an indemnified party otherwise than under subsection (a) or
(b) above. In case any such action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified
party (who shall not, except with the consent of the indemnified party, be
counsel to the indemnifying party), and after notice from the indemnifying party
to such indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof. In no event shall the indemnifying party be liable for
fees and expenses of more than one counsel (in addition to any local counsel)
separate from its own counsel for the Indemnified Party in connection with any
one action or separate but related actions in the same jurisdiction arising out
of the same general allegations or circumstances. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement (i) includes
an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action, and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party.

     (d) If the indemnification provided for in this Section 5 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or (b)
above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to in subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying party or parties on the one hand and the
indemnified party on the other from the exchange of the Securities, pursuant to
the Registered Exchange Offer, or (ii) if the allocation provided by the
foregoing clause (i) is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the indemnifying party or parties on
the one hand and the indemnified party on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities (or actions in respect thereof) as well as any other relevant
equitable considerations. The relative fault of the parties shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
such Holder or such other indemnified party, as the case may be, on the other,
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid by
an indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which is
the subject of this subsection (d). Notwithstanding any other provision of this
Section 5(d), the Holders of the Securities shall not be required to contribute
any amount in excess of the amount by which the net proceeds received by such
Holders from the sale of the Securities pursuant to a Registration Statement
exceeds the amount of damages which such Holders have otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. For purposes
of this paragraph (d), each person, if any, who controls such indemnified party
within the meaning of the Securities Act or the Exchange Act shall

                                       12

<PAGE>

have the same rights to contribution as such indemnified party and each person,
if any, who controls the Company within the meaning of the Securities Act or the
Exchange Act shall have the same rights to contribution as the Company.

     (e) The agreements contained in this Section 5 shall survive the sale of
the Securities pursuant to a Registration Statement and shall remain in full
force and effect, regardless of any termination or cancellation of this
Agreement or any investigation made by or on behalf of any indemnified party.

     6. Additional Interest Under Certain Circumstances. (a) Additional interest
(the "Additional Interest") with respect to the Initial Securities shall be
assessed as follows if any of the following events occur (each such event in
clauses (i) through (v) below a "Registration Default":

          (i) the Company fails to file an Exchange Offer Registration Statement
     or a Shelf Registration Statement with the Commission on or prior to the
     210th day after the Issue Date;

          (ii) the Exchange Offer Registration Statement is not consummated on
     or before the 40th day after the Exchange Offer Registration Statement is
     declared effective;

          (iii) if obligated to file a Shelf Registration Statement pursuant to
     Section 2(ii), (iii), or (iv), the Company fails to file the Shelf
     Registrations Statement with the Commission on or prior to the 30th day
     (the "Shelf Filing Date") after the date on which the obligation to file a
     Shelf Registration Statement arises;

          (iv) if obligated to file a Shelf Registration Statement pursuant to
     Section 2(ii), (iii) or (iv), the Shelf Registration Statement is not
     declared effective on or prior to the 60th or 90th day, as the case may be,
     after the Shelf Filing Date; or

          (v) If after either the Exchange Offer Registration Statement or the
     Shelf Registration Statement is declared effective (A) such Registration
     Statement thereafter ceases to be effective; or (B) such Registration
     Statement or the related prospectus ceases to be usable (except as
     permitted in paragraph (b)) in connection with resales of Transfer
     Restricted Securities during the periods specified herein because either
     (1) any event occurs as a result of which the related prospectus forming
     part of such Registration Statement would include any untrue statement of a
     material fact or omit to state any material fact necessary to make the
     statements therein in the light of the circumstances under which they were
     made not misleading, or (2) it shall be necessary to amend such
     Registration Statement or supplement the related prospectus, to comply with
     the Securities Act or the Exchange Act or the respective rules thereunder;
     provided, however, the Registration Default referred to in this Section
     6(a)(v) shall be deemed not to have occurred and to be continuing, and
     Additional Interest shall not accrue, during any period the Company is
     permitted to suspend offerings and sales pursuant to Section 3(j).

Additional Interest shall accrue on the Securities over and above the interest
set forth in the title of the Securities from and including the date on which
any such Registration Default shall occur to but excluding the date on which all
such Registration Defaults have been cured, at a rate of 0.25% per annum for the
first 90-day period immediately following the occurrence of such Registration
Default. The Additional Interest Rate shall increase by an additional 0.25% per
annum with respect to each subsequent 90-day period until all Registration
Defaults have been cured, up to a maximum Additional Interest Rate of 1.0% per
annum.

     (b) A Registration Default referred to in Section 6(a)(iii)(B) hereof shall
be deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such

                                       13

<PAGE>

Shelf Registration Statement to incorporate annual audited financial information
with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the
related prospectus or (y) other material events, with respect to the Company
that would need to be described in such Shelf Registration Statement or the
related prospectus and (ii) in the case of clause (y), the Company is proceeding
promptly and in good faith to amend or supplement such Shelf Registration
Statement and related prospectus to describe such events; provided, however,
that in any case if such Registration Default occurs for a continuous period in
excess of 30 days, Additional Interest shall be payable in accordance with the
above paragraph from the day such Registration Default occurs until such
Registration Default is cured.

     (c) Any amounts of Additional Interest due pursuant to clause (i), (ii) or
(iii) of Section 6(a) above will be payable in cash on the regular interest
payment dates with respect to the Initial Securities. The amount of Additional
Interest will be determined by multiplying the applicable Additional Interest
rate by the principal amount of the Initial Securities, multiplied by a
fraction, the numerator of which is the number of days such Additional Interest
rate was applicable during such period (determined on the basis of a 360-day
year comprised of twelve 30-day months), and the denominator of which is 360.

     (d) "Transfer Restricted Securities" means each Security until (i) the date
on which such Transfer Restricted Security has been exchanged by a person other
than a broker-dealer for a freely transferable Exchange Security in the
Registered Exchange Offer, (ii) following the exchange by a broker-dealer in the
Registered Exchange Offer of a Initial Security for an Exchange Note, the date
on which such Exchange Note is sold to a purchaser who receives from such
broker-dealer on or prior to the date of such sale a copy of the prospectus
contained in the Exchange Offer Registration Statement, (iii) the date on which
such Initial Security has been effectively registered under the Securities Act
and disposed of in accordance with the Shelf Registration Statement or (iv) the
date on which such Initial Securities is distributed to the public pursuant to
Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under
the Securities Act.

     7. Rules 144 and 144A. The Company shall use its reasonable best efforts to
file the reports required to be filed by it under the Securities Act and the
Exchange Act in a timely manner and, if at any time the Company is not required
to file such reports, it will, upon the request of any Holder of Initial
Securities, make publicly available other information so long as necessary to
permit sales of their securities pursuant to Rules 144 and 144A. The Company
covenants that it will take such further action as any Holder of Initial
Securities may reasonably request, all to the extent required from time to time
to enable such Holder to sell Initial Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rules 144 and
144A (including the requirements of Rule 144A(d)(4)). The Company will provide a
copy of this Agreement to prospective purchasers of Initial Securities
identified to the Company by the Initial Purchaser upon request. Upon the
request of any Holder of Initial Securities, the Company shall deliver to such
Holder a written statement as to whether it has complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to
require the Company to register any of its securities pursuant to the Exchange
Act.

     8. Underwritten Registrations. If any of the Transfer Restricted Securities
covered by any Shelf Registration are to be sold in an underwritten offering,
the investment banker or investment bankers and manager or managers that will
administer the offering ("Managing Underwriters") will be selected by the
Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering.

     No person may participate in any underwritten registration hereunder unless
such person (i) agrees to sell such person's Transfer Restricted Securities on
the basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes

                                       14

<PAGE>

and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, except by the Company and the written
consent of the Holders of a majority in principal amount of the Securities
affected by such amendment, modification, supplement, waiver or consents.

     (b) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, first-class mail, facsimile
transmission, or air courier which guarantees overnight delivery:

     (1) if to a Holder of the Securities, at the most current address given by
such Holder to the Company.

                  (2) if to the Initial Purchaser;

                           Credit Suisse First Boston LLC
                           Eleven Madison Avenue
                           New York, NY 10010-3629
                           Fax No.:  (212) 325-8278
                           Attention:  Transactions Advisory Group

         with a copy (without constituting notice) to:

                           Cravath, Swaine & Moore LLP
                           825 Eighth Avenue
                           New York, NY 10019
                           Fax No.: (212) 474-3700
                           Attention:  William J. Whelan III

                  (3) if to the Company, at its address as follows:

                           Axtel, S.A. de C.V.
                           Blvd. Diaz Ordaz km. 3.33 No. L-1
                           Col. Unidad San Pedro
                           San Pedro Garza Garcia, N.L., Mexico, CP 66215
                           Fax No.: +52 (81) 8114-1771
                           Attention: Patricio Jimenez

         with a copy to:

                           Cahill Gordon & Reindel LLP
                           80 Pine Street
                           New York, NY 10005
                           Fax No.: (212) 701-3005
                           Attention: Roger Andrus

                                       15

<PAGE>

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
is acknowledged by recipient's facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

     (c) No Inconsistent Agreements. The Company has not, as of the date hereof,
entered into, nor shall it, on or after the date hereof, enter into, any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders herein or otherwise conflicts with the provisions hereof.

     (d) Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns.

     (e) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.

     (h) Severability. If any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

     (i) Securities Held by the Company. Whenever the consent or approval of
Holders of a specified percentage of principal amount of Securities is required
hereunder, Securities held by the Company or its affiliates (other than
subsequent Holders of Securities if such subsequent Holders are deemed to be
affiliates solely by reason of their holdings of such Securities) shall not be
counted in determining whether such consent or approval was given by the Holders
of such required percentage.

     (j) Agent for Service; Submission to Jurisdiction; Waiver of Immunities. By
the execution and delivery of this Agreement, the Company (i) acknowledges that
it has, by separate written instrument, irrevocably designated and appointed CT
Corporation (and any successor entity), as its authorized agent upon which
process may be served in any suit or proceeding arising out of or relating to
this Agreement that may be instituted in any federal or state court in the State
of New York or brought under federal or state securities laws, and acknowledges
that CT Corporation has accepted such designation, (ii) submits to the
nonexclusive jurisdiction of any such court in any such suit or proceeding, and
(iii) agrees that service of process upon CT Corporation and written notice of
said service to the Company shall be deemed in every respect effective service
of process upon it in any such suit or proceeding. The Company further agrees to
take any and all action, including the execution and filing of any and all such
documents and instruments, as may be necessary to continue such designation and
appointment of CT Corporation in full force and effect so long as any of the
Securities shall be outstanding. To the extent that the Company may acquire any
immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, it
hereby irrevocably waives such immunity in respect of this Agreement, to the
fullest extent permitted by law.

                                       16
<PAGE>

     If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Issuer a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement among
the several Initial Purchaser, the Issuer and the Guarantor in accordance with
its terms.

                             Very truly yours,

                             AXTEL, S.A. de C.V.
                                   by
                                              /S/ Jose Antonio Velasco
                                         ---------------------------------------

                             SERVICIOS AXTEL, S.A.de C.V.
                                   by
                                              /S/ Jose Antonio Velasco
                                         ---------------------------------------

                             IMPULSORA E INMOBILIARIA REGSIONAL, S.A. de C.V.
                                   by
                                              /S/ Jose Antonio Velasco
                                         ---------------------------------------

                             INSTALACIONES Y CONTRACTACIONES, S.A. de C.V.
                                   by
                                              /S/ Jose Antonio Velasco
                                         ---------------------------------------

                                       17

<PAGE>

The foregoing Registration
Rights Agreement is hereby confirmed
and accepted as of the date first
above written.

CREDIT SUISSE FIRST BOSTON LLC

         By: /S/ Lori Finkel
            -----------------------
            Name: Lori Finkel
            Title:

                                       18
<PAGE>
                                                                         ANNEX A

     Each broker-dealer that receives Exchange Securities for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined herein), it
will make this Prospectus available to any broker-dealer for use in connection
with any such resale. See "Plan of Distribution."

<PAGE>

                                                                        ANNEX B

     Each broker-dealer that receives Exchange Securities for its own account in
exchange for Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. See "Plan of Distribution."

<PAGE>
                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Securities for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a
result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date, it will make
this prospectus, as amended or supplemented, available to any broker-dealer for
use in connection with any such resale. In addition, until , 2003, all dealers
effecting transactions in the Exchange Securities may be required to deliver a
prospectus.(1)

     The Company will not receive any proceeds from any sale of Exchange
Securities by broker-dealers. Exchange Securities received by broker-dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities. Any broker-dealer that resells Exchange Securities that were
received by it for its own account pursuant to the Exchange Offer and any broker
or dealer that participates in a distribution of such Exchange Securities may be
deemed to be an "underwriter" within the meaning of the Securities Act and any
profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting
compensation under the Securities Act. The Letter of Transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act.

     For a period of 180 days after the Expiration Date the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any brokers
or dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.

----------------------------------------
  (1)  In addition, the legend required by item 502(e) of Regulation 8-K will
appear on the back cover page of the Exchange Offer prospectus.

<PAGE>

                                                                         ANNEX D

/  / CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

                  Name:
                       -----------------------------------------------
                  Address:
                          --------------------------------------------

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

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.Exhibit 10.1

[A seal with the Mexican coat-of-arms reading:]
"United Mexican States - Ministry of
Communications and Transportation"

Concession to install, operate and exploit a public telecommunications network
that is granted by the Mexican Federal Government through the Mexican Ministry
of Communications and Transportation (the "Ministry"), to Telefonia Inalambrica
del Norte, S.A. de C.V. (the "Concession Holder").

                                   WITNESSETH

I. WHEREAS, on October 16, 1995, the Concession Holder filed an application with
the Ministry to obtain a concession to install, operate and exploit a public
telecommunications network, pursuant to the provisions of article 24 of the
Mexican Federal Telecommunications Law, and on February 18, 1996 it submitted
all supplementary information requested by the Ministry.

II. WHEREAS, the Ministry analyzed all documents related to the application
filed by the Concession Holder, and resolved that the application satisfied all
requirements of the Mexican Federal Telecommunications Law and all other
applicable regulations. Therefore, pursuant to the provisions of articles
36(III) of the Mexican Organic Law of the Federal Public Administration; 11(II),
12, 24, 25, 26 and all other related articles of the Mexican Federal
Telecommunications Law, the Ministry hereby grants the Concession Holder this
concession to install, operate and exploit a public telecommunications network,
subject to the following:

                                   CONDITIONS

                                  First Chapter
                               General Provisions

1. Definitions and Scope of the Concession.

1.1 Definitions. In addition to all terms defined in the Mexican Federal
Telecommunications Law, when used in this Certificate the following terms shall
have the following meanings:

     1.1.1 Concession, shall mean the concession that is granted under this
Certificate for the installation, operation and exploitation of a public
telecommunications network;

     1.1.2 Law, shall mean the Mexican Federal Telecommunications Law; and

     1.1.3 Network, shall mean the public telecommunications network that is the
subject matter of this Concession.

1.2 Services. The Concession Holder agrees to install, operate and exploit the
Network and provide all services described in the exhibit(s) to this Certificate
in accordance with all terms and conditions set forth therein.

The Concession Holder may provide services additional to those covered by the
exhibit(s) to this Certificate, subject to the prior approval of the Ministry.
To this end, the Concession Holder shall file an application that is
satisfactory for the

                                       1
<PAGE>

Ministry and meets all requirements of article 24 of the Law and all other
applicable provisions, without prejudice of the fact that, in case any
concession for frequency bands of the radioelectric spectrum is required, such
concession shall be granted through the public bidding process contemplated by
article 14 and all other applicable articles of the Law.

The approval mentioned in the immediately preceding paragraph shall be granted
only if the Concession Holder is in compliance with all of its obligations
related to this Concession.

According to article 33 of the Law, the Concession Holder may provide
added-value services, subject only to the prior registration of the services
with the Ministry.

1.3 Modification of the Coverage. The Concession Holder will be able to extend
or reduce the geographic coverage of the Network, subject to the prior approval
of the Ministry.

The Ministry shall approve or disapprove the Concession Holder's application for
extension or reduction of the coverage within one hundred and twenty (120)
calendar days following receipt of the application, provided that the Concession
Holder is fully complying with all of its obligations related to this
Concession.

1.4 Effective Term. The term of this Concession shall be of thirty (30) years
from the date this Certificate is signed. The term of this Concession may be
extended, pursuant to the provisions of article 27 of the Law.

1.5 Applicable Laws. The Network and the services subject matter of this
Concession shall be installed, operated and exploited and provided,
respectively, pursuant to the provisions of the Law, the General Law on Means of
Communication and Transportation of Mexico and any treaties, laws, regulations,
decrees, Mexican official standards, rulings, circular letters and all other
administrative provisions that may be introduced by the Ministry, and pursuant
to all conditions set forth herein.

The Concession Holder agrees that in case of derogation or amendment of or
additions to the laws or administrative provisions referred to in the first
paragraph of this clause 1.5 to which this Concession is subject, the Concession
Holder shall be subject to all successor laws and administrative provisions,
from the effective date thereof.

1.6 Other Concessions. This Concession does not grant any exclusivity rights to
the Concession Holder, but the Ministry may, within the same geographic area,
grant other concessions to third parties for the installation, operation and
exploitation of one or more public telecommunication networks, for provision of
services identical or similar to the services covered by this Concession.

1.7 Assignment of Rights. The Concession Holder may assign all or any of its
rights and obligations related to the Concession, pursuant to the provisions of
article 35 of the Law.

1.8 Provision of Services through Affiliates or Subsidiaries. The Concession
Holder may, subject to the prior approval of the Ministry, provide any services
covered by this Concession through any affiliate or subsidiary, provided that
the Concession Holder shall always be responsible to the Ministry for the
performance of all obligations related to the Concession.

                                       2
<PAGE>

1.9 Powers of Attorney. The Concession Holder in no event shall grant any
irrevocable general power of attorney for acts of administration or acts of
ownership that is intended to empower or entitle the attorney-in-fact or grantee
to exercise any right or perform any obligation under this Concession.

1.10 Liens. In case any lien is created on the Concession or on any rights
hereunder by the Concession Holder, the lien shall be recorded as required by
article 64 of the Law, within thirty (30) calendar days following the date of
creation of the lien.

The instrument under which the created lien was documented shall expressly
provide that the creditor in no event shall acquire the capacity of concession
holder in case of foreclosure of the lien.

The Concession may only be assigned to a creditor or a third party if the
assignment of all rights arising therefrom is approved by the Ministry, pursuant
to the provisions of article 35 of the Law, or if a concession is granted
pursuant to the provisions of article 24 of the Law, provided that in this
latter event no frequency bands of the radioelectric spectrum shall be included
in the concession.

1.11 Nationality. The Concession Holder shall, with respect to this Concession,
not have any rights other than the rights available at Mexican nationals under
the Mexican laws. Consequently, the Concession Holder and its non-Mexican
shareholders or members, if any, agree not to request or accept the diplomatic
involvement of any foreign government, under the penalty, in case of breaching
this provision, of forfeiting to the Mexican government all property and rights
that the shareholders or members may have acquired for the installation,
operation and exploitation of the Network.

1.12 Neutral Investment. Pursuant to the provisions of the Fifth Title of the
Mexican Foreign Investment Law, neutral investment shall not be taken into
consideration to determine the percentage of the interest held by foreign
investors in the Concession Holder's capital stock.

1.13 Companies where a Foreign Government Holds an Interest in their Capital
Stock. Any interest held by a company where a foreign government may have an
interest in its capital stock shall not be considered as an interest held by a
foreign government or State, provided the company is not considered as a
government authority by the internal laws of its country of origin and has legal
capacity and assets of its own.

1.14 Subscription and Transfer of Shares of Stock. The Concession Holder shall
provide to the Ministry, no later than April 30 of each year, a list showing the
names of the 10 main shareholders of the Concession Holder and the percentages
represented by their respective interests in the Concession Holder's capital
stock, attaching thereto all information that may be required by the Ministry.

In case of any attempt to subscribe or transfer shares of stock or partnership
interests, either in one transaction or a series of related transactions, that
represents 10% or more of the Concession Holder's capital stock, the procedure
below shall be followed:

     1.14.1 The Concession Holder shall give the Ministry notice of the
intention of any parties interested in subscribing or transferring shares of
stock or partnership interests of the Concession Holder's capital stock,
attaching thereto information on the potential buyers of the shares of stock or
partnership interests;

                                       3
<PAGE>

     1.14.2 The Ministry shall be entitled to disapprove the transaction in
question within ninety (90) calendar days following receipt of the notice, by
giving written notice of its disapproval and providing all reasons therefor; and

     1.14.3 If not disapproved by the Ministry upon expiration of the
above-mentioned 90-day term, the transaction shall be deemed approved.

Only those transactions that shall have not been disapproved by the Ministry
shall be recorded in the stock transfer book of the Concession Holder,
regardless of any other approvals that must be obtained from other government
authorities pursuant to the applicable legal provisions. The notice referred to
in clause 1.14.1 above shall not be required when the subscription or transfer
involves shares of stock or partnership interests representing neutral
investment pursuant to the terms of the Mexican Foreign Investment Law, or when
a capital increase is subscribed by the same shareholders, provided that in this
latter event each shareholder maintains the same percentage of interest in the
corporation's capital stock.

If the party interested in subscribing or acquiring the shares of stock or
partnership interests is a corporation, then the notice referred to in clause
1.14.1 above shall include all information needed for the Ministry to know the
identity of all individuals having an interest above 10% in the corporation's
capital stock.

This condition shall be included in the bylaws of the Concession Holder and in
all share certificates issued by it.

1.17 Training and Technological Development. The Concession Holder shall develop
training programs for its employees.

Further, the Concession Holder shall also conduct research and development
activities in Mexico in coordination, at its sole discretion, with the Mexican
Communications Institute (Instituto Mexicano de Comunicaciones) and any other
technological research and development institutions.

1.16 Designation of Person Responsible for Technical Issues. The Concession
Holder shall designate a person who shall be responsible to the Ministry for the
technical operation of the Network. Said person shall have all powers of
administration that may be needed to assume obligations to the Ministry on
behalf of the Concession Holder with respect to the technical operation of the
Network.

                                 Second Chapter
                      Provisions Applicable to the Services

2.1 Quality of the Services. The Concession Holder shall provide all services
covered by this Concession in an efficient and uninterrupted fashion, according
to the applicable laws and all technical characteristics set forth in this
Certificate and all exhibits hereto.

Further, the Concession Holder shall instrument all mechanisms that may be
needed to repair the Network or any service failure within eight (8) business
hours following receipt of the failure report.

                                       4
<PAGE>

The Concession Holder shall ensure that all services covered by this Concession
be provided under the best pricing, diversity and quality conditions to the
benefit of all users, so as to promote the efficient development of
telecommunications. To this end, the Concession Holder shall submit to the
Ministry, within one hundred and twenty (120) calendar days following the date
this Concession is signed, the minimum quality standards for the services,
regardless of the Ministry's right to issue general application rules to that
effect.

2.2 Interruption of the Services. If the provision of any service is interrupted
for more than seventy two (72) consecutive hours following the time set forth in
the pertinent report, the Concession Holder shall credit to the users that
portion of the rate corresponding to the duration of the interruption.

2.3 Service and Repair Calls. The Concession Holder shall instrument a system to
receive service and repair calls.

The Concession Holder shall prepare a monthly report on the occurrence of
failures per type of failure, all corrective actions adopted and all credits
made to the users, and shall make such report available to the Ministry.

The Ministry may make the above information available to the public, jointly
with information from any other concessionaires that provide similar services in
Mexico or in the same region.

2.4 Measurement and Quality Control Equipment. The Concession Holder shall take
all actions needed to ensure the accuracy and reliability of all equipment used
to measure the quality of and bill the services. To this end, the Concession
Holder shall make calibration tests to its equipment and provide to the Ministry
on a quarterly basis, upon request, the results of the tests and all documents
proving that the pertinent adjustments, if any, have been made.

Further, the Concession Holder shall keep all records for the measurement
equipment as may be determined by the Ministry.

2.5 Trade Practices Code. The Concession Holder shall, pursuant to any general
application rules that may be issued by the Ministry therefor, develop a trade
practices code to clearly and briefly describe therein all services to be
provided by it and the method to be used for application of the pertinent rates.
The Concession Holder shall, after development of the code, make an excerpt of
the code available to the public at its commercial offices and, upon request by
the Ministry, publish the excerpt in one of the newspapers having wide
circulation throughout Mexico.

2.6 Emergency Services. The Concession Holder shall, within six (6) months
following issuance of this Certificate, make available to the Ministry an action
plan to prevent service failures and to provide emergency services in case of
occurrence of an act of God or force majeure.

In case of occurrence of an emergency situation within the area served by the
Concession Holder, the Concession Holder shall provide, free of charge, all
basic services ordered by the Ministry, only for the period of time and to the
extent required by the emergency situation.

The Concession Holder shall inform the Ministry of any event that may have a
general and material impact on the operation of the Network.

                                       5
<PAGE>

                                  Third Chapter
                                      Rates

3.1 Improper Charging of Rates. Should the Concession Holder charge its users
any rates other than its registered rates or the rates, if any, established
pursuant to the provisions of articles 61 and 63 of the Law, then the Concession
Holder shall reimburse its users the amount charged in excess of the registered
or established rates.

The above reimbursement will be made without prejudice of any penalties that may
be imposed on the Concession Holder pursuant to the Law and all other applicable
provisions.

3.2 No Crossed Subsidies. The Ministry shall be entitled to ensure at any time
that the registered rates do not constitute crossed subsidies pursuant to the
provisions of article 62 of the Law, for which purpose the Concession Holder
shall provide all pertinent information within sixty (60) calendar days
following the date of receipt of the Ministry's request.

3.3 Billing. All billing systems of the Concession Holder are subject to the
approval of the Ministry before their instrumentation.

                                 Fourth Chapter
                          Confirmation and Information

4.1 Without prejudice of the Ministry's power to request the Concession Holder
to provide any other information, pursuant to the terms of article 68 of the
Law, the Concession Holder shall provide the following to the Ministry within
one hundred and fifty (150) calendar days following the closing of each fiscal
year of the Concession Holder:

     4.1.1 Audited financial statements of the Concession Holder's company,
itemized per service and, if pertinent, per geographic area;

     4.1.2 A description of the main fixed assets of the Concession Holder that
form the Network, in the formats established by the Ministry therefor; and

     4.1.3 A report on all actions taken with respect to the training programs
for the Concession Holder's employees, and on all research and development
activities conducted in Mexico, as set forth in clause 1.15 of this Concession.

4.2 The Concession Holder shall submit quarterly reports to the Ministry on the
progress of the expansion program for the Network.

4.3 The Concession Holder shall make available to the Ministry, statistical
information on traffic, routing, occupation, performance and other operating
parameters of the Network, in accordance with the general provisions that may be
issued by the Ministry therefor.

                                       6
<PAGE>

                                  Fifth Chapter
                                Performance Bond

5. The Concession Holder shall, to the satisfaction of the Ministry and within
thirty (30) calendar days following the date of signature of this Concession,
place with an authorized institution a bond in the amount of five million and
00/100 ($5,000,000.00) pesos, Mexican currency, in favor of the Federal Treasury
Office, which bond shall: a) be collected in case of revocation of the
Concession, and b) guarantee the payment of any monetary sanctions that may be
imposed by the Ministry. The bond shall be in effect at all times during the
term of the Concession.

The amount of the bond shall be increased on a yearly basis, according to the
same rate of increase than the National Consumer Price Index or successor index.

The policy bond shall contain a statement expressly stipulating that the bonding
institution accepts the provisions of articles 95 and 118 of the Federal Bonding
Institutions Law of Mexico and waives all benefits of order and discussion.

                                  Sixth Chapter
                                Competent Courts

6. Competent Courts. For resolution of any matter related to the interpretation
and enforcement of this Concession Certificate, other than any issue reserved
for resolution by the Ministry under an administrative resolution, the
Concession Holder agrees to submit to the jurisdiction of the federal courts of
Mexico City, Mexico, waiving any other jurisdiction that might correspond to it
by reason of its present or future domicile.

                       Mexico City, Mexico, June 17, 1996.

                THE MINISTRY OF COMMUNICATIONS AND TRANSPORTATION

                                  By: [signed]
                              CARLOS RUIZ SACRISTAN
                                    MINISTER

                  TELEFONIA INALAMBRICA DEL NORTE, S.A. DE C.V.

                                  By: [signed]
                               TOMAS MILMO SANTOS

                                       7
<PAGE>

[A seal with the Mexican coat-of-arms reading:]
"United Mexican States - Ministry of
Communications and Transportation"

Exhibit A to the Concession to install, operate and exploit a public
telecommunications network that was granted by the Mexican Federal Government
through the Mexican Ministry of Communications and Transportation, to Telefonia
Inalambrica del Norte, S.A. de C.V. on June 17, 1996.

A.1 Services Covered by this Exhibit. The following services are covered by this
Exhibit:

     A.1.1 The provision of any service that implies the emission, transmission
or receipt of signs, signals, written material, images, voice, sounds or any
other type of information through its Network.

     A.1.2 The sale or leasing of Network capacity for the emission,
transmission or receipt of signs, signals, written material, images, voice,
sounds or any other type of information.

     A.1.3 The marketing of capacity acquired from other concessionaires of
public telecommunications networks with whom the Concession Holder may have
executed the pertinent agreements.

     A.1.4 The provision of national and international public long distance
basic telephone service. Pursuant to the provisions of seventh transient article
of the Law, the Concession Holder shall be entitled to provide this national and
international public long distance basic telephone service from August 11, 1996.

     Pursuant to the commitments on coverage of the Network that are set forth
in clause A.4 below, the Concession Holder shall, as provider of long-distance
public basic telephone service, be able to participate in the pre-subscription
selection service of long distance operator only until January 1, 1998.

     A.1.5 The provision of local public telephone service, in which event the
Concession Holder must: a) obtain, through a public bidding process and pursuant
to the provisions of articles 14 and all other applicable articles of the Law, a
concession to use, operate and exploit frequency bands, in which event its
respective business and coverage plans must be previously approved by the
Ministry and/or b) in case of switched wired urban networks, submit the
pertinent application pursuant to the provisions of clause 1.3 of this
Certificate, attaching thereto all pertinent business and coverage plans.

     If approved by the Ministry, the services referred to in this clause A.1.5
shall be made a part of this Certificate and be added hereto by means of an
addendum.

     A.2 Services not Covered by this Exhibit. The services below are not
included among the services covered by this exhibit:

     A.2.1 Except for the services set forth in clause A.1 above, all services
that require a concession on frequency bands of the radioelectric spectrum for
specific uses.

     A.2.2 Services that require a concession to occupy and exploit
geostationary orbital positions and satellite orbits assigned to Mexico;

<PAGE>

     A.2.3 Services that require a concession to operate an open access
television or radio system; and

     A.2.4 Cable television and restricted television services.

The provision of these services shall be subject to the Concession Holder's
obtaining the pertinent concession or approval.

A.3 Date for Commencement of the Exploitation of the Network. The Concession
Holder shall commence the exploitation of the Network no later than December 31,
1977.

A.4 Coverage Commitments of the Network. The Concession Holder shall, with its
own infrastructure, execute and maintain in operation the links listed in the
table below, no later than on the dates set forth therein:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                    Link                                       Medium                        Deadline
-------------------------------------------------------------------------------------------------------------
<S>                                                         <C>                         <C>
Saltillo, Coah. - Monterrey, N.L                            Fiber optic                 December 31, 1997
-------------------------------------------------------------------------------------------------------------
Monterrey, N.L. - Nuevo Laredo, Tamps.                      Fiber optic                 December 31, 1997
-------------------------------------------------------------------------------------------------------------
Leon, Gto. - San Luis Potosi, S.L.P.                        Fiber optic                 December 31, 1998
-------------------------------------------------------------------------------------------------------------
Mexico, D.F. - Cuernavaca, Mor.                             Fiber optic                 December 31, 1998
-------------------------------------------------------------------------------------------------------------
Morelia, Mich. - Acambaro, Gto.                             Coaxial cable               December 31, 1999
-------------------------------------------------------------------------------------------------------------
Gomez Palacio, Dgo. - San Pedro, Coah.                      Coaxial cable               December 31, 1999
-------------------------------------------------------------------------------------------------------------
Tehuacan, Pue. - Orizaba, Ver.                              Coaxial cable               December 31, 1999
-------------------------------------------------------------------------------------------------------------
Tuxtla Gtz., Chis. - Ocosingo, Chis.                        Coaxial cable               December 31, 2000
-------------------------------------------------------------------------------------------------------------
Guanajuato, Gto. - Dolores Hgo., Gto.                       Coaxial cable               December 31, 2000

The Concession Holder agrees to link, with its own or leased infrastructure, the
following cities no later than December 31, 2000:

-------------------------------------------------------------------------------------------------------------
Saltillo                                                    to              Gomez Palacio
-------------------------------------------------------------------------------------------------------------
ChihuaGomez Palacio [sic]                                   to              Leon
-------------------------------------------------------------------------------------------------------------
Leon                                                        to              Guanajuato
-------------------------------------------------------------------------------------------------------------
Guanajuato                                                  to              Morelia
-------------------------------------------------------------------------------------------------------------
Morelia                                                     to              Mexico, D.F.
-------------------------------------------------------------------------------------------------------------
Mexico, D.F.                                                to              Orizaba
-------------------------------------------------------------------------------------------------------------
Orizaba                                                     to              Tuxtla Gutierrez
-------------------------------------------------------------------------------------------------------------

</TABLE>

A.5 Technical Specifications of the Network. The Concession Holder agrees that
its installed Network shall satisfy, at least, the technical specifications set
forth in clause 2.3.1.2 of its application for a concession, a summary of which
is attached to this exhibit and made an integral part of this Concession.

A.6 Coverage of the Services. The Concession Holder may provide all services
subject matter of this Concession at all sites within the area it is authorized
to serve with its own infrastructure, and throughout Mexico by using capacity of

<PAGE>

other public telecommunication networks. The Concession Holder may provide
services by interconnecting its Network to any foreign networks, pursuant to the
provisions of article 47 of the Law.

A.7 Urban Wiring. Should the Concession Holder intend to install non-switched
direct wired links in any urban areas, the Concession Holder shall file the
pertinent application pursuant to the provisions of clause 1.3 of this
Certificate, in which event the Ministry shall make the pertinent decision
within twenty (20) calendar days following receipt of the application.

<PAGE>

[A seal with the Mexican coat-of-arms reading:]
"United Mexican States - Ministry of
Communications and Transportation"

          SUMMARY OF TECHNICAL SPECIFICATIONS FOR THE PUBLIC INTERSTATE
 TELECOMMUNICATIONS NETWORK PROJECT OF TELEFONIA INALAMBRICA DEL NORTE, S.A. DE
                                      C.V.

Transmission

The transmission plan is based on high-velocity interregional rings that shall
form the switching centers of each numbering region, and shall provide the
national transportation and transmission carrier of the Network, and the
connection to international networks.

Its communication protocol shall be under the standards of the Bellcore
TR-NWT-000253 Standard, which is compatible with all recommendations of the
International Telecommunication Union.

Switching

The network shall, at least, have the following:

Switching centers operating as International Traffic Exchange Port, which port
shall route calling traffic from the TELINOR Long-Distance Network to
international telephone networks.

Centers operating as Signal Transfer Points, either for national and/or regional
switching, which characteristic shall be the routing of voice traffic through
rings of the TELINOR Long-Distance Network, both for interregional and
international traffic.

Signaling

The Network shall be based on signaling system No. 7 (SS7), shall have an
efficient signaling structure that complies with all international standards,
shall guarantee the proper operation of the TELINOR Network, and shall allow
offering intelligent network advanced services to the users through its
Integrated Service User Part (ISUP) signaling protocol.

The INTEGRATED SERVICE USER PART (ISUP) signaling protocol of the SS7 signaling
system, shall be handled in the whole TELINOR Network.

As regards interconnection with other operators, the instrumentation of
signaling system No. 7 shall also be requested, along with the use of the ISUP
protocol.

Also, there may be interconnection at the border by following the signaling by
registration method (R2), at those points where, initially, signaling No. 7
CANNOT be delivered by the other operator.

<PAGE>

Synchronization

The synchronization system to be used by TELINOR for transmission, switching and
SS7 facilities shall achieve or exceed the performance objectives for digital
networks of one SLIP or less than five hours, as provided by BELLCORE
(TA-NPL-000438).

The TELINOR network shall require point-to-point clock synchronization for its
proper operation. This will require that all clocks used in any equipment within
the network shall be controlled by a single master clock reference source.

<PAGE>

                                                         SPANISH TO EXHIBIT 10.1

[COMPANY'S LOGO]

   SECRETARIA  DE
   COMUNICACIONES
         Y
    TRANSPORTES

Concesion para instalar, operar y explotar una red publica de
telecomunicaciones, que otorga el Gobierno Federal por conducto de la Secretaria
de Comunicaciones y Transportes, en lo sucesivo la Secretaria, en favor de
Telefonia Inalambrica del Norte, S.A. de C.V. nen lo sucesivo el Concesionario,
al tenor de los siguientes antecedents y condiciones

                                  ANTECEDENTES

I.       El Concesionario presento solicitud ante la Secretaria con fecha 16 de
         octubre de 1995, para obtener concesion para instalar, operar y
         explotar una red publica de telecomunicaciones, de conformidad con lo
         establecido por el articulo 24 de la Ley Federal de Telecomunicaciones,
         y presento informacion complementaria a peticion de la Secretaria con
         fecha 18 de febrero de 1996.

II.      La Secretaria, una vez analizada y evaluada la documentacion
         correspondiente a la solicitud del Concesionario, resolvio que la misma
         cumplio, a satisfaccion, con los requisitos exigidos por la Ley
         mencionada y las demas disposiciones aplicables, por lo que, con
         fundamento en los articulos 36, fraccion III, de la Ley Organica de la
         Administracion Publica Federal; 80, de la Ley de Vias Generales de
         Comunicacion; 11, fraccion II, 12, 24, 25, 26 y demas relativos de la
         Ley Federal de Telecomunicaciones, la Secretaria otorga al
         Concesionario la presente concesion para instalar, operar y explotar
         una red publica de telecomunicaciones, la que quedara sujeta a las
         siguientes

                                   CONDICIONES

                                Capitulo Primero.
                            Disposiciones generales.

1.       Definiciones y alcance de la concesion.

1.1.     Definicion de terminos. En adicion a las definiciones contenidas en la
         Ley Federal de Telecomunicaciones, para los efectos del presente Titulo
         se entendera por:

         1.1.1.   Concesion: la contenida en el presente Titulo para instalar,
                  operar y explotar una red publica de telecomunicaciones;

         1.1.2. Ley: le Ley Federal de Telecomunicaciones, y

<PAGE>

          1.1.3. Red: la red publica de telecomunicaciones objeto de la presente
               Concesion.

1.2.     Servicios. El Concesionario se obliga a instalar, operar y explotar la
         Red y a prestar los servicios a que se refiere el o los anexos de
         presente Titulo, en los terminos y condiciones ahi indicados.

         El Concesionario podra prestar servicios adicionales a los comprendidos
         en el o los anexos de este Titulo previa autorizacion de la Secretaria.
         Al efecto, el Concesionario debera presentar solicitud, a satisfaccion
         de la Secretaria, que cumpla con los requisitos de articulo 24 de la
         Ley y demas disposiciones que resulten aplicables, sin perjuicio de
         que, de requerir concesiones sobre bandas de frecuencias del espectro
         radioelectrico, estas se otorgaran mediante el procedimiento de
         licitacion publica previsto por el articulo 14, asi como por los demas
         aplicables de la Ley.

         Para obtener la autorizacion mencionada en el parrafo anterior, el
         Concesionario debera estar al corriente en el cumplimiento de las
         obligaciones derivadas de las presente Concesion.

         En los terminos de articulo 33 de la Ley, el Concesionario podra
         prestar servicios de valor agregado, bastando que previamente los
         registre ante la Secretaria.

1.3.     Modificacion de cobertura. Para que el Concesionario pueda ampliar o
         reducir el area de cobertura de la Red, requerira de la autorizacion
         previa de la Secretaria.

         La Secretaria autorizara al Concesionario la ampliacion o reduccion de
         la cobertura, en un plazo no mayor a 120 dias naturales contados a
         partir de la recepcion de la solicitud, siempre que el Concesionario se
         encuentre al corriente en el cumplimiento de las obligaciones derivadas
         de la presente Concesion.

1.4.     Vigencia. La vigencia de esta Concesion sera de 30 anos contados a
         partir de la fecha de firma de este Titulo y podra ser prorrogada de
         acuerdo con lo senalado por el articulo 27 de la Ley.

1.5.     Legislacion applicable. La instalacion, operacion y explotacion de la
         Red y de los servicios comprendidos en la presente Concesion deberan
         sujetarse a la Ley, a la Ley de Vias Generales de Comunicacion y a los
         tratados, leyes, reglamentos, decretos, normas oficiales mexicanas,
         acuerdos, circulares y demas disposiciones administrativas que expide
         la Secretaria, asi como a las condiciones establecidas en este Titulo.

                                       2
<PAGE>

         El Concesionario acepta que si los preceptos legales y las
         disposiciones administrativas a que se refiere el parrafo anterior y a
         las cuales queda sujeta esta Concesion, fueren derogados, modificados o
         adicionados, el Concesionario quedara sujeto a la nueva legislacion y
         disposiciones administrativas a partir de sue entrada en vigor.

1.6.     Otras concesiones. La presente Concesion no confiere derechos de
         exclusividad al Concesionario, por lo que la Secretaria, dentro de la
         misma area geografica, podra otorgar otras concesiones a favor de
         terceras personas para instalar, operar o explotar una o mas redes
         publicas de telecomunicaciones, para que se presten servicios identicos
         o similares.

1.7.     Cesion de derechos. El Concesionario podra ceder parcial o totalmente
         los derechos y obligaciones establecidos en la Concesion en los
         terminos de articulo 35 de la Ley.

1.8.     Prestacion de los servicios a traves de filiales o subsidiarias. Previa
         autorizacion de la Secretaria, el Concesionario podra prestar los
         servicios comprendidos en esta Concesion a traves de empresas
         subsidiarias o filiales, pero, en todo momento, el Concesionario sera
         el unico responsible ante la Secretaria por las obligaciones derivadas
         de la presente Concesion.

1.9.     Poderes o mandatos. En nigun caso el Concesionario podra otorgar
         poderes o mandatos generales para actos de administracion o de dominio
         con caracter de irrevocables que tengan por objeto o hagan posible al
         apoderado o mandatario el ejercicio de los derechos y obligaciones de
         la presente Concesion.

1.10.    Gravamenes. Cuando el Concesionario constituya algun gravamen sobre la
         Concesion o los derechos derivados de ella, debera efectuar el registro
         a que se refiere el articulo 64 de la Ley, dentro de los 30 dias
         naturales siguientes a la fecha de su constitucion.

         El documento en que conste la garantia otorgada debera establecer,
         expresamente, que la ejecucion de la misma en ningun caso otorgara el
         caracter de concesionario al acreedor.

         Para que la Concesion le sea adjudicada al acreedor o a un tercero, se
         requerira que la Secretaria autorice la cesion de derechos en los
         terminos de articulo 35 de la Ley o bien, que obtenga concesion de
         conformidad con el articulo 24 del mismo ordenamiento, sin que en este
         ultimo caso se encuentren comprendidas bandas de frecuencias del
         espectro radioelectrico.

                                       3
<PAGE>

1.11.    Nacionalidad. El Concesionario no tendra en relacion con esta Concesion
         mas derechos que los que las leyes mexicanas conceden a los mexicanos
         y, por consiguiente, la sociedad y sus socios extranjeros, en su caso,
         se comprometen a no pedir ni aceptar la intervencion diplomatica de
         algun pals extranjero, bajo la pena de perder, en beneficio de la
         nacion mexicana, todos los bienes y derechos que hubiesen adquirido
         para instalar, operar y explotar la Red.

1.12.    Inversion neutral. En terminos de Titulo Quinto de la Ley de Inversion
         Extranjera, la inversion neutral no se computara para determinar el
         porcentaje de inversion extranjera en el capital social del
         Concesionario.

1.13.    Empresas con participacion estatal de palses extranjeros. No se
         considerara como participacion accionaria de un gobierno o estado
         extranjero, la que realicen empresas con participacion estatal de
         palses extranjeros que no sean consideradas como autoridades por la
         legislacion interna del pals de origen, y que tengan personalidad
         juridica y patrimonio propios.

1.14.    Suscripcion y enajenacion de acciones. El Concesionario se obliga a
         presentar a la Secretaria, a mas tardar el 30 de abril de cada ano, una
         relacion de sus diez principales accionistas y sus respectivos
         porcentajes de participacion, a la que acompanara la informacion que
         determine la Secretaria.

         En caso de cualquier supesto de suscripcion o enajenacion de acciones o
         partes sociales en un acto o sucesion de actos, que represente el diaz
         por ciento a mas del monto del capital social de la sociedad, se obliga
         a observar el regimen siguiente:

         1.14.1.      El Concesionario debera dar aviso a la Secretaria de la
                      intencion de los interesados en realizar la suscripcion o
                      enajenacion de las acciones o partes sociales, debiendo
                      acompanar el aviso con la informacion de las personas
                      interesadas en adquirir las acciones o partes sociales;

         1.14.2.      La Secretaria tendra un plazo de 90 dias naturales,
                      contados a partir de los presentacion del aviso, para
                      objetar por escrito y por causa justificada la operacion
                      de que se trate, y

         1.14.3.      Transcurrido dicho plazo sin que la operacion hubiere sido
                      objetada por la Secretaria, se entendera aprobada.

                                       4
<PAGE>

         Solo las operaciones que no hubieren sido objetadas por la Secretaria
         podran, en su caso, inscribirse en el libro de registro de accionistas
         o socios de la persona moral, sin perjuicio de las autorizaciones que
         se requieran de otras autoridades conforme a las disposiciones
         aplicables. No se requerira presentar el aviso a que se refiere el
         numeral 1.14.1 anterior, cuando la suscripcion o enajenacion se refiera
         a acciones o partes sociales representatives de inversion neutral en
         terminos de la Ley de Inversion Extranjera, o cuando se trate de
         aumentos de capital que sean suscritos por los mismos accionistas,
         siempre que en este ultimo caso no se modifique la proporcion de la
         participacion de cada uno de ellos en el capital social.

         En caso de que el interesado en suscribir o adquirir las acciones o
         partes socials sea una persona moral, en el aviso al que se refiere la
         condicion 1.14.1 anterior, debera presentarse la informacion necesaria
         para que la Secretaria conozca la identidad de las personas fisicas que
         tengan intereses patrimoniales mayores al diez por ciento del capital
         de dicha persona moral.

         Esta condicion debera incluirse en los estatutos socialess asi como en
         los titulos o certificados que emita el Concesionario.

1.15.    Capacitacion y desarrollo tecnologico. El Concesionario desarrollara
         programas de adiestramiento y capacitacion de su personal.

         Asimismo, el Concesionario debera llevar a cabo labores de
         investigacion y desarrollo en el pals, para lo cual podra coordinarse
         con el Instituto Mexicano de Comunicaciones u otras instituciones de
         investigacion y desarrollo tecnologico.

1.16.    Designacion de responsable tecnico. El Concesionario se oblige a
         designer ante la Secretaria un responsable de funcionamiento tecnico de
         la Red, quien contara con las facultades de administracion necesarias
         para obligor al Concesionario ante la Secretaria con respecto a la
         operacion tecnica de la misma Red.

                                Capitulo Segundo.
                            Disposiciones aplicables
                                a los servicios.

2.1.     Calidad de los servicios. El Concesionario se obliga a prestar los
         servicios comprendidos en esta Concesion en forma continua y eficiente,
         de conformidad con la legislacion applicable y los caracteristicas
         tecnicas establecidas en el presente Titulo y sus anexos.

                                       5
<PAGE>

         Asimismo, el Concesionario se obliga a instrumentar los mecanismos
         necesarios para poder llevar a cabo las reparaciones de la Red o las
         fallas en los servicios, dentro de las ocho horas habiles siguientes a
         la recepcion del reporte.

         El Concesionario buscara que los servicios comprendidos en la presente
         Concesion se presten con las mejores condiciones de precio, diversidad
         y calidad en beneficio de los usuarios, a fin de promover un desarrollo
         eficiente de las telecomunicaciones. Para ello, el Concesionario debera
         enviar a la Secretaria, dentro de los ciento veinte dias naturales
         siguientes a la fecha de firma de este Concesion, los estandares
         minimos de calidad de los servicios, sin perjuicio de que la Secretaria
         expida al efecto reglas de caracter general.

2.2      Interrupcion de los servicios. En el supuesto de que se interrumpa la
         prestacion de alguno de los servicios durante un periodo mayor a 72
         horas consecutivas, contado a partir de la fecha establecida en el
         reporte respectivo, el Concesionario bonificara a los usuarios la parte
         de la cuota correspondiente al tiempo que dure la interrupcion.

2.3.     Sistema de quejas y reparaciones. El Concesionario debera establecer un
         sistema para la recepcion de quejas y la reparacion de fallas.

         Mensualmente, el Concesionario debera elaborar un reporte que incluira
         la incidencia de fallas por tipo, las acciones correctivas adoptadas y
         las bonificaciones realizadas, mismo que estara a disposicion de la
         Secretaria.

         La Secretaria podra hacer del conocimiento publico dicha informacion
         conjuntamente con la de otros concesionarios que presten servicios
         similares en el pais o en la misma region.

2.4      Equipo de medicion y control de calidad. El Concesionario se obliga a
         tomar las medidas necesarias para asegurar la precision y confiabilidad
         de los equipos que utilice para la medicion de la calidad y de la
         facturacion de los servicios. Para estos efectos, el Concesionario
         debera efectuar pruebas de calibracion a sus equipos y proporcionar a
         la Secretaria, cuando esta lo requiera, los resultados de las mismas
         por trimester calendario y, en su caso, los documentos donde conste que
         se han realizado los ajustes correspondientes.

         Asimismo, el Concesionario debera mantener los registros de los equipos
         de medicion que la Secretaria determine.

                                       6
<PAGE>

2.5      Codigo de practicas comerciales. El Concesionario debera integrar, de
         conformidad con las reglas de caracter general que al efecto expida la
         Secretaria, un codigo de practicas comerciales en el que describire, en
         forma clara y concisa, los diferentes servicios que proporcione y la
         metodologia para aplicacion de las tarifas correspondientes. Una vez
         integrado dicho codigo, el Concesionario debera tenerlo disponible al
         publico en sus oficinas comerciales y, a solicitud de la Secretaria,
         publicara un extracto del mismo en uno de los diarios de mayor
         circulacion a nivel nacional.

2.6      Servicios de emergencia. El Concesionario debera poner a disposicion de
         la Secretaria, dentro de los seis meses siguientes a la expedicion del
         presente Titulo, un plan de acclones para prevenir la interrupcion de
         los servicios asi como para proporcionar servicios de emergencia, en
         casos fortuitos o de fuerza mayor.

         En la eventualidad de una emergencia y dentro de su area de cobertura,
         el Concesionario proporcionara los servicios indispensables que indique
         la Secretaria en forma gratuita solo por el tiempo y la proporcion que
         amerite la emergencia. El Concesionario debera dar aviso a la
         Secretaria de cualquier evento que repercuta en forma generalizada o
         significativa en el funcionamiento de la Red.

                                Capitulo Tercero.
                                    Tarifas.

3.1      Cobro indebido de tarifas. Si el Concesionario llegare a cobrar a los
         usuarios tarifas no registradas o distintas de las establecidas, en su
         caso, conforme a los articulos 61 y 63 de la Ley, debera reembolsar a
         los mismos la diferencia con respecto a la tarifas registradas o
         establecidas.

         Lo anterior, sin perjuicio de las sanciones que se impongan de
         conformidad con la Ley y demas disposiciones aplicables.

3.2      Prohibicion de subsidios cruzados. La Secretaria podra verificar en
         todo momento que las tarifas registradas no constituyen subsidios
         cruzados en terminos de articulo 62 de la Ley, para cuyo efecto el
         Concesionario debera proporcionar la informacion correspondiente dentro
         de los sesenta dias naturales siguilentes a la fecha en que reciba la
         solicitud de la Secretaria.

3.3      Facturacion.  Los sistemas de facturacion de Concesionario
         deberan ser previamente aprobados por laSecretaria.

                                       7
<PAGE>

                                Capitulo Cuarto.
                           Verificacion e Informacion.

4.1      Sin perjuicio de les facultades de la Secretaria de requerir otra
         informacion al Concesionario en terminos del articulo 68 de la Ley,
         este debera entregar a la Secretaria, dentro de los ciento cincuenta
         dias neturales siguientes al cierre del ejercicio correspondiente:

         4.1.1.   Los estados financieros auditados de su empresa desglosados
                  por servicio y, en su caso, por area geografica;

         4.1.2.   Una descripcion de los principales activos fijos que comprende
                  la Red, de conformidad con los formatos que establezca la
                  Secretaria, y

         4.1.3.   Un informe sobre las acciones llevadas a cabo respecto de los
                  programas de adiestramiento y capacitacion de su personal, asi
                  como de las labores de investigacion y desarrollo en el pais,
                  segun se establece en la condicion 1.15. de esta Concesion.

4.2.     El Concesionario debera informar trimestralmente a la Secretaria sobre
         el avance del programa de expansion de la Red.

4.3.     El Concesionario debera poner a disposicion de la Secretaria las
         informacion estadistica de trafico, enrutamiento, ocupacion,
         rendimiento u otros parametros de operacion generada por la Red, de
         conformidad con las disposiciones de caracter general que al efecto
         expida las Secretaria.

                                Capitulo Quinto.
                              Garantia de seriedad.

5.       Flanza. El Concesionario establecera fianza en un plazo no mayor de 30
         dias naturales contados a partir de la fecha de firma de esta Concesion
         con institucion autorizada por la cantidad de $ 5,000,000.00 M.N.
         (CINCO MILLONES DE PESOS), a favor de la Tesoreria de la Federacion, la
         que: a) se hara efectiva en caso de revocacion de la Concesion, y b)
         garantizara el pago de las sanciones pecuniarias que, en su caso,
         imponga la Secretaria. La garantia estare vigente durante el plazo de
         la Concesion.

         El monto de la garantia debera actualizarse anualmente confome al
         Indice Nacional de Precios al Consumidor o el indice que lo sustituya.

                                       8
<PAGE>

         La poliza en que se expida la fianza debera contener la declaracion
         expresa de que la institucion afianzadora acepta lo establecido en los
         articulos 95 y 118 de la Ley Federal de Instituciones de Fianzas en
         vigor y la renuncia a los beneficios de orden y excusion.

                                 Capitulo Sexto.
                           Jurisdiccion y competencia.

6.       Para todo lo relativo a la interpretacion y cumplimiento del presente
         Titulo de Concesion, salvo lo que administrativamente corresponda
         resolver a la Secretaria, el Concesionario conviene en someterse a la
         jurisdiccion de los tribunales federales de la Ciudad de Mexico,
         Distrito Federal, renunciando al fuero que pudiere corresponderie en
         razon de su domicilio presente o futuro.

         Mexico, Distrito Federal, a los 17 dias de junio de 1996.

                   SECRETARIA DE COMUNICACIONES Y TRANSPORTES
                                  EL SECRETARIO

                              CARLOS RUIZ SACRISTAN

                  TELEFONIA INALAMBRICA DE NORTE, S.A. de C.V.

                               TOMAS MILMO SANTOS

                                       9
<PAGE>

Anexo A de Titulo de Concesion para instalar, operar y explotar una red publica
de telecomunicaciones otorgado por el Gobierno Federal, por conducto de la
Secretaria de Comunicaciones y Transportes, en favor de Telefonia Inalambrica
del Norte, S.A. de C.V., con fecha 17 de junio de 1996.

A.1. Servicios comprendidos. En el presente anexo se encuentran comprendidos los
siguientes servicios:

         A.1.1.      La prestacion de cualquier servicio que implique emision,
                     transmision o recepcion de signos, senales, escritos,
                     imagenes, voz, sonidos o informacion de cualquier
                     naturaleza a traves de su Red.

         A.1.2.      La venta o arrendiamiento de capacidad de la Red para la
                     emision, transmision o recepcion de signos, senales,
                     escritos, imagenes, voz, sonidos o informacion de cualquier
                     naturaleza.

         A.1.3.      La comercializacion de la capacidad adquirida de otros
                     concesionarios de redes publicas de telecomunicaciones con
                     las que el Concesionario tenga celebrados los convenios
                     correspondientes.

         A.1.4.      La prestacion del servicio publico de telefonia basica de
                     larga distancia nacional e internacional. De conformidad
                     con el articulo septimo transitorio de la Ley, el
                     Concesionario podra prestar el servicio publico de
                     telefonia basica de larga distancia nacional e
                     internacional a partir del 11 de agosto de 1996.

         De conformidad con los compromisos de cobertura de la Red senalados en
         el numeral A.4. siguiente, el Concesionario, como prestador del
         servicio publico de telefonia basica de larga distancia, no podra
         participar en el servicio de seleccion por presuscripcion del operador
         de larga distancia sino hasta el 10. de enero de 1998.

A.2.     Servicios no comprendidos. So se encuentran comprendidos en los
         servicios a los que se refiere este anexo:

<PAGE>

         A.2.1.      Salvo los servicios indicados en el numeral A.1., los que
                     requieran concesion sobre bandas de frecuencias del
                     espectro radioelectrico para usos determinados;

         A.2.2.      Los que requieran concesion para ocupar y explotar
                     posiciones orbitales geoestacionarias y orbitas satelitales
                     asignadas al pais;

         A.2.3.      Los que requieran concesion para operar un sistema de radio
                     o television abierta; y

         A.2.4.      El servicio de television por cable y el de television
                     restringida.

         Para prestar estos servicios el Concesionario debera obtener la
         concesion o la autorizacion respectiva.

A.3.     Plazo para iniciar la explotacion de la Red. El Concesionario debera
         iniciar la explotacion de la Red, a mas tardar, al 31 de diciembre de
         1997.

A.4.     Compromisos de cobertura de la Red. El Concesionario se oblige a
         realizar con infrastructura propia y a tener en operacion los
         siguientes enlaces, a mas tardar en las fechas senaladas:

<TABLE>
<CAPTION>
                        Enlace                               Medios                  Plazo Maximo
<S>                                                          <C>                   <C>
         Saltillo, Coah.-Monterrey, N.L.                     Fibra optica          Diciembre 31 de 1997
         Monterrey, N.L.-Nuevo Laredo, Tams.                 Fibra optica          Diciembre 31 de 1997
         Leon, Gto. San Luis Potosi, S.L.P.                  Fibra optica          Diciembre 31 de 1998
         Mexico D.F.-Cuernavaca, Mor.                        Fibra optica          Diciembre 31 de 1998
         Morelia Mich.- Acambaro, Gto.                       Cable coaxial         Diciembre 31 de 1999
         Gomez Palacio, Dgo.-Sn Pedro, Coah.                 Cable coaxial         Diciembre 31 de 1999
         Tehuacan, Pue.-Orizaba, Ver.                        Cable coaxial         Diciembre 31 de 1999
         Tuxtia Gtz., Chis.-Ocosingo, Chis.                  Cable coaxial         Diciembre 31 de 2000
         Guanajuato, Gto.-Dolores Hgo, Gto.                  Cable coaxial         Diciembre 31 de 2000

</TABLE>

         El Concesionario se obliga a enlazar con infraestructura propia o
         arrendada, a mas tardar el 31 de diciembre del 2000 las sigulentes
         ciudades:

         Saltillo                        Con                   Gomez Palacio
         ChihuaGomez Palacio             Con                   Leon
         Leon                            Con                   Guanajuato
         Guanajuato                      Con                   Morelia
         Morelia                         Con                   Mexico, D.F.
         Mexico, D.F.                    Con                   Orizaba
         Orizaba                         Con                   Tuxtla Gutierrez

                                       2
<PAGE>

A.5.     Especificaciones tecnicas de la Red. El Concesionario se obliga a
         instalar la Red cuando menos con las especificaciones tecnicas
         indicadas en el numeral 2.3.1.2. de su solicitud de concesion, del cual
         un resumen se agrega al presente anexo y forma parte integrante de esta
         Concesion.

A.6.     Cobertura de los servicios. El Concesionario podra prestar los
         servicios comprendidos en esta Concesion en los sitios donde tiene
         autorizada cobertura con infraestructura propia y a nivel nacional
         utilizando capacidad de otras redes publicas de telecommunicaciones. El
         Concesionario podra prestar servicios interconectando su Red con redes
         extranjeras en los terminos del articulo 47 de la Ley.

A.7      Cableados urbanos. En caso de que el Concesionario pretenda instalar
         enlaces directos cableados no conmutados en zonas urbanas, debera
         presentar la solicitud correspondiente en los terminos de la condicion
         1.3 del presente Titulo, en el entendido de que, en estos casos, la
         Secretaria resolvera lo conducente en un plazo de veinte dias naturales
         contados a partir de la recepcion de la solicitud.

          RESUMEN DE LAS ESPECIFICACIONES TECNICAS DEL PROYECTO DE RED
             PUBLICA DE TELECOMUNICACIONES INTERESTATAL DE TELEFONIA
                       INALAMBRICA DEL NORTE, S.A. DE C.V.

Transmision

El plan de Transmision estara basado en anillos de alta velocidad interregional
que integraran las centrales de conmutacion de cada una de las regiones de
numeracion, y provseran la red de transporte y transmision nacional de la Red,
asi como la conexion hacia las redes internacionales.

Su protocolo de comunicacion sera bajo los estandares de la Norma Bellcore
TR-NWT-000253, la cual es compatible con las recomendaciones de la Union
Internacional de Telecomunicaciones.

Conmutacion

La red contara, cuando menos con lo siguiente:

                                       3
<PAGE>

Centrales de conmutacion con funcion de Puerto Internacional de Intercambio de
trafico, el cual enrutara el trafico de llamadas de la Red de Larga Distancia
TELINOR con las redes internacionales de telefonia.

Centrales con funcion de Punto de Transferencia de Senalizacion, ya sea para
conmutacion nacional y/o regional, y cuya caracteristica sera el enrutamiento
del trafico de voz a traves de los anillos de la Red de Larga Distancia TELINOR,
tanto para trafico interregional como internacional.

Senalizacion

La Red estara basada en el sistema de senalizacion No. 7 (SS7), debera contar
con una estructura de senalizacion eficiente que cumpla con los estandares
internacionales, y asegure la correcta operacion de la Red TELINOR y permita
mediante su protocolo de senalizacion de Parte de Usuario de Servicios
Integrados (ISUP), el ofrecer a los usuarios servicios avanzados de red
inteligente.

En la totalidad de la Red TELINOR se manejara el protocolo de senalizacion de
PARTE del USUARIO de SERVICIOS INTEGRADOS (ISUP), del sistema de senalizacion
SS7.

En lo que respecta a la interconexion con otros operadores, tambien se
solicitara la implementacion de senalizacion No. 7, usando igualmente el
protocolo ISUP.

Tambien sera posible realizar la interconexion en la frontera por medio del
metodo de senalizacion por registro (R2), en aquellos puntos los cuales NO sea
posible entregar an primer termino la senalizacion No. 7 por el otro operador.

Sincronizacion

El sistema de sincronizacion que sera usado por TELINOR para su transmision,
conmutacion y facilidades de SS7 alcanzara o excedera los objetivos de
rendimiento para redes digitales de un SLIP o menos por cada cinco horas, como
lo especifica BELLCORE (TA-NPL-000436).

La red TELINOR requerira sincronizacion de reloj punto-a-punto para su correcta
operacion, esto requerira que todos los relojes usados en cualquier equipo
dentro de la red seran controlados por una unica fuente de referencia de reloj
maestro.

                                       4

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